Spin-off business listing seems to have become commonplace for retail giants. On October 11, Gome Retail issued an announcement that it will provide management services to the five controlling shareholders of the company, and expects that the five companies will increase the scale of transactions for Gome Retail. At the same time, some businesses in the electrical supply chain may be split and capitalized. Looking at the retail circle, companies have split up infrastructure, sub-business and other sectors to achieve expansion in the capital market. From the perspective of industry insiders, retail companies should be based on entities and focus more on entity transformation in order to seek faster performance growth.
Prepare for business spin-off
Since the return of the founder, Gome has continuously announced new strategies. The Noon Announcement of Gome Retail shows that the company will provide management services for the controlling shareholder Gome Home, Dresser, Gome Cellar, Shared Co-construction, and Anxun Logistics. The target company is expected to bring more than one trillion yuan to Gome Retail in the next few years. The increase in transaction scale is conducive to the mature development of various strategic business segments.
The announcement also mentioned that when the time is right, the company will consider splitting the electrical supply chain from the company and conduct independent capital operations. For more details on Gome’s new retail strategy, a reporter from Beijing Business Daily contacted the relevant person in charge of Beijing Gome. As of press time, the person in charge did not give more response.
Gome has laid the groundwork for the voice of this “spun-off”. On the eve of National Day, Gome officially announced the upgrade of Anxun Logistics. In early July, Gome Retail upgraded the original “flash store delivery” business to strengthen express delivery services. Many opinions in the industry have pointed out that “Axun Logistics is really doing express delivery.” In April of this year, Gome acquired 80% of the shares of Dresser. Dresser also proposed a three-year business goal of 500 billion yuan this year.
In addition, on the eve of “8·18”, Gome released a brand-new App “Discount Up”, hoping to establish a chain for merchants to acquire customers, establish private domain traffic demand and users’ preferential shopping. This move is seen as Gome’s efforts to e-commerce, competing for third-party business resources, and attacking new buyers, perhaps Gome can take this to make a comeback in the field of e-commerce.
The above signs are not difficult to see Gome’s expectations for the commercialization of independent businesses.
Increase capital recognition
In the competition in the capital market, retail and e-commerce companies are particularly busy. Alibaba’s film and health companies are successively listed; after the spin-off of logistics and health, JD.com will promote independent business to the Hong Kong stock market… with peers taking action, retail companies seek to go public and seek over-valuation through spin-offs Value has become commonplace. A stock analyst said that the spin-off and listing can increase the financing channels of listed companies, optimize the overall financial structure of the parent group, and increase the recognition of the capital market.
A reporter from Beijing Business Daily observed that before JD Health went public, the peak price per share of JD.com (US stocks) was US$92.77. After JD Health went public, as of now, the peak price per share of JD.com (US stocks) is $108.29.
As of October 11, Gome Retail was 0.86 yuan per share, with a total market value of 29.03 billion yuan. This market value is not a small gap compared to listed companies such as JD.com, Alibaba, and Suning.com. It would be a good way to increase the valuation of the capital market by splitting the business.
At the same time, when retail companies are involved in medical and health, services and other businesses, Gome is also looking for more advantages to cope with the containment of competing products. Gome’s old rival Suning Tesco is trying to open up its supply chain and system to quickly cover the offline market. In the ups and downs of the retail market, Gome still needs to explore and find its position.
Previously, Gome stated that it “recovered its original domestic market position in 18 months.” Today, Gome’s frequent deployment in the e-commerce field makes it no longer implicit in its competition with e-commerce platforms such as Taobao, Tmall, JD, and Pinduoduo. In the new round of competition, many businesses have also entered the stage of intensive cultivation.
Stimulate the vitality of each business
While Gome hopes to seek high market value through its business lines, some points of view point out that retail companies should be based on the physical giants and should focus more on physical transformation to achieve greater performance growth.
Senior industrial economic observer Liang Zhenpeng said that Gome has more than 3,400 physical stores across the country, has a complete national distributed logistics system, complete and systematic supply chain capabilities, “home-to-home” post-service capabilities, and rapidly growing community operations. ability. With the formation of high-frequency stimulation of the Gome community by non-home appliances, it will further enhance the user activity of the Gome community and realize the further expansion of the community scale.
At the same time, with the development of independent business, sub-business will also face the test of the market. In particular, Anxun Logistics, which is regarded as a high-quality asset by the outside world, how does it start in the current fierce battle in the e-commerce logistics market? Gui Haoming, chief market expert of Shenwan Research Institute, said that the express delivery industry has entered a period of oligopoly. In order to further seize market share, major express companies have launched all-round competition. “The competition of express delivery should be shifted to focus on quality, service, and convenience. , Attract customers to cooperate, and realize a virtuous circle of business operations.”
Beijing Commercial Daily reporter Wang WeiyiReturn to Sohu to see more
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