The imitation dilemma suffered by the guest apprentices

Source: Internet
Author: User
Keywords Commerce

China's e-commerce warm, "burning money marketing, the loss of the advance" business model further suffered impact.

February 22, Lin, founder and CEO of the Cotton Network, confirmed that "the cotton network is downsizing and will continue for some time." "Before, there has been a material, cotton network recently dismissed 2 company veterans, 3 Web site editors, 1 personnel assistants, at the same time the company COO leave."

Victoria Cotton Network was established in 2010 to sell its own brand Vcotton mainly, the main socks and underwear products. It is understood that the company's staff of about 80, the absolute number of layoffs, although not much, but because of the earliest entrepreneurs involved, in fact, the pain is not small.

Another worth mentioning is that the cotton network is also a large number of Chinese learning and hot holding "van model" of E-commerce companies. In every customer repeatedly burst the IPO delay, huge losses and other news, once imitated every customer's electric dealer also constantly encounter dilemma. Since last September, the Cotton network announced the launch of a round of 30 million dollars in financing, so far, no results. February 24, Lin to the company is on the cusp, refused to accept the interview.

A company CEO, who declined to be named, told reporters, "The failure of the cotton network should still be attributed to the brain fever, do not understand E-commerce." ”

Under the influence of every guest mode, the cotton network to socks as a single product breakthrough point.

The travails of the cotton net may not have been accidental. Cotton online line in November 2010, that is the wind investment in E-commerce flocking to the crazy period. Prior to 10 years, E-commerce has been in a tepid state of development, until the "fire" in every customer, the industry suddenly erupted unprecedented upsurge.

At that time, there are always exciting news to the E-commerce industry, where the "success" is the typical. In 2010 alone, every customer had two rounds of D-round and e-round financing, raising 50 million dollars and 100 million dollars respectively.

The Cotton net was born in that era. By the "fan mode" impact, the cotton network positioning in order to socks as a single product breakthrough, the future to a richer department stores to do the expansion of goods. In addition, quite interesting is that the cotton network and the founder of the team with the "Jinshan department" has a close relationship, which may also deepen the cotton network and the exchange between the customer and learning.

The founder of Lin is a pioneer employee of Jinshan in Beijing, who served as the channel manager of Jinshan software.

Unlike every guest's "lucky", the Wei Cotton net is untimely. The environment of venture capital is not the same as it was 4 years ago, when the guests were set up as early as 2007. Every customer in the past four to six times financing, a total of 2.7 billion yuan, and the cotton net just stay in the original tens of millions of dollars. In the case of unsustainable funding, the commercial operation of the Cotton network began to encounter challenges. In addition to layoffs, unconfirmed news is that, in addition to layoffs, the cotton network has owed advertising agency millions of yuan advertising fees.

The travails of the cotton net may not have been accidental. Cotton online line in November 2010, that is the wind investment in E-commerce flocking to the crazy period. Prior to 10 years, E-commerce has been in a tepid state of development, until the "fire" in every customer, the industry suddenly erupted unprecedented upsurge.

In the business model, the "speed of the scale" of the way is also being criticized. A person engaged in electric business investment told reporters, usually invest in a power company, the main assessment of two indicators: gross profit and operating costs. The simple reason is that the difference between the two is the net profit that investors are really after.

It is difficult for the copycat to go through the road. Prior to that, the cotton network and the media and other companies to cooperate, the launch of large advertising. However, the road was quickly interrupted by the lack of funds. "Many companies in China are hot-headed, overly optimistic, and can only try the brutal bitter fruit of the market," said a person on the website. ”

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