"Scale" and "profit", Poly-mei Excellent products prospectus keywords

Poly-Beauty products in the early morning of April 12 to the United States Securities and Exchange Commission (SEC) formally submitted a prospectus, officially launched the U.S. IPO, currently proposed to raise 400 million U.S. dollars. In the current situation of the city downturn, in particular stocks of stocks, especially the valuation was killed in the environment, poly-U.S. products ready to take what impact on the market? And what Chen Au to convince American investors? In the general can not profit in the field of vertical electric business, its super profitability will become the IPO book the biggest aspect. and titanium Media editors according to the United States excellent product prospectus disclosure of data and information, this collation of the United States in the rapid growth and profitability behind the three key words:

When the 80 "Idol" CEO of the Chen Au and co-founder Daiusen from March 2010 to date, Poly-Mei excellent product development has been for a full four years, and in the field of vertical electric business they have successfully created a "fashion magazine to sell cosmetics in a limited time" online sales model. From the listing of the IPO submitted by the United States to look at, with beautiful data development status. "Size" and "profitability" are clearly the two highlights of the prospectus, according to the prospectus.

In terms of size, the total net deal (GMV) in 2013 was about $810 million trillion, with net profit reaching about $58 million. Poly United States in the domestic online beauty retail market has gained 22.1% of the market share, ranked first. In recent years, China's online retail market in the outbreak period, compared with the offline cosmetics retailer, the United States market size is about twice times that of Silk orchid, about the same as Watson.

And the United States focus on the U.S. makeup industry, itself is a higher margin of the industry. Poly-U.S. profitability Now, 2013 turnover of more than 6 billion yuan, sales of 36 million single; by the end of 2013, the United States has been profitable for seven consecutive quarters. In addition to the early acceptance of Xiaoping 180,000 Yuan Angel investment, as well as the 2011 Sequoia Capital and several VC a total of 13 million U.S. dollars of investment, Poly-Mei excellent products that began to achieve profitability, no further financing.

The "sustained growth" in the three-year development of Poly-Mei excellent products will be the most competitive factor in the IPO process. The rapid growth behind, in fact, is the overall rapid development of China's beauty industry. A report from Frost & Sullivan, a global corporate consultancy, shows that the total retail sales in China's beauty market will rise from $37 billion trillion in 2013 to $71 billion, an average of 14% growth per year; and online beauty shop sales will rise from the 2013 4 billion U.S. dollars to 2018 of 6 billion U.S. dollars, an average annual increase of 33%; the growth of mobile commerce is expected to grow by 49% a year.

In China's view, the U.S. makeup industry per capita annual consumption of only 22.5 U.S. dollars (1/15 in the United States), is in the development period, user demand is very strong. In this way, "into the line", is the premise of rapid growth of vertical electric operators. So, from the company itself, from the business model and business, the young company is how to maintain its rapid growth?

(Poly Mei Excellent products in recent years operating income, orders, users)

"Recommended + Flash Purchase" mode

It's "flash shopping". The flash-purchase was a model that was validated by the only product that landed on Nasdaq last March. From the Web site to mobile app, poly-Beauty using the boutique recommendation model, titanium Media is more willing to call it through the "media thinking" to do the vertical electricity quotient, that is, Poly-Mei itself declared "fashion magazine to sell cosmetics"; and flash shopping is another core model, Poly-Mei excellent product is the focus of the selection of beauty flash shopping, clothing flash purchase, The category is more focused.

Coupled with the "limited-timed" mode, a large number of female users gathered, further enhance the consumer experience and user activity, directly affect the growth of sales.

Ii. Efficient operation

Chen Au's "I speak for myself" fan marketing storm since needless to say, Poly-Mei does not like the traditional advertising model, by its founder of the "face endorsement" mode, has become replicable model. Titanium Media in the United States activity site, has witnessed numerous fan groups to contain "Hippo brother" (Poly Beauty products Vice President Liu Huipu, that is, poly-American own-brand Hippo accessibility spokesperson); In addition, Poly-Mei through participation in Toupai Idol-made drama, high ratings of the program exposure and other implantable marketing methods, achieved a high degree of exposure to the brand effect, quickly in the country to obtain brand awareness.

Low cost, high efficiency, can be summed up as the characteristics of the United States marketing style, which makes the market cost of Poly-Mei excellent products quite low. The prospectus shows that its total expenditure for three years is 10.1%,11%,6.3%.

One of the main key data for a very low operating cost is the very low SKU. Compared to other industries, agent sales is the core business of the United States excellent products, partners have more than 1700, but Poly Mall SKU only has more than 10,000. Poly United States has been adhering to the category focus of the line, not blind expansion of the category, but through the operation of a variety of SKUs to achieve a single SKU contribution to the transaction capacity is far higher than the same industry, making the operating costs greatly reduced.

Iii. Low cost rate

has just been the acquisition of the Le Bee, has been the United States excellent product competitors. Le Bee own brand accounted for more than One-third, its own brand profit margin can generally reach about 70%, so le bee more than only will and Poly-Mei excellent products, with the highest gross margin of nearly 30%-however, 2013 Le Bee but loss of 150 million. Compared with the United States, the problem is excessive sales costs and management costs.

The cost rate of poly United States accounted for about 16% of net income (net GMV), on this basis, gross margin as long as 16%, you can achieve profitability. Strict cost control and efficient operation efficiency are the important reasons for the continued profitability of the United States.

Due to the category characteristics of the decision, Poly United States 2011, 2012, 2013 warehousing Logistics rates for 12.8%,8.8%,7.2%. Compared with household appliances, 3C and garments, cosmetic units are small in size and have advantages in storage, sorting and transportation costs.

The operation cost of the electric dealer mainly comes from two pieces: the customer obtains the expense, the fulfillment expense (warehousing, sorting, logistics and so on). Poly-United States in this largest two cost is controlled. Poly United States Each acquisition of a new customer average expenditure of 38 yuan, and only the goods will be 64 yuan, the performance costs are relatively low.

In general, the ratio of poly-US cost ratio is 16%, and according to the latest Q4 earnings, only the product will cost rate of about 21%. The control of poly-beauty in operational efficiency will be one of the advantages that can be relied upon in the future competition.

As a young electric company with only four years of age, the success of the IPO can persuade investors that it is not the current level of profitability, but also the decisive role in the future profitability of the space for improvement, as well as the continued profitability. Professional analysts believe that the United States in the future growth of the two major lifting points, is still the gross margin and customer unit price.

At present, the gross margin level of the vertical industry, the line has been to "low price high volume" to obtain revenue, and compared to the line, Poly-Mei excellent product 24.5% gross profit, the same line under the vertical retail salsa, Watson (gross margin is 47% and 35% respectively) still have a certain gap. Free brand gross Profit margin will be far more than the agent brand's gross profit, and the current data, Poly-Mei's own brand from category to brand awareness has yet to be upgraded.

In addition, compared to Jingdong, the only product will be, poly-U.S. customer unit price is low. These two core gaps, just is the future of the United States of Ascension space.