Le Bee network Wang Licheng: The electric dealers in the gambling opponents first to be left behind by Providence

5 years no Wang Licheng for the Lok Bee Network, in the past two or three years did not feel the ups and downs of the electric industry, until the second half of last year began to do the next round of financing, from the cautious attitude of investors, only to feel the electrical business of the cold winter.

Throughout the investment negotiation process, Wang into the investor's cautious, uneasy and confused, investors even told him that if a group of investors sitting together chatting, there will be a tacit understanding: talk about what can be just don't talk about electricity, because in the past two or three years after the rapid expansion of the electrical business boom burst bubble, Investors are more fearful of electricity dealers.

The parent company of Lok Bee Net is good luck in the east, catch up with the last bus of electric trader Investment, obtain 40 million dollars investment from CICC and broadband fund. Impress investors, on the surface is a Lok Bee founder Li "Chinese local beauty brand" dream, behind is the Oriental Popular program resources, consumer platform and the original brand of three mutually integrated development of operability.

If the brand is Li Perceptual thinking, do the retail origin of the Wang Licheng with data and case for this argument: competition is always homogeneous competition is difficult to make money, only shorten the supply chain to improve efficiency, to obtain an additional 2%-3% of the profit, and this seemingly insignificant profit, It is likely to promote a company to become China's top 500 or even the world's top 500 companies, and this in the retail industry is reflected, the company developed to a certain scale must have its own brand.

This train of thought in the peak after six months more intense, because Li and Wang Licheng found that selling other people's products do not make money, or need to do a "more long-term things."

Why does selling other beauty skincare brands not make money? Wang Licheng The explanation is that the whole Chinese cosmetics a year total retail volume of about 180 billion yuan, of which only more than 30 billion of the local brand, means that 80%-85% of the share is occupied by foreign brands, if they produce a product cost is 30 yuan, Sold to the channel is about 300 yuan, channel business only about 10% of gross margin, it is difficult to make money.

It is even more difficult for cosmetics manufacturers to make electricity. Electric dealers also as distributors of cosmetics distribution, whether it is from the authorized brand to take the goods directly, or from the official agent of the channel to take the goods, the profit itself has been very impersonal, coupled with such as 8%-10% logistics costs, or regardless of the cost of investment in advertising costs and price wars, cosmetics dealers can not see the hope of making money.

The only way out is to do the local brand, in the past few years, in addition to Bai Cao set, affordable Herbal limited several brands, domestic in this field is almost a blank, Wang Licheng all think that the industry needs at least 30-50 local brands, the prospect of very large can make people "very excited", So Le Feng give up the data report that has been able to balance the profit, and put more financial resources into the Shanghai original brand research and development center.

But this is not an easy thing, Chinese consumers in cosmetics habits are not easy to change, cosmetics is a need for users to experience the supremacy of Word-of-mouth industry, 10 years or even decades of "slow work out malt", however, in the electric business this flooded this fast and impetuous industry, Can the team of Le Bee net not be affected in the slightest?

Background data:

Online Time: August 2008

Financing: 2008 Shen Millions of USD, 2012 CICC and broadband fund 40 million USD

Guest Price: 200 yuan

Gross margin: 10% or so (agent brand)

Number of employees: approx. 1000 (including call center and warehousing)

Sales: 2009 76 million Yuan, 2010, about 300 million yuan, 2011 years less than 1 billion yuan, the target of 203 billion yuan this year.

Sales composition: The own brand static good accounted for about 40%, to the static best brand expectation is 10 years at least 3 billion yuan sales

Profit forecast: 2009, 2010 break-even, large-scale profit hope in 2014, 2015 years

A large number of companies will fall in the next 2-3 years.

Sina Science and Technology: Do you have a feeling by the electric business cold winter?

Wang Licheng: In fact, the first two or three years did not feel the winter, in the second half of last year's financing from investors that feel the cold winter mood. Before this financing, we only in the early 2008 Shennan Peng Investment millions of U.S. dollars, and has been doing their own cosmetics industry foundation work, so did not see outside is spring or summer, now get the second money will think, the industry in what role, we think is at the turning point. I personally expect that in the next two to three years, a large number of enterprises will fall down.

Sina Science and Technology: le Bee net before especially low-key, even large-scale promotion did not do, that these 5 years concrete what thing to do?