Talk about the investment of the Bee

On the Valentine's Day , only products and Lok Bee Network officially announced the "marriage": the only product will decide the strategic stake in the eastern popular Music Bee network subsidiary 75% shares, the total amount of 112.5 million U.S. dollars. The investment is also the first major merger and acquisition investment since the goods will be listed.

At that time, only the goods will CEO Shenya said clothing shoes bag and cosmetics are online shopping first and second largest category. Only product will and Le Bee strategic cooperation can be very good to achieve the clothing and beauty makeup industry strategy, will consolidate both sides in the above two areas of the market position, not only that, but also to maximize customer share, and will further the genuine advantage into competition barriers, so that fakes can no longer harass customers.

Li, founder of Lok Fung Network, said it was a strategic investment, not an external guess that the Lok Bee net was sold or bought. On the one hand, two of web site resources can be further integrated, for women's fashion online shopping to provide more quality choices; On the other hand, with the Lok Bee Network and only products will be two platforms as the backing, star talent brand will be greater and better development.

Only product will and Lok bee nets This "marriage" is not a simple "strong union", both sides of the conference venue is not selected in the Lok Feng Network in Beijing, but also not only in Guangzhou, but the international background of Hong Kong, the two sides also did not invite too many media, people familiar with the matter, said the deal is clearly not the public, But a group of capital market investors who are interested in the goods.

Only commodities will be supported by investment to high valuations

Why does the product need such a merger? This is also the imminent listing of Ali, Jingdong, the two are the Chinese market is one of the big electric dealers, once the listing will be 1.5 billion U.S. dollars to tens of billions of dollars of financing, will attract large investment funds. The obvious effect is that a large part of the original pursuit of the goods will be transferred to the capital of Jingdong and Ali shares.

At present, only the stock price has more than 100 U.S. dollars, the market value of the highest ever close to 6.8 billion U.S. dollars, even if the fall also in the value of 6 billion U.S. dollars, more than Sina, gathering time, Ctrip, nearly 3 times times, more than to achieve when the 7 times times.

Tang Tanji, vice president of the commodities fair, said Tencent technology, the only product will be able to obtain high valuation is mainly performance support, which includes 3 aspects, respectively, sales, profit and market share. Judging from the data, only the goods will grow very quickly in the past year.

Earnings showed that only the goods in the third quarter of 2013 revenue of 383.7 million U.S. dollars, an increase of 146.1%. Net profit of USD 12 million, net loss of $1.5 million a year earlier. Only the net profit margin of the goods will be 3.1%, the net loss rate is 0.9%.

Net profit in the past 3 years (Tencent Science and technology mapping)

With the only product will continue to be large and sustainable profitability, the concept of its loss can not be used again, and the BoE also announced profits, when also declared to be profitable. Only goods will not be mergers and acquisitions, in terms of scale, it is difficult to have sustained and stable growth.

Only products will be the user group mainly concentrated in the two or three-line urban female users, accounting for 70%, front-line users only 10%. Three or four-line cities and even remote areas, due to the fear of distribution pressure, most of the electricity dealers will not easily get into these regional markets, and the first-tier cities have few users can perceive the existence of the only products, this is only the short plate. Only products will grow further facing the ceiling.

Only products will have a unique mode of flash, that is, to help brands deal with the end of the season, the Internet on the use of limited-selling way to stimulate and motivate consumers of impulsive consumption. In recent years, Ali, Tencent, Beijing-east, when, Suning easy to buy, shop number 1th is also in the grab this area, only products will also be aware of these problems, last year began to try to open the platform.

However, the only product will be in the open platform area did not have too much action, fear and the main business conflict, open platform this piece of performance even in the financial results did not reflect. Only the CFO Yangdonghao Foreign said that this piece of income is quite small. This year to exert investment, investment and their own synergy in the field, pulling their own business at the same time, breakthrough performance growth bottlenecks.

Only the product will be happy peak behind the Redwood Sequoia figure

Why does Lok Feng net choose to sell to the only goods meeting? There is a deep reason behind this. Lok Fung Network 2013 years ago, the three-quarter gross margin of 30%, when the 17% or so, only goods will be 23%, Jingdong three quarter to 9.8%, from the results, when close to profitability, Beijing east by interest and subsidy earnings 60 million, only goods will be profitable 27 million U.S. dollars, Lok Peak Network is in a loss state.

People familiar with the matter said that this is the peak network operation problems. With the increasing flow of electricity to Beijing-east, the cat and other large electric business enterprises concentrated, coupled with the rapid transformation of mobile Internet, Lok Feng Network to obtain a single female makeup new guest cost, more than 100 yuan, the new customer growth is weak, compared to when a year ago the cost of a single guest only 17 yuan

A former Lok Peak network of Tencent Technology revealed that the peak network losses have been a long time, if this year Le Peak network does not sell, operating will be very difficult, and Li to Le Feng Network has long lost interest, more interested in the own brand products. At the end of last year Li Jiangle Peak Network parent company business divided into 3 pieces, and Jiangle Peak network split out of the independent operation, intends to sell.

"Last year, Lok Peak Network parent company revenue has 3 billion yuan, which is 2 billion yuan, its own brand is 1 billion yuan, although the peak network sales scale is higher, but the main sales of Third-party products, has not made money, its own brand is basically half of the gross margin." ”

The only product will strategic investment after the Bee network, also shows Li led by the Oriental popular group of the other two wholly-owned subsidiary-the static Jia talent brand companies and media companies will continue to operate in parallel with the Lok Bee network.

Lok Peak Network want to sell, only goods will want to invest, behind the bridge is Sequoia Capital. In the only product will, Lok Bee net behind, with a common investor Sequoia Capital, Sequoia Capital has always been accused of being good at "packaging", is a capital master, and is the biggest winner.

Data show that April 2008, Lok Bee Network parent company won the Chinese sequoia a million-yuan level of financing. January 2011 and April, Sequoia Capital, DCM jointly completed the only two rounds of private investment, the total investment of 61.4 million U.S. dollars. Before the IPO, Sequoia Capital shareholding ratio was 19.3%. Last year, Sequoia sold its shares to ads for two degrees, falling to 15% per cent.