Sourcing becomes one of the problems that we must explain to investors

Absrtact: Cosmetics Vertical distributor of beauty products recently to the U.S. Securities and Exchange Commission (SEC) submitted an IPO (initial public offering) listing application documents, 7 consecutive quarterly profit has become a bright spot, but the source of goods to become a good product must be explained to investors one of the issues.

Cosmetics vertical distributor of beauty products to the U.S. Securities and Exchange Commission (SEC) has submitted an IPO (initial public offering) listing application documents, 7 consecutive quarterly profit has become a bright spot, but the source of goods into the United States must explain to investors one of the problems.

The IPO filings show that the total net deal (GMV) in 2011-2013 was $92 million trillion, $327 million, and 816 million dollars respectively. The net profit is 3.82 million US dollars, 8.37 million dollars, 58 million dollars respectively. In the domestic online beauty retail market has been 22.1% market share, ranked first, the market scale of about twice times the size of the orchid, and Watson equivalent. However, the bigger difference with offline vertical retailing is its control over sourcing.

Recently, online cosmetics retail fakes are constantly on the line. Last month, Poly-Mei excellent products by the excellent purchase network accused of not cooperating with the sale of Belle shoes, the relevant products emergency line. In the industry's view, the fake problem is easy to incur a class action in the United States market, resulting in a plunge in share prices and even retreat from the city may appear. However, Poly-Mei excellent products have begun to shift the focus to its own brand, to improve gross profit margin.

This time, the United States excellent products to the maximum financing of 400 million U.S. dollars, plans listed on the Nasdaq listing.