Every guest's internal and internal internal and internal, aging can hold?

Starting from the end of 2011, all kinds of rumors about the goods (hereinafter referred to as "every guest") have never been interrupted: senior management turnover, layoffs, capital chain break ... Recently, there are rumors that every customer huge losses, inventory backlog of up to 1.445 billion yuan. In addition, news of the departure of chief financial officer Zhu Jiwen, who cancelled the IPO plan, also appeared in the newspapers. For a time, every guest was pushed to the cusp of public opinion. And for the founder of every guest and C EO aging, the outside nature to ask, in this crisis, aging can hold?

From imitation to innovation

As a guest of the CEO, aged in the founder of every guest before, has been in the sea ups and downs for nearly ten years.

1997, aged to participate in the founder of the Great Book Club, and as the club member of the magazine "Good book" first editor. June 1998, the "Chinese book Business Newspaper" invited, the founder of the book Review Weekly. 2000, aged to participate in the creation of a network of excellence, is one of China's first foray into the field of E-commerce leader. February 2004, aged as vice president of Network Excellence, April 2005, aged from the outstanding network, founder I have a network. October 2007, aged founder of every guest.

Leaving the network of Excellence founder, Aging is as a copycat of PPG joined the apparel e-commerce field, in more than four years, the success of all the customers in the Chinese market, the performance of the leading apparel E-commerce enterprises.

In many public places, aging is not shy of the beginning of the establishment, it is indeed in imitation ppg.

In 2007, PPG's web site attracted years of attention, and he was determined to emulate the business model of selling middle-priced men's clothing through the Internet without stores and distributors. October 2007, where the customer on-line, sales of the main products and PPG is very similar to men's shirts.

Today, PPG has faded out of people's vision, and all the men's and women's clothing, clothing and other products of the annual sales have reached billions of yuan, become China's largest Internet apparel sales brand.

From the inception, where the customer to their own positioning is to build the Internet fast brand, in the industrial chain in all aspects of a great effort. On the one hand, customers follow the B 2C basic Network Direct marketing model, eliminating the entity stores and distributors related costs, to ensure the price advantage. On the other hand, where customers take the business model of light assets, the company focused on sales, product brand monitoring and brand building, relying on the back-end business to promote the development of the company and the entire industry.

From the model, where customers in accordance with the future or potential market demand, the development of a variety of clothing products, and then the customer through the call center or network orders, and finally through the logistics company to the customer's hands. By combining modern e-business model with traditional retailing, the company can differentiate itself from traditional channel distribution mode and adopt more optimized direct selling mode.

2010, every customer and a traditional mode of promotion of E-commerce, has invited Dan, Han, Xiaoming and Li Yuchun as the brand spokesperson, this is unique in the E-commerce industry. Dan and Han Chinese are both on the Internet or the target group strong appeal of the star characters, where the customer is regarded as the industry to associate Star Brand and every guest brand, increase the brand awareness and reputation of enterprises.

The hiss is beginning to fade

2011, the Electronic commerce encounters "The Winter", every guest also cannot be immune.

The company suffered huge losses in 2011, when the annual report of two overseas listed companies, Macaulay, showed a big loss. This is seen as domestic e-commerce enterprises encounter the "winter" the strongest signal. And the domestic many e-commerce sites have closed down, then let the industry an uproar. Shanghai's B 2C website large warehouse due to loss of shareholder confidence in the investment, in September 2011 declared business; September 29, the U.S. state apparel (002269, shares bar) also issued a notice, stripped of its electrical business, to the major shareholders care.

In this context, every guest is also "trouble" constantly. In the second half of 2011, where the customer has burst layoffs, IPO postponed, veteran leave, its courier companies such as Wind Tatsu began to receive a single message.

In September 2011, the News of a 5% layoffs, some in the industry said that the actual number of staff layoffs than disclosed figures, the purpose is to reduce costs and optimize the financial statements to prepare for the IPO. There is no positive response to this incident.

In May 2011, it was also reported that every guest will go to the U.S. IPO in the fourth quarter of 2011. However, the client who submitted the application on November 21, 2011 will not be able to start the IPO in accordance with the timetable. The postponement of the IPO sparked doubts about the capital chain, and later, in person, said that the company had received an F-round financing of 230 million dollars.

At the end of 2011, there are problems in the whole fund chain of the users. Due to the company's "crazy expansion of product line" In previous years, the inventory accumulation of customers is relatively serious, estimated at least a billion of. The net friend also said that the company's current staff annual wage expenditure of at least 500 million yuan, and where customers just financing 230 million U.S. dollars, staff wages accounted for 1/3. Every customer's sales are not enough to maintain marketing costs, the four-year cumulative deficit may exceed 2 billion yuan.

At the same time, where the customer's express companies such as Wind Tatsu, in the domestic many express companies face "burst warehouse", "No Break", but began to earn outside the company's Express. And its one of the reasons for the order is: where the orders of customers "feed not enough" such as wind up the transport capacity.

More to the company and the old headache is that several veterans have left.

At the beginning of 2012, the company CFO Zhu Jiwen six months after leaving the job. The industry believes this is a direct response to the company's top executives after abandoning its recent IPO. Prior to this, former President assistant Xu Xiaohui, former vice president Zhangxiaojun, and other senior executives left. To add insult to the blow, the nation's "where the object" planners, vice President Shengchang also left the van, to invest in Jingdong office.

Science and technology news founder Li Zhongcun pointed out that every customer expansion too fast, blindly pursue trading volume, the cost is too high, resulting in a customer now has about 30% of the overall gross margin can not get out of the loss.

In the industry, the current domestic to Beijing-east, Fank as the representative of the B 2C E-commerce Enterprises, there is a general loss, but in the promotion of venture capitalists, electric enterprises are still scrambling to burn money enclosure, through a huge amount of advertising to improve traffic, drive sales.

Internal

With the increasing of the electronic commerce market, more and more competitors are starting to enter the market, which will further aggravate the homogeneity competition. October 2011, Tencent announced the launch of "Q-Q online shopping" platform, and began trial in Guangdong. Suning Appliances (002024, shares bar) of the E-commerce channel Suning easy to buy on October 31, 2011 online book channel, and launched a large-scale promotional activities.

The study of the concept of Easy view, the current E-commerce overall market development is weak, mainly due to a number of factors: the capital market began to be cautious about the electric business projects, the risk and difficulty of the electronic business financing increased; The internet model of group buying led to a comprehensive upgrade of the marketing cost of the electric business, so that the business operators to operate snow Frost; the lack of innovative applications , so that the user's active degree is difficult to maintain.

In addition to the overall downturn in the business sector, customers are also facing their own problems. The first is the problem of loss.

According to a copy of the financial data disclosed by the media, to the fastest-growing 2011 fiscal Year (July 2010 to June 2011) as an example, where the customer in the current period to achieve sales revenue of 1.937 billion yuan (306 million U.S. dollars), compared with the last fiscal year 472 million yuan (74.59 million U.S. dollars) increased by 300%, but The net loss was also increased from $68 million (USD 10.745 million) in the previous fiscal year to $486 million ($ 76.872 million), up by more than 600% per cent.

According to the above financial data, in fiscal year 2011, a guest's "typical" order, the composition is roughly as follows: Customer Unit price 108 yuan, product cost 71.5 yuan, logistics cost 14.5 yuan, the cost of distribution to the marketing costs 26 yuan, other operating costs 23 yuan. In the current period, where the total number of orders for customers is 17.976 million, and each such order, to the customer brought about 27 yuan net loss.

Every customer 2011 fiscal year 33.7% Gross margin is not low, but high marketing costs, logistics costs, but let the company unbearable.

In the current period, the total marketing cost of customers is as high as 464 million yuan (73.347 million USD). Aged in an interview, said, where the outdoor ads play the most, but this is more for the brand to create, really to bring orders to customers, is search engines, Web sites, clients, video sites.

Take the "website alliance" as an example, each customer brings an order, and finally completes the transaction, will receive 16% commission. That is to say, if the order is 100 yuan, every customer will pay 16 yuan to the website alliance. July 2011, where the customer has announced that its cooperation with the Network Alliance Commission, will be lowered from 16% to 10%.

and return coupons, it is a customer to improve the user "two times purchase rate" one of the most important marketing means. This also greatly swallowed the gross margin of every guest.

Take every guest's "buy 200 yuan return 200 yuan" for example, user shopping after 200 yuan, can be given 4 50 Yuan gift card, when the next time the user shopping, if shopping full of 300 yuan, you can use a 50 Yuan gift card, direct deduction 50 yuan cash. Although, every guest's "two times purchase rate" thus can be improved, but this also means that the 300 yuan order, gross margin directly eaten about 17%.

Logistics distribution costs, is another big head of the cost of customer sales.

According to the introduction, 2010 every customer to pay such as wind up to the cost of about 10 yuan per order, every customer will only charge 5 yuan for the distribution of the user, and in the "Full 99 Free Shipping", and even "free shipping" and other promotional activities, where customers need to subsidize the full cost of 10 yuan per single freight.

Listing remains a problem

For some time to come, the most troubling age may still be the IPO issue. In the face of uncertain capital markets, when the listing is clearly not a customer's own control. But for old age, the hands of the good cards are not finished. The recent years in its microblog revealed that April 3, 2012, "Every customer wants something to happen." In this respect, some analysts said that every customer may be to formally announce the news of the listing.

Aged recently in the media interview said, where the guests have now and Spain, Switzerland, Slovenia, Britain, France, Canada, Germany, Japan, South Korea and other countries of the first-line designers to cooperate, the company is relying on Internet brand power to integrate the world's first-class designer resources. Once this integration is completed, for every customer and aged, is tantamount to a reinvent itself, and will become the company's most important listing chips.

However, there are still many uncertainties in the way of listing. Public materials show that, as of the end of June 2011, although the total assets of the guests as high as 2 billion yuan (316.5 million U.S. dollars), but its hands "cash and cash equivalent" is only 650 million yuan (102.5 million U.S. dollars), while the total liability of up to 1.5 billion yuan (2 382.8 billion USD). It is not only the "loss", the "category expansion", which leads to a sharp increase in inventory, but also not to be underestimated. At the end of June 2011, the accounts payable amounted to $1.153 billion (USD 182.28 million) in total liabilities amounting to $1.5 billion per passenger.

The situation was temporarily eased in July 2011, when the sixth round of financing was completed. December 8, 2011, when outsiders questioned the voice of the four, old announced that every guest "5 months ago the completion of the F-round financing" news: financing amount of 230 million U.S. dollars, investors, including Temasek, Citic Industrial Fund, Kerry Group and ID G, and the funds have been fully accounted for.

A venture capitalist personage pointed out that the reason for the release of the F-round financing in early December 2011, the main purpose is not to respond to outside questions, but to "reassure suppliers." "At present, customers are not able to borrow from the bank, so the vendor has a longer period of time (to occupy the supplier's funds)." But the recent fan of the negative too much, the supplier gave it no small pressure. Aged this time to declare the F-round investment, is to stabilize the heart of suppliers, afraid of suppliers to compress the account period, or, to all customers as soon as possible. ”

Public information indicates that, as at September 30, 2011, the "Cash and cash equivalents" held by the customer had increased to $1.52 billion (USD 239.54 million) after the completion of the round F financing. However, its inventories continued to increase to $4.5 billion (2.285.8 billion) and accounts payable increased to 16 $3.1 billion (2 $5.8 billion). This shows that the pressure on the company may not have diminished after the end of the F-round financing.

In the view of many investors, the investor will certainly have "the requirement of listing as soon as possible" for the aged. "Every customer's first 5 rounds of investor pressure is not so big, because every round of every customer's valuation is rising, the most uncomfortable is the F-round investors." "A former fan said that when the guests were founded, aged 80% of the stake, and at present, the proportion of its shareholding may have been diluted to about 23%."

Analysts speculate that the listing plan may have been established at the time of the F-round financing. In the relevant financial data disclosed by customers, from 2011 7 to September, in the company's management costs, a new amount of 37.7 million U.S. dollars (about 239 million yuan) of "equity incentive fees", which is regarded as "every customer officially launched the listing" logo.

Thus, the original claim of "the first in the second half of 2012," the van, in October 2011, the "Submission of the Securities and Futures Commission prospectus" news. November 11, 2011, Yintai net C E o Liao Bin Exposure said, where customers have submitted a listing on November 5, the fastest December can be approved and listed.

However, in the outside world, it is not the best time to go public. The analysis points out that the listing is not a problem in terms of sales and business models. But by convention, the valuation of the F-round, which is roughly 3 billion to 3.2 billion dollars, means that the IPO is valued at least 4.5 billion dollars. By this valuation, investment banks may not be able to help customers sell their shares smoothly.

The former visitors said, "The capital structure has been decided, every customer's valuation can only be higher, go up, do the industry first", "every customer can not expand." This is a one-way road, can only go forward.