Why jingdong and kyushu tong break? Alleged breach for control

(editor: liu)

the so-called “win-win co-operation” eventually were dashed. Because real strong, don’t need teamed up with other people, the majority of the partners the devil is in the heart, properly but not a contradiction then broke out.

on jingdong cooperation with kyushu through case, this very well.

recently, kyushu announcement said, jingdong mall will be transferred to kyushu 49% stockholder owns good medicine, after the transfer of jingdong mall is no longer hold good medicine. At this point, formal cooperation.

two years ago, jingdong and kyushu high-profile marriage, the two sides set up a joint venture to build medical electric business platform; Two years later, the two were forced to break up. During, also many rumors of cooperation.

has little & company in the domestic Internet industry, two years is not long. What is the reason the steps of fetter the continue cooperation?

“proprietary” violation of the agreement?

long-term consideration, based on the platform strategy in July 2011, jingdong under category expansion of overall strategy, decided to enter the medical category, and launched some products business on its own. But as the country for the online medical supervision enhancement, unlicensed operation of jingdong, forced to kyushu through its network of good medicine for capital increase, build good jingdong medicine network. The kyushu 51% of the shares, jingdong account for 49% of the shares. Kyushu tong also want to borrow the jingdong at that time do big electric business platform. Jingdong bypass qualification for relevant licence.

from the point of view, jingdong resource and kyushu electric business platform of traditional medicine logistics channels, can form the resource advantage complementary to each other, to jointly create a medicine niche vertical electric business platform.

after the cooperation, Beijing dongping stage finally can sale drug class, fair and square and good for jingdong medicine net import flow. However, in the cooperation, both sides will first planted the seeds of “contradiction”, proprietary trading that is jingdong are still doing, before cooperation with kyushu tong, jingdong began selling medical equipment, health products, contraceptive, contact lenses, and other products, the overall layout of opportunity in the process of the management idea of “proprietary + platform”.

at the time of the cooperation agreement in the “commitment” business conflict clause wrote: “in addition to the good medicine, kyushu promises and ensure the kyushu and its associated companies, no longer be in the name of their own or other application B T C O the Internet drug trading services qualification, no longer B T O C through Internet business model in the agreed product business, and not through online 2 C B business website with party B the same all or part of the business. Beijing jingdong visit hk land not degrees electronic commerce co., LTD., commitment, in addition to good medicine, make sure you and its subordinate branches and their associated companies are no longer on jingdong mall in the name of their own or other web sites or other e-commerce site the agreed products B T O C business.”

in accordance with this agreement, the two sides after the cooperation, jingdong medicine proprietary shall not through proprietary or other way with jingdong good medicine. However, jingdong is in violation of this agreement, “treachery” chose to continue to operate. However, at present, jingdong aspect has not been said of the deal.

can be found by looking at the jingdong good pharmacists website, medical equipment and health food products occupy a considerable proportion of sales, this means that after the joint venture, jingdong good pharmacist platform emerged in the competition with jingdong platform between the “stuff”.

this is passing in kyushu. Thus, the two sides formed and intensified contradictions.


in the joint venture company, kyushu with more than half of the shares held three of five board seats, in addition to the CEO assign jingdong, chairman and chief financial officer of kyushu in assigned, which means that kyushu occupied control. Jingdong stationed CEO Cui Wei, voice is relatively weak.

at the time, some analysts pointed out that on the cooperation, I was out of jingdong resources more, because the electricity is the most important traffic, jingdong out flow, system, and the subsequent liquidity, but jingdong not a controlling stake. May be in the “unbalanced”, jingdong appeared not in accordance with the agreement on cooperation. This also gradually derived the following strategic differences.

in fact, at the beginning of the cooperation stage, the performance is not bad. Jingdong medicine CEO Cui Weiceng open to the media, said jingdong good medicine online in less than a year turnover of nearly one hundred million yuan, the average monthly sales growth was 20%, and the daily orders up to 10000.

but the performance is better also can cause more problems, that is the expansion of the interests, contradiction and plan. ,

in November 2012, in jingdong’s home page, good medicine web links quietly disappear, which to a certain extent, lowered the flow of good medicine platform import. Then, in good medicine website LOGO, jingdong has been erased. Both sides of the conflict is already open.

earlier this year, the daily economic news in a report quoted a pharmaceuticals, according to people familiar with the expression may be performance and good prospects, jingdong, want to ask for a controlling stake of the joint venture, but the two sides failed to wind up.

in addition, jingdong and kyushu rather then the typical representative of Internet and traditional enterprise, the enterprise culture and management idea is the “gene” conflict. In this context, jingdong for medicine very wary of electricity. Therefore, in the case of failing to master joint venture platform control, also dare not rashly into too many resources.

therefore, jingdong made a second string to his bow. At the beginning of this year and kyushu relations soured after, they have set up wholly-owned subsidiary of jingdong medicine electric business platform, jingdong medicine city, jingdong good pharmacist before CEO Cui Wei or CEO, will become jingdong medicine city. Can foresee a future is, on the electric business platform of jingdong, jingdong proprietary jingdong medicine city, and as a customer of good medicine health museum, from PK.

however, due to launch in July of jingdong medicine city is still not as planned. Due to business online pharmacies need to have a series of procedures: one is a entity retail pharmacies, 2 it is to have a combination of the Internet drug information service certificate and “Internet drug trading services qualification” double certificate. And jingdong mall only the Internet drug information service certificate, there is no entity drugstore, no Internet drug trading services qualification. In addition, the state drug administration to mid-august actions rectify online pharmacies, it also plans to produce certain effect of jingdong.