Orchid Pavilion set to announce the official launch of "Lan Ting Zhi Tong" Global Cross-border Logistics open Platform

Absrtact: Like many start-up internet companies, the first Orchid pavilion of the cross-border electric power company has suffered 5 consecutive quarterly losses from the three quarter of 2013 to the three quarter of 2014. This is in control, orchid Pavilion set potential c E O Guo Disease in accept the South All reporter exclusive interview, with the performance

Like many start-up internet companies, the "first share of cross-border electricity dealers" orchid pavilion from the three quarter of 2013 to 2014 three quarters, 5 consecutive quarterly losses. "This is in control," the Orchid Pavilion set potential c E O Guo Disease in the interview with reporters in the south, said, as important as the performance, or even more important is the company's long-term development direction, "Logistics is our first step to open." "On the afternoon of 26th, Orchid Pavilion announced the official launch of the" Lan Ting Zhi Tong "Global Cross-border Logistics open platform to the open platform model for Cross-border power sellers to integrate logistics distribution providers around the world, thereby reducing the cross-border logistics costs.

Adjust category composition

Since the Beijing-east, Suning easy to buy, shop No. 1th, only products such as large-scale B 2C platform to do a multinational retail business, the Chinese electric business overall competition to the overseas market. Before this, cross-border b 2C Network shopping platform Orchid Pavilion is like "The Night of the Barbarians", has been outside the mainstream vision, low-key and wanton expansion.

At present, customers from more than 200 countries in the world from the LAN Pavilion site and mobile phone clients bought goods. Its largest market in Europe, accounting for more than 60%, followed by North America, accounting for more than 20%. In other markets, South America is the main area. Analysis in the European market more successful reasons, Orchid Pavilion set potential c E O Guo Disease, the company's products choose to pay more attention to product quality, safety and intellectual property protection. "At present, the Orchid Pavilion set potential average customer price is about 40 dollars or so." ”

However, overseas expansion is not smooth sailing, like many start-up internet companies, Orchid Pavilion from the three quarter of 2013 to 2014 three quarters, 5 consecutive quarterly losses. In June 2014, the Orchid Pavilion has also experienced personnel unrest, two foreign executives have left.

"This is in control," the Orchid Pavilion set potential C E O Guo to the South reporters analysis, Orchid Pavilion set potential is to wedding products started, but the wedding products are not consumable, repeat the purchase of low, so, Orchid Pavilion will be the main category from a single wedding products expanded to wedding dress, home, accessories three categories, At the same time in the form of special sale of emerging brand fashion products.

These initiatives have achieved tangible results. Guo went on to say that in the past 2014 years, the percentage of "repeat customers" increased gradually. From the earnings data, in the third quarter of 2014, the total order of the Orchid Pavilion reached 2.5 million orders, an increase of 57.1%, the number of users to buy 1.9 million, an increase of 53.9%. Revenue from mobile orders accounted for 26.5% of the total net revenue of the pavilion, slightly above the 21.5% of the previous year and 26.2% in the preceding quarter.

Online "Lan Ting Zhi Tong"

However, U.S. stocks analysts questioned that only by adjusting the category composition and optimize the efficiency to achieve orders and user growth, still weak. Because the flaws in the business model have not changed radically.

In fact, Guo has long been aware of this problem, he said, so far, the biggest challenge in Cross-border electricity business is logistics. "It is no exaggeration to say that China has inadvertently from a world of electricity quotient of a rising star to become a global power supplier of the most advanced countries, how to create a system for the world of electricity to negotiate the solution of logistics systems, is a very interesting thing." ”

On the afternoon of 26th, Orchid Pavilion announced the official launch of the "Lan Ting Zhi Tong" Global Cross-border Logistics open platform, to open platform model for Cross-border power sellers to integrate logistics distribution providers around the world, thereby reducing cross-border logistics costs.

"Lan Ting Zhi Tong is the Orchid Pavilion set potential eight years of accumulated logistics experience, systems, data integration, to open the platform for all Cross-border electrical enterprises to use, but also open to more logistics enterprises and agents, so that they can participate in the tide of Cross-border electric power. Guo went on to say that global cross-border electricity dealers will bring a new round of global logistics revolution based on mobile internet and big data, he hopes that the global experience of parcel delivery is as easy as a taxi, everyone will no longer be who owns how many warehouse area or transport aircraft, But who will better use technology to activate more potential market participants to unleash greater market dynamism.

According to the scene of the day, Lan Ting Zhi Tong Global cross-border Logistics open platform will provide open price auction, global intelligent Path optimization, multi-logistics cooperative distribution, automatic play single with single, large data intelligent analysis, such as a series of functions, the first phase parity engine trial version on 26th on the line. At present, the logistics platform integrates dozens of global logistics companies, including international front-line logistics company, special line logistics company, and postal Logistics solution.

The internet is about eliminating high margins.

Nan du: How is the profit model of Lan Ting Zhi Tong designed?

Guo's disease: the specific profit model to continue to explore, we hope that an Internet approach to quickly build the industrial chain and ecosystems, rather than short-term let this system to bring us sales or profits. For the system, the first step is to bid price parity, the second step is the whole process of electronic, the third step, the front-end many services to integrate. For example, the cargo flow quotient, the main line of logistics and the last kilometer of the logistics business, and so on, each link sellers can have multiple options. And for the new logistics business, it can be in China without any one employee development business, provide a competitive freight price list, users can see and order the service on the system.

South: Orchid Pavilion after the acquisition of U.S. corporate Ador last year, some executives leave, will have an impact on their operations?

Guo's disease: No, the purpose of our acquisition is to provide an outpost for our market in the United States, which now operates well and employs some staff.

South: Orchid Pavilion set potential for five consecutive quarters in a loss, this performance in our estimation range?

Guo to disease: yes, we in the past operations are also constantly improving our entire financial process, but also constantly refine our financial forecasting system. Internet companies have a strong scale effect, so in the fast-growing Internet companies to choose the first to increase the profitability of such companies are many, in the shares of the company's losses in the long time, the number of high losses of companies abound, this is not a problem. The more important question is whether we are seizing the market, whether we are capturing the user, and whether we are winning the future.

South: What about the change in gross profit margin?

Guo to disease: high gross margin is unsustainable, the Internet is to eliminate high gross margin, all of the high margin is the cost of consumers pay. So a modest margin can be more sustainable. Our current gross margin is lower than the historical margin, but higher than many peers, which also with our business model and our category have relations, different categories of the gross margin of course is not the same. Our development path, or our strategy, is to grow faster and to provide consumers with better quality products in a moderately healthy margin, which is most important.

South: How to deal with the requirements from investors?

Guo to disease: I as a CEO, can not control the stock price, the only control is the company's performance, but as important as the performance is even more important is the long-term direction of development of the company. Of course, we have to pay attention to the interests of each quarter and the report, but if we only focus on this, and lost the long-term direction of the Internet to seize such a more core demand, eventually that Enterprise will win the battle and lose the battlefield.