Mai-Lin's stop-loss strategy is difficult to solve

Beijing Business News (reporter Chong Xiao meng) even if the establishment of a joint venture to try to stop, but the first stock of Nasdaq:mcox is still not out of the woods. Mecoxlane's earnings yesterday showed that the three biggest revenues from its electricity dealers, telephone subscriptions and physical stores fell in January-March, with a net operating income of $21 million, down more than 40%. It is worth mentioning that in the past 12 months, the number of physical stores in Macaulay has decreased by 62, including 50 proprietary stores and 12 stores, compared with the 2010 listing, the total number of stores has dropped from the original nearly 500 to 328. It is understood that Macaulay in January with Giosis set up a joint venture company began operating m18.com website of all business. The operation of the joint venture led to a reduction in the cost of marketing and management of Macaulay, which kept the net loss at $4.2 million trillion, flat against the same period last year. From 2011 onwards, Macaulay began to terminate the expansion of the offline entity stores, and gradually turned the direct shop into a franchise shop. Mr Macaulay, who was interviewed by the media at the time, said the physical retail market was not growing fast and that the consumer market was much more variable. And Macaulay also has the idea to entrust the store business to the franchisee to take over. Beijing Commercial News reporter learned that 2010, the Mai-lin real shop has reached nearly 500, then gradually reduced, currently 328. Mecoxlane had planned to open nearly 2000 stores in three years, with an annual number of more than 500 stores. In yesterday's conference call, Michael Beichun, chief executive, said that since M18.com's ownership and operation Rights had been managed by the joint venture, Macaulay had returned to the design and production of fast fashion products. He also revealed that in order to control costs, Macaulay has halved its IT, customer service, logistics-related staff, and with the opening of the Wujiang Logistics center, Macaulay has closed its warehouses in Beijing, Guangzhou and Chengdu. According to the Beijing commercial News reporter understands, its Wujiang logistics center also partly outside rents to other electric business service providers.