Retail electricity business 20% closed, seemingly hot to make money hard

Retail websites generally lose nearly 20% companies have closed down

A few days ago, we reported a large number of group purchase site failure news, in fact, E-commerce also has a mainstream sales model ——— that is online retail, typical examples like Jingdong mall, Dangdang, Fank and so on are retail sites. But while online retailing looks hot, retail sites are hard to make money, and some have been deeply mired in losses. Look at the reporter's investigation.

# #正文 Li Chengdong is an e-commerce industry analyst who keeps track of the financial operations of major websites every day. Recent major sites have continued to publish financial reports, Li Chengdong found that the navigation site hao123 Home E-commerce Enterprises are at a loss.

E-commerce industry analyst Li Chengdong told reporters: these 25 (electricity quotient), from my view of the situation, these several basic are losses! It's just that the losses are not the same size. The loss is more serious may be the independent site, because everything needs to build their own, such as IT systems, warehousing, logistics, personnel systems need to invest money.

Even more let Li Chengdong surprised, the product gathers the net closes the news to begin to circulate on the net. Open the product gathers the net, the webpage displays: gathers with you temporarily not, he has been worried that the website closes down really happened, moreover, in his view, another luxury website calls the network also to be bad.

E-commerce industry analyst Li Chengdong told reporters: their supplies are not good, the supply chain is very fragile, luxury goods can not be discounted to sell.

After several setbacks, the reporter in Beijing to find the office site, but before the big room is empty. Site construction personnel said that the network has closed. Industry experts said that the current closed retail sites more than 5,000.

Beijing Electronic Commerce Association secretary General Linya told reporters: probably merge this piece of proportion, can account for less than 20%. If there is no financial support, no market position, it will certainly face a kind of their own failure, which can not escape.

The War of talent and gunpowder and the advertising war is escalating

In the past two years, the network retail industry scenery is boundless, the fund sought after, the star endorsement, the staff raises the salary. However, by the end of 2011, the entire industry plunged, the capital chain break, arrears run, layoffs, downsizing, everywhere in the business. Into the 2012, the collapse of the network of retail enterprises and a sharp increase in the day. So, what causes these sudden changes?

Aged from 2007 started every customer Prudential site, by selling clothing started, less than four years sales of clothing 100 million, ranked first in similar sites. What he has felt most in a year is the scramble for talent.

Where the founder of customer-Prudential product network aged

Digging a corner is very frequent, where guests have a lot to be dug, was promised twice times, three times times, or even five times times the increase in salary. From 2000, 3,000 will become 6,000, 10,000, or even 10,005.

In order to prevent the brain drain, all customers are forced to give employees a raise. Hu Wei is a customer-prudential goods Warehouse Link a packer, a monthly salary from two thousand or three thousand yuan to four thousand or five thousand yuan. Every customer sincere goods courier Huang Jimin work 8 hours a day, rest 4 days a month, income in the last year also doubled.

Every customer sincere goods network courier Huang Jimin told reporters: because the first time, where customers earn or relatively little, about 2000 yuan, now more than better. Reporter: Now one months can get how much money? General four thousand or five thousand dollars.

Cotton Network founder Lin told reporters: May say you originally the same salary, you may not please get like the original level of people, we are affected by them, let our cost about 40% of the upgrade.

# #正文 Soaring human costs have led to a 30% per cent decline in the gross profit margins of online retailers, with huge advertising bills to pay. Most of the national network retail enterprises have more than 70,000. To increase sales, we must increase the investment in advertising.

Every customer Prudential Product Network founder told reporters: 2008 We in the marketing costs should be in more than 60 million, to 2009 when we are more than 100 million, 2010 is more than 300 million, 2011 is 700 million.

Industry estimates, where customer-prudential goods per sales of a commodity containing 7 of dollars in advertising costs, compared to a large number of customers to sell 29 yuan, 69 yuan of merchandise, advertising costs are undoubtedly unusually heavy.

Financing in the winter as soon as possible profits or straws

Despite the loss of money, but online retailing is still a big money to burn, because some venture capital optimistic about its market prospects, the network has made a lot of retail investment. For example, the luxury electric business website, in 2010, financed 108 million dollars. In the first half of 2011, the financing case 12, the total amount of financing amounted to 283 million U.S. dollars, reached the highest level in history. In other words, one person loses money while others throw money at it.

Previously, under the support of a huge amount of investment, the domestic luxury electric business sites have been online, only the goods will, go Show Network, the Five Avenue, all the debut of the network. Shang Network in July 2010 after the launch of three rounds of financing, after the 12-month financing amount of up to 70 million U.S. dollars, once became the largest domestic financing luxury e-commerce enterprises.

Shang Network general manager Xiaojun told reporters: the first round of financing from Chen Star Group, then is the Internet E-commerce veteran institutional investors, the second round of financing from Disney, then why we choose Disney, among many investors, because Disney is a world-class brand. The third round we choose into the Victoria Fund, their style is stable.

However, in the second half of 2011 years, the Chinese concept stocks in the U.S. capital market suffered a slump. Venture capital tends to be cautious, no longer easy to sell, domestic financing suddenly cooled. At the same time, many of the electricity business Overseas IPO plan was stranded, such as Van Prudential Goods Network, handle network listing plans are forced to postpone. This has exacerbated investors ' concerns.

Beijing Electronic Commerce Association Secretary-General Linya told reporters: because last year we have some big e-commerce enterprises appear some changes, to foreign investors, caused by China's total e-commerce industry enterprises bad impact.

E-commerce industry analyst Li Chengdong told reporters: we know the entire Nasdaq, many companies want to sprint to the market, the results are abandoned, basically very bad. Not optimistic about the Chinese concept countries.

# #正文 financing Without road, the listing of life, is now the face of the brutal reality of electric business enterprises. The industry generally believe that the investment in blood interruption, only their own blood.

Every guest net founder Old told Reporter: 2009 time can make money, but we made a decision at that time is to do large-scale mainly. We hope that 2012 every customer prudential products are willing to bring an e-commerce can be said to be the first profit of the answer.