The fate of the small and medium electric power business is different: The cotton storehouse is sealed Shang to be invested

In the Beijing-east, Suning promotional battle behind the lively, domestic small and medium-sized electric business survival status is unprecedented.

Recently, the cotton socks to cut into the category of vertical manufacturers Web site cotton Network, due to the arrears of a large number of suppliers, its warehouse in Beijing has been the law enforcement departments to seize. At present, the user has been unable to buy any goods in the cotton network.

A cotton investor confirmed the news to the first financial daily. However, the official interpretation of the cotton, the storage system is the result of the failure.

Lin, CEO of Cotton, said he was temporarily unable to predict the time when cotton would resume normal operation. In addition, he stressed that the cotton is not the individual, but including all shareholders, he can not determine whether the cotton will continue to operate.

Industry has come to the cold winter, electricity business investment Frozen has been recognized by the industry. However, a new "ammunition support" was still available. Yesterday, two companies announced the financing: Flash shopping website gathers the net to obtain the Banrida, IDG Capital, the Qing branch capital and South Korea SK Capital Joint Investment's B round 30 million dollar financing, while another obtains the soft silver and the blue 10 million dollar joint investment the day product net even is a start-up enterprise.

Liu Tianmin, China's head of SoftBank, said that there are still plenty of opportunities for electric dealers, and that there is still investment value in having a good team.

The misunderstanding of cotton dimension

Data show that the blue Port online CEO Wang Feng for the angel of the cotton-wool investors, currently as chairman of the Cotton, the well-known angel investor Xiaoping in 2011 10 million yuan investment in cotton, and then the cotton has no financing records.

Yesterday morning, Xiaoping in micro-blog said: "Suppliers to be forced to how helpless will do so?" And how many opportunities does the company have for suppliers to give up this last resort? He pointed out that operators have to respect the market and all stakeholders have the opportunity to win or be reborn, and stakeholders include employees, customers and suppliers.

A person familiar with the matter said that the cotton investor had not yet reached a consensus on whether to help with the introduction of funds and that Lin was mediating with the capital side.

But the situation may not be optimistic. A partner at an investment agency told the newspaper that Cotton had recently sought to rescue a renminbi-denominated financing, "with little money, but we refused because it felt worthless." ”

For the current business dilemma of the cotton network, there are people in the industry that is Lin choice of improper operation of the category caused. In the beginning of the establishment of cotton socks as a market entry point, but the cotton Socks customer unit price is low, brand premium space Limited, low replication threshold characteristics of the industry has been criticized.

There is even the view that the customer unit price of 100 yuan within the electricity business can not cover its costs, the loss is obvious. Then, the cotton network will extend business to stockings, underwear, underwear and other categories.

However, the same cotton socks operating business of the consumer Electric Business Network CEO Zhou Ping but hold a different view. In his view, the operation of the cotton is caused by poor management, not the category. It is reported that the fun Play network of cotton socks brand cotton pop has reached the break-even, annual sales of 8 million yuan.

He believes that the current small and medium-sized brand electric dealers will be too much attention on the online marketing and conversion rates, but this part only accounted for 10% of the whole electric chain, and the remaining 90% from the goods before the warehousing, including user group positioning, supplier selection, pricing strategy, treasury calculation, replenishment strategy, and so on, this part how to seize to determine the life and death of the electric business.

Salvation under cold capital

In the global economic environment is weak, the two-tier market for the concept of the electric quotient from the scale-oriented to profit-oriented transfer, which is at the front of the investment chain investors on the project is also more stringent. In addition to the cotton, this year has a number of domestic electricity dealers are facing closure.

The problem of financing difficulty has also caused some small and medium electric power business to fall into a vicious circle: when the capital of a problem, the first step to stop advertising, resulting in a sharp drop in orders, new users can not get, and the old user could not support the scale; the second step begins to lay off workers, which means helping to digest the orders of the staff in sharp decline, leading to the service can not keep up,

But the door to investment has not been completely closed. Gathered yesterday, the days of the financing of commodities is considered to be the most concentrated in the recent time of the electricity business financing.

A partner at an investment agency says the low ebb in electricity business is largely due to the pace of investment institutions. "Many of the investment funds themselves are not the same, some funds before the two-year price is too high or set in some projects, so now stop, and some funds rhythm is still relatively smooth, now the company prices from high hot spots, investment even more cost-effective."

The investor said that the electricity business still is a kind of business, if the Enterprise team is outstanding, the business essence understands profoundly, in the long run certainly still has the investment value.

It's just that there is a "jungle" of brutal competition. "The Chinese market is 5 times times the size of the US, and the risk is 10 times times that of the United States." Chen Kai, managing Partner of SK Telecom (China) venture capital fund.