Ran: In essence, electricity is the retail business.

Source: Internet
Author: User
Keywords Electrical business
Tags .mall basic business business is business logic electric business electrical business high

Ran said that in essence, the electric business is the retail industry, retail trade low buy high selling is the basic rules, small grocery store to buy the first thing began to make money, big shopping malls to start to make money in the first year, a lot of electric dealers did not make money for 6-7 years, this situation illustrates a lot of problems. The user's repeat purchase rate is high enough, this is to prove that the mode of an electric dealer is healthy.

(Reporter sugar) March 25, Ecapital Capital CEO ran in an interview with Sohu it said that the user's repeat purchase rate is high enough, this is to prove that the model of a power supplier is healthy. Ran that it is not normal for electric companies to have huge losses.

Ran said that in essence, the electric business is the retail industry, retail trade low buy high selling is the basic rules, small grocery store to buy the first thing began to make money, big shopping malls to start to make money in the first year, a lot of electric dealers did not make money for 6-7 years, this situation illustrates a lot of problems.

"First, China's retail industry is underdeveloped, leading to electric companies have to bear a large market environment it should not bear the burden, resulting in a profit period." Second, a lot of venture capital to provide them with ammunition, they can take the money of investors sell low buy. In the future, I believe that some people will continue to invest in the electricity business this year, but investors will pay more attention to the basic business logic, what is the basic business logic of the electric business? First, is not the health of the gross margin, selling a thing always price higher than the cost. Second, user access to cost is not low enough. Third, the user's repeat purchase rate is high enough, which is to prove that the model of a power provider is healthy. "Ran said.

Ecapital Capital CEO Ran

In addition, when talking about the overall Internet capital environment, ran said that the overall capital is not optimistic, the concept of stocks in the United States market is not hot, this is the integrity of Chinese enterprises and other factors caused by the combination.

"Now is not a good time for Chinese companies to go public, the proposal to prepare for the listing of High-tech companies can first consider VC, PE financing, instead of IPO financing." "Ran said.

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