Macquarie continues to lose money to reduce the cost of recession

Vertical electric Commodity card in the first carved another after the owner, and a vertical electric quotient of Mai Lin Depression Retreat city crisis. March 5, the results released by the Macaulay, the fourth quarter of 2012 and Full-year performance continued to lose money. More fatally, the industry has told the Daily economic news reporter that, in line with the company's fourth-quarter loss rate, Macaulay will become very difficult in the third quarter of this year, when the amount of money will not be enough to maintain its basic operations. Cautious about online business/Macaulay's earnings showed a net revenue of 39.7 million U.S. dollars in the fourth quarter of 2012, at $58 million a year earlier, down 31.5% per cent, and a net loss of $7.2 million to $11.5 million a year earlier. Its net revenue for fiscal year 2012 was $151.8 million, a year earlier, at $217.9 million trillion, down 30.3% per cent, with a net loss of 22.4 million dollars and a year earlier of 33.3 million dollars. In its earnings, the reporter saw that all of Macquarie's businesses fell sharply last year. Net revenue in the 2012 fiscal year, network platform business net revenue for 71.8 million U.S. dollars, the same period was 118.5 million U.S. dollars, year-on-year decline of 39.4%. Net revenue from the call center was $48 million, a year earlier, at $52.8 million, down 9.1% per cent. In addition to poor online business performance, offline performance is also in a state of recession. The net revenue for its direct-operating stores was $17.3 million trillion, compared with $25.8 million a year earlier, down 32.7% per cent. The net revenue for franchise stores was $14.7 million, a year earlier, at $20.8 million, down 29.6%. At the same time, the Mai Lin line of related outlets are shrinking. The average number of its direct-operating stores in 2012 was reduced from 117 to 91 in the same period a year earlier, with the average number of franchises reduced to 266 from 306 a year earlier. The reduction of offline related outlets is questioned by some in the industry as a cost-cutting move by the Macquarie Forest. However, in an interview with the Daily economic news reporter, Mr Mak did not respond directly to the above statement: Although the volume of offline shops is decreasing, Macaulay did not deliberately shrink the business. On the contrary, Macaulay has been cautious about online business, and the future will be more focused on providing fast fashion products, and on the major electric platform with an open and cooperative attitude. It is noteworthy that last November, Macaulay suddenly announced and South Korea fun Skynet parent company Giosis set up a new joint venture company "Giosismecoxlane", and by the latter holding, transformed into a platform for the electric business. and "Macaulay Forest" brand became one of several shops on the platform. "The net is still one of our assets and a brand," said the person. Although we are now focused on building brand products, it is also one of our important platforms. "Vertical electric dealers are in a difficult situation." The continued burning of money on the platform of the electric business still makes Macaulay unable to escape. "E-commerce line," CEO Beichun said in a conference callIndustry fierce competition, online advertising and promotion of the cost of more and more, our 2012 years of operating income has also declined. As a response, we carefully control costs and improve operational efficiency. In the fourth quarter of 2012, we continued to reduce online marketing costs in order to keep cash, which in turn led to revenue from our online platforms and a fall in the number of independent visitors, but also increased our gross profit by 2.2%. He also revealed that, in addition to its own platform, Macaulay will also put their products to the cat, Jingdong Mall and Dangdang and other third-party platforms for sale. Perhaps the cotton net and the end of red children let the vertical electric operators feel a chill, cut costs dormant winter becomes the only way to survive. The relevant people in the Macquarie also admitted the dilemma to reporters, "We are also reducing costs, since 2011, the reduction of advertising investment, the other wage costs are also falling." Of course, the most important thing is to do a good product, can fundamentally change the status quo. "Coincidentally, where the CEO of the old also told the media, where the first three quarters of the last year, sales rose only nearly 30%. In the past 3 years, the sales growth rate of customers has been about 250%, 285% and 175% respectively. Industry price war led to low gross profit margin significantly reduced the possibility of profit, in addition, Mai Lin's industry dilemma on its impact can not be ignored. Public data show that 2012, offline apparel industry as a whole into stagnation in sales, inventory growth dilemma. In the first half of 2012, including Anta, 361 degrees, special steps and other domestic 42 listed apparel textile Enterprises Inventory of up to 48.3 billion yuan. Every guest insider to the reporter discloses, "The scale is again big, cannot the profit still belongs to the not benign development." Now the company's goal is to reduce all the costs can be reduced, the company to make profits. "Ruzenwang, an industry observer, told the Daily Economic news," the clothing industry is a bad environment, making it harder for vertical electric operators to survive. "On the one hand to clean up the inventory, the other side will face the squeeze of the big platform." Reducing costs and enhancing user recognition are the problems that need to be solved by Macaulay. "It is unlikely to be acquired/previously, Macaulay was warned by the Nasdaq exit for its share price below $1 trillion, and at the end of last year, Macaulay carried out a 5-1-share plan." Although the move in the short term to lift the crisis in the city, but the future of Macaulay is still worrying, industry integration speed is also intensifying. March 4, who officially announced to the public, in the form of cash-for-stock acquisition of vertical electricity commodity brand first-time, when the first-time team will be merged into every guest, and the first time the valuation of the yuan million Yuan level. At the same time, the guests also disclosed that this year will continue to carry out mergers and acquisitions. Help 5 Buy CEO Yin Ruje in the daily economic news reporter interview, said the vertical electric quotient of the tragic situation is rooted in the high homogeneity of its goods, and do not value the user experience. "Only a price war, no independent brand, to do marketing and channels, can only fall into a vicious circle." Once the ad stops, sales and traffic will come down immediately, which is clearly not sustainable. Ruzenwang thatThe loss of the first quarter of this year is likely to be lower, because it is likely to gain some boost after the joint operation with the Korean-owned enterprises. "If you can't change the status quo, you can maintain a maximum of three quarters at the current loss rate," he said. Macaulay is also struggling to be further merged, because its remaining value is not much, and investors have no confidence in it. "In March 2011, Sina announced that it was spending $66 million for 76986529 shares of Macquarie Common stock, accounting for about 19% of the total number of shares issued by Macaulay, with a purchase price of $0.8571 per share." And the continued loss of Macaulay also put Sina into embarrassment. Industry insiders estimate that if mecoxlane cannot reverse the trend this year, it does not rule out the possibility of privatization.