When Ma Yunhua acquired RT-Mart for 40 billion yuan, he never expected that the result would be like this

Tech 2023-05-25 11:33:58 Source: Network

On May 31, 2021, Alibaba Group announced that it would acquire China's largest supermarket chain, RT-Mart, for 40 billion RMB, becoming one of the largest transactions in the history of the Chinese retail market.At that time, people had high hopes for this transaction, believing that it would become another combination of the Internet and traditional retail, promoting the comprehensive upgrading of China's retail industry

On May 31, 2021, Alibaba Group announced that it would acquire China's largest supermarket chain, RT-Mart, for 40 billion RMB, becoming one of the largest transactions in the history of the Chinese retail market.At that time, people had high hopes for this transaction, believing that it would become another combination of the Internet and traditional retail, promoting the comprehensive upgrading of China's retail industry.

However, now that nearly two years have passed, the results have surprised people,RT Mart's performance has not improved, even more sluggish.What is the matter, Jack Ma spent so much money on acquiring RT-Mart, but did not achieve the expected results?

Why did Jack Ma acquire RT-Mart?

Firstly, let's take a look at the situation of RT-Mart. Established in 1998, RT-Mart was once a leading enterprise in China's chain retail industry, but in recent years it has gradually lost its competitiveness.RT Mart has always been using a low-priced and popular business strategy to attract customers, but it is unable to cope with the impact of emerging e-commerce.

Due to the maturity and popularity of emerging e-commerce platforms, consumers have become more inclined towards convenient and discounted e-commerce shopping models, while traditional supermarket models have become increasingly outdated and unattractive.When facing the challenges of emerging e-commerce platforms, RT-Mart did not adapt to the market in a timely manner, nor did it keep up with trends, lacking competitiveness, while Alibaba is a major emerging e-commerce platform.

Jack Ma and Alibaba's acquisition of RT-Mart can be achieved through a better combination of online and offline platforms, and with the optimization of the RT-Mart brand, Alibaba's ecosystem will definitely become more complete.In WeChat's circle of friends, there are often many people who cheerfully praise, "This will definitely be a major event that will revolutionize China's retail industryHowever, the development of the matter ultimately proved that their imagination and expectations were shattered.

Why is the acquisition of RT-Mart not ideal?

Before acquiring RT-Mart, Alibaba invested a large amount of funds and resources, leading China's e-commerce boom and occupying a dominant position in competition with JD, Mogujie, and Pinduoduo.In addition, Alibaba is constantly innovating in social media and mobile payments, possessing a large amount of user data and ecosystem.

This competitive advantage has enabled Alibaba Group to occupy a 32% market share in the Chinese retail industry, becoming the fastest and largest enterprise and brand in terms of market share.In this context, Alibaba hopes to combine the acquisition of RT-Mart with the existing online retail model, occupy more market share, and enter offline fields such as community life.

Meanwhile, in the supply chain of food, home furnishings, and other daily consumer goods, Alibaba hopes to leverage RT-Mart's existing retail capabilities and production resources to expand more sales channels and further consolidate its e-commerce platform.

However, after the acquisition, Jack Ma and Alibaba overlooked one issue:The brand image and role of RT-Mart

Considering the actual situation of RT-Mart,

In Alibaba's financial report, they specifically discussed the integration of the two and stated that

epilogue

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