RedBaby in Integration Process After Suning Acquisiiton

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After being acquired by Suning.com four months ago, Chinese maternity-child vertical RedBaby has went through some restructure in an aim to integrate itself more closely into Suning’s platform, starting with a 15% layoff and a new head from Suning to rule over the entity.

Chen Shuang, the incumbent COO of RedBaby still runs the company’s daily operation, while other senior staffs might be replaced sonner or later.

The tie-up did benefit RedBaby from aspects like costs. For instance, courier costs of the company was brought down after it’s own warehousing and logistics service were baked into Suning’s. The integration are still in the progress, they’re looking to a thoroughly integration after Chinese New Year of 2013.

As for system architecture, snce Suning and Redbaby both adopt SAP’s solution, it’s easier to merge.

The sales figure of Redbaby in 2012 is RMB 1 billion, equivalent to that of 2011. An insider revealed that Suning was not quite satisfied with Redbaby’s performance. According to iResearch, in first half of 2012, Tmall and 360buy accounted for 47% and 11.4% respectively of Chinese B2C maternity-child sector while Redbaby only took 6.0%.