Mad cow back on the Shenya: only products will be market capitalisation 3 times times

Financial Weekly Trainee reporter Baofang/wen

The product will be like a riddle, and Shenya is a riddle.

The company, which comes from Guangzhou, went to the NYSE a year ago to "bleed to the market" and, after aggressively reducing the size of the issue, fell below its IPO price at a minimum of $4.12. But January 24, 2013, 9 months later, its closing price was 22.3 dollars. Rose more than 5 times times.

This past year is just the year of Waterloo, the Chinese concept stocks listed overseas. Too many scandals, too many short, too many retreat, "positive energy" few. Only goods will thus be known as the industry "in the King of stocks."

The company, which was founded less than five years ago, is the first to make a profit in the E-commerce industry, according to Chinese accounting standards, now 3 times times its market capitalisation. But the former founder Shenya's popularity is clearly far lower than when the guoqing. Even with the few photos on the market, it's hard to find more pictures of Shenya on the Internet.

January 15, 2013, Mystery Shenya sits opposite us.

"I just knew before I knocked on the clock that the" bleeding list "had been uploaded in the media, at that time we only have to knock the bell this step, I rarely pay attention to outside remarks, so not very clear," sitting in the office in Guangzhou drunk View Park, Shenya to the financial weekly reporter recalls. "

Talk about the company's share price performance, Shenya eyebrows lightly picked a moment, raised his eyes to look at the reporter, and with his inherent amplitude of the small voice said: "This is normal, we are listed on the underestimated, ups and downs is a number, I see very light." ”

The mystery of low-key profitability

In January 2013, the market capitalisation of the goods will be 3 times times the old one.

Only products in the industry has the most "small fresh" office space, covers an area of nearly 1 hectares of drunken view garden is the middle and late Qing Dynasty in Guangzhou, one of the flower garden, famous for planting peony. At the end of 2008, Liwan District government in the establishment of the largest E-commerce park in Guangzhou, under the background of the policy to give only the goods will be favorable rental venues. The garden-style office area, transformed from 6 old large granary, accommodates more than 1000 employees.

Shenya cost control is not only reflected in the venue, his "pull" in the staff is also often ridicule. Only goods will be set up after the establishment of a anti-electric enterprises do not hesitate to hit the advertising style, even on the scale of the market promotion activities are rare.

"I have a friend one day in Guangzhou South Station to see only the goods will billboard, ridicule I said only the product will finally want to open, I said, where is ah, it is Shen General's personal relationship to do an advertisement just", only the product will be a worker smiled and told reporters. "

In the early days of the enclosure, Beijing-east, which had spread advertising fees, had been forced to slash advertising fees in 2011 and to charge businesses with high advertising fees. In the website of the only product will, there is no commercial advertisement outside the product.

Shanghai million-engine Business Consulting Co., Ltd. CEO Ruzenwang that the only product will become the first profit of the electricity quotient of a dark horse, there are external causes also have internal causes. The internal cause lies in its high quality supply chain, and the logistics efficiency makes it relatively low cost, the external factor is that the Chinese clothing (000902, stock bar) brand Inventory crisis so that only the goods will catch the ride.

More than two years ago, the only product will be refreshed domestic e-commerce a round of the highest record of the investment of 20 million U.S. dollars in financing, only half a year, the United States DCM and Sequoia Capital and additional 50 million U.S. dollars of investments. At that time, in charge of warehousing and logistics Tang Tanji just entered the job, he will design the "trunk logistics" model, so that only the logistics cost of goods will account for the proportion of revenue from the fourth quarter of 2011 down from 18.4% to 2012 the third quarter of 13.9%.

Two years ago, the only product would have accumulated 1.5 million active members by means of a limited-brand discount model, with an average daily order exceeding 10,000 orders. Mainstream vision has not been focused on it, but it does not affect its low-key expansion. From the warehouse area of 20,000 square meters of Guangzhou South China Sea Logistics Center started, has been increased to nearly 200,000 square meters, distribution north, east, south, southwest four regions, cooperation brand growth to more than 5,000.

In the busy 2012, every company has its own sad and happy story.

January 2013 only the market value of the product is already a veteran electric dealer when the 3 times times, and Dangdang 2012 years before the three-quarter cumulative loss of more than 320 million yuan, the day is getting worse. Jingdong Mall sales soared, but the profit continued to decline. Public data show that Jingdong Mall is expected to lose 2 billion yuan in 2012, and even claimed that 2015 years did not intend to profit.

Only goods will be in the electricity business mire in a single show, set a listed electric dealer fastest profit record.

According to only the third quarter results, 2012 years ago, three quarterly revenue of 100 million U.S. dollars, 135 million U.S. dollars, 156 million U.S. dollars, if not in accordance with the United States General accounting standards, only the goods will be in 2012 three quarter profit to achieve 640,000 U.S. dollars. At the same time, its gross margin continued to improve, 2012 years ago, three quarterly gross margin of 21.2%, 21.8%, 22.3%.

According to the December 2012 list of the current share of the traffic, only the goods will be ranked in the seventh place, and Dangdang to 3.8% of the weak advantage of the first goods will be ranked before. Compared with the June data, only the goods will rise by 1.2%, when it fell by 0.9%.

400 billion discount market

His key words are "brand" and "Special Sale".

Before the media on the power of the general importance of the Channel Division: A channel for the day of the cat, Jing-dong, the second channel for 1th stores, Suning easy to buy, when, Amazon, QQ online shopping, only products and days of goods network, walking Show network is classified in the three-level channel.

Shenzhen electric shock e-Commerce Co., Ltd. founder Shangxiang that the standards to be considered, he said that if the division by sales, only the goods will be a level of channel. The official estimate for 2012 sales was 630 million dollars. 2011 for 230 million dollars. So 2012 more than 2011 doubled.

For this record, Shenya comes down to the uniqueness and differentiation of positioning. He has positioned himself as a dedicated website, and he believes that the potential of the U.S. discount industry is far from being vigorously developed. His key words are "brand" and "Special Sale".

Billion Power network COO Liu Yan said: "Only products will be at least two, their sales channels are very strong, although many cooperative businesses complain demanding, inflexible." ”

In Shenya's view, at any time, consumers want to use cheap prices to Amoy good brands. Because of the continuous deepening of consumer upgrades, users buy discounted goods long-term existence, so the clothing discount retail business model potential is huge. And the only product will be low to 05 percent of the brand shopping does cater to the majority of consumer brands and preferences of the psychological.

The 2012 clothing inventory problem was put on the table, Shenya is in the clothing inventory crisis found a balance, he put the inventory problem to the normal problem.

In the United States, mature and developed clothing brands, after the sale of a quarter, the general will still have 20% of the inventory. Moreover, a brand from the design, procurement, production, circulation time is very long, generally need 12-18 months, cycle so long, also means that inventory will always exist.

"The only product will be the anti-economic cycle of the model." When the economy is not good, the brand has more inventory pressure, consumers also want a higher discount, only goods will be more benefit. Shenya said to the weekly financial management reporter.

Data show that the domestic women's market is about 1 trillion yuan, menswear probably in 500 billion yuan, as well as children's wear and other such as 500 billion yuan. Conservative calculation, if 20% is inventory, then the entire discount market has 400 billion yuan. "According to our annual sales last year and this year, it's just a small part of it." So there's no ceiling for inventories. Shenya analysis.

In the United States, there are more than 300 offline outlets, coupled with the huge discount dealers TJ Maxx and Ross, who last year sold two of 30 billion dollars a year. "Only the long-term development goal of the commodities meeting is to strive to become the TJ Maxx in China." "Shenya said. However, he also stressed that the only product and will not be equal to outlets, "otherwise it will give consumers a very cheap look and feel, thus affecting the consumer's buying perception." ”

Therefore, the only products in the existing category of goods, to help brand businesses to eliminate inventory is only part of the business, but also includes the sale of some brands in the new season and network special products. From the brand directly to the customer, there is no national agent, no shopping malls, also excludes the original traditional elements and circulation links. This unique mode of operation has also become the key to its profitability.

5000 Brands plus 5,000 employees

Shenya's operation is that 80% and the brand directly deal with 20% and agents to communicate.

In the only product before the Shenya a total of two startups, the first time is domestic trade, the second is import and export. From Wenzhou, he has a thick warm business temperament, from the business is their career password, he did not even think of working.

For the operation of the brand, Shenya insist on fresh and changeable but also biased to rational. At present, only the product will cooperate brand has more than 5,000, but in the brand management but there is no great pressure, which benefits from the "Quick Dress" mode. Only products will be replaced every five days page, mainly by the Ministry of Commerce responsible. The Ministry of Commerce will be based on brand scheduling, in general, will be one months a day to complete the brand scheduling. Even if the page is changed for five days, the interface that consumers face every day has changed, such as the change of brand rank and the change of the special sale channel.

Shenya's operation is that 80% and the brand directly deal with 20% and agents to communicate. Management brand will also be divided into ABC, the big brand will be vigorously managed, and this is mainly based on the contribution of the brand division.

"In the future, only products will be cut off by some of the less well-known, selling bad brands, will do structural adjustment." There is not a large share of a brand monopoly, but the top 10 will account for 12% of sales. Shenya said.

The relationship with the brand is important, but this is not Shenya's only bargaining chip, he put two heavy chips in the logistics operation and management mode.

Logistics operation is the key card to win or lose electricity, only goods will be distributed in Beijing, Shanghai, Guangzhou, Chengdu Four, logistics expenditure accounted for most of the cost.

According to the only official disclosure of information, only the goods will be the logistics area expansion, currently has nearly 200,000 square meters of storage area, the end of 2013 will be increased to 400,000 square meters.

Shenya in the warehouse management also has its own way of operation, vendor delivery mode He did not use, but one-stop service, "so no inventory pressure, how much to sell and the number of vendors to settle, there is no backlog of problems," Shenya said.

He realized that the word "fast" in the electric business industry is the winning weapon, "we have their own warehousing mode, the goods into their own warehouses in the page shelves, so as to ensure delivery quickly." Logistics is a core competitive ability. The front desk receives the order, your rear how quickly transports out is very important, too slow the consumer will abandon you. Although logistics is very important, but the first or the business model. ”

The future insists on "short selling"

Give consumers a buying pattern, but also a hunger marketing.

Only the product will start to find the business model-"short selling." Short selling has both advantages and disadvantages, it will cause cost increase, but it caters to the public consumption psychology. "We give consumers a very short time to choose, this is in the consumption of psychological work, give consumers a buying mode, is also regarded as the marketing of hunger." The operation mode of the only product will be tailored for short selling. "Shenya said. Specifically, its operating mode is outflows, bulk purchase, a large number of returns, and warehouse conversion is very fast. The mode of cooperation with the manufacturers is also, after the sale of goods to do the settlement, to avoid inventory risk.

To enter the website of the only product will, it is not difficult to find that the female supplies accounted for half of the. Shenya's sensitive business acumen has prompted him to position female consumers as the main target clients. "Now women are a major part of online consumption, accounting for 75%." In particular, female white-collar workers in the purchase of clothes will not do too much consideration, while the male users purchase demand is relatively small. "Shenya said.

According to the only official data, the third quarter of 2012, the number of new active customers and the total number of orders compared to the third quarter of 2011 year-on-year growth of 126% and 158%.

Shenya admits: "Our motivation is to attract a large number of new customers and old customers to repeat the purchase." And the way to attract new customers is to do a good job of management, a good user experience, in fact, friends between the word of mouth will naturally achieve a good publicity effect, this is free advertising. ”

"The only thing that will develop smoothly is that we have a good control of gross margin, not simply to pursue profitability, but to achieve a balance between profitability and sales scale." Advertising promotion can not be immediately profitable, not at the expense of the future. "Shenya said. It is understood that the only products will rarely do under the line, search, Web site navigation and website CPS Advertising is its main way to put.

Throughout the electric business sector, the trend of the hundred schools of contention. The current electricity quotient pattern, already cannot use the traditional Consumer-to-consumer, business-to-business, the description. At present, the main electric dealers are divided into platform electric, single network and channel power provider.

Industry analysis, the only product club positioning platform for the electricity business is the most relaxed, one is because of the Matthew effect of the Internet, which leads to fewer competitors; the second is that their direct rivals are traditional commercial properties, and these platforms with long tail advantages and marginal cost reduction are easy to cut off a large chunk of cake in expensive traditional commercial properties.

Of course, Shenya blushes to the pursuers: "The challenges of the future are, of course, the pressures of the entire electric business sector." To maintain high-speed development, but also pay attention to talent, organizational structure, operating mode and speed of matching. It is like driving on the highway, to have the ability to change tires, refueling, maintenance. To make sustained profits, a protracted war. ”

At the end of the interview it was 6:30 P.M., and half an hour ago the crowded office was sparse, there are still a lot of overtime staff, passing Shenya 360 degrees full transparent glass around the office, saw him sitting on the leather chair staring at the only product will be the network page, at this time there are 2 hours away from his work.