Foreign trade Electric Business Orchid Pavilion Development Road is not smooth, the acquisition can transfer?

From the performance "big face" to be the Investor class action, and then to the performance continues to decline, the foreign trade of the pavilion is unlikely to be successful since 2013.

But the Orchid Pavilion has announced that it has completed its acquisition of the Ador, the company's headquarters in Seattle. At the same time, Ador's two executives will be stationed at their management level. Orchid Pavilion, said that hope to take the opportunity to strengthen the company's talent reserves, and expand its global E-commerce map. The news of the acquisition of the stimulus, orchid pavilion stocks rose 20.37% in Monday.

In response to the acquisition, Guo, chairman and chief executive of the Pavilion, also described it in his microblog: the Orchid Pavilion version of Beijing fell in love with Seattle, and the Chinese dream was a dream-stealing space with the American Dream.

CIC Consultant Retail industry researcher Du Yan said that the main purpose of Orchid Pavilion is to further open the European and American markets, expand the scope of business radiation, thereby enhancing their own market competitiveness; On the other hand, the acquired party Ador existing outstanding management talents, business models and concepts, will be imported fresh blood for enterprises.

Ador Two executives join Orchid Pavilion

Orchid Pavilion Set Potential was founded in 2007, its lightinthebox.com is well-known international trade website. At the end of 2013, the Ministry of Commerce's official announcement of the Ministry of Commerce's 2013-2014-year E-commerce demonstration Enterprise Bulletin, Orchid Pavilion is also ranked among them. June 6, 2013, the Orchid Pavilion set in the United States on the NYSE listing. On the evening of January 6, the Orchid Pavilion announced that it had completed the acquisition of the Ador company, the American social-networking website. Officials said the acquisition would be done in cash but did not explicitly disclose the amount of the deal.

The reporter learned that the acquisition completed, Ador Company's management team and staff will join the Orchid Pavilion set potential, and set up the Orchid Pavilion in the United States first office.

It is reported that Ador company chief executive Markstabingas will be the president of the Orchid Pavilion, the joint chief executive Quintenshay will become a senior vice president of Orchid Pavilion, and the joint founder of Orchid Pavilion and co-president Wencen and Zhang Liang will become executive vice President, The original job responsibilities will remain unchanged.

Guo went on to say that through the acquisition of ADOR, management personnel could be introduced into the management team. "I hope to take this opportunity to strengthen the company's talent pool, and to expand our global E-commerce map." ”

It is understood that from 2011 onwards, Markstabingas in Ador as chief operating officer, CEO and board member. Prior to joining Ador, Markstabingas worked for Amazon as General manager, Amazon's senior vice president for business and business Development and vice president of Amazon's U.S. retail business. Another executive, Quintenshay, has been working for 7 years with Amazon, which includes leading Amazon's entire international technology team to expand its business to Europe and Asia, and to run Amazon's retail business in Japan.

Orchid Pavilion Set potential performance bearing pressure

The latest results show that the company lost 2.4 million dollars in the third quarter to the end of September 2013, and the loss margin continued to widen.

In fact, after the two quarterly results were released in 2013, the pavilion was confronted by a class action by US investors on the grounds that it misled investors by "false performance". At present, the problem remains unresolved.

In the industry view, the Orchid Pavilion set potential performance improvement is more difficult. The reason is that the company relies too much on a few big categories, and sales of goods are lack of continuity. And for the electric Business enterprise, for the overseas users of the category is very limited, each other also in the price war. In addition, the promotion channel is very single.

Faced with many problems, Orchid Pavilion is also beginning to look for solutions. Previously, the Orchid Pavilion set to increase the rapid growth of small accessories and jewelry business Set up a dedicated website. In addition, the Orchid Pavilion collection has also launched a flash-purchase channel to provide each round of 7-day flash purchase sales.

To bolster confidence, in the middle of the past December 2013, the Pavilion has announced that its board has approved a stock buyback plan to buy up to $20 million worth of American depository stocks before December 15, 2014. Guo went on to say that the stock repurchase plan reflects the confidence of the board and Management in the development vision and business base of the Orchid pavilion.

Eric analyst Wang Yahi told reporters that at present, the Orchid Pavilion set potential in the revenue pressure is very big. "This is in fact the company's own business structure and product positioning is a big relationship, Orchid Pavilion is the equivalent of China's cheap labor of the electric business version." It said that, for the foregoing reasons, Orchid Pavilion products in the overseas market loyalty is low. In addition, the Orchid Pavilion set potential marketing is very dependent on Google's search engine, and therefore has to face high marketing costs. The current acquisition of this social networking site will help reduce marketing costs in the long run.

Wang Yahi said that social electrical business is a trend of the future development of the electric business, through the spread of interpersonal relationships can better promote the spread of the brand. "The popularity of Orchid Pavilion is not very strong, (social power) can make up for this disadvantage." ”

The reporter learned from the analyst, Orchid Pavilion set potential nearly 98% of sales are from overseas, so its focus is to open up the international market. Wang Yahi said that two senior executives have the experience of working with Amazon is the Orchid Pavilion value. "Orchid Pavilion Set potential 4 founders have Google working background, but lack of some international management vision and ability, the introduction of international talent is helpful to internationalization." ”

These analysts pointed out that, due to the cultural differences between China and the United States, Ador and Lan ting two companies have different corporate culture, resource integration, corporate culture integration, etc. or produce a certain divergence, this is a challenge to the Orchid Pavilion set potential. At the same time, however, the current initiative of the Orchid Pavilion is in line with its long-term goals, and has a lot to do with the current business.