The dilemma of the cotton network is the epitome of the dilemma of the whole electric business industry

The first agricultural news is called "Every Guest" apprentice "Cotton Net" was once the darling of the electric business industry, November 6, 2010 officially on line, its main business to socks as the starting point, in the electrical industry is a solo show, positioning for the pursuit of high-quality living people tailored to the personal clothing brand, To sell their own brand Vcotton mainly.

At the end of 2010, the Xiaoping CEO Lin has foreign claims to obtain tens of millions of investment, before, Lin has also disclosed that the Blue Port online CEO Wang Feng in the name of personal shares of cotton. The financing shows investors to the cotton net of pro-Lai. For a time, the cotton network in the e-commerce industry to scrape a "socks cotton wind." and founder and CEO Lin was once a golden Hill executives.

But not long, the cotton network from the operation has been plagued by a variety of problems, whether it is millions of advertising arrears, or the lightening of the layoffs, or the recent burst of "warehouse was seized", until recently, the website officially stop operation, the product shelves. On the verge of collapse. Cotton network in the entire electrical industry in the winter crisis season, it can be said that only one step away from the collapse. But how to face the survival crisis of the electric business and how only "cotton net" one, he is not the first, nor the last family.

It is reported that a few days ago, the cotton net all goods have been off the shelf. According to the official cotton network, the commodity is the reason for the "Storage system failure", but in fact, is not the cotton net said so simple, the cotton net this is a cornered. By the supply side cornered.

Not long ago, the second largest shareholder of Victoria Cotton. Xiaoping in Weibo, said, "a company due to arrears of money, the supplier to apply for the court to seize its storage, the company suspended business." Suppliers, to be forced to what kind of helplessness will do so? And how many opportunities do companies have to let suppliers give up this last resort? Market economy, must respect the market, respect all stakeholders, have the chance to win, have the chance to make a comeback, have the chance of being reborn. Stakeholders: Employees, customers, suppliers. ”

This micro-Bo combined with the product of the cotton net, and combined with it is the second largest shareholder of cotton, the identity of the second largest shareholder, it is easy to see the article referred to the Electric business site refers to the cotton network. It can be seen that as an investor, Xiaoping is dissatisfied with the operation of the cotton Network line and the management of the whole supply chain system. And because of arrears, warehouse by the supplier application closed, fall to such end, for a vertical category point, indeed a bit tragic. And a bit of a coward.

In fact, the "death" of the cotton net is beginning to emerge from last year.

In the first half of this year, the cotton net traffic plummeted from the peak period, because the socks such cotton goods consumers continue to buy the viscosity is not high, and the price is already very cheap, online physical stores can fully meet the demand. And in every guest this kind of scale bigger platform, also has the sock subdivision business, more is when the gift, or is tie-in consumption. It can be seen that the dimension cotton Net's own main business positioning has lost strategic consideration.

After that, it broke the advertising costs of millions of of advertisers and had to tighten its trousers to digest the rising costs. So then the cotton network experienced a rare "lightning layoffs and pay cut" storm, including the company COO, such as heavyweight figures are "left", which also highlights the cotton net capital chain near the "break" crisis. Even the head of Lin once shouted "at all costs to survive" such heroic slogan.

And the warehouse due to arrears of money, and by the supplier of information, to the court to apply for closure, which is tantamount to a direct declaration of the cotton network capital chain of breakage. The breakage of the capital chain is "death notice" for the electric business. In accordance with the current situation of the cotton network, to refinance ready to turn over, it is impossible.

From the appeal of the situation can be seen in the electrical business in the winter of the miserable season, the cotton network encountered warehouses were closed, the capital chain crash of the fatal blow. It can be said that the death penalty was proclaimed. And not only is the cotton network is facing the doom.

This year, fashion Department of the electric Dealer "Yao Point 100" announced a moratorium on operations, the company has been qiming venture, Baidu, Daphne and Intel investment site, this March, the bankruptcy news, in the first time before the outage was property. Almost at the same time, the luxury vertical electric network has announced layoffs, cutting the proportion of nearly 50%.

At the beginning of this year, the domestic global specialty shop thousand Teng net, in the electricity market downturn, the investment side of China Tai Yue (300002, shares bar) choose to withdraw capital, the current thousand Teng NET Web site has been sleeping state, operations in general, the site may be closed, but also may face.

Not only that, in the near future, Massamasso, Jiapin, red children, walking show and so on all kinds of negative rumors of the exhaustion of funds, layoffs.

Data show that the number of 2012 group purchase site failures increased, the reduction is greater than the number of new group buying sites. At the end of December 2011, China's closed group purchase site reached 1960. As of June 31, 2012, a total of 2,859 group buying websites closed down or exited the group buying market. This also shows that the capital market return to rationality, to buy industry investment become cautious.

According to the China Electronic Commerce Research Center monitoring data shows that up to the end of June 2012, the total number of national group purchase sites up to 6,069, the cumulative closure of 2,859, the death rate of 48%, operating 3,210, has fallen back to the end of 2010 around 3,200.

And the Dying Cotton network founder Lin has also predicted that the middle of this year, the end of the year will be the death of the electric trader.

The Beijing-East spin up the price of electricity dealers war, will undoubtedly aggravate the tide of electricity business failure, recently, the site analyst Mao said, in the face of the fierce price war, the line of business under the huge capital of Suning and Gome will not die, can be melted into the money of the Jingdong will not die, those who do not have the money, small market share of medium and small-sized electric business is hard to say, They are facing the giants of the industry reshuffle turmoil.

The situation was actually staged 6 years ago. In 2006, the rich and rich Gome, under the command of Huang Guangyu, set off the market the most brutal price war. After the completion of the purchase of Yongle, the United States by hoarding goods will be the overall price of the industry to pull 30%. But Su Ning did not die, died is forced to become involved in price war regional home appliances chain and foreign-owned chain. Market share has shrunk sharply, and finally withdrew from the market.

It can be seen that the dilemma of the cotton network is the epitome of the whole electric business industry. Perhaps a new round of electric business reshuffle has arrived.