Small defeat: Hundred million mall China's best business model "why sudden death

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"Reading" Million hundred shopping has been closed news, this has been "21st Century Business Review" as "China's best service business model" site has been unable to open, and according to suppliers and the company's internal staff revealed that the company last week, the General Staff Assembly, announced the dissolution of the company. Then there are rights users upload their corporate headquarters map, Connaught Big Office has been empty.

In fact, at the beginning of the 21st century selection, the selection of the evaluation is: "Billion shopping and other E-commerce business model is not the second, but its service focus on the credit card users mainly consumer groups." In some of the events that followed, proving this best was only a pseudo proposition.

The origin of the best business model

According to the public information, billion shopping mall was born in 2007, its founder Hanji, the original digital PPT Division of the senior Director, then in the Gobi capital of 10 million U.S. dollars, registered to set up the establishment of the Beijing East Fence Nanshan Information Technology Co., Ltd., hundred million shopping for its credit card phased shopping platform.

Billion shopping business model is very simple, that is, through the cooperation with the bank, with DM single, text messages, manuals, EDM and other forms of goods sales, he also has his own e-commerce shopping platform. Use the bank's wealth of credit card users data to engage in product sales by stages.

According to unconfirmed information, its sales volume in 08 was 80 million, 09 was 150 million, 10 achieved sales 320 million, 2011 sales reached 450 million. The data are not known, with sales figures for the previous few years showing an annual increase of more than 20% per cent a year, according to its own disclosure that its gross profit margin remained around 20% per cent and claimed to have completed a one-month profit in December 2011. But according to its internal suppliers to disclose that billion after the establishment of shopping has been in a huge loss of state.

Is in such a loss of the background of the 2011, Million hundred shopping was 21st century as "China's best service business model." Indeed at the time of the environment this is an outsider seems to be the perfect model, on the one hand, not to expand the user, because the bank's hands on a large number of customer resources and data will allow billion easy access to users, on the other hand, because the bank alone to do the electrical business model is immature, To really need a platform like this to help them transform their customers, at least, everything looks perfect before the crisis breaks out.

Human pain

In the "Best business model" of the halo billion hundred shopping began its own expansion of the road, its personnel from the beginning of the 20 people, expanded to 500 people, and its office address from its relatively inexpensive relocation to the global trade Center, such as high-end office space, human costs are also in the rising situation, after 2012 , its single moonlight personnel wages amounted to 4 million, and 2011 its annual sales of 450 million, product gross profit rate of 20来 calculation, its annual gross margin of more than half of the expenditure on human resources.

In this period, billion is not plain sailing, in the 2013 officially out of the closure of the closed news in the 09, billion Bai broke out a nearly let him die of the crisis. Barely two years into the financial crisis, when the country's credit risk control, the major banks suddenly tightened the issuance of credit cards, which led to a sharp decline in their business, sales fell by half. And the interior was almost no longer bullish on the business model, once also encountered internal layoffs and management team dispute: At the same time the internal core team members have split, we all have no confidence in this, coupled with the encounter by Taobao, Jingdong Mall and other business impact of the company's internal to do not insist on doing the genuine goods (ie simulation of high "Parallel imports" has been disputed.

Hanji's idea was that he could not do it, and finally his insistence gained the approval of the investors. Gobi Investment as the first phase of the "club", firmly on his side. But the question of the test of business models that erupted in that crisis has not been fundamentally addressed. According to one of its employees who has left the company: billion in 2012 recruit a group of financial director, commodity director, including the "Gome Department" staff, but also lost a group of old employees. This group of employees from the traditional shops and the company's overall business does not match, which also shows that its internal problems are not effectively resolved.

Origin of the cause of death

Then into the 12, the electrical business industry began to fall into the cold winter, the domestic well-known vertical electric network of cotton after Matt and so on have closed down, le cool days, Yao Point 100, etc. also died, the entire capital market and industry plunged into the cold winter. The sudden discovery of these electric dealers is not enough. Billion hundred apparently also encountered such a winter, the waves fade to know who is in the nude swimming.

After a full-blown crisis, the first supplier burst into arrears. A supplier and the entrepreneur reporter disclosed that from the end of 12, has been owed many times, has urged several times, the financial no conclusion. The supplier also said that the final amount of money owed will not be less than 30 million.

June 19 morning, deep in the middle of the nest in the hundred million mall CEO billion Hundred shopping CEO Hanji to this response that the company is indeed difficult, but will try to solve, if the company is not going to go on, will be through legal means to deal with the matter. This proves that the once-best business model of the billion-hundred shopping has come to the brink of death.

One of the best business models in the media, and why a mall claiming to have 150 million of credit card users and data is falling off, all sides have a point:

Vendor Statement:

At first, the business model of the mall can be established because when the brand of their own e-commerce capacity is weak, do not have the ability to independently do E-commerce platform, also have no ability to separate with the bank to cooperate, so rely on such a platform, with the major banks of their own mall to do it, billion Bai became a dispensable platform. The supplier went on to analyze that: billion profit point is actually very low, sometimes there is no profit, billion hundred per use of a bank data, to give the bank a very high deduction point, the other is not the profit of their suppliers, so in the middle of the billion also need to be responsible for their own operating costs, so calculate down, Hundred billion is impossible to achieve high profits.

In the peer 51-Phased network founder Wang Yu appears billion is more than the following five core issues:

First of all, Yili Mall is an alien business model. Too much reliance on the survival of the banking industry, once the bank's policy is tight, this business model will be greatly impacted, such as the 09 financial crisis led to the bank's credit card card number reduced to let billion almost suddenly die.

Second, billion hundred mall has no own brand. Wang Yu lifted a very simple example, you go to the southern beauty of dinner, you will know that Qiao Jiangnan is a brand, but you will never know who your cook is, the same, you know the products are various banks, you will not know is billion hundred mall do.

Third, billion hundred in the industry to have many enemies. In this industry, as the industry's eldest brother billion is not to be seen, because billion did a want to subvert the industry, he will not make money or even paste money to sell goods to pull the company traffic, and this business model is not sustainable

Four, not enough focus. For example, billion mall made a forces strategy, outside the banking outsourcing business on the line of their own independent mall, which distracts its great energy.

Five, there is no sense of crisis. When the whole industry will enter the winter, not aware of their future.

In addition to the above several core failure, Dark Horse also believes that the following factors:

First of all, the existing electrical business impact. Independent of the consumer no flow of the situation is difficult to survive, in Beijing and the cat launched a similar service, the bank since the construction of the mall under the impact of this model for customer value dramatically smaller. User base has developed in several major platform shopping habits, no flow without capital support will have no competitive advantage

Second, entrepreneurs are overly believer in resource dependence. Too much hope in the reliance on the big customers, and then face the whole environment changes, also failed to make timely adjustments

Finally, the user experience pattern. As the core of E-commerce or to meet the needs of users to do the best user experience. But the black horse in the online search is a large number of late goods, lost goods, delays, customer service does not feedback these issues, and logistics these systems have been the construction of long-term neglect. Know that users are the ultimate buyers.

Hanji once said: "Would rather the company die in the first three years, do not want the company to die later." After the first three years of the winter of the hundred million but did not survive the fifth year, facing the Montreal chicken feathers, billion hundred the final trial is coming.