What makes the rapid rise of the United States and the twists and turns heavy?

Abstract: Editor's note: Although the cat, Jing-dong in the electrical commodity category on the Gongchenglvede, but in the cosmetics sector, and not too much fanfare, which also makes the largest authentic cosmetics in China Group purchase site Banner of the United States excellent products have a place and be listed. No

Editor's note: Although the cat, Jing Dong in the electrical commodity category on the Gongchenglvede, but in the cosmetics sector, and not too much fanfare, which also makes the "China's largest genuine cosmetics group purchase Site" banner of the United States and excellent products have a place and can be listed. However, out of the morning and evening is to return, the cat, Jing Dong in the field of relatively low-key nature has its truth, and has been a high-profile poly-mei excellent products, but also repeatedly exposed to sales of fakes, sales of parallel imports, facing an unprecedented dilemma.

Reporters in the United States bought a Sisley eye cream. According to the examination, this eye cream should be authentic, only, limited to the date of October 2016 only, and the shelf life of cosmetics generally 3 years. Perhaps no one thought, last year just scenery to the United States listed in the United States, but quickly caught in the trap.

On one side is a spate of fakes, with successive declines in operating performance and a few falls in share prices. What makes the rapid rise of the United States and the twists and turns heavy?

Fakes are constantly

Hit the brand of the United States

The first fake trouble, poly beauty can not be vindicated, because it is the third party business line of luxury goods on sale leave. The United States also cut off the entire third party luxury line of business.

The second counterfeit, there are some confusing. "Securities Daily" reporter also received a "former employees" of the explosion message, the Mail said, gathers the United States has been suspected of procurement of unknown imports, fakes, and in September last year by the Zhuhai customs arrested, directly led to the seizure of its Beijing warehouse, the director of the Overseas business of the Commissioner of Sun and two business personnel were taken away for investigation. The Mail also said that Fei, vice president of overseas operations, was informed that the news had run ahead. I hear it's all right now, Fei has returned home.

In this respect, the United States replied that the so-called explosive materials are non-existent. "We were shocked by the absurdity of the fabrication and the great professionalism of the former employee, who could not even ourselves be able to make different versions of the ' blast ', the exact contact of so many professional media journalists at the same time." Poly Beauty also implied that the material for competitors deliberately smear.

Whether or not competitors deliberately smear, a spate of fake waves of beauty in the brand trust caused by the impact of immeasurable.

Profit, category and channel

How to balance?

According to the "Securities daily" reporter observed that fakes, categories, profits between the contradictions between today's difficult to gather the crux of the United States.

To see a beautiful financial data: Platform service fee revenue/operating profit, 2013 Q2 ratio is 85.13%, and by 2014 Q2 This data has reached 124.64%. In other words, if there is no third party sellers, then Poly-Mei products will be a substantial loss.

A loss of vertical electricity dealers, to be listed may have some difficulties. In order to make a profit, in order to go public, poly-Mei excellent products also opened arms to third party sellers. Another reason to introduce a third party is to introduce more categories, more categories, to attract girls to choose.

Taking into account the profitability and the category, the problem of channel regulation will follow.

According to industry sources, in fact, most of the formal electrical business is not subjective to sell fakes, but it can not control the supplier to the goods channel.

Special selling products near shelf life

Front-line brands rely on foreign counter procurement

High-grade skincare products are actually luxury goods, they do not want to control their own channels to the electricity business, so that the fake and their own table. High-grade skin care products prefer high-end shopping malls counters, but also need to maintain the image of women. Therefore, the first line of cosmetics brand is difficult from the manufacturer or official authorized purchase, can only rely on a large and small agent, if the agent of their true or false mixing or selling fakes, the electrical business is also not known.

To testify the authenticity of this statement, "Securities daily" reporter in the United States bought a Sisley eye cream. According to the reporter inspection, this eye cream should be authentic, but, limited to the date of October 2016. The shelf life of cosmetics is generally 3 years.

According to a gathering of the United States, a supplier told the Securities Daily reporter, they have some close to the shelf life of products, will be very low prices to provide poly beauty. This is one of the reasons why many special selling products are especially cheap. "Something is real, it's not a good date." The supplier said.

Familiar with skin care products, readers know that Sisley is a skin care products in the palace-level brand, according to reporters understand that the brand is not currently authorized to any one electric dealer. The reporter buys this product in gathers the United States the price is lower than the duty-free shop of the capital International Airport. According to the United States Customer service said, the product is the United States from abroad to buy back from the domestic warehouse shipments.

For this kind of high-grade skin care products of the specific procurement form is how, poly-US-related responsible person does not give a clear answer. But the United States told the "Securities daily" reporter, Poly-Mei Excellent products of the United States are mainly authorized by the brand + counter collection + overseas purchase composition.

According to this theory, Sisley's products should belong to the Counter collection (currently does not have the brand authorization). Then according to customer service, that is from the foreign counter procurement. It is clear that the Sisley brand is not purchased overseas. The so-called overseas purchase, is directly from the country of Origin brand shipments to domestic access to the State Council approved the warehouse.

The cost of specialized manpower from foreign counters to purchase similar big-name beauty cosmetics, and to lower than the price of duty-free shop sales, poly beautiful intention is clear: in order to enhance the image of the site, go flow, but also increase sales of other goods.

Betting on overseas buying and breaking

Short-term performance pressure

Poly United States Q3 Earnings show, the total amount of aggregate net turnover, gross profit margin fell, the sales of 2 consecutive quarterly 0 growth, operating profit is down 16%.

How do you break the trap? The United States choose to burn money to rebuild the focus of revenue, betting on overseas purchases.

Poly United States CEO Chen Au in the internal Mail, said in 2015, Poly-American products in logistics and tax subsidies for overseas purchases of 1 billion yuan. Such a huge subsidy, the intention is also very clear, in the fierce market competition in the electricity industry outsourcing encirclements territory.

And, in an exchange with the securities daily, Poly-American executives also said that the amount of subsidy for overseas purchases was a figure that could not be accurately estimated, which could be said to be an unlimited number, with everything being targeted at scale. They also acknowledge that this creates some pressure on short-term profits.

But with the present situation of Poly-Mei, it seems that the "Huashan Road" must also be gone.

The United States said that after the listing of the United States to do a series of strategic adjustments are based on the market and business line of multidimensional assessment, including overseas purchase of all beauty business into the proprietary mode can effectively manage the supply chain, from the source to avoid parallel imports and fakes, to ensure product quality and user experience, Such a large angle of transition is for the future long-term healthy development. And the goal of the United States overseas purchase is to subvert the sea Amoy market, dominate overseas market. "Scale is the first priority, the current stage of profit is not in the first place." "Gathers the United States aspect to say.

First-line big-name licensing to break through

Authentic image is the core competitiveness

But from the current development of the United States overseas purchase, Poly laudatory name is currently involved in the overseas purchase of the same type of electric dealers to obtain the most brand authorization. But the product category to Japan and Korea cosmetics mainly, European and American brands as a supplement. Brand more popular brand-oriented, rare classic big-name.

Although as the United States, senior executives frequently attack South Korea, the soldiers divided five road, looking for the most reliable channels, the most fashionable products. But it is clear that the really difficult bone of the first-line big-shot has not been chewed.

This is not the United States a gnawing bones, is the entire beauty makeup electric Shangdou has not broken through the difficulties.

Beauty Cosmetics Online Sales is an inevitable trend, the first-line big players can not perceive, but the first-name "proud jiao" by making it difficult to authorize the product to the electrical business. How to break through this last line of defense, is the United States and the entire makeup of the electrical business has yet to be completed a work.

And the core of this work is to let the brand and consumers believe that the electricity dealers are selling authentic. So the problem returned to the original fake problem. Only to clean up fakes, maintain good authentic image, is the United States led by the U.S. makeup of the core competitiveness of the electric business.

In particular, Poly-Mei, to genuine beauty makeup vertical electric business, different from Taobao. Taobao has fakes, just let Ali disgrace, poly United States if there are fakes, a bit to lose their lives.

The so-called crisis, walk well will turn crisis for the machine. The decision by the US management to cut off third party luxury lines and aggressively explore overseas markets suggests that they are already thinking about the issue.