Chen Au has returned, can help us better products to restore the decline?

It was December, and Chen Aulai, who broke the silence, said it would be an exceptionally cold winter--soon after the listing, the stock market, which was mired in gossip for nearly 4 months, has shrunk by half. Although the return of the leader has made a small rebound in share prices, it is still a long way to revive the stock market.

Catches, but the wind is blowing too much.

May 16 this year, Poly-Mei excellent products in the establishment of a short span of four years after the United States on the stage of the U.S. stock market, the end of the day, poly-beauty products worth 3.433 billion U.S. dollars. In the past is not too much optimistic about the situation, Poly-Mei excellent products to foreign investors told the "one of China's beautiful cause" and finally touched their hearts. In late spring, New York's warm wind, blowing "Mr. 1.5 billion" Chen Aucen also drunk, his heart must be like the bow of Jack as the "King of the world."

But there are still many people in the industry have never dissipated the suspicion of the United States, they also frequently on the day of the listing of the United States "sell fakes, parallel imports can be listed" query. After the success of the listing, Poly-Mei and Chen Au I brought to the question of the wind is even greater, people would like to take a magnifying glass to find the problem, for fear from the internet upstart found no loopholes. It was not long before they were really caught by the pigtail.

June 10, the famous "I for the endorsement of the C Childe" on the entrance. The author of the parties to the attitude of Chen Au allegedly fictitious "entrepreneurial door" story told. As soon as the article was spread, it was amplified in the Internet, and the questioning of Chen Au the new upstart from Wall Street. Poly United States CTO Hui in a few days after the media channel, he to Chen Au entrepreneurial experience of the identity of the joint participants retort "Black wen" in all kinds of, but due to the late dispatch and not active use of a large number of public relations channels, people in mind is still just that "Mr. C".

Failed in the first time to respond to the dispatch, is the United States at that time in the public relations committed blunder. It is reported that Chen Au for the construction of the public relations team has been relatively negligent, to the market on the eve of their PR team unexpectedly only 5 people. Encounter serious public relations crisis, mature Internet enterprise reaction speed generally to hour or even minutes to calculate, can poly beauty but after n a 24 hours to come up with countermeasures. Lost time for the United States is a very expensive price, poly-Mei's share price from the 30.7 dollar high since June 10, plunged, 10 days after the collapse of only 23 U.S. dollars, market losses as high as 1.1 billion dollars!

Was "Black wen" of evil scrape 1.1 billion, gathers the United States for own "the pattern Tucson to break" has paid the painful price. More dangerous is that the United States and "fake, parallel imports," the relationship is still not clear, "poly-US products after the listing business will become transparent, can build consumer trust," these pledges before the listing promises have not been honoured.

"Informal channels"? Ju Mei "Have to Love"

While the United States for its "fakes, parallel imports," the problem of some ambiguous, the supplier of Cheung Peng Heng Industry, the sale of fake events in July 28 by the vast media exposure. The United States PR team's reaction speed finally quickly up, that afternoon in Tencent Technology issued a statement said that has closed the "祎 Peng Heng Industry" shop, and all third party supplies of goods removed and stopped sales, and consumers for the goods can be unconditionally returned.

Choose a third party channel to carry "fake" risk at the same time, the gross margin is not high, poly-United States This is also compelled. Because of the low price discount to sell two or three line brand product gross margin is lower, poly United States last year's gross profit margin of 24.5%; under the line of retailers, Sasha's gross margin can reach about 50%, and those international big gross margin can even to more than 70%. In fact, the United States would like to get from the formal channels of the first-line big enough upstream goods (only the formal channels out of the real authentic), but this is almost impossible, so ...

Why can not gather beauty from the formal channel to get the goods of big-brand cosmetics? We must first put the perspective on the cosmetics industry. In the cosmetics industry, major transactions occur in various distribution channels. For the local enterprises such as Shanghai's home, perhaps the provincial distributor of a year to go volume, can be worth the annual sales of the United States; for international big-name, poly-Mei can bring more bucket. Therefore, for the scale of cosmetic enterprises, Poly-Mei in the customer priority is very much in the back, in other words is poly beauty of this sales, not by the industry's big fancy eyes. In this case, the United States did not have the opportunity to win less than the premium dealer discount.

In turn, such an electric trader like Poly-Mei has a murderous posture, which has already created a tremendous pressure on the offline trading. and cosmetics belong to the rapid extinction of goods, sales channels is the life of the door, so poly-Mei such a fast channel of electricity should be the cosmetics manufacturers should pay attention to, but why those they still do not focus on the power in full swing of the electric business?

According to the small understanding, this is because: first of all, cosmetics sales channel volume is too large. This huge amount requires many distribution steps, cosmetics from the factory to put on the shelves of large and small cities are bought, often with hundreds of people involved, the electricity quotient of the volume is a fraction of it. Secondly, the cosmetics purchase process needs a lot of emotional exchange and practical trial. This determines that there must be physical stores and shelves exist, so cosmetics manufacturers only to keep the line under the channel. Once again, even if the company such as L ' oreal and other companies are now doing a trial of electronic business and with the United States and other platforms, but the 6 billion of the sales of the United States is composed of hundreds of thousands of brands, to any single brand of the United States can provide sales or too little.

So, whether it is from the necessity or the possibility, gathers the United States is not the big brand manufacturer essential choice. Poly-Mei often only from the upstream channel to get a small amount of supply, and downstream channel prices are too high to take the goods can not form a price advantage. Therefore, the exclusive agent of the United States only accounted for 15% of the brand, of which a small proportion of the remaining big-name products of course mainly rely on third-party suppliers. We have seen in the United States 30 percent of the Lauder, nature is similar to Cheung Peng Heng industry such a situation. These suppliers are ticking time bombs exist, although the United States do not want them to explode, in an effort to get more from the regular channels of low-cost sources, but do not want to happen eventually happened, from the root said this is doomed.

The return of the king, can really restore the decline?

The United States in Cheung Peng Heng Industry after the rapid adoption of comprehensive self-management measures to prevent the recurrence of similar events, can be made by the United States of these efforts, the stock market is not to pay. Poly-Mei's share price reached the highest value of 37.99 U.S. dollars on August 15, the way straight out of the crash nearly 4 months, yesterday after a small rebound to 17.7 U.S. dollars closed. In these more than 100 days, they lost a market value of $2.88 billion trillion, which is more than their current market value!

Although it was pointed out that this is the United States because the previous share price was overvalued natural shrinkage, but also with the overall performance of the shares related. But after a deep understanding of the small, found that the United States after the lifting of the ban did not encounter a large number of shareholders to sell stocks, so "even fall 100 days" such a situation should be all over the two-tier market retail and institutions leading to market behavior. Because cosmetics are sensitive categories, compared to other commodities, consumers more concerned about quality, licensing and other aspects of the problem, cosmetics dealers are more likely to fall into the relevant public opinion vortex. Cheung Peng Heng Industry incident, for the United States brand image and confidence in the shareholders have caused great impact, the stock price setback is also logical.

Having said so much, we can find that Chen Au really disappeared from the cusp for a long time, two major crises he himself has been behind the scenes almost no direct appearance, even in the last six months we rarely hear his voice. Looking at the shares of the United States fell to approximate the IPO price, Chen Au finally sit live-announced back to the lake.

But now to face, in addition to the US stock price downturn, there are two-month sales growth, gross profit chain decline, operating profit year-on-year decline in the poor situation. Although, Poly-Mei excellent products before the time to comply with the "sea Amoy" trend opened the bonded area cross-border electricity business, but is still part of the preliminary preparatory period, in the short term can not contribute to significant results. Poly-Mei as a less than 5-year-old internet companies, seems to have met the bottleneck of growth. In the industry this is not abnormal, but for the long-term "beautiful career" of the United States that this may not be good.

With Chen Au back into the public eye, a return to the king of the game seems to be staged-Ming together to revive the crumbling of the land, then the happy ending. Is that easy? How can it be! Fierce competition in the Internet industry is not a place to talk about feelings, as a listed company, if the United States can not really move to reverse the decline, the fate of the last only to retreat.

2014, Chen Au has been silent for long enough, and poly-Mei excellent product, it is not awake?