Poly beauty products need to pay attention to: net revenue chain in the decline

Absrtact: Poly Mei Excellent product Q2 after the earnings came out, the industry has been a lot of interpretation, such as high valuations, high interest rates to live moisture and so on. However, relative to the huge loss of the BoE and the only products, Poly-Mei excellent products need to pay attention to: net revenue chain in decline. Net

Poly-Mei Excellent product Q2, the industry has been a lot of interpretation, such as high valuations, high interest rates to live moisture and so on.

However, relative to the huge loss of the BoE and the only products, Poly-Mei excellent products need to pay attention to: net revenue chain in decline.

What does net revenue chain decline mean?

According to earnings, The two-quarter net revenue of Poly-Mei excellent products is 154.359 million U.S. dollars, the revenue from commodity sales was $123.316 million, and revenue from market services was $31.043 million, while net revenue for the same period last year was $108.765 million, with revenue from merchandise sales of $93.716 million and revenue from market services at $15.049 million. In this comparison, the poly-US excellent product growth rate is very fast, especially in the market service revenue to achieve double.

Note, however, that the net revenue from the last quarter was $154.859 million, with revenue from merchandise sales of $129.833 million and revenue from market services at $25.026 million; compared with the first quarter, two-quarter net revenue and sales of goods were in decline.

In the third quarter of July-September, it was not a good sign that the only quarter-on-quarter growth in the two quarter was likely to fall as a result of the fake problem.

For the United States, this decline is not the first time: in 2013, The total net revenue of the first quarter of the United States 111 million dollars, among them, sales of goods for 96.229 million U.S. dollars, market services income of 14.68 million U.S. dollars, and in the two quarter, the total net revenue of 109 million U.S. dollars, including sales of goods 93.716 million U.S. dollars, market services income of 15.049 million U.S. dollars, the total net revenue and merchandise sales income also fell.

In contrast, Jingdong two quarter although because 362 million of Tencent Co-occurrence of intangible assets amortization and 209 million equity incentive, resulting in 582 million of the huge losses, but its two-quarter revenue chain is growing, and the rise is very fast: Beijing East Quarterly net revenue of 22.657 billion, of which the online direct income of 21.781 billion yuan, services and other income of 876 million yuan; Beijing East Two quarterly net revenue of 28.6 billion yuan, of which online direct income is 27.018 billion yuan, services and other income of 1.595 billion yuan, all income growth. And another one of the best products of the opponent only product will: total net revenue in the first quarter of 702 million U.S. dollars, of which the product income of 691 million U.S. dollars, other income of 10.55 million U.S. dollars, the second quarter total net revenue of 829 million U.S. dollars, which product income of 817 million U.S. dollars, other income 12.75 million U.S.

Why?

This contrast may not be fair to the United States: In contrast to Jingdong and the only goods will, poly beauty products by the United States and cosmetics product seasonal sales factors more impact.

In the United States before the IPO, the industry's interpretation has pointed out the problem. I U.S. stocks on the U.S. IPO Investment Research Report, "Poly-Mei Excellent products set up in a short span of a few years to achieve an astonishing growth, become the domestic second only to Watson's beauty retail channels, and the largest vertical beauty web site." But the beauty makeup industry distribution channels dispersed and non-standard, leading to a large number of informal channels of goods into the network market, seriously affecting the reputation of the network to buy cosmetics industry. Poly-Beauty is how to attract users in a relatively short period of time, and rebuild trust, its quality control process has long been tested. ”

The author also in the article on the 2013 Q2 revenue chain decline in the situation of the analysis, pointed out: "Self-growth in the past few quarters of the increase in the fluctuation of large amplitude, 2013 Q1 greatly promote the larger scale and increase the growth of revenue; Q2 began to fall back ... Speculation by the March this year, the impact of the United States should be very large, including Beijing-east, only goods will, a store and other sites in large space advertising to do ' authentic cosmetics online shopping ' promotions, of course, the biggest impact should be Taobao cosmetics. The same reason, the third party platform transaction size and growth rate also showed a large range of fluctuations, 2013 Q1 a sharp rise in 2014q1, and Q4 is the peak season. ”

This shows that 2014 Q2, the reason for the fall in net revenue chain, perhaps in the March "Beauty Makeup Festival", and this situation, may continue in the next fiscal year.