Only the traditional channels to dig people build buying hands Team

Absrtact: A few days ago, the only product will release 2013 years of performance data shows that it has been continuously profitable for 5 consecutive quarters, and stimulate the U.S. share price soared, the market value of two years 50 times times, once close to tens of billions of dollars. This round of rise also makes it become after Tencent, Baidu and after 360 China fourth Big Mutual

A few days ago, the only product will release 2013 years of performance data show that it has been continuously profitable for 5 consecutive quarters, and stimulate the U.S. share price soared, the market value of two years, 50 times times, once close to tens of billions of dollars. The rally has also made it the fourth-largest internet-listed company in China after Tencent, Baidu and 360.

Why can profits be achieved when many electric dealers are still struggling with losses? From the original two Wenzhou merchants came together to venture, the process of business model of the trek back, only the product will grow in the process, what are not known stories? What changes have taken place in the company's business model before and after the investors represented by Sequoia Capital? The first bleeding listing of it, how to achieve the price of 2,400% inflation, behind what is the logic?

Wen Shang Net

1990, the native Wenzhou people Shenya, from the former Shanghai Railway Institute (now merged with Tongji University) to get his certificate of completion. Like his friends and relatives in Wenzhou, young Shenya into the business tide. His initial entrepreneurial project is to do the battery agent business, step by step until all the first-line battery brand in the southern region of the agent right. After tasting the sweetness from the channel end, Shenya gradually to the upstream, self-built Battery factory, involved in the battery export business.

Hong Xiaobo, also from Wenzhou merchant family, emigrated to France with his family at the age of 8 and started a business after finishing college. When Shenya in contact with foreign trade business, Hong Xiaobo is also looking for business opportunities in the field of communications and trade.

At the end of the 1990 's, two of Wenzhou merchants, who lived on both ends of the Eurasian continent, began their intersection: Shenya in Guangzhou to operate import and export trading company, coordinate domestic communication manufacturers, organize sourcing; Hong Xiaobo the European Pacific Distribution company in Aubevieres, a suburb of Paris (Sociétéeurope Pacifique distribution), responsible for European channels and agents. In an era when internet consumption has yet to rise, this pair of business partners is on a basic business path from brand to channel marketing.

The business of communications foreign trade after doing, like to embrace new things Hong Xiaobo and diligent steadfast Shenya not complacent, to gaze at a battlefield. In 2007, Shenya enrolled in the Cheung Kong School of Business EMBA program and Hong Xiaobo, which was homing into the same class from France. In this important gathering point of the Chinese businessman, they want to get contacts, broaden their horizons, and more importantly, find a suitable business model for the new entrepreneurial project.

At the start of business school, Shenya and Hong Xiaobo have only one vague direction: e-commerce. From the traditional industry origin, the Shenya of the electric dealer reserves near zero. This year, he "almost holding the computer to sleep," the perseverance, evil complement the knowledge of various electrical quotient.

Business school students gave Shenya and Hong Xiaobo a lot of inspiration, an entrepreneur suggested that Hong Xiaobo use of foreign resources and information to try the domestic business model has not yet. And some other students to help recommend a number of electric business cases, including France vente Privee Luxury Limited buying.

Vente Privee The pattern in the middle of Hong Xiaobo. Mrs. Hung, who lives in France, is a big fan of the site, often at seven O ' clock in the morning, skip breakfast and sit on the computer and snap up luxuries on time. The wife's behavior makes Hong Xiaobo curious, in the end what is the magic that makes her so obsessed? Hong Xiaobo found that the site is characterized by a variety of world famous brands, and in a limited time to introduce discounts for users to buy.

Two start-up partners decided to imitate Vente privee, starting from a luxury flash purchase to become a dealer. Three EMBA students supported their ideas with angel investment, and five people gathered about 30 million RMB to set up the only products meeting. Among them, the French group CEO Peng and Huggy International Group chairman of the Board, OTHLI President Xu Yu are Wenzhou businessmen, in the brand apparel industry quite famous.

When the only product will be unknown in the electric Business circle, this venture is seen as a general example of Wenzhou people holding regiment to do projects. In the words of Peng, "Wenzhou people start a business, friends to invest money is a normal thing." But it is at this time, only the product will have from the founder shareholder level, buried with the clothing brand business, and with a pioneer of every customer and other Internet-born electric dealers have different genes.

Trek to the reentry

December 2008, the only product will be established in Guangzhou Xinyi Guild Hall. In many people's initial impressions, the only product will be a sales of luxury goods website. But in fact, this positioning in the only product will be founded only March, was Shenya and Hong Xiaobo decisively give up.

Hong Xiaobo later admitted that when he saw friends in the circle to sweep goods abroad, he has a "Chinese luxury market is very big" feeling. He and Shenya personally flew to Europe to negotiate with the brand to pick up the goods. The first boarded the only goods will be such discount luxury goods, the average price of more than 1000 yuan.

But on the online month, only the goods will sell only 18 orders, most even from Shenya and Hong Xiaobo friends. As a result of the buyout model, a large number of luxury goods bought from Europe piled up in warehouses. The decline continues until the third month. They found that the only product would be prematurely positioned in a field that has not yet been accepted by consumers, and even people who buy desires and abilities are less likely to trust goods that have been "discounted".

The two men quickly decided to turn to the "affordable" VW fashion brand, facing the average consumer in the one or two-line city, and even farther to the population with basic spending power. Luxury goods are reserved for one channel only.

Procurement chain from Europe back to the domestic, the only product will begin a period with the domestic apparel brand merchants to deal with the process. Hong Xiaobo has recalled that the brand has not heard the name of the only product will not understand the concept of limited-term snapping, telephone, door-to-door, only the original team "Thing to talk about people."

In order not to let the Web page open the skylight, they temporarily used the buyout model, buy goods at their own expense, after discounting to the site to sell. Fortunately there are Xu Yu and Peng two shareholders to provide support, many times with its own clothing brand, to the only product will solve the supply problem.

The beginning is always difficult, at the end of 2009, only the goods will accumulate 300 brand supplier resources. This year, the only product will be the net income of 2.8 million U.S. dollars.

And the only product will have many years of friendship with the mobile electric company to buy and sell Bao CEO Zhang evaluation, compared to traditional electric, only goods will be "boat small good Turn", in the enterprise very small when the business adjustment, no overweight baggage, can light forward.