Mobile Internet, O2O rise, the electric business industry competition is intense, enters the high speed development period.

"Case One" Lok Bee Network: "Talent effect" conversion rate low difficult to escape operational risk

Acquired time: February 2014

Development Overview: Le Bee was founded in 2008 by the well-known television Li founder, is a star talent operation, Static Jia own brand and beauty makeup vertical electric business as a whole platform. The oriental popularity of its parent company won the Sequoia Capital a round of investment, CICC and the broadband Fund B round 40 million U.S. dollars investment.

Since 2012, every year from the end of February to the end of March, the Lok Bee Network held a one-month full network of "Peach Blossom Festival", and gradually become the cosmetics vertical electric dealer in the annual largest commercial activities.

In February 2014, the Lok Bee Net sold 75% of its shares at 112.5 million dollars, and "prostitution" was the only product.

Analyst comments: Le bee nets to "star talent effect" publicity, short time can gather popularity, but the purchasing power conversion is not high. Too much reliance on star Tatsu people, deviating from the core of the electric business, the company's overall strategy swings, long-term operation of the risk is very large. Once the talent is reduced, it will have a significant impact on the entire sale. Le Bee network to promote its own brand by proxy brand operating mode, it is difficult to maintain business chain expansion.

"Case Two" Mai Lin: "Trinity" diversion difficult to locate the transformation

Acquired time: February 2014

Development Overview: 1999 Wheat Network officially online, Mai Lin began to dabble in the field of E-commerce.

Sequoia Capital spent 80 million of billions of dollars in February 2008 acquiring a stake in Macquarie, the largest single investment by Sequoia in the country.

October 2010, Mai-Lin went to the United States listed, become "China's first share", the initial stock price jumped to 18 U.S. dollars, known as cents stocks. However, in the 2012-1013 two years, the Mai-lin continuous huge deficit, the risk of the imminent retreat.

February 2014, the Business Circle net of about 39 million U.S. dollars to buy Mai Lin about 290 million shares of common shares, accounting for 63.7%.

It is understood that the Mai Lin's business includes stores, E-commerce and DM three parts, and such a diversified business development is referred to drag the performance of the Mai Lin. Although in recent years Macaulay tried to close down the store, to create an online open platform, and other means to stop, but in the fierce electric competition in the Mai Lin is still fading, sales bleak.

Analyst comments: Mai Lin uses the "Online + entity + mail Order" Trinity of multi-channel distribution mode. Sun Lu, an assistant analyst at the network retailing Department of China's E-commerce Research Center, said that with the rapid development of China's electric power business, the three-legged strategy has been mutually restrained, controlled by capital, resulting in strategic uncertainty, loss of core competitiveness, and the future of the "transformation of the trapped" seeds. The industry's concern for Macaulay has continued to decline, and the long-term huge deficit has made the Mai-Lin pressure Alexander. Being acquired is the best way for Macaulay, and the performance is obviously improved.

"Case three" Qiao words: "foreign" mode simple copy Encounter "acclimatized"

Closing Time: March 2014

Development Overview: 2008, the domestic rush to buy the mode of the rise, Qiao language platform came into being, providing the brand network of special sale.

In the June 2011, Qiao was the capital of the 43 million U.S. dollar investment and today, once the "scenery Unlimited."

2012, the media has exposed Qiao words in the capital chain difficulties, and there are substantial layoffs, but Qiao language official issued a statement denying the statement.

March 25, 2014, Qiao words on 24th Night announced bankruptcy liquidation, CEO Blue missing for several months, owed hundreds of employees for several months salary. August 9, the Blue Shishou response to bankruptcy because the warehouse was "inside thieves" pocketed the sale of 120,000 pieces of goods, resulting in the company's funds can not be turnover.

Analyst Comments: Sun Lu that Qiao's business model is the French vente-privee.com copy, mechanically, without the "localization" of the improvement suffered acclimatized, exacerbated the company's decline. 2013, where guests, when, Beijing and east have been involved in the "limited time" business, market competition intensified, Qiao language survival situation further deteriorated. In the pursuit of scale, low prices at the same time, ignoring the corporate profits, and finally the capital ' kidnapping ', fall apart.

"Case Four" Rice network: Re-operation Mode missed the opportunity of transformation by industry elimination

Acquired time: April 2014

Development Overview: December 2003, the rice line online, to become China's first free restaurant reservation service, free food and beverage discounts to provide services to the online catering integrated service enterprises.

June 2008, the Rice network wholly acquired Guangzhou "World Restaurant" website, the market expansion, July 2008, the Rice Network won four overseas venture capital enterprises nearly 30 million yuan VC. April 23, 2014, the rice network closed, the CEO Sanli, most employees 11 months of unpaid wages.

Analyst comments: The model of the rice network is heavier and consumes a lot of manpower cost funds. Since 2010, the "Hundred Regiment War" pattern gradually formed, bringing enormous challenges, the rice network has been slow to deal with, lost the opportunity in the competition. Rice network operation strategy wavering, missed the opportunity of mobile Internet. Capital chain rupture, equity transfer disputes, arrears of staff wages, resulting in rice network in the catering O2O industry to extinction.

"Case five" Tencent Electric business: Simple rough operation difficult to stop platform huge loss

Closing Time: May 2014

Development Overview: September 2005, Tencent Electric business set up Consumer-to-consumer Pat Network set up and external trial operation. December 2011, Tencent set up QQ online shopping, and in March 2012 for the national promotion.

2011-2013 September, Tencent continued to lose money, of which, the 2011 QQ online shopping and Pat Net loss of 162 million yuan, 2012 years loss of 20 million yuan, 2013 years 9 months loss 71 million yuan.

March 2014, QQ NET buys, Pat Net is 100% buys by Jing Dong, Xun minority stake is bought by Beijing east. May, Tencent announced that the physical electric business merged into the Beijing-east, O2O business and Credit Enterprise group, virtual business into the Enterprise Development Business Group, film ticket business into the social network business group, customer service team into the technical Engineering Enterprise group, Tencent Electric business to the end.

July 2014, Jing Dong remake Pat, renamed "Jing Dong Pat". The same year September, QQ Online shopping, renamed "Jing Dong Net Shopping"

Analyst comments: Tencent Electric Business Project at the beginning of the line in traffic, trading volume, the number of users, such as high-speed growth. But with the emergence of a large number of businesses, flow from the basic social channels, simple imitation of Taobao, its own operational ability to keep up, not too many third-party services, the operation of a simple and crude, can not allow the development of electrical business projects. In addition, the electricity business Platform supervision is not effective, the fakes unceasingly, the user complains without the door, the exemption clause is ineffective and so on exposes, the operation fails.

"Case Six" prestige Network: Supply, flow bottleneck difficult to break through the "big rout"

Closing Time: May 2014

Development Overview: 2010, the Prestige net set up, and in August 2011 officially on-line, to provide luxury goods, fashion clothing, beauty skin care products, service high-end users.

On line one months later, the Prestige net obtains the soft silver race rich million US dollar investment, becomes the fastest to obtain the soft silver investment merchant in the history. On line 4 months, set a record of sales, completed a number of similar sites a year of sales.

At the end of May 2014, CEO Ninko issued a micro-blog statement: "General manager and shareholder status has been all turned out, the Prestige NET also change management layer operation, after all operating conditions, I am not aware." "Then, the Prestige net cannot be opened.

Analyst comments: The Prestige network can never break through the shortage of supply bottlenecks, no brand authorization, there is no endorsement of partners, it is difficult to obtain consumer trust. The Prestige NET does not receive the atmosphere, faces the high-end user, but this kind of user's loyalty is limited. In addition, in order to obtain a large amount of traffic burning money marketing, resulting in a broken capital chain. Lack of supply, fake flooding, the lack of shopping experience, price constraints ultimately did not let the Prestige network was "cold winter."

"Case seven" Day Product network: Location is not clear funding difficult to endure peer strike

Acquired time: June 2014

Development Overview: August 2012, the day product online line, the core team mainly from Taobao, Shanda, Fank and so on, positioning the brand to sell, and access to Blue Venture and SoftBank China million dollar investment.

Days after the online line has been the only product will be blocked, the supplier was told not to the day goods network supply. Only products will be the fierce reaction to the day product network has increased more attention, but the industry is also worried about whether it can survive the public hit the big guy.

June 2014, the day product network was beautiful said mergers and acquisitions, and posted a notice, no longer provide the original brand special selling services. Then, the day product net closes.

Analyst comments: The same is the fashion electric, day product network than the only product will start late 4 years, in the opportunity of no competitive advantage. Only the founder of the product will be a traditional businessman, and the founder and the core team is mainly Internet origin, the team lacks business awareness. In addition, the day product network, although the brand sales operation mode, but the positioning is still unclear. The electricity quotient is bristling, the day product net is insufficient, the competition ability is weak, finally difficult to endure big guy's blow.

"Case Eight" Grosvenor Street network: Media thinking business model is difficult to become "high-order electric dealer"

Closing Time: June 2014

Development Overview: September 16, 2011 High Street online, positioning fashion famous special selling, to wear a guide to attract mature white-collar female users, breaking the electricity quotient "blood spell" price stereotypes.

At the beginning of the line, there have been more than well-known VC to negotiate a round of financing matters. High Street Network has to buy gaojie.com domain name, transaction price of 6 digits.

June 20, 2014, High Street network announced the closure of the site, the last "sadly off the field."

Analyst comments: High Street network positioning famous special sell, the small, thin, giant bristling bring pressure, growth space is compressed. June 2013, the only product will issue exclusive sales agreement, High Street network broke the grain, on the verge of being eliminated the edge. In addition, the High street network of the lack of self propaganda, did not succeed in the momentum, and even dozens of days after the closure of the news on the major news sites. Founder Li with media thinking to run electric business, doomed to high street net failure fate.

"Case Nine" dream Bazaar: The domain name complex does not meet the atmosphere inevitable operation of the sleepy

Acquired time: August 2014

Development Overview: December 2006, Dream Bazaar set up, located in the underwear vertical website, and then quickly expand women's clothing, bags, shoes and other fields.

2007-2013, Dream Bazaar a total of four rounds of international venture capital investment, the total amount of financing amounted to "80 million or 90 million U.S. dollars."

In August 2014, the Dream Bazaar was bought by the American Clothing Road group at a low price of $20 million and the team laid off to 200 people.

Analyst comments: Dream Bazaar Face the traditional retail enterprises "electric shock" pressure, but also bear the Mushroom street, beautiful said new clothing platform competition pressure. In addition, the Dream Bazaar domain Name "Moonbasa", complex and difficult to remember, and the brand does not match, the domain name on the ground, the operation is also difficult. When every guest vancl.com, only product will vipshop.com domain name upgrade, Dream Bazaar still "old-fashioned", finally had to embark on the road of acquisition.

"Case 10" Handle Network: "Lose money to make a yell" the pursuit of scale is difficult to develop

Acquired time: October 2014

Development Overview: March 2010, the handle net was established, the same year in April, the Angel invested in Taishan venture capital, June, the Jinsha venture investment institutions such as the 5 million dollar a-round equity financing and 5 million of dollars in financial borrowing. April 2011, handle net completes third round 111 million dollars financing.

October 29, 2011, the handle network to the United States launched an IPO, valued as high as 1.1 billion U.S. dollars.

August 2014, the handle net was again voted. October 2014, the Tri-cell Group was officially in the handle net.

Analyst Comments: 2011 After the failure of the IPO, handle network strength, slowly fell out of the first group purchase site, the market share plummeted. Despite surviving in the 2012 "Thousand-Regiment War", but in the speed of financing, handle network scale is the first business thinking behind the organizational structure and management mechanism can not meet the rapid expansion of human resources, crazy burning money, once into the internal friction, "the loss of earning a yell" in the end is not conducive to the pull-pull network to develop rapidly.