Market: Dead knock, or detour?

When you carry a bag rush walk in the market to buy Spring Festival on the way, suddenly found in front of a wall stopped the road, what would you do? Normal people's approach is to bypass it. Now NET is in a state of choice, bypassing or skipping.

58 with the city and net has always been the industry like to put together the object of comparison, since 58 with the city successfully login after the New York exchange, the industry's attention to net more positive. A few days ago, 58 and the market has occurred between the fierce mouth racks, both sides moved out of their own favorable data to prove that they are the strongest, in fact this contrast method not only to persuade onlookers, even their own are not too sure.

From the public to check the Baidu index and Alexa data, the market does have to lag behind 581, but from the perspective of public relations, the market will not be able to open up to admit that they do not, like men have never said that they do not, the market and 58 of the mouth of the battle must be maintained and will continue to continue.

PR also challenged, Lively also saw, after this we have to go further to see the problem, the market and 58 with the city has a common, but the market has also begun in the general character based on the development of personality.

58 when the city was successfully listed, the industry began to pay attention to whether there is financial pressure, Yang Hao-hu said the market at the end of last year to complete the 90 million U.S. dollar financing, now there is no financial pressure. At the end of last year to melt to 90 million U.S. dollars, the market will be a short period of money is quite abundant, according to the market this year's advertising volume, television advertising on about 80 million, Online on about 130 million, the year's advertising into almost more than 200 million, according to the speed of the money, by the end of next year, the market has not listed will encounter financial difficulties.

Although Yang Hao emerging in the said there is no financial pressure, nor anxious to market, but the pressure from investors can be imagined. Market publicity has been realized profit, this profit is not known through financial means to achieve, or the true ability to have this revenue. NET in the flow of less than 58, advertising spending is higher than 58 on the basis of also achieved profitability, this profitability is doubtful?

When it comes to profitability, we have to go further. Market and 58 in the business structure of the differences, 58 with the city is direct marketing and channel, and net mainly rely on channels. 58 with the city in the country has 27 branches, net only 4. Due to the small number of branch offices, this can save a large amount of labor costs, perhaps the market thus achieve a profit.

It's time to turn to the issue of direct marketing and channels. The market light direct marketing heavy channel way advantageous also has the disadvantage, the advantageous place is may save the labor expense, has the disadvantage place is the channel may be unstable. Whether direct or channel, have to pay front-line staff a fee, the market by saving money in this place, it is easy to create and channel contradictions.

In addition to the risk of channel control, the market's executive team is not very stable, 3 years since 2011 has 10 senior executives, including 7 vice presidents left. In the longer term, many uncertainties continue to emerge, leaving investors with some fear that the pressure on Yang Hao will grow.

Fortunately, before the 58-city listing, the market melted to 90 million U.S. dollars, and no matter how to achieve profitability, the market is indeed some profit, which gave the fair enough time to make adjustments. In the existing overall business, the market spent a year desperately to burn the remaining funds will not necessarily exceed 58 of the same city, so the wise man's approach is to use the remaining funds flexibly. Market in front of a wall, beyond the bypass it, in fact, we have felt the fair in the product changes.

In addition to the previously built ants short rental, this year began to recruit a full force recruitment market, in addition, in Net station we can find marriage dating and medical health and other unclassified information routine plate, the recent market also launched a tender service. This series of changes can be seen as a market in the search for a new area or to create a better business, in this way to shape its business leader image, from the 58 under the shadow of the city came out with a new image to complete the listing.

It is a good idea to develop special service on the basis of existing classified information service. But there is also the risk of doing so, once the new business does not work, the old business market is lost, the fair is likely to fall. Before the existing funds burned down, the market can not produce results to prove to investors, not only listed may be difficult, investors are confident that the next round of investment will also be unknown.

Public information shows that net received the first round of 8 million dollars since 2009, has completed four rounds of financing, the total amount of about 188 million U.S. dollars, the investors are blue-chi venture, Nokia Growth Fund, today's capital, Sequoia Capital, center of gravity Industry Fund, Ottp and Macquarie, in addition to the blue-chi venture in the B-round with the vote, None of the other VCs have been followed up.

In the present situation, the market again a round of financing difficulty is very high, but if the business can be a breakthrough in the market and insist not to go public, another round of financing is also possible, but the final goal is still listed. In the market before the question is how to effectively use the existing funds to choose a suitable corner of the 58 with the city to overtake, the concept of the second share of classified information is certainly not as good as the first share.

58 with the city after the listing of a lot of questions, now the market situation and 58 basic not too big difference, fair to the degree of advertising dependence is also very high, let the market stop advertising, its flow will certainly appear a substantial decline. Classified Information handicap is so big, the market and its death to knock 58 of the classification of information markets first, it is better to focus on a number of key business.

In front of the 58 with the city, since insurmountable, the best way is to bypass it. The market now still have the election, is to bypass 58 with the city, or Die knock 58 with the city, the Yang Hao-hu decided.