Success factors of Poly-Mei Excellent products

Absrtact: April 12, Poly-Mei Excellent products to the SEC submitted a prospectus. Jointly underwritten by Goldman Sachs, Credit Suisse and J.P Morgan. According to the prospectus, poly-Mei products were launched in March 2010, with only 13 million dollars in start-up funds. 2012, to achieve a net profit of 8 million dollars.

April 12, Poly-Mei Excellent products to the SEC submitted a prospectus. Jointly underwritten by Goldman Sachs, Credit Suisse and J.P Morgan.

According to the prospectus, poly-Mei products were launched in March 2010, with only 13 million dollars in start-up funds. 2012, to achieve a net profit of 8 million dollars. 2013, revenue, net profit reached 483 million U.S. dollars and 25 million U.S. dollars respectively. 2011 2012 2013 users in Poly-Mei products have shopping behavior of 1.3 million, 4.8 million and 10.5 million respectively. And 88.9% of orders are from repeat customers. In addition, the 49% turnover of poly-Mei products comes from the mobile end.

Rapid growth, user stickiness, has been in the mobile end of the force, are investors love to listen to, and this vertical consumer website incredibly still profit, this is a myth!

The success factor of Poly Mei excellent product has several points:

The first is the use of the flash-buy model. Recommended more than 10 hot cosmetics every day, to two or three discount limit for sale, attracted a large number of nine-to-five white-collar workers, every day on time in front of the computer to buy brand-name cosmetics.

The second is the commitment hundred genuine, 30-day release of unconditional return, so that users free from worries.

Finally, it is also very important that Poly-Mei excellent products are very good at "face project." Advertising, please image spokesperson, to the popular TV show. Also, poly beautiful goods on the merchandise are 100% of the kind of photography, for this purpose to build a studio, with professional technology shooting.

Poly-Mei Excellent products do have a place, but far from becoming a myth. Some things are just a number game, a poke will break.

52% user Churn rate explains what

Poly-Mei Excellent products to "88.9% orders are from repeat customers under" for corroboration, the website viscosity and user loyalty is high.

We may wish to observe the loss of the active users of poly-Mei products. Throughout the year, as long as there is a purchase behavior, the United States is defined as an active user of the year. This year's live drop can be divided into two parts, part of the last year did not have a single, called New users, the other part of the last year, a single, called the remaining users. This year's active reduction is the last year's remaining users, which can be calculated out of the lost users. From the table below, we can see that in 2012, among the 4.824 million users of Poly-Mei Products shopping, 2.512 million had no shopping behavior in 2013 years, and the turnover rate was as high as 52.1%.

General game, the application of the 7th retention rate of more than 50% has been very difficult, Poly-Mei Excellent products 52.1% users do not seem to be high wastage rate. But the beauty lady buys cheap cosmetics can to "chop hands" degree, 2012 in poly beautiful product picked two or three times cheap, with a period of time feel is really authentic, 2013 how will no longer patronize? What's more, the 2013 market cost of Poly-Mei is 52.15 million (of which 50.2 million is advertising), the cost of acquiring or maintaining a user is 4.95 dollars.

It's not easy to sell merchandise

For the commitment to see the subjective determination, the second depends on the objective conditions. Generally speaking, the distribution will provide better protection than the consignment. In law, distribution and sale of the essential difference: the Distributor to obtain ownership of goods, to buy and sell the difference for profit; To a certain extent, the more distribution, less sales in the objective can be poly-Mei excellent product fidelity commitment to provide support.

Poly-US Excellent product revenue is divided into two parts, part of the distribution of income, the other part of the Commission:

85.5% of the revenue from distribution, not equal to the United States excellent products sold 85.5% belong to the distribution

(in millions of United States dollars)

2011 Poly-Mei Gifted products 96.4% of the product is to sell. This is very consistent with the situation of the United States of the year, the consignment has no capital and inventory pressure, the legal risk is small, but generally the rate is very low. 2011, the Beijing-East Consignment Commission rate is only 2.04%, poly beauty Excellent product is 20.8%!

Theoretically, the consignment of goods do not have to enter the Poly-Mei excellent products only four warehouses, can be directly responsible for the delivery of Third-party logistics (the prospectus disclosed that there are 49 such partners). If a part of the third party products only provide display, accept order services, poly-beauty products How to the self fidelity Pledge fidelity?

Committed hundred percent authentic, also know that consignment goods are not easy to sell, Poly-Mei excellent products still carry out a large-scale consignment. The reason is no more than two: one is not to give up the 403 million dollar Turnover (GMV) and the total revenue 14.5% of the Commission; second, Poly-Mei excellent products distribution of cosmetics mediocre, the authenticity of the consignment is also so, this and more than 50% of the user failure rate is not unrelated.

17.00 Yuan, 11.60 yuan, 10.00 yuan can only be compiled

The so-called performance costs, is the order of goods delivered to the user in the hands of the total cost involved. Mainly include: Transportation costs, leasing and operating in Beijing, Kunshan, Chengdu, Guangzhou, four warehouse costs, 1778 logistics staff wages, as well as the payment of 49 third-party companies (such as courier company) costs. By adding up all the costs, divided by the number of user orders completed each year, the results are very interesting.

Add up a lot of numbers to calculate the performance costs, multiplied by the U.S. dollar exchange rate of the renminbi, divided by 35.962 million orders (2013 years for example) incredibly is 10.00 yuan. The next year, 2012, 2011 Each order of the performance costs are 11.60 yuan, 17.00 yuan, a little more than a few, so beautiful neat figures can only be compiled!