A vertical electric trader or a step-Lok Bee waits for a sale: Where to go?

Silicon Valley February 17 February 14, at the Ritz-Carlton, Hong Kong, only the Chairman and CEO of the Shenya tightly hold the Lok Bee Network founder Li Hand, both sides of the table before the signing of the strategic agreement. Although did not invite the media to the scene, but this scene was filmed, and concurrent to the hands of all the domestic media.

Valentine's Day, the two female customers mainly in the field of cosmetics vertical electric business competition for rivals of the only product will and the Lok Bee Network jointly announced that only the strategic investment in the Lok Bee net 112.5 million U.S. dollars in cash, the shareholding ratio of 75%.

Some analysts point out that although another strong competitor to the market, poly-US products on February 13 will be in the U.S. market IPO, but did not affect the price of the sale. The price did not go beyond the normal range, but ended with the withdrawal of the founder's shareholder arbitrage.

2010, 2011 is the golden period of vertical electric business capital, almost all vertical electric dealers have a large number of financing and advertising, however, in the second half of 2011, but experienced a collective "winter" difficult period, in the capital cooling environment, such as footwear, such as some vertical electric operators seem to have faded out of the people's view.

At this time, the large-scale acquisition has been quietly started, which started from the platform first. May 2012, Tencent acquired 100% Equity stake in the network, while Gome (micro-BO) also completed the incorporation of the Bowser network. In fact, Tencent and Gome have been investing in shares since 2010.

For those who did not develop into a platform for the integration of the vertical, is from September 2012 suning purchase to buy red children began. The acquisition not only revealed the "fish" industry status quo, but also reflected that the acquisition is the electrical business to supplement the category, the fastest way to seize the market.

Huang Jo, a capital consultant at Warburg Pincus, had said to Tencent that from the years of 2012, the situation of domestic electric quotient mergers and acquisitions would become increasingly apparent.

As a result, after a capital operation, the acquisition of the vertical electric dealers, although the other mode of survival, but in fact disappear in disguise. The remaining available resources in the market are not many, they are not waiting for low-cost sale, is the belief that the ideal, ready to languish down.

This is the last chance for the rest of the vertical electricity business.

For the only product will hold le bee net, billion help power network editor-in-chief Jia Pengrei think, "This will not be only the end of the acquisition, but a start." "Clothing shoes and hats and beauty makeup is the first two categories, but the only product will be the United States is short board, through the holding Le Bee network, can quickly big beauty makeup category," Next step if you want to break through other categories, it may continue to acquire. ”

From the current market point of view, the vertical electric business has not yet been acquired, but the rumors have long been the main footwear electric Shang, pack-type electric quotient of wheat bags, men's electric dealer Massamasso.

One investor told Tencent that the next step would be to see more vertical electric chambers being bought or taken in, "this is their last chance." ”

A common problem with such sites is that annual revenues, although between 51.5 billion yuan, do not make money, while the cost of continued financing is not low, plus the duplication of purchasing power of these companies is not enough to support profitability. So, this year, these companies may be the traditional big platform fancy, and Buy to supplement the latter category.

The investor is even pessimistic to point out that the electricity dealers are likely to be bankrupt if they have not been bought this year.

However, some of the electric operators have chosen to continue to languish, of course, some of them are not voluntary, but they have already experienced many rounds of investment.

Clothing industry insiders told Tencent Technology, fashion brand electric NOP has realized profitability, to feed itself is not a problem, but the scale does not develop very much.

Similar to this is the home appliances electric quotient elegant 100, after a series of twists and turns, it has now returned to rely on Third-party electric platform sales, the development of the road, elegant 100 founder Chen Tenghua (Micro-BO) before the Tencent Technology interview, said, do own-brand multi-channel sales is only a transitional strategy, because although making money , but the space of self value rises is limited.

Of course, such as clothing dealers who have experienced the G-round financing, the previous time in the platform and its own commodity swing, so that its next development must find a suitable way for themselves. For the moment, visitors are returning to free goods and cutting the category of goods.

Whether the duvet and the 300 shirts will be the last straw to crush the camel is still unknown.

Investment acquisition is the capital drive of VC

At the end of 2013, Jingdong CEO Liu (Weibo), after returning from the United States, immediately disclosed the strategic deployment of the East Beijing in 2014. In the next few years, Jingdong will be more aggressive in investment and mergers and acquisitions. Liu revealed that Beijing east has dug to the earliest investment in Jingdong investors, responsible for the future investment and mergers and acquisitions business.

And Jingdong, the only product will be strategic investment is different, VC operation is the capital interest drive.

As early as 2010, as Macaulay and Dangdang listed to push capital to a new climax, those early-stage electricity companies want to use capital to enter, by burning money to expand the scale, and even between each other to fight a price war. With the second half of 2011, the investment of electricity to cold, personal clothing electric Shang Wei Cotton did not even boil to a round of financing, the capital break and stop operation.

As for the surviving electric-business platforms, having capital injections is sometimes a relief from a momentary rush of capital. In the news that only the goods will hold the Le Bee network, the two main rivals, Chen Au CEO, published a microblog: "The war is over, Victory is just a new departure." ”

In fact, whether it is the only product, Lok bee nets, or poly-Mei excellent products, the investors behind the shadow of Sequoia Capital.

Some sources said that in order to persuade Li to sell, Sequoia Capital has advised Li to split the Lok Bee Network, which retains its own brand, and the agent sold to the only goods will. The idea behind it is to sell the Lok Bee network, which threatens the IPO, to the only products that have already been listed, so that the value of the latter can be enhanced, thus promoting the listing price of Poly-Mei excellent products.

However, there are also familiar with Sequoia Capital operations told Tencent Technology, Sequoia Capital's consistent investment strategy is "to cast the circuit rather than the competition hand, so you can compare, who will sell." "From this point of view, the driving force of capital is obviously extraordinary.

In addition, another reason for investors to rush out is that the return period of the investment cycle is nearing the end.

For investors, the return cycle of the project is not unlimited. VC Unit is a fund, most of the fund's cycle is 6-10 years, when the fund needs and VC checkout. And because the fund investment into a business, has experienced a number of times, so left to the electrical business development time is not much.

Huang Jo once said to Tencent technology, "if the fund can not see a clear exit (such as listing), rather let you sell, sell the best, even if the sale is not good, also recognize the loss." ”

The market has a precedent, a male shoe Amoy brand Although the development is good, but due to the expiration of capital, and finally had to resell. One of the company's peers told Tencent technology, "VC will also be accountable to their investors." ”

In this respect, Yi is only cultural communication agency CEO Bao told Tencent Technology, "as long as the price is appropriate, VC and not necessarily through the IPO exit, resale is also a good exit means." Now VC to the electric business has been at a respectful distance, PE is in the following. ”

Traditional brand Enterprise Opportunity card position

Recently, a large domestic apparel group began to recruit the director of electricity, the hope that through the electrical business to promote their own strategic transformation. But for the company, acquisitions may be a quicker choice than hiring to see results.

Investors told Tencent that the brand would be the target of these traditional companies.

From the current point of view, Amoy brand Some do better, although the size is small, but has been profitable. But if it does not reach the capital market after years, there may be some pressure from the perspective of the company or investors.

Another some pessimistic industry personage pointed out, now the surface scenery of Amoy brand, in the next will be a lot of platform-level electric market squeeze, its in consideration of multiple platforms at the same time, the development of its own electric business site will appear very laborious.

Therefore, the use of its brand value advantage, Amoy brand sold to a shares of listed companies or large offline brands, to complement the latter brand, it is a good way out.

In the short term, Amoy brand "Hug Regiment" trend is also very obvious.

May 2012, women's Internet brand Han clothing homes to buy women brand grain wisp; early 2013, Taobao women's clothing brand cracked silk has bought women's brand Angel City; in February 2014, South Korea's clothing house again bought and aged women Amoy brand "Anymo ai mo."

South Korea's clothing homes in response to Tencent technology, it will continue to increase investment in the future, will be the original designer brand and team acquisition. Han is expected to form more than 100 brands, acquisition will be its important means.