Dingdao: Why is the value of Le Bee net only 150 million dollars?

On the Cosmetics Electric Dealer website gathers the US best product to the U.S. IPO valuation 3 billion US dollar news, another domestic cosmetics electric business Lok Bee Network announced today to accept only 1.1.500 million U.S. dollars of investment, the transfer of shares reached 75%, according to this calculation Le bee net valuation of only 150 million U.S. dollars, is simply the price of cabbage.

As a pair of enemy, it is no coincidence that both sides announce new capital movements. However, it is doubtful that the sales of the Lok Bee Network is claimed to have reached the half of the excellent products, valuations should be at $1.5 billion trillion, but today's announcement of a stake has tongue-tied many analysts, and many people don't understand the value of the network, which we often see outdoors, on television and on the Internet, 150 million dollars for less than 1 billion yuan, this valuation is only a fraction of the United States, is it reasonable?

In fact, a company's valuation has many factors, can not simply rely on sales to do the judging criteria. Generally speaking, under the same sales, the electric business enterprise valuation is lower than social networks, games, search engines and so on. The following author to combine the past some of the enterprise valuation cases to analyze the "Lok Bee Network valuation Why so low."

First: The difference between the industry boss and Dick

Once upon a time, someone interviewed Lenovo's CEO, Yang, asked a very classic question, "Why is Lenovo competing for the position of global PC boss", Yang asked reporters "then I ask you, the world's first peak is Mount Everest, which is the second peak?". Yang's rhetorical question illustrates one of the basic tenets of business value: Even if the first is only a small point higher than the second, the market position and valuation are vastly different. Similarly, in the cosmetics electric business industry, Lok Bee nets and poly-Mei excellent products for many years, although the Lok Bee network earlier than the introduction of the United States, but since 2012, has gradually been poly-Mei excellent products beyond, sales have more than one times the gap. Although now gathers the United States eldest brother, Le Bee net second, but its river-lake position and the valuation nature cannot likewise with.

Second: Three consecutive years did not complete the established sales target

The internet industry is fastidious about a city dream rate, the city dream rate means: You this enterprise is very small now does not matter, but you grow the speed to be very fast, you can grow into a giant in the future. So, we found that a lot of internet business revenue is not much, the market value is very scary, Tencent's 2013-year revenue is only 60 billion, but the market capitalisation is close to 1 trillion, Baidu and other top internet companies also. The reason they can get such high valuations or a large market value is that they grow very fast and the ceiling is not seen. In turn, we look at the recent changes in the Le Bee network: le Bee network in 2011, le Bee Network Li said that year's sales will reach 1 billion yuan, but later the Wang Licheng CEO said that the year did not complete 1 billion of the turnover; Le bee nets in February 2012, Le Bee Network CEO Wang to set the target is 3 billion yuan a year, but in the end, only 1.8 billion of sales were completed; Le Bee net 2013 sales target is 4 billion yuan, and will realize profit, but through today's only goods will share information, Le Bee network far not complete 4 billion annual sales. Comments and analysis are pale, for investors, the data on the error is the most intolerable, for three consecutive years, all reneged means that the Lok Bee network did not meet the expected growth target, the valuation naturally greatly affected.

Third: The quality of goods

To sell the website, the website sells the product The quality authenticity is the most crucial, is more important than the marketing and the model and so on other factors. And the Lok Bee Network just in the product issue several times, to Le Bee Net Luxury Museum For example, played the advertisement is "to provide you with Gucci, PRADA, Burberry, BALLY, Miu Miu series brand." But LV, GUCCI, COACH, PRADA, Armani and other brands have made it clear that "to buy our things, please go to the direct store to buy goods, not authorized any form of online shopping channels." In addition, the Lok Bee Network has also been questioned the sale of fakes, and many times by the media, and even once caused "China's first person" Wang Hai's care, Wang Hai's visit to China's economic network, "I Consume" public anti-counterfeiting Lok Bee Net! Of course, the problem of fakes is not only in the music bee Net, gathers the beauty excellent product, Taobao and so on almost all of the large electric network exists, which is unavoidable, but can be reduced, the Lok bee net if it can reduce the fake and parallel products accounted for, I believe that regardless of sales or valuation, will be greatly improved.

Writing at the end: today announced the acquisition, only the goods will CEO Shenya sent an internal mail, the mail mentioned a report "2013 Online Cosmetics trend analysis Report", "2013 Online Cosmetics trend Analysis Report" is the Rapid Development Institute in 2013 produced, To the cosmetics electric dealer interested friends can go to Baidu search to see the full text of the report. (The author of this paper is the dean of Dingdao Shiweibo: Dingdao teacher Micro-letter: Dingdaoshi)