Rumor: Ping An Acquires 80% of Shanghai B2C Site
National Business Daily, 4/14/10
A source close to the investment banking industry revealed that Chinese insurance provider Ping An Group has acquired approximately 80% of Shanghai-based B2C website Yihaodian (meaning "Number 1 Store") for an undisclosed sum.
Sheng Ruisheng, a spokesperson for the Ping An Group, declined to comment on the rumor, and a spokesperson for Yihaodian said they were looking into the matter.
A source at the Ping An Insurance Company in Shanghai said he had heard a colleague mention the acquisition, but was unclear on whether it involved Ping An Insurance, Ping An Trust, or Ping An Bank, though he had heard that Ping An had looked to Yihaodian to expand its insurance client base. The source revealed that Ping An has relatively few network points, meaning higher costs to the company to attract clients. If Ping An were able to analyze and categorize a website's user base, it could provide a more finely targeted method of attracting clients. The source said that B2C e-commerce sites like Yihaodian are not expensive, and that their customer base overlaps with Ping An's clientele. He speculated that the two companies could simply partner on shopping channels.
Among the "recommended links" on Yihaodian are links to Ping An's points-for-prizes platform Wanlitong.com, as well as a link to JKToon.com, the website for the insurance group's "checkup card." Wanlitong.com, meanwhile, lists Yihaodian as one of its partners. A customer service representative from Yihaodian said that holders of Ping An bank cards can make purchases at Yihaodian using their card points, and will also enjoy special discounts.
Yihaodian was founded in 2008 and received funding from three organizations. China's Ministry of Industry and Information Technology (MIIT) site registration information states that the site has the Shanghai-registered ICP number 08008885, which also belongs to JKToon.com - the site for the Ping An Group's checkup card.
Wang Yi, marketing director for Yihaodian, confirmed that Yihaodian and Ping An have "an extraordinary strategic partnership," under which Yihaodian delivers policies for Ping An. Wang said that the company's logistics and delivery team includes specially selected staff reserved for Ping An. Requirements for these employees are higher: they must be Shanghai locals who are familiar with the industry, as policies frequently involve fairly large sums of money, and although the company provides mobile point-of-sale machines for home delivery service, payment collection and refunds are entrusted only to trusted staff. Some of the delivery staff also receive special training in order to better answer customers' questions and provide advice on policies.
Keywords: Ping An Insurance Yihaodian Sheng Ruisheng Wang Yi e-commerce insurance Internet B2C M&A
Sending
