Luxury goods Vertical electric dealer NET announces layoffs

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Morning News reporter Miaoshari

Today's electric business is not mixed.

"Yao Point 100", an electric dealer who locates fashion department stores, announced a moratorium on operations, a website that has been invested by Qiming Ventures, Baidu, Daphne and Intel, which came out of bankruptcy this March and was once destroyed by property before the outage. Almost at the same time, the luxury vertical electric network has announced layoffs, cutting the proportion of nearly 50%.

These may just be the tip of the iceberg.

Small electric dealers are shrinking

Wu Ying (a pseudonym) in April from the luxury goods dealers to leave the show network, "the boss said, either to work in Shenzhen, or find another job." "Wu Ying from this," she said, the original company's business focus in Beijing, Shanghai and Shenzhen, starting from the beginning of this year, the market contraction, the market in Beijing and Shanghai have evacuated, all to Shenzhen.

"Catwalk network announced the financing of 100 million dollars last August, when I left this April, it is said that 60% raise funds to the account, then do not know." "Wu Ying said, go to show net start rely on is the boss own capital, after two rounds of financing, not bankrupt, but the whole electric business industry life is difficult." A few days ago, walking show network issued an apology bulletin: Because of the problem with the information system between the new logistics services companies, resulting in some goods delivery process error, resulting in some overseas shipments of orders can not be delivered within the commitment time, and the query is not the status of Courier.

Catwalk network is only a microcosm of the electric business industry. Ruzenwang, an electronic commerce observer, said that most of the domestic vertical-operator financing came from the third quarter of last year, with a planned operating cycle of about a year, and now funds are tightening. Recently, Yao Point 100, Massamasso, Jiapin, red children, walking show and other negative rumors are not groundless, if the electricity business site itself does not have hematopoietic capacity, capital depletion, layoffs will be after the tide of closure.

The big boys are tough.

In fact, not only those vertical type of electricity business site is facing financial constraints such as operating embarrassment, including some electric business bosses, after the price war after the blood spell, also a little can not bear the weight of the feeling. Before the large financing of the 1 billion-dollar Jingdong mall, but also only to increase the profit, CEO Liu revealed on Weibo, the first half of this year's sales growth of more than 120% year-on-year, turnover rate of 161%, but the net profit is negative.

Electric business bosses are holding on, "since ancient times, this business of selling things, very few will lose money, but today's electric business industry justly losses, and do not know when this loss to the boss." "That's what people in the industry say.

The price war continues.

To survive, price wars are the best and worst means.

Jingdong CEO Liu has declared war on Weibo: the third to fourth quarter of this year will be the largest, most brutal and most comprehensive price war in the history of China's electric business. and Jingdong to continue to lead the price war! Other electric dealers have challenged, Gome Online mall general manager Handepeng even said: "Before the so-called price war, most of the play gimmick, is not a real price war." At the same time, the cat also announced a total investment of 1 billion yuan, continue to build from the end of July to the Spring Festival online shopping spree. In addition, Amazon, when the "6 18" price after the war, began to prepare a new round of price war.

In the second half of last year, the U.S. stock market, which is the mainstream IPO channel for the internet industry, has been shunned by Chinese companies, under the influence of the investment into the "cold winter", said Feng Po, an analyst at the investment Group. 2012 years ago two months to disclose the investment case 9, investment amount of 102 million U.S. dollars, the average single investment of only 11.33 million U.S. dollars, far below the 2011 investment level.