Cool NET CEO dismissed by Board of Directors: The fruit of the luxury electric quotient

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Cool Net original CEO Hou Yu Xinjiang

Investment sector March 12 News, the investment industry has only been informed that the domestic luxury electronic website Zun Cool Network (micro-blog) recently occurred significant personnel changes. The original Cool NET Chairman and CEO Hou Yu Xinjiang has left the company, the company temporarily by the cool net former vice-president Wen Yi as CEO and management, while the company's overall team for layoffs and pay cuts. It is understood that Hou left the company because the investment side of the Cape of Good Hope Investment questioned its effectiveness in advertising, and that the cool net did not achieve the desired goal. At present, the cool net will be the main development line business.

Coincidentally, the reporter learned that last November, the Cape of Hope had invested in another enterprise Shanghai music year CEO Lu Ye, also in February left the company.

This is the decision made at the cool web conference. February 24, the shareholder meeting, the cool net a round of investment side of the Cape of hope to set sail electric Trader Fund partner Huang Rong said: "The cool network now the pattern of accumulation of users and pay the promotion costs too high, should be the main development line business." "At the same time, the company decided to cut wages and layoffs."

Such remarks were unexpected to the participants, who were unable to understand the meaning of the many middle-level representations. At the conference, the marketing department was even asked directly by the investors: "I've made so many Internet commercials, what have you brought me?"

February 24 at the board meeting, Hou Yu Xinjiang was declared "out". Then the company's actions than imagined more quickly, the cool network probation staff since February 27 received notice, in 29th, leaving the company, the company's other employees to the overall pay as. The main responsible for the promotion of the online part of the marketing department and wardrobe consultants all and for the sales group of large customer Sales group, sales groups and major clubs, banks and other offline cooperation. By the current President Assistant Han Lingxian is mainly responsible for.

In the luxury website melts the hot, the vertical does the luxury goods the electricity merchant, the quantity only is gifted, Shang, the cool, five avenue and so on few home, plus other pan-luxury enterprise, walks the show, only the product will, Ihush, Jiapin and so on has already established the brand. From the end of 2011 to the beginning of 2012, call HA network (micro-BO), the product gathers the network and so on announces because the capital chain breakage cannot continue the operation, still goods, walks the network also to burst the layoff public opinion, but rarely hears the cool net negative news, this management important change has made the line personage unexpectedly.

Cool NET on April 25, 2011 on the line, to obtain the spirit of the Dragon founder Zhihihe Angel Investment, August, the Cape of Hope announced investment in cool net 30 million yuan, in April-August on-line less than 4 months time, the data show 20% users in the respect of cool repeat purchase behavior, the average customer price of 3300 yuan. This has also become the Cape of Good Hope to announce the development of the reason.

And less than half a short time, the investor's attitude took a 180-degree turn, from the enthusiasm to invest directly to sing decline, whether it is from the original chairman of the Hou Yu Xinjiang management problem? Is there any other factor? With all sorts of questions, the investment sector has interviewed Hou Yu.

The "irregular" management is being pushed back

In the coffee shop to see Hou Yu Xinjiang, he looks good, but in front of the ashtray is full of cigarette butts, "I now smoke 5 packs a day." Hou Yu Xinjiang to the reporter helplessly smile.

"This belongs to the management is forced to retreat, irregular." Hou straight to the point. The original board members have Hou, Wen Yi and Huang Rong, Hou Yu and Wen Yi as management each have delegated a director's power. Later, the board of Directors changed the constitution, by Hou as chairman, Wen Yi as director, Huang Rong-Zheng as director of the management appointed two directors. And at the February 25 board meeting Hou Yu Xinjiang was sentenced to "out."

"Now the board has two votes for me, you can just drive me out, I'm not involved in the company management, but I have more than 1/3 of the equity, still the largest shareholder." Some special resolutions under the company law still need my approval. "Hou said.

In fact, the situation of February 25 is more severe than that described by Hou Yu. The Board of directors convened an emergency board meeting in the morning to decide to dismiss Hou Yu, at the same time request to convene shareholder meeting. Hou Yu to the board resolution of the challenge, not to sign. At the same time view the prospectus shareholders will need to be notified 5 days in advance, so the day did not open. When the week of Friday dismissed Hou Yu Xinjiang, asked him next Monday handover. The development of the situation has led many employees to know the news only after leaving the Hou for several days.

For investors in the conference on the cool net of the May died of speech, Hou said very angry: "I have cash on the account, there are accounts receivable, there are goods in the warehouse, advertising has three months of billing period." According to normal operations and sales figures, cash flow is certainly positive, the short-term balance of payments is indeed impossible, but not a huge loss. The Cape of Hope Money in September only to account, in just a few months, how can the company die?

The law of electronic commercial Internet advertisement

In fact, the contradictions focus more on the investment side of the cool network in advertising costs of questioning. Investors believe that Hou in the Internet advertising costs too much, and even put forward audit intervention review requirements.

It is understood that the current Internet ads to cool network mainly through Third-party advertising platform Poly-sheng million advertising Co., Ltd. (hereinafter referred to as "MEDIAV") Mediav for delivery, Hou explained: First, all advertising investors in the MEDIAV source have to go, Shareholders will not pass the ban on advertising in Mediav before the end of December; second, the advertising price. Sina advertising price for 18,000,001 years, Hou Yu Xinjiang through the MEDIAV launch price for 9,000,001 years normal delivery, another in the framework of the cost of Baidu is also the normal discount in the industry, in NetEase, odd art and other advertising mainly in ROI advertising cooperation.

"In the second half of 2011, Eric's data statistics, the ads for the cool net in accordance with the display amount of 40 million yuan, but in fact our cost is 6 million yuan, I was clean." Hou stressed.

The reporter interviewed Mediav deputy general manager Liuchanghua to confirm, he introduced the cool net in the advertisement delivery aspect spends less than in the industry superior network 1/4, but in four months, the ROI (return of investment) has grown from 0.23 to 1.0. "In the luxury industry can do roi1:1 in the industry is very rare." In the same place, the cool net belongs to ' spend a penny to do big things '. "Liuchanghua said.

In addition to cooperation with the MEDIAV, Hou Yu Xinjiang special point to say with the beauty of cooperation, before and beautiful said to be the form of activities of cooperation, so put the cost is very low, but the conversion effect is very good. "Cool net of all media, including Baidu frame part of the overall ROI is 1:1.5, I do is high-end transformation, in this circle who can not say ' no ' word." Fully comply with the rules of E-commerce operation. "Hou Yu Xinjiang summary.

Team Architecture Big Shock

After the Hou Yu Xinjiang was dismissed, the company's management structure has also undergone great changes. Before the core team of cool network including CEO Hou Yu Xinjiang and Vice President Wen Yi, Wen Yi is an angel investor Zhihihe introduced into the company, has participated in Tianjin satellite TV "not You" as a program guest and is familiar with the industry, also because of "Liu Ying" incident was controversial. Hou left, Wen Yi successor to the Cool network CEO.

Hou Yu Xinjiang tenure, the cool net is in the entrepreneurial stage, has experienced extensive growth in the years. In the 200 flat room more than 40 people work, the initial period is not very perfect management team. And in the October 30 after the team to expand, and eventually increased to more than 60 people's team, including the core of the buyer, operation and marketing team are from the beginning to follow Hou Yu Xinjiang entrepreneurial. "Other companies that do the same size are teams of more than 100 people, and I have just over 60 people, and these are my brothers." Hou said these colleagues are still grateful.

But after this time the personnel unrest, the most cool company probation staff have been dismissed, operations, such as mid-level cadres have opted to resign, the other stay in the company's employees generally pay as. Marketing department, Wardrobe Consulting department merged into the big Customer Sales group. Hou revealed that most of the employees with him were "infringed" by the layoffs or pay cuts, while some other team members got a raise.

History is always strikingly similar.

It is understood that Hangzhou Cape of hope to set sail fund, is a focus on the subject of the Electronic Business Investment Fund. Cape of Good Hope partner Huang Zheng has been looking for the best opportunity to enter the field of electrical business. 2011 completed a cool network, Parry advertising, the Shanghai music year E-commerce investment.

After a reporter investigation, found that the same access to the Cape of Hope Investment in the Shanghai music year E-commerce and the cool net situation is strikingly similar. November 2011, the Cape of Hope announced 20 million yuan investment in Shanghai Le Year E-commerce, its original founder, director, CEO Lu Ye no longer as CEO and other positions.

Investment community Reporter Call Lu Ye, he admits he is not in the year, he was in February by the resolution of the Board of directors to leave, the company is currently managed by three management and an investor.

"I left the Lenin because of the strategic direction with the investors in the inconsistent, Lenin is a positioning of middle-aged and female products of health care product E-commerce companies, in the traditional internet e-commerce market has not fully occupied a certain share of the situation, the investors proposed to the direction of mobile Internet development, I think it is not time." "Lu Ye said.

Lu Ye Introduction, le year set up 1.5 of the time, he and Hou Yu Xinjiang are in 2011 LP meeting with the Cape of Good, met, met three times after the agreement reached, and in August to determine the investment intention, in the investment after the company development by leaps and bounds, 2011 years of good performance. Lu Ye back to October when Huang Rong had proposed on the mobile phone browsing Le year Web page speed too slow, put forward to increase the mobile internet investment ideas.

"Lenin is an elderly and women's health products as the main product of E-commerce Enterprises, the main profit point from the call center, DM and stores, because the elderly people on the Internet and smartphone platform utilization rate is low, increase the investment in mobile Internet is obviously against the enterprise and product strategy." "At that time Lu Ye the strategic plan has been questioned. Lenin founded 1.5 times, the existing staff of 260 people, monthly sales from zero growth to nearly tens of millions, if the abrupt change strategy, will inevitably bring the company's internal structure, products, processes and other aspects of the changes, Lu Ye that mobile internet is a trend, we must follow up, if Koyasu in large-scale investment and manpower to do, He thought it was not time yet.

On the board, Huang also challenged the company's strategy and made a proposal to shift the company's main strategy to the direction of the mobile Internet. "If there is no problem with the traditional Internet and call center, the 2012 index is to achieve nearly 200 million of sales, I signed any additional gambling agreement with shareholders." But if a lot of the mobile Internet, I have no bottom, I can not destroy the company to death. "This is why Lu Ye chose to exit directly. After the board, Lu Ye the company's core business to an executive vice-president he trusted, as well as two other leaders, who signed an agreement to withdraw shares in early March.

Now look back at the 1.5 of the entrepreneurial process, Lu Ye have a lot of regrets, "This is my career a tuition fee, no money when entrepreneurial feeling very good, although the funds some pressure, I can realize their own ideas." But after the money entered, the staff did a lot of work, did not expect the board of problems. ”

Lu Ye introduced himself in the health care products industry for more than 16 years, he has several partners in Le years also have many years of traditional health care industry experience. For the past year, Lu Ye Basic working hours are 8:30-10:30 and the team is very cohesive. When he left Lenin, he carefully to the company to several very responsible management, hoping to help Lenin continue to operate well.

But it has to be admitted that this major personnel changes may shake the morale of the people, according to the music year insiders said, at present, many grassroots staff have been to the board has been a distrust. And since the last board date, the company has yet to confirm the details of the direction of the mobile Internet. "I know investors are also for the better development of the company, but sometimes it may be imagined too good, if the enterprise direction astray, to the existing company adverse, but also to the shareholders of both sides." "Lu Ye said.

It is understood that Lu Ye has now come from Shanghai to Beijing, is preparing to create a cosmetics E-commerce company. He said he would not do the same type of product as the previous company, but he was very confident in the future. "This time we should also be in touch with the investors, but I will choose to be more cautious." "Lu Ye said.

In fact, the Internet field CEO left the case of the company did not have to look at the two cases of investment, dating back to July 2001, SINA Board of Directors unanimously decided that the original CEO Zhidong was terminated the company president, chief executive Director and board of directors.

In October 2010, Zhaopin's holding party, Australia seek, sacked Zhaopin CEO Peng, COO Reiveming, Executive Chen and Yianping four-bit management.

November 2011, Preach good Yes executives change, CEO Hailong (Weibo) and COO Daihan both resigned, two people work temporarily by the big shareholder Silver Lake Investment resident successor.

March 1, 2012, share media founder Jianglan has resigned to the board for personal Ill-health and co-founder Chen to take over as CEO.

Analysts believe that, in addition to the founder health reasons to leave the company, a large part of the other reason is that investors believe that the company's performance did not meet their expectations, or the company's future direction of major differences. There is also the division of interests or the distribution of power caused by the company's factional dispute.

Rethinking the course of financing

Looking back on the cooperation with the investors, Hou Yu Xinjiang also to their own business process for more than a year of reflection. At the beginning of the 2011, when the luxury start-up craze began, he created a cool net. In May, he held four investment letters of intent, including a well-known foreign investment agency, a Hong Kong VC, a U.S. VC and Cape of Hope. But because the Cape of Good Hope is renminbi funds, promises can be injected as soon as possible, is the key stage of entrepreneurship Hou Yu Xinjiang did not pass too much consideration, chose the Cape of good 30 million yuan, and even signed the agreement on gambling.

And investors initially committed to the end of June to inject investment funds until the end of August only to the account, the bulk of goods to September before the official start of the arrival of the September 25 cool web version officially online. "It was really hard to look back on that day because there was not enough money to start a business. The investor asked me ' promise to finish 40 million yuan, have you finished? ' If the funds can be accounted for at the end of June, if not only three months, why can't I finish this goal? Hou Yu to this.

And the original signing of the gambling agreement signed such as incomplete performance of 80%, the company for the investors a point more. This part of the stake was eventually paid by Hou Yu Xinjiang, and he did not investigate.

Hou revealed that the January under the influence of the super long holiday cool net still has nearly 2 million of sales, December 2011 the highest reached nearly 5 million. He had already started negotiations on a B-round financing at the beginning of the year, and several investment agencies had expressed their investment intentions. However, due to the impact of online advertising moratorium, now the order of the cool net compared with January significantly decreased.

Hou said friends of its ridicule, "in the luxury electric business industry bitter year Finally, to pick the fruit season, let others pick away." He smiled and said.

The data center of the Qing branch shows that the investment in the Internet field in 2011 is hot, among which E-commerce is the most investment. January 2012 in the VC/PE overall investment fever dropped sharply, the Internet industry investment enthusiasm continues to soar, e-commerce investment still get the highest ticket. With the total amount of online retail trade accounted for the total retail sales of consumer goods, more and more VC participate in the investment of the electricity business.

But a huge amount of money into the field of electricity, will inevitably in the investor and the enterprise between the management and the company operation of Contradictions. The 2011 economic Observer has described the "great disappointment, the discovery that they have no knowledge of the industry, and almost all of them are full of unrealistic fantasies" about the exposure of luxury electric dealers to VCs. ”

Five Avenue CEO Sun Yafi has said, see the sudden explosion of market psychology to see the industry's VCs, "take a bunch of numbers self-righteous analysis, in fact, do not understand the enterprise." ”

Luxury goods dealers in China's rapid development of more than two years, during which enterprises have abandoned the road of pure luxury, to a more pan-luxury industry direction; others because of a large number of advertising, capital chain fracture and other issues and closed, the cool net as one of the few adhere to high-end luxury enterprises, At this point in time to choose the main line of the market.

The fruit will meet the future of southern Orange, the problem will be grafted new varieties, but also need to verify the future time. The only certainty is that the fruit of the harvest, has another person.