How will the product be made into a demon stock?

I dark Horse: only goods will have been profitable for 7 consecutive quarters. Because the reverse attack is too abrupt, is called "Demon Stock". Its great success, driven by Beijing-east, Taobao, when, Poly-Mei products and other electric dealers also launched their own special selling platform, which also makes it will face greater challenges.

"A lot of people have been studying us, we just came back to say we bled out, after half a year our stock price rose many times and said we are ' demon shares '." Now, many competitors are studying our model. "On August 18, in the second quarter of 2014 's earnings sharing meeting, only the CFO Yangdonghao himself," he said. But he also stressed, "on the face of it, it's all about selling, but it's totally different." ”

The earnings figures did highlight the commercial value of the--2014 in the second quarter, with total net revenue of 829.4 million dollars, up 136.1% per cent and net profit of 26.4 million dollars, up 192.1% per cent, which has been profitable for 7 consecutive quarters since the IPO. Subject to the impact of the success of the only products, other electric platform has also introduced a special selling mode, Beijing-east, Taobao Poly cost-effective, when all claimed to be fully committed to the sale of special market. Only the product will model in gaining market recognition, but also ushered in more challenges.

In China's internet sector, almost no company has ever been as controversial as the sole product. March 2012, the only goods will be listed on the NYSE, because the U.S. investors are not bullish, the original 8.5 to 10.5 U.S. dollar issued price fell to 6.5 U.S. dollars, and the opening day of the close to only 5.5 U.S. dollars, and continued to be depressed for nearly half a year. At the moment, only the stock has reached 222.45 U.S. dollars (open August 19, 2014), it is 2 years ago the price of 50 times times, higher than Baidu's 220 U.S. dollars, and 12.5 billion dollar market capitalisation also micro-Tiger 360, thus leaped to China's fourth-largest internet company market value.

Only goods will be reversed too suddenly, whether ordinary investors, or large investment institutions, the only product will be the price of the crazy rise of the shock and doubt, so that it gave it a nickname "Demon shares." In May this year, the central stock market, only products will even become a reference to listed companies, "Neu Cheng online tourism ' only products will be '", "poly beauty products into cosmetics ' only products will be '", similar to the story of repeated newspapers.

"Once, only goods will be not optimistic about the company, today, the only product will be everyone can not understand the company." "Baby Tree CEO Wang Whinan told reporters, but this does not prevent the only product will become a good company," at least, its performance reached the requirements of excellent companies. "Earlier this year, the baby tree decided to enter the mother and infant electric quotient, after careful selection, decided to cooperate with the only product will carry out mother and child clothing special sale business," Our partners only one this year, is the only product will be. ”

Hot Selling Market

"You are such a small company, how can you say that the trend of the future electric business is you and the cat, Beijing and east side by side?" 2012, the only goods will be listed in the prospectus in China's contemporary electric power quotient of the three great cause of the representative-to the day of the cat as the representative of the market model, to the Beijing-East as the representative of the traditional business sales model, to only products will be representative of the selected brand proprietary mode. The results were ridiculed by some investors.

"Many investors don't understand our model and growth potential, and it's funny to see it," he said. "Yangdonghao said.

This business model, originated from the French website vente vente, is also known as "timed snapping". In general, to do the special sale of the net purchase platform will be 10 percent-50 percent of the original price for exclusive members to buy, each time the special sale lasts 5-10 days, first to buy first, limited time limit, after the sale, the customer must pay in the specified period. And the only product will be the time for each special sale of 5 days.

In its latest report on China's online-timed sales market, she said the market was 37.8 billion yuan in 2013, up 100.5% from last year, and is expected to break 180 billion levels by 2016. Objectively speaking, the only product will be representative of the special selling market, is indeed the past 2 years, China's largest electric business lake of surprises.

One reason for the success of China's network-selling model is the pressure on Chinese brands to clear inventories.

Over the past few years, the continuous expansion of the tail cargo backlog so that many brands into the plight of cash flow shortage, in the face of inventory pressure, brand manufacturers to make concessions to the line, the line under the various channels for promotion. Compared to offline channels, the advantages of online channels are very obvious: do not need to pay a high entrance fee to the consumers more concessions, and due to the time limit of special selling platform must be within a limited period of payment, the return of funds faster. So, brand and special sale platform hit. "China's offline discount market is still underdeveloped, which creates demand and provides opportunities for supply." "Yangdonghao said.

Today, Internet sales have become the new world of Chinese electricity dealers. Dangdang "Tail goods sinks", Jingdong "Flash Regiment", where the customer prudential goods "limited purchase", the Cat "brand special selling" ... Power companies have flocked to the market to snatch the huge business opportunities brought by the network during the limited hours.

Some of the data from these platforms also confirms the success of the sale model. Among them, when the flash business in the second quarter of this year apparel category trading growth is higher than the platform, the scale has exceeded the overall platform turnover of 50%. "When playing clothing tail goods sinks one year, the total amount of clothing transactions can be doubled, transition a bit late, but still seize the opportunity, it is clothing let guoqing a lot of hard." "said Ruzenwang, an analyst at the electricity business.

The only thing that will be different is where

"Evaluate a power business enterprise, look at its mode, two look at its operating efficiency, three to see its customer retention rate." In these three aspects, only the product will have a shiny performance. "Former Dangdang COO, Cat founder General manager Huang Jo in his new book" Again Look at electricity business "wrote.

An early release of the data showed that in the first half of 2012, the overall repeat purchase rate of the domestic consumers ' platform was 49.76%, but the average monthly rate of repurchase was 82.41%, about twice times that of other electric business platforms. Only the latest data show that 70% of the repeat purchase of users contributed to the entire network of about 90% of sales.

"We are a featured brand. The Internet pays attention to the user experience, is to find the user's pain point, and solves it well. Yangdonghao said, only product will have a professional buying team of 800 people, "These buyers have a strong professional ability, through their selection of brands and styles, usually meet the needs of the current consumer." So many consumers in the only product will be more than in any other sites are easier to find what they like, want to goods. ”

For the only product will, the professional buyer team has become an important intangible assets. "They (competitors) want to dig people, digging 10 or eight of the not good, dug more also dug not move." Yangdonghao said, "Our excellent buyers have equity incentives, only the price of goods will be so high." ”

In addition, have a strong bargaining power is the only product will be a clear advantage. "Select Brand + depth discount + Limited limit" is the only product will lead the special selling market core competitive advantage. As of the first quarter of 2014, the only product will be with nearly 10,000 brands, including more than 1300 for exclusive cooperation. Yangdonghao said, with the only product will expand the scale, will naturally have a brand of bargaining power. But in the outside world, it's not just the size.

"Shenya itself is the Wenzhou merchant origin, and the clothing manufacturer has the natural relations." This is not comparable to other electric dealers. "Billion European net founder, electricity business analyst Huang Pu said. He is rumored to have been in the media, often in daily life with the owners of various brands of wine Huan, brothers. "Shenya is very aware of the relationship between maintenance and brand manufacturers, and their relationship is difficult to cut into." "Only one competitor of the commodities club said. Although some competitors are beginning to learn how to deal with the brand, but the effect is not obvious.

Because the only goods will be to do flash mode, generally a commodity only sell 5 days, but also the way, so the goods in the warehouse are outflows mode, "for the logistics, every 5 days in the warehouse goods will turn once, the test is very large." "Yang Haodong said.

Only goods will be taken with the other electric platform is not the same as the logistics model. It is mainly responsible for the local warehouse, has been in Shanghai, Guangzhou, Chengdu, Tianjin and other 4 cities have built about 540,000 square meters of warehousing center, according to the plan, the end of this year will be in Wuhan to build a new warehouse. But it does not build its own distribution team, but with social logistics cooperation. This is the only product will be called "Trunk plus landing" logistics way, making it less investment than East Beijing. This year, the net profit of the only commodities meeting is expected to exceed 1 billion, which reflects the value of the high efficiency electricity supply chain. "said Ruzenwang, an analyst at the electricity business.

The downside of this model, however, is that, as the scale increases, its logistics costs may rise. Only the product will also recognize this point, "we did not build logistics, because we are not enough, can not support the cost." But now we think our single volume can support the construction of logistics in the country. Yangdonghao revealed that only the goods will be considered in addition to the logistics, is also discussing some acquisitions, hope that through the shares, equity participation and other ways to expand the logistics system.

"The main Line plus landing is also a surface phenomenon." We are non-standard goods, other electric dealers may be better at the standard goods, and non-standard goods in the warehouse operation is very different. Yangdonghao said, in the only warehouse, because the clothing is soft, so it is placed in the basket, while the other to mark the main electric dealers are more use shelves and trays. "The entire warehouse process is not the same, it sounds like, in fact, is completely different." ”

With the stock price of the only commodities will continue to climb, some analysts believe that the only product will be the end of the high growth model. Forbes columnist Yin Seng that the only product will be a vertical electric business, the scale of the expansion of the natural loss of the BoE. And as the scale grows, when it expands to other products, it may make it less likely to experience better use among female users. In addition, there are some people think that the stock dividend has been reduced, clothing sales of ultra-high speed growth has passed, the future growth is bound to slow down, the beginning of this year will buy cosmetics vertical electric business Lok Bee Network, is aware of this problem. Since last year, Taobao, Beijing-east platform, such as electric operators began to frequent in the three or four-line city of the brush wall movement, but also to the three or four-line city for the main market is the only product will bring pressure.

But Yangdonghao is optimistic. "Many people think that the economy has a problem will appear in the tail of clothing, the economy once the improvement of the clothing will disappear, this is wrong, because the clothing industry will always produce inventory." "Yangdonghao pointed out that the data show that a brand in the normal quarter usually produces 20% of the backlog, only products will not worry about sourcing issues. "Although we are already the country's largest selling sites, but we are relatively young companies, the whole China's special sales market itself is large and rapid growth, the market's potential is far from uncovered." "He is confident that in the next 5-10 years, the special sale market of the products will continue to grow rapidly." "At present, the only product will be the penetration rate of 3%, there is a lot of space, if to 90%, it may encounter bottlenecks." ”