Source/Jingdong
One wrong step, one wrong step, describing the layout of the Jingdong tourism industry is more than suitable, although the Jingdong now mark up the tourism industry, but it is facing the form has changed radically, not to mention catch up with the flying pig, beyond the same period of Ctrip and other competitors, the Jingdong Tourism may be faced with Pinduoduo such as the rookies, if Pinduoduo strategy has changed, Jingdong It is increasingly difficult to travel.
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Investment in Toutiao loss of 2.7 billion yuan
June 24, 2014, Jingdong focus on "quality tourism" travel channel new on-line, will be aimed at high-end people to provide air tickets, hotels, visas, vacations, attractions and car rentals, etc., and in the future, through the analysis of user habits to create a The newest addition to the list is a new, one-stop shop for travel services, including quality travel routes and packages.
"Quality travel" on the line, Jingdong in six months after another round of action.
December 16, Jingdong strategic investment of 50 million U.S. dollars into the Toutiao travel network, and reached a cooperation with Toutiao on a cruise business, when Jingdong responded to the outside world, sure that Toutiao existing business model, product strategy and management team will make Toutiao become an industry leader.
Another six months or so later, on May 8, 2015, Jingdong announced its Q1 results report with the bombshell message that it would further strengthen its partnership with Toutiao by subscribing to Toutiao's shares for $350 million and becoming its largest shareholder.
The $350 million includes $250 million in cash and $100 million in resources and operational support for Toutiao, which will get the exclusive commission-free right to operate Jingdong's travel-vacation channel for 5 years on both the website and the mobile side, and Jingdong will also provide Toutiao with big data, financial services, traffic and other operational resources.
Source/Tuniu
Why is Jingdong so obsessed with the travel industry, with $400 million in losses to TUNI?
First of all, along with the continuous improvement of people's living standards, the demand for tourism industry will be more and more huge, so the industrial opportunity is very rare, that is, the future of tourism industry is very bright.
Secondly, the development of the standard product e-commerce has been from the high-speed development to the smooth development period, but the semi-standard product, non-standard product-based life service e-commerce of the golden period has just begun, and the travel O2O obviously belongs to this category.
Finally, the tourism industry is not just a line so simple, it involves "food, accommodation, travel, purchase and entertainment" six areas, in-depth life services in all sectors, this point and the positioning of Jingdong is closely linked. By importing Toutiao's existing products and services into the Jingdong platform, it will help to further satisfy consumers' life needs, enhance Jingdong's user stickiness, and strengthen and accelerate Jingdong's traffic cash flow ability.
There is a saying that comments Jingdong: related to life services, Jingdong can do.
Since it wants to expand to the tourism industry, Jingdong's Liu Qiangdong will certainly not be satisfied with Toutiao's status as the largest shareholder, to increase the size of the holding Toutiao is predictable, so there is a follow-up "scandal". 2018, a number of media rumors about the Jingdong proposed to buy 2.8 billion yuan of information, since it is the first time in the history of the company. The information of Toutiao, since it is "gossip", the two sides must be denied, and ultimately the acquisition is no more.
But time finance from Toutiao insiders learned that "Jingdong had proposed 2.8 billion yuan to acquire Toutiao, but due to the Toutiao founding team, the views could not reach agreement, which ultimately led to the abortion of the invitation program".
The acquisition news was confirmed by Jingdong insiders, according to its disclosure, when Jingdong put forward two acquisition plans, one is 2.8 billion yuan to acquire all the business of Toutiao, the other is 200 to 300 million yuan only to acquire Toutiao's air tickets + hotels business, do not want it to cowman line and other vacation products business.
It is understood that the purpose of the Jingdong only want to acquire Toutiao air tickets + hotel business, because this business and Jingdong's e-commerce attributes are very compatible, in favor of the Jingdong flow of further realization and better service Jingdong original users.
After the failed acquisition, Jingdong did not give up on this market for the tourism industry, but set up a company of its own to use it as a carrier to better develop the tourism business.
April 8, 2019, Beijing Jingdong Century Trade Co., Ltd. newly established a Beijing Jingdong Yunhe Travel Agency Co., Ltd. Jingdong 001 employee Zhang Qi as the company's legal person, executive director, manager, etc., the scope of business involves tourism consulting, inbound tourism business, domestic tourism business. The outside world has speculated that Jingdong's move is to make the travel business independent.
It is worth pointing out that Jingdong invested in the Toutiao loss of a mess.
The financial report shows that Toutiao's net revenue in 2019 was 2.3 billion yuan, an increase of 1.8% year-on-year; the net loss attributable to common shareholders was 699.2 million yuan, and the net loss in 2018 was 187.9 million yuan, an expansion of 272.11% of the net loss. In addition, as of April 29, Toutiao's share price plummeted from a peak of $24.99 per share to $0.725 per share now, with a market capitalization of $101 million.
As of December 31, 2019, Jingdong still holds about 21.2% of the shares of Toutiao, invested $400 million, and now 21% of the shares are valued at $0.21 billion, which means that Jingdong's investment in Toutiao has lost $379 million, which translates into a loss of about 2.7 billion yuan, It has to be said that Jingdong has lost a lot of money on this investment.
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again hand in hand with Caesar's, continue to increase
loss on loss, for the Jingdong this kind of rich and powerful e-commerce platform, a moment of loss is nothing, since the optimism of the tourism industry prospects, then continue to invest in the inevitable, but I believe that the shrewd Liu will not be in the same place to fall down twice, after all, in the same place! The first time I fell down is ignorance, fell down twice is retarded.
On April 25, A-share listed company Caesar's travel industry intends to raise no more than 1.16 billion yuan of matching funds through a non-public offering of shares, used to replenish liquidity, non-public offering objects include Wenyuan Fund, Suqian Hanbang, Huaxia Life, Shanghai Richeng, Qingdao Haotian and signed a strategic cooperation agreement with these companies.
It is worth pointing out that, Suqian Hanbang subscription amount is the most, for 450 million yuan, subscription ratio as high as 38.79%, and its wholly owned subsidiary of the Jingdong Group, is responsible for foreign investment matters, the actual controller is Liu Qiangdong, which means that the Jingdong on the tourism industry once again out of the heavy hand.
Source/Caesar Announcement
It is reported that Caesar's travel industry was founded in 1993, and it has more than 20,000 high-end tourism products covering more than 120 countries and regions around the world and serving different groups of people, and it has the leading edge in the industry in terms of outbound tours, inbound tours, and domestic tours.
According to the strategic cooperation agreement signed between Jingdong and Caesar, Caesar will incorporate its travel products and consumer products into the secondary channel "Business Travel" on Jingdong's travel channel, which includes providing Jingdong users, employees, and partners with quality products and services, such as high-end business travel, official travel, duty-free merchandise purchasing, customized meals, and inbound and outbound financial services. The company also provides quality products and related consulting services, such as domestic and international financial services.
The term of cooperation between the two parties is two years, during which both parties will utilize their respective strengths, including products, service experience, brand value and resource advantages, etc., to ****together explore the marketing model of "Internet + stores", Caesar Travel can utilize the channel resources of Jingdong's online platform to expand its own market space, and Jingdong will utilize the advantages of Caesar Travel to enhance the user experience by utilizing Caesar Travel's offline stores to enhance the user experience. The advantage of offline stores to enhance the confidence of users.
As a matter of fact, the cooperation between Jingdong and Caesar's travel industry can be traced back to 2015, when Caesar's travel industry entered into a strategic cooperation with Jingdong on May 29th, and officially became the first strategic partner of its mobile social e-commerce platform, "Pai Pai", with the first phase of more than 300 travel consultants from Caesar's travel industry's retail department and professional travel consultants. The first phase of more than 300 professional travel consultants from Caesar's retail department have already been stationed.
Source/Caissa
Jingdong is once again partnering with Caesar's travel industry, on the one hand, and on the other hand, it's looking for change.
Caesars Travel's capital pressure is greater, Jingdong's capital injection greatly alleviates its financial problems, which is the most important, and Jingdong also needs to be supported by more high-quality products and services, to further serve Jingdong users, so the two sides hit it off.
In the face of the rapid development of the times, purely online or offline has been insufficient to meet the ever-changing consumer demand, looking for a point of convergence, so that the combination of online and offline, and how to better meet the needs of consumers, is that all the companies should think about a problem, and to put into practice, although this is not necessarily successful, but if you do not try to change!
As Dong Mingzhu said: over time, online and offline has been a new consumer model, it does not exist offline to play online, online to play offline, just a faster way for us to let consumers feel the convenience of this mode of operation is the most important to them.
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The challenges faced by Jingdong
The previous section has said that the tourism industry has a bright future, so how bright is this industry? Here's some data to illustrate.
In 2019, the comprehensive contribution of the tourism industry to China's GDP was 10.94 trillion yuan, accounting for 11.05% of the total GDP, which continues to maintain a growth rate higher than that of GDP, and has become a strategic pillar industry in China.
According to the "Basic Situation of Tourism Market in 2019" released by the China Tourism Research Institute, in the whole year of 2019, the number of domestic tourists in China was 6.006 billion, an increase of 8.4% compared with the same period of the previous year; the total number of inbound and outbound tourists was 300 million, an increase of 3.1% year on year. The number of domestic and foreign tourists has been growing.
It is worth pointing out that in recent years, with the increase in people's income level, the people's demand for material and cultural needs has been increasing, and the demand for personalized and distinctive tourism products and services has become increasingly high, with the trend of quality and high-end tourism demand becoming more and more obvious.
The future is bright, and there's no doubt about it.
But this also means that there will be a lot of Internet companies want to share this big piece of cake, known as Ali's Flying Pig, Baidu's investment in Ctrip, and Tencent's investment in the Hornet's Nest, so the advantages of Jingdong geometry? Can you compete with these companies?
Although the layout of the Jingdong tourism industry for a long time, but because of the investment in Toutiao strategic mistakes, resulting in now in a relatively embarrassing situation, that is, what people say every day hanging tail, which is the Jingdong once again hand in hand with Caesar's travel an important factor that can not be ignored, because Caesar's travel industry's main products that is for outbound travel, for high-end consumer groups to build and relatively high quality.
I compared the price of Caesar's European tour with that of Toutiao, and found that Caesar's price is much higher than Toutiao's. Toutiao's Spain and Portugal tour price is 9204 yuan, while Caesar's price is 17,899 yuan, and Toutiao's France-Italy-Switzerland tour price is 14,507 yuan, while Caesar's price is 20,988 yuan.
Source / Caesar, Toutiao
Compared to pure e-commerce, brick-and-mortar stores and its main difference is that once a problem arises, you can find the first time to deal with the sales, while the e-commerce processing speed is relatively slow, for high-end consumers, compared to the price, more important is the team's professional services, and for this reason are willing to pay a certain amount of service costs. After all, no one would want to make their journey a disappointing one because of the price.
Positioned the high-end consumer crowd, and joint Caesar Travel launched high-end travel services, Jingdong's step can be said to be one step closer to success, according to the retail research center of Lianshang.com, in 2019, the number of Jingdong's annual active buyers 362 million.
High-end users have, and the introduction of better travel products and services, Jingdong's travel business to get further development is predictable, but its competitors are not vegetarian.
Taking Ctrip as an example, Ctrip's annual gross transaction value (GMV) reached 865 billion yuan in 2019, up 19% year-on-year, continuing to lead the global online travel market. Full-year net operating income was 35.7 billion yuan, up 15% year-on-year. Operating profit for the year increased 94% year-over-year to RMB 5 billion. Total market capitalization of $14.51 billion, market value equivalent to 145 Toutiao.
Taking Ali Flying Pig as an example, relying on the strong user base of Ali's large ecosystem, Flying Pig has soared in recent years, according to Zhang Yong, Chairman and CEO of Alibaba Group, Flying Pig's strengths cover the three major aspects of users, payment, data, and so on.
In 2019, the Chinese annual consumption users of the Ali economy have exceeded 700 million, and the annual payment users have been more than 900 million, which brings huge traffic for Flying Pig, and also brings a lot of online and offline digitization possibilities, in addition, every consumption and every order brings the accumulation of digitization, forming incremental data assets.
Source / Pinduoduo
In addition to the layout of the Flying Pig, Ctrip, Jingdong Tourism may also have to be wary of e-commerce rookies - Pinduoduo.
In 2019, Pinduoduo has 585 million active buyers, much higher than Jingdong's annual active buyers of 362 million, and second only to Taobao's user data of more than 900 million. Although the rise of Pinduoduo is more of a shock to Taobao, the huge number of users also means a huge opportunity for realization.
Admittedly, Pinduoduo is mainly targeting the sinking market at the beginning, but with the launch of tens of billions of dollars in subsidies, the overlap between its users and Taobao has gradually soared, and Taobao has been in direct competition. In addition, when the e-commerce market from the incremental change to the stock market, Pinduoduo to retain the stock market at the same time, but also for the market for deep excavation, and the tourism industry is a pretty good choice.
The situation facing Jingdong Tourism can be described in one sentence: there are wolves in front of you and tigers behind you, and the situation is much worse than at the beginning of the layout of the tourism industry.
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