Dangdang Drops Acquisition Talks
National Business Daily, 8/13/09
Co-president Li Guoqing of Chinese online retailer Dangdang said today that the company's acquisition talks with foreign investors had fallen through, and that Dangdang has no short term plan to sell the company, and has no need of new funding at the moment. In June, Li had said that Dangdang would not consider a sale for anything less than USD 1 bln within the next three years.
Li Guoqing revealed that during H1 of this year, Dangdang claimed a 15% share of the book sale market. Dangdang's other offerings - clothing, small consumer electronics, and childcare products, among others - account for only 15% of the retailer's sales revenue. At present, 10% of Dangdang's sales are based on a "store delivery" model under which retailers who have passed review and certification, and paid Dangdang a deposit, can conduct transactions with Dangdang users and make direct deliveries of products ordered; Dangdang processes the online payment and takes a sales commission of 1% for mobile phones and 2%-4% for other products.
Li said Dangdang will discuss listing closer towards the end of the year, with an eye to listing on the Hong Kong market or domestic A-shares market.
Keywords: market share Li Guoqing Internet Dangdang e-commerce IPO M&A B2C
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