Poly Beauty Products Prospectus Comprehensive interpretation: or the next only product will

In the "Poly Mei Excellent product prospectus comprehensive interpretation: or the next only product will?" In the article, we have a basic understanding of the basic financial data of Poly-Mei excellent products. However, the cosmetics industry has its own characteristics, from the financial data alone can not complete the recognition of the United States excellent products.

World Network Business Data center combined with the characteristics of the cosmetics industry and long-term observation of online retailing, launched a "start to gather the United States" special research, to take you to know a real cosmetics electric business rookie. The first chapter, analysis of the business model of the United States.

Compared to the mature retail system in Europe and America, China's traditional retail industry is very imperfect. Therefore, China's independent electricity dealers always appear as "subversive" status.

However, the development history of China's self-electric power supplier is a history of blood and tears. Dangdang from the establishment to the listing for a full 11 years, and until now, when still struggling in the mire of losses. Beijing east can be said to be the self-electric power quotient synthesizer, but its profit point is in the platform business. Only the appearance of the product will finally let everyone in front of the light. From the early not recognized, to gradually be accepted by the market, and then to the subsequent rush of heat, only the product will be regarded as a successful reverse attack. But although the scale all the way, only the goods will still be only meager profit.

But the beauty of the United States is very different: it is not only a typical growth, but also with high profits in the growth. What's the explanation?

Looking at the growth power of poly-Beauty from "people"

Countless cases have proved that for the consumer-oriented enterprises, the ability to operate users is the core competitiveness of enterprises, but also the core of the business model.

Specifically to E-commerce enterprises, the cost of drainage, user loyalty and activity indicators on the enterprise operating user ability of the most intuitive reflection.

Compared to the only product and Dangdang data, poly-US new users to obtain the cost of moderate. 2013, the United States to obtain a new user, the average cost of 37 yuan of advertising input, the number between the only product will and Dangdang.

And from the total number of users, the United States in 2013 a total of 8.2 million of new users, compared to the previous year 4.2 million significantly increased. At the same time, the cost of acquiring a single user of the United States dropped significantly from 54 yuan to 37 yuan. It is noteworthy that the same time only goods will and Dangdang user access costs have been significantly increased.

Poly United States per capita annual orders for a long period of 3.3, the number is far less than the only product will exceed 5 times per capita consumption frequency, and Dangdang equivalent. However, can not be overlooked is: Dangdang and only goods will be a comprehensive department of the platform, Dangdang last year's department store sales accounted for nearly half, and only the goods will be the clothing sales accounted for only 45%. Poly-Mei's flash shopping business involves a large number of non-cosmetics category, but it is still the whole platform of cosmetics sales (reference to the United States to handle the logistics center of the number of orders accounted for). With a single category to support the integration of the platform and the user's active degree, it shows that the United States users active high.

However, although the United States can be a very high efficiency to absorb new users, and also the user's active degree to maintain a high level, but the United States are also a large number of users lost.

We will be the loss of users defined as within a year did not produce the purchase of users, and user churn rate refers to the loss of users in the year accounted for the proportion of active users.

The United States in 2013 lost 2.5 million of old users, and the United States 2012 active users of the year is only 4.2 million. The user turnover rate of poly-Mei is as high as 52%.

User churn rate depends on a variety of factors, we think the most important marketing efforts and targeted and the user's first experience satisfaction. Compared with the view, Dangdang's user churn rate is the lowest. Dangdang as a veteran electric business enterprise, the pace of market promotion more moderate. And the United States and only goods will be in the high-speed growth period, vigorously promote the many users are not the real audience of the enterprise, these users after a little attempt is easy to leave.

After comparing users ' purchases, we found an interesting phenomenon: the number of users who consumed only once in the previous year was very close to the number of users lost in the following year. Only the product will and gathers the United States the data all shows this rule. One possible reason is that the initial purchase experience of these users is not ideal, thus abandoning the platform.

We consider the users of repeated purchases as the core users of the enterprise. In the past three years, poly-US consumers are 690,000, 2.7 million and 6.5 million, respectively, and they are the main driving force for the growth of the United States. And if the United States can more efficiently retain those who have tasted, the performance of the United States there is further optimization of the space.

The suitability of electric quotient and cosmetics from "field"

Can businesses get a sustainable profit from a focused stream of people? If the "human" dimension is trying to answer the question is the efficiency of business subjective management, "field" represents the electrical business as a type of industry and the suitability of the industry, we explore the latitude is also business can be from the focus of the flow of people to obtain sustainable profits.

The method of profitability analysis is simple: income, cost, and expense.

It should be stated that here we intend to analyze the operating efficiency of the "business", so the object of analysis is all sales generated on the platform. For companies with platform operations, such as Poly-Mei and Dangdang, their cost-sharing targets are all orders, including proprietary and platform businesses.

From the profitability point of view, Poly-Mei, when and only goods will be, three of enterprises of orders to contribute to the profit margin is not small. Dangdang's order margin is the lowest, only 17.3 yuan. Only the goods will be the highest, up to 51 yuan. Poly-US proprietary orders on average per single margin of 50.5 yuan, high profit margins. But its platform business currently has an average commission rate of only 17.3%, so the platform order per single margin is only 27.9 yuan. After the combination of the two, the average contribution of the United States on the platform per order is 33.6 yuan.

And the cost, we think that excluding marketing costs other than the cost is a form of the "hard cost", but also reflects the efficiency of the most important indicators of business operation.

According to the total cost, the total service cost per order is 14.8 yuan. And the only product will and Dangdang is 34.6 yuan and 16.5 yuan respectively. Poly United States the lowest cost of service, and Dangdang similar, but far less than the only product will.

Poly United States In addition to warehousing three items are lower than the only product will and Dangdang. To the main cost of the electrical business enterprise logistics costs, poly-Mei per single total logistics costs of 11.8 yuan, and only the goods will and Dangdang is 24.7 yuan and 11.4 yuan respectively.

Because Dangdang has a large number of warehouses are not in the three orders, and most of the order by Poly United States unified delivery, so Dangdang's logistics cost is underestimated.

From the overall view, cosmetics products standardization, small pieces of easy distribution, return rate is low, poly-United States in the logistics cost advantage obvious.

At the same time, gathers the United States to each order the research and development and the management expense is also low (note: All these expenses have excluded the share incentive expense). The combination of various factors makes the cost of the order service of Poly-Mei very low.

Gaumauli and low service costs have created a huge profit space for the United States. Poly-Mei from the early start, its order margin can cover the hard costs, which for marketing to promote the left a lot of space. In contrast, Dangdang still has the edge of profit and loss, and only goods will be profitable in 2012 years.

Combining the first part of our analysis of "people", we can make a comprehensive summary of the business model of poly-beauty:

Ju Mei can be said to be set Dangdang and only the advantages of the product will be in one. First of all, the beauty of the drainage efficiency is very high, import user's active degree is also good. At the same time, poly beautiful profit space is very large, the service cost of orders is also very low. The former guarantees the continued high growth of the United States, which allows the United States to achieve sustained profitability, and continuously improve the financial situation.

It seems that the cosmetics electric dealer is an excellent business.

The crime and punishment of poly-beauty from the "goods"

If cosmetics and electric dealers are born good partners, then why does the cosmetics electric business industry does not appear explosive growth trend?

We may find the answer from the data of the United States.

Poly-Mei in the listing materials in the face of the goods are very little, but we can still find clues from a number of traces inside.

75%, this is the United States (including platform business) to obtain brand official licensing of products accounted for. Of course, the implication is that the remaining 25% of the product is still not authorized.

Traditional cosmetics industry is an international brand-led industry, we often say that the 28 theorem in the cosmetics industry also applies: 20% of the International cosmetics brands occupy the domestic cosmetics industry 80% of the market share. The United States in the initial stage is also relying on these international first-line cosmetics brand to attract users and create impact, then, for the United States, the licensing of these brands is a must choice.

Poly-Mei did not detail the sale of these brands, also did not introduce the 75% of the licensing products of the brand distribution, but also a number of licensing itself. The United States in the report mentioned that there is a deep cooperation between the International cosmetics group has Shiseido's brand, homoserine China, South Korea love Jasmine Group of Lange and other brands, and these brands have begun to develop for the United States for the product.

However, a little attention can be found, as the hands of hundreds of brands of international Cosmetics Group, the United States and the scope of cooperation between these companies are limited. Moreover, its current depth of cooperation is also the target of the Japanese and Korean brands, Poly-Mei has not been approved with L ' Oreal, Lauder, Procter and Gamble, the top three of the International Cosmetics Group's cooperative relations, which means that these brands to the United States is still ambiguous attitude, not yet clear.

In cooperation with the upstream brand, in addition to fighting for authorization, related to the import of cosmetics goods customs clearance is another major hidden dangers.

Of course, not to say that cosmetics distributors can only hang in the brand of this tree, channel excellent and brand is a feasible way to break through. and poly Beauty very early began to try to launch cosmetic tools own brand, in the listing materials, Poly MEI approved its own brand mask Hippo home in the second half of last year's quarterly sales have reached tens. However, overall, the United States, the current brand size is still small, poly-Mei did not do a separate batch of dew.

Back to the original article we put forward in the human-centered analysis framework, the enterprise's development strategy should point to how to better meet consumer demand in principle. From group buying to Business-to-consumer to platform, this is the evolution of the United States in the commercial form. For consumers, regardless of the form, the commodity is the ultimate carrier.

Poly-Mei to attract and accumulate a large brand of core users, but it can be speculated that the demand for branded products is still the mainstream demand. So, even if we let bygones be forgiven, the 25% of the unlicensed merchandise in the United States is still a sword of Damocles hanging over its head.