#Laogao E-commerce Newsletter# [November 19 E-commerce Morning News] Alibaba will end the subscription of new stocks for potential institutional investors in advance; Hurun’s latest unicorn list is released, and Baiguoyuan becomes the only fruit new retail company on the list; Ren Zhengfei talks about Huawei’s Double Eleven: The supply chain refuses to lower prices because 10 million units are not enough to sell; news says Baidu continues to send red envelopes during the 2020 Spring Festival, with an amount of hundreds of millions of yuan; Zhang Yiming’s internal memo exposed: TikTok cannot be popular in the United States...
E-commerce newsletter
1. Alibaba will end its new stock subscription for potential institutional investors in advance
According to foreign media reports, two people familiar with the matter revealed that as part of Alibaba's plan to list $13.4 billion in Hong Kong, Alibaba will end its new share subscription to potential institutional investors in advance.
The subscription will end at 12 p.m. ET on Tuesday, half a day ahead of the initial plan by the Chinese e-commerce giant and its investment banking advisers.
Sources said the company made a decision on Monday and the final price will still be set on Wednesday night Hong Kong time.
The early closing of subscription means Alibaba's closing price in New York on Monday will be a benchmark for the final price institutional investors need to pay to buy their Hong Kong stocks. (Tencent Technology)
2. Hurun’s latest unicorn list is released, Baiguoyuan becomes the only new fruit retail company on the list
On November 18, Hurun Research Institute recently officially released the "Hurun Greater China Unicorn Index for the Third Quarter of 2019". The list combines the definition of unicorns in the capital market to screen out outstanding companies with external financing and a valuation of over one billion US dollars. Baiguoyuan is the only fruit new retail company on the list. On the just-passed Double 11, Baiguoyuan achieved a year-on-year growth of 70% on the same day.
Since the strategic merger of Yimixian in 2016, Baiguoyuan has built the largest fruit fresh pickup network in the country with more than 4,000 community stores nationwide as a base and relying on the integrated online and offline platforms. In addition, Baiguoyuan has also built omni-channel contact points for Baiguoyuan App, third-party takeaway platform, WeChat official account and mini programs online.
In addition to stores, Baiguoyuan is actually involved in the entire fruit industry chain and ecosystem. It has formed a planting technical team of nearly 300 people with a joint system enterprise and Youguolian, and has created multiple fruit brand categories.
Baiguoyuan still has a lot of room for growth. Compared with other retail formats, community fruit fresh food has the characteristics of high consumption frequency, high quality and stable user price, such as Baiguoyuan's transactions in 2018 have exceeded 300 million people. From the perspective of the entire fruit fresh food market, the scale of the fruit retail market is a trillion-level market. Baiguoyuan now has only 1% of the market share, and there is at least 5-10 times the growth space. (Chuangyebang)
3. Shentong's express service business revenue in October was 1.98 billion yuan, an increase of 19.44% year-on-year
On November 18, Shentong Express (002468.SZ) issued an announcement stating that the express service business revenue in October was 1.98 billion yuan, a year-on-year increase of 19.44%; the business volume was 702 million tickets, a year-on-year increase of 37.38%; the express service ticket revenue was 2.82 yuan, a year-on-year decrease of 13.23%.
Shentong Express said that driven by favorable factors such as the continued growth of the e-commerce industry and the continuous improvement of the company's service quality, the company's express business volume in October 2019 increased by 37.38% year-on-year, and drove a year-on-year increase of express service revenue by 19.44%. (Titanium Media)
4. Ren Zhengfei talks about Huawei's Double Eleven: Supply chain refuses to cut prices because 10 million units are not enough to sell
According to November 18, Huawei Xinsheng Community recently released the roundtable minutes of Ren Zhengfei's German media on November 6. Ren Zhengfei said that Huawei is currently in short supply and is mobilizing Chinese customers to buy less and supply foreign customers first. He also suggested that the terminal company make less money before Double Eleven, but the terminal company agreed, but the supply chain did not agree, because he only prepared 10 million units in total, and was afraid that the goods would not be delivered after the price was reduced. (Tencent News)
5. Yunda’s express delivery service business revenue in October was 2.802 billion yuan, an increase of 149.96% year-on-year
According to news on November 18, Yunda Co., Ltd. announced that the express service business revenue in October was 2.802 billion yuan, a year-on-year increase of 149.96%; the business volume was 865 million tickets, a year-on-year increase of 30.27%; the express service single ticket revenue was 3.24 yuan, a year-on-year increase of 91.72%. Driven by favorable factors such as the continued prosperity of the e-commerce economy and the improvement of company service levels. (Yibang Power)
Internet news
6. Amazon launches free streaming music service, Spotify stock falls 5%
Amazon said on Monday that its music streaming service Amazon Music has launched an ad-supported free version, competing with rival Spotify Technology, which has nearly 140 million users.
Amazon's music service previously started at $9.99 per month subscription, which is part of its Prime membership service. The company launched a free version of its music service on its Echo device in September for Alexa users.
Spotify is the world's most popular music streaming service, and it adopts a "free value-added" model that includes a free ad-supported version as well as a paid ad-free version, which costs $9.99 per month.
Although Apple's Apple Music only offers a paid subscription service of $9.99 per month, it accounts for almost one-fifth of the paid music streaming market, according to Counterpoint Research.
Amazon shares rose nearly 0.5% on Monday, while rival Spotify fell about 5%. (Sina Technology)
7. Li Guoqing invested in a blockchain search engine, and his "companions" include 360 and Youzu Network
On November 18, Changsha Midu Smart Information Technology Co., Ltd. has undergone industrial and commercial changes recently, with 100% of the shares held by Shenzhen Midu Information Technology Co., Ltd., adding 4 new shareholders, including Li Guoqing's Suqian Guoluo Enterprise Management Consulting Partnership. At the same time, equity penetration shows that 360 and Youzu Network indirectly hold stakes in Shenzhen Midu Information Technology Co., Ltd., which develops a blockchain search engine called "Midu". (Science and Technology Innovation Board Daily)
8. News says Baidu continues to send red envelopes during the 2020 Spring Festival, with an amount of hundreds of millions of yuan
According to people familiar with the matter, as a partner of the CCTV Spring Festival Gala red envelope interaction last year, Baidu will continue to launch the "Good Luck China Year" operation activity this year, and the amount of red envelopes will still reach hundreds of millions of yuan. A project team has been established.
It is revealed that Baidu App will continue to lead Baidu's major apps to send red envelopes together. Not only can users receive red envelopes, but more interesting ways to play this year's "Good Luck Chinese New Year". (interface)
9. Zhang Yiming’s internal memo was exposed: TikTok cannot be popular in the United States only
On November 18, an internal staff memo showed that Zhang Yiming, founder and CEO of ByteDance, will focus on increasing users for TikTok overseas version of TikTok outside the strongest market. TikTok is currently very popular in the United States, but it is also facing regulatory pressure in the country.
Zhang Yiming's memo sets goals for ByteDance's performance in November and December.
"Continue to expand the diversity of TikTok's growth," Zhang Yiming said in the memorandum written in Chinese and English, "increase investment in weaker markets." He did not mention the pressure TikTok faces in the United States, but urged TikTok to improve its ability to "handle global public affairs" and strengthen its protection of user data.
He also mentioned other ByteDance applications in this short memo, such as TikTok and Toutiao. Both TikTok and Toutiao generate revenue from advertising and compete with Tencent and Baidu. Zhang Yiming said that Toutiao’s goal is to improve “commercialization efficiency” and urge employees to continue to invest a lot of efforts on TikTok to expand its advantage leading the opponent.
ByteDance has not commented yet. (Phoenix Technology)
Cross-border newsletter
10. 11street and the American e-commerce iHerb jointly develop their own brand products to explore the Korean market
Recently, 11street announced a partnership with the US e-commerce iHerb Shopping. The two parties will jointly develop the health and health food market in South Korea, and use 11street's local advantages to develop products to help iHerb expand its footprint in the Korean market.
Currently, all iHerb's products shipped to South Korea are delivered through a distribution center in California, and its partnership with 11street will also serve as a bridge for its growing customer base in South Korea. (Hugo.com)
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