None of the domestic electric business industry relies on the model of low margin scale expansion to achieve success

regardless of Jingdong, the current domestic e-commerce industry does not rely on a large-scale expansion of the low margin of the model to achieve success, there is no investment in the power of the big guy can confidently say "make money."

Jing Dong and Su ning "price war" confrontation behind, people once again saw by the electric business "coerced" capital between the wrestling. "This war is going to cost a lot of cash, what's your attitude?" A shareholder said: we have nothing but money! You can fight it, hit the dead! Liu on Weibo.

VC shareholders who take other people's money to invest are they as generous as Liu described? Although today's capital, Sequoia, high jianling Capital, and several shareholders have refused to say to the media at the cusp, but the industry has more than once out of the second largest institutional shareholders in Beijing, the Tiger Fund of the news: the company entered the earlier investment institutions now look forward to exit from Beijing, hoping to protect their upfront investment in return, The first big institutional shareholder with high Jianling Capital also has similar considerations. But before the future opening of the U.S. IPO window or a new round of private equity financing in Beijing, the existing VCs will have a better choice.

By "Jing Dong" kidnapped VC not a few, even some have been reduced to "cannon fodder." "The first financial daily" reporter statistics of the major VC in the field of electronic business investment cases found, including Tiger Fund, Ding Hui Venture, Sequoia Capital, Qiming Venture, Jinsha Venture, Kai Peng, including the well-known VC, almost every home has one or two less "glorious" case.

Electricity dealers "burn money War"

Lei, director of China e-commerce research Center, told reporters that the current profit of the electricity quotient is only three categories: one kind is like Shanghai steel Lian (300226, Stock bar), global resources, HC NET, Chinese clothing (000902, share bar) network such business-to-business E-commerce Enterprises, followed by Taobao or has been successful "Amoy" "Network of large sellers"; The third category is differentiated, low-cost operation of the operation of footwear, cosmetics, clothing and other products of the vertical electric operators, such as Home network, good music buy, diamond birds and so on.

"From the current point of view, the first type of electricity dealers is more stable, and the second category, the third type of electric business can be a handful of profit, and some only the month profit, accumulated losses." Overall, the retail electric dealers are basically still in the stage of burning money. "Lei said.

The rapid development of local electric dealers in recent years has always been accompanied by a "price war", smashing ads, please star endorsement, money to buy traffic and other ways of burning money.

The electric dealer burns the money behind is the crazy "blood spell" of each road capital. Investment group data show that the 2011 E-commerce industry disclosed cases of 116, the total investment of 5.353 billion U.S. dollars, respectively, accounting for the total size of internet investment 43.6% and 65.6%.

"See how you define kidnapping," in our view, not listed are called "kidnapping." Shong, president of IDG Capital Asia, said to this newspaper recently. In Shong view, VC Investment, must have enough patience, each round of follow-up, "small funds, short cycle of VC do not go to the electricity dealer." ”

Trapped VC

At the beginning of August this year, there was news that the management of the handle network was elevated by the capital side, and the fuse behind it was the failure of the internet market. On the June 20, the filing of an application to the SEC to withdraw the listing means the final financing hope is dashed.

Once involved in the three-time financing of the Jinsha River to invest 14.61 million U.S. dollars, and even the industry has been "the Jinsha partner Zhu Yuhu pull the handle nets big" argument. Handle the Internet market failure and management issues, no doubt to the Jinsha River venture to bring out the pressure. And the Jinsha River Venture Investment, Sequoia Capital invested in a luxury goods electric network in July this year, the forced redundancy half of the news.

Sequoia Capital, DCM investment in luxury electric goods will not be optimistic, although the company was listed on the NYSE in March this year, but the share price then fell below the 6.5 U.S. dollar/stock prices. The latest quarterly report shows that the goods will still be in the red.

and Ding Hui Investment Group 24 coupons, litters group, such as the current situation is not ideal, 24 coupons this year's sales figures have fallen out of a dozen group buying, in addition, the Northern Lights, GGV Capital cast red children have always been "internal friction" of the troubled;

"Now the Internet is to create the investment is" not to pay, you die to see. "It's hard to see this as an investor," he said. "This March, Xu, capital partner today, said.