New Egg COO not understand China's electricity business: Profit not put first is terrible

In the new Egg Mall coo Chi Yong Letter of the three office computers, most of the content is the current Chinese listed in the U.S. Electric Company financial statements, he will occasionally analyze the data of these companies. "Why China's electric dealers are so, first Fengfengguangguang to the listing, and then look at these reports of the mess, the entire revenue and advertising is not proportional." "Chi Yong letter as a new egg in the United States for 8 years of old employees, the entire group of business routes at their fingertips." Last June, he was transferred from US headquarters to China's chief operating officer, claiming to be the United States sent to China to stabilize and implement the main operating principles of the Board of Directors.

Let Chi Yong letter the most incomprehensible is that China's electric business enterprise never put the profit first, "This is terrible." He repeated the remark many times. The world's largest digital IT products shopping site, as early as 2001, in Los Angeles, the inception of the United States, has always remained profitable, and China's electric companies from the beginning of the heavy burning of money, serious losses.

New eggs for the Chinese market is almost synchronized with the United States, in 2001 in China, Chengdu, Xian and Shanghai set up a branch, when the founder of Liu also in zhongguancun rental counters sell burner.

When the 2004 Daiju East Jingdong Mall to fully embrace e-commerce, new eggs in the United States sales have reached 1 billion U.S. dollars, new eggs China also by virtue of 60 million yuan annual sales in the domestic market, is Jingdong Mall at the time of 6 times times the line sales. But the new egg China's real force is still from 2007 to 2009.

The new eggs at that time in China's business market is obvious; and the new eggs in the United States market completed a round of "Amazon speed" expansion, when the new eggs to its market strategy adjustment, in its new "Global Strategy", the Chinese market from the "rear" into a "main battlefield." According to its 2009-year IPO application to the US Securities and Exchange Commission, the sale of new eggs in the U.S. market was about $2.29 billion trillion in 2009, with a net profit of $24.89 million.

But from 2010 until now, the new egg China has gradually been fast horse enclosure of Jingdong and Bowser to seize the market, as at the end of 2009, Jingdong sales have exceeded 4 billion, the market share has reached 41%. The new egg China's sales are only one-fourth of the former, when the development of new eggs China is quickly questioned by outsiders as "stalled." "There is a reason we are not profitable from a profitable company. "New Egg China's marketing director Meng Fanbo said.