CIC Consultant: It is the key to make a clear profit position

March 23, 2012, the only goods will be landed in the NYSE, with 6.5 of dollars bled to issue, but as of now, its share price has risen to more than 25 U.S. dollars, the market value increased by nearly 3 times times. In the fourth quarter of 2012, only the net revenue of goods will increase 184.8% to 299.6 million U.S. dollars, the first time to achieve a quarterly profit, net profit of 6.3 million U.S. dollars, become the first domestic, is also the only one in the vertical company of business profits.

Investment consultant Retail industry researcher Du Yan Wang pointed out that the competition in E-commerce has always been fierce, price war, "loss of profit yell" behavior is the industry's normal. If the electric business enterprise wants to stand out in the fierce market competition, or carry on the large-scale expansion, the platform management, but the market can accommodate the huge platform is also limited, or take the fine route, in the subdivision market formation advantage, and then invincible.

Only products will be "Brand + discount" for positioning, is a special sale mode, rather than the standard merchandise sales model, similar to the line of the Austrian, can be said to be the vertical operator of the subdivision line of the representative. This model of brand discount not only provides consumers with luxury or brand-name authentic, to meet the consumer demand for genuine goods, while low discount sales more suitable for the needs of consumers cheap. In addition, 2012 China's apparel industry inventory high, but also to the high speed of the development of goods will provide an opportunity.

However, the only product will be this brand + discount model, the profit growth space is worrying. From the point of view of gross margin, authentic low discount way, margin upgrade is more difficult, this requires only the goods will be in the brand, category, even in the discount for effective management and optimization. Therefore, the promotion of profitability can only rely on the size of sales, which is the potential for future growth of goods. Only the continuous introduction of more brands, even the category, only the product will be able to continue to profitability.

It is noteworthy that the only product will have become China's leading luxury goods, in the market segments in the lead position, which laid the foundation for its follow-up development. It can be expected that the future luxury electric dealers, and even brand discount electricity market competition will be more and more fierce, but only the goods will have mastered the opportunity, and accumulated a large number of customer groups, the formation of brand advantage, its future development prospects can be.

In the first quarter of 2013, the "Hot Industry Tracking Analysis Report," published by CIC Consultants, pointed out that with the rise of income, the consumption habits of residents began to appear personalized, diversified, service, high-end characteristics, the domestic brand discount industry development provides a broad market. China's discount market is expected to reach $560 billion trillion by 2015 and a composite growth rate of 55% in 2011-2015.