Case: Daily network: The cold winter era electric business living fossils in the end how to survive?

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From today onwards, I will look to the black horse has been overlooked the huge amount of the United States makeup electric market. With the official prospectus for the US Nasdaq, and a series of capital operations by Sequoia to Le Bee, people have turned their sights and eyes back to such a huge market that contains gold. I black horse will launch a series of articles, to deconstruct China's vertical cosmetics electric dealer This huge growth market, and the observation object will be locked in the U.S. makeup electric platform, beauty makeup electric commodity licensing, as well as traditional beauty brand, such as eco-chain construction, this article is the first series.

What is this market: the height of fragmentation

If you talk about the net every day, except for the very few professions, or the ashes of the beauty makeup MOM users (that year may be college students, now a decade after most of the married woman), I asked around the user, and almost few users know, but in fact, every day net actually counted as China's vertical electric business real meaning of living fossil, Although the United States excellent product heyday, but compared to the age, every day net than the rise of the 11 before the rising of the poly-Mei excellent products are nearly 12 years early. So poly beauty, every day, Le bee (also including once in the group buying battle in the brilliant Mickey net) in the end is what kind of market?

According to the public data show that shoes and bags, 3C home appliances, cosmetics has always been a key network of e-commerce areas of retail category, Eric data show that the third quarter of 2012 in the three categories of the network retail market share of 26.6%, 18.4%, 5%. The report by Frost & Sullivan, a global enterprise growth consultancy, shows that total retail sales rose from 136.2 billion yuan in 2010 to 220.9 billion yuan in 2013, with an annual compound growth rate of 17.5%. According to the data, China's beauty products are growing strongly. So how big is the market? According to the first company to be listed in the United States, the data provided by the U.S., the United States Revenue 2013 annual revenue of 483 million U.S. dollars in the proportion of the market share of 22, according to this data, the current Chinese vertical beauty electric market is about 2.2 billion U.S. dollars market.

Overall, the cosmetics market is forecast to exceed 58 billion of total online sales in 2012. Of course, in addition to the market size, the market shows a very distinct feature, that is, the relative fragmentation of market share, prior to with the United States excellent products have been playing a price war, and eventually merged into the only product will be the Lok Bee Network and Daily Network ranked in the top three of this field.

Every day net is a what kind of company: Slow is also style!

If you have to find some labels to help investors better and easier to understand the daily network, I would rather use a few keywords to describe it. Slow company. Every day in the electricity business needs the rapid survival of the era, is indeed a relatively slow company. 15 years to burn a lot of money companies have seen a lot, but certainly did not see until 11 to melt a round (by the soft silver race rich investment) enterprises, and the integration of a turn now incredibly legend has not spent, such a conservative, in the electric business is rare. In contrast to such a slow company, it is the sad figure that comes along every day to see the fallen electric dealers. Every day CEO Ching told I Dark Horse, this is what he has been wrestling with, on the one hand, he is not because of the crazy financing like other electric companies after the rapid decline, but the other side, is trapped in not excessive to the soundness, which should have turned to the company earlier and now similar to the United States, the sale of the model is not early implementation Thus missing the 12 window of this beautiful makeup.

The reason why it is called window period, every day, one of the competitors of the United States is in the 11 to rely on this business model rapid rise, and at that time, Ching not better than the conditions of the United States too much, but now he can only hope to gather beauty back sigh, is a morning, but eventually have to accept the industry third position, Although because Le Bee merges only product will, cause every day in the single vertical to the field rises to the second position, but compared with the Internet subdivision of the oligarch market, to achieve the second, but as long as the market share does not rise, in fact, still very valuable. Of course, for a slow company every day, slow is also the rule of survival. Like the Seven Wolves show which side, the slow side of the other is extremely stable. In today's Chinese electric business in the cold and brutal living environment, its cost of extreme savings can make the company survive well, relative to many have been closed down can only write "small lose" the injury of the vertical electric business, decade years ago began to start every day net, is undoubtedly one of the lucky ones, even can be seen as a living fossil of the electric business.

The growth history of the 15, if you don't walk in every day, you can hardly believe that this is a company with a size of more than 400 people, and the location of the company is located, and some of the most frequently in the Xidan, the international trade of the electric business compared to almost look shabby, because until today, every day the net is still located in a humble university campus office, And this may actually be a glimpse of what the vertical electric dealer has been doing for 15 years and is still alive. There are several types of companies in the market. A radical company that relies on high rates and high growth to survive. This kind of corporate strategy can be described in terms of tactical terminology high up. There is also a high rate, but always low growth, which is the first to be eliminated from the market. Of course there is a class of camel companies, they rely on their own water to grow, the most religious philosophy is Shina, all the logic of survival from within their own internal energy, believe endogenous growth. Another category, is low-cost, but high growth, such companies are almost all VC want to chase the company, but such companies, almost difficult to meet. In these categories of companies, camel companies are the most appreciated, and the robust strategy of the daily network may follow this principle, but in the present geometric multiples of the rapid attack of the mobile internet era, often may mean to be thrown away. Of course, this is in the net every day can clearly find all these attribution, on the one hand, is the founder of the steady low-key personality decided.

Every day CEO Ching in the circle is almost difficult to see a consistent low-key, and other personalized publicity compared to the electric merchants, a lot less can excavate the story point of the plastic. Of course, on the other hand also with the early days of the path has a great relationship: in 09, before the comprehensive transformation of the general, every day is actually the line of the store-oriented + online sales + direct mail directory such relatively traditional way, with every day CEO Ching own words, this is actually the earliest O2O. But when the real need to fully turn to the electric business, the bulky body will instead become an angel Take-off restrictions and shackles.

Every day's way: Dangerous!

This is not an easy market to survive. Every day CEO Ching also frankly walk over the hardships and loneliness, then the market in the end what competitors? Line: Watson, Sasha This is two formidable competitors. Relative to the sale of this business model of low gross margin, with its own category of salsa and Watson and the gross margin of more than 47 and 35, the core lies in their own large number of own brand (and the industry boss's gross margin at 24.5, which has been a relatively good ratio), So Watson's offline stores, although theoretically the market share is gradually being eroded, but Watson has a huge advantage, still enough for such a business in nature to do the daily and other vertical electric operators pose a threat. I have pointed out their advantages in the article "Watson's worth 25 billion dollars" before Dark Horse: Channel brand Business advantages are obvious: the traditional retail channel dilemma is that, due to the last link in the value chain, the surface looks beautiful, but subject to the continued strength of the European brand cosmetics, Lead to terminal profit is not too high, the other side because of its own store quantity is not enough, the market concentration is not too high, can not push supply chain, at the same time under the Internet era channel flattened squeeze, difficult to survive. Watson has changed the situation with more than 25% of its own branded goods: the biggest value of their own products is that they have mastered the pricing power, have their own channels, without loss of intermediate costs, there is no channel to let go, plus the existing products in the shop, so that they can enter the attack, back to keep. Around the world, this strategy has been used to reach the pinnacle of retail giants Wal-Mart.

In China, such as Taiwan's glasses channel business is also relying on its own products to obtain high profits. More than 40% of the goods in the European and American markets are retailers ' own brands, and Watson is the Chinese pioneer of this strategy. Apart from the strength of Watson's free brand, it is also worth thinking about the position of Watson's personal care specialist, which has proven its strength in the product mix, and its product portfolio can be seen as differentiated. Watson's medicine accounted for 15%, cosmetics and skincare products accounted for 35%, personal care products accounted for 30%, the remaining 20% are food, beauty products and clothing accessories. So this unique product structure enables it to achieve a differentiated cross boundary positioning. If simply positioned as a cosmetic collection store, then drugs, food, beauty this product will be excluded from the store, but the fact is that the purchase of cosmetics users also have a large demand in other personal care, especially women in fact, there is a great demand for a one-stop shopping.

Online: Poly-Mei Excellent products, Taobao, Jing Dong, when

In addition to facing the challenge of a line-like collection shop, poly-American Products The threat of this industry leader is obvious, especially after its listing with the capital of the Granville can have a great opportunity to continue to expand the market, according to the latest prospectus of poly-Mei products, we can take a look at this company: Poly-quality website as an internet platform, Consumers can find and buy branded cosmetics and fashion apparel, as well as other life-like goods. Poly-United States to take a variety of effective sales methods to promote the platform of commodity purchase activities. Current sales methods include special selling, online shopping malls, and flash purchases. In 2011, 2012 and 2013, the total number of active users in the United States was about 1.3 million, 4.8 million and 10.5 million respectively. Poly U.S. Revenue 2013 annual revenue of 483 million U.S. dollars in market share accounted for 22, Poly excellent products in 2013 turnover of more than 6 billion yuan, 36 million single sales, up to the end of 2013 has been 7 consecutive quarterly earnings, in the 2013 earnings, Poly-MEI excellent product business scale 6 billion yuan margin 24.5 %, net profit 7.1%. China's first listed before the main business has been the scale of the profit of the electric Business Company. This series of numbers alone is proving to be one of the strongest opponents of every day. Beyond that, they are rapidly infiltrating the market. It can be said that the market is caught in the situation of wolves eating.

Every day in the future: IPO or investment giant embrace?

Of course, every day the net is not no chance. As Ching said, in fact, cosmetics electric business has a very important core is the supply chain link, and the soft silver race is willing to invest in it, but also the importance of its good supply chain capacity, especially its 15 years with the cosmetics supplier of good relations, Ju is the first to be able to work with such a large brand of people, People who have opened their undertaking can clearly understand that from the university's point of view is that these suppliers have good cooperation. At the capital level, of course, every day net actually can choose the road many, as one annual sales already ranked second in the vertical cosmetics electricity quotient, especially the average per capita efficiency has the super high excellent ability company, whether is the independent IPO or chooses to continue the financing, or is invests in the giant's bosom all may not be a good thing, Especially for Gome so badly needed to expand the category of electric companies, every day such a vertical electric platform is still extremely valuable, although Ching's ideal is still listed. So the road before every day has the following several:

A financing all in.

This can be said to be an almost dangerous road. In the Matthew effect today, the second pursuit of the eldest brother unless there is a very strong capital, at the same time there is a blue sea market, almost difficult to surpass, but the internet is exactly a carnivorous forest, so, this road is dangerous, and may have no results.

B derive from endogenous to find a new market.

If the original market has been hard to shake the boss's position, to choose a new path is not a choice, after all, the beauty market whether it is extended to other categories (as long as the loyalty of the female users are no problem) or to do more focused, in a smaller niche market start to puncture is not a choice, Recently, the wisdom of the electric business is a recruit fresh, poke a broken day, if the choice of focus in a more subdivided areas, is not a choice.

C dances with the Giants.

Giants also need such a loyal user base, at the same time also has a certain mature supply chain system of the electric "land" Company, Jingdong, Gome or with when, Amazon these companies also lost a good choice, or introduce the flow of the giant as a price, in exchange for the flow value rise is also a good choice, The future also does not rule out where to borrow the mode, still can achieve the listing ideal.

D Mobile commerce and own brands still have a bright prospect.

Now every day the son mobile end and own brand has not yet taken the most solid steps, and the mobile electric business is in the outbreak period, is growing rapidly, the battlefield to move to the end, while relying on the advantages of the supply chain, to the free product market, customer loyalty, to avoid the rejuvenation of the United States excellent product strategy, It is also a good strategy to attract users who are different from this age group. In addition, the day-to-day management team may have other strategies, for such a electrical business living fossil, we are more convinced of its survival advantages, but in this era of change, it seems that no one can grasp their own destiny.