The only product will be a special "sell" website

"Today, I found out that the only thing I had to hang in 50 (US dollars), has been sold out." "August 10 night, talking about the experience of the operation of the only products, netizens" egg beads "text appears to be a bit of an accident.

In the field of electrical business, only goods will always be the focus of attention. Last year, the cat's "Double 11" single day trading volume of tens of billions of shock to the outside world, and "6 18" price war let Jingdong, suning earn enough eyeballs.

However, it is the less-watched site that has become China's first profitable consumer (merchant to customer) electric trader. Financial results show that the last four quarter to date, only the goods will have 3 consecutive quarterly profit, in contrast, Jing-dong, when, Fank and other electric dealers are still struggling in the loss.

The growth in performance is the soaring share price. Before August last year, the electric-business unit had long hovered around 5 dollars, and on August 10 this year, only the stock price exceeded the 50 dollar mark, which was 10 times times higher than it was 1 years ago. Is there any moisture in the company's performance? Are there any pushing hands behind the soaring share price?

Beijing News reporter Zheng Daosen

Shares are up 10 times times a year.

Last March, only the goods would "bleed to market", this August, only the stock price is 10 times times the year ago.

The only product will be a special "sell" website.

2008, the only product will be created at the beginning, the on-line products are mostly foreign famous or luxury goods, but at that time, domestic consumers to buy more than 1000 yuan of goods are quite resistant, sometimes only a few orders a day.

3 months after the establishment of the two Founders decisive transformation, only the goods will henceforth aim at the "popular fashion brand", Philippines, Hong-xing, a type of domestic clothing brand has become the main site.

Last March, only the goods in the capital cold winter "bleeding listing", the original 8.5 dollars to 10.5 U.S. dollars of the IPO price to 6.5 U.S. dollars, the opening day of the closing price of only 5.5 U.S. dollars. After half a year, only the stock price is always hovering around 5 dollars.

The launch began last August, rising from $5 trillion to $30 trillion this May. This July, the only product will usher in a new wave of gains, the share price from about 30 U.S. dollars to the highest of more than 50 U.S. dollars, the share price is 10 times times the year ago.

Chinese investors fry the U.S. stock market often use pending orders, when the price reached the set target price, the system will automatically sell.

NET friend "Egg beads" initially focused on the only product will be in February this year, when, only the goods will share price of 24.42 U.S. dollars, he gave the goods will set a 50 dollar target price, which sounded more like a good wish. August 10 this year, only the goods will really reach 50 U.S. dollars, pending orders to deal with the success of the Internet users have some surprises.

Only the price of goods will rise sharply, also triggered public opinion speculation. At the Snowball forum, there has been a netizen posted that the rumor that only the goods will be Wenzhou people fry, only the two founders are Wenzhou people, pulled a group of suppliers to fry only stock, only the goods will be the previous turnover has been very low, but the rally is very fierce.

As for this rumor, I Liang, founder and CEO of U.S. Stock Asset Management Ltd., also told The Beijing News correspondent that there is no evidence to support this claim.

In the view of some executives, the rise in share prices comes from investors ' growing recognition of the market value of the goods. In this year, only the goods will become China's first profitable manufacturers of electricity.

Earnings figures show that in the third quarter of last year, only the goods will be the first to achieve "NON-GAAP profit" (Non-gaap mainly excluding the incentive costs), to achieve a net profit of 640,000 U.S. dollars.

The outstanding achievement causes the Organization to question

Along with the only product will be beautiful performance, some public opinion began to doubt only the authenticity of the results of the goods will be.

In May this year, Greenwich, a Foreign Investment Research Institute, issued a report saying that only goods were suspected of financial fraud and misled investors. The report said that there were not many people in China who had heard of the only goods meeting, and that it was impossible to talk about shopping in the only goods.

Domestic analysts retort that, according to the only product report, 2013 Q1 active users of 2.8 million people, relatively 1.3 billion of the population, the proportion itself is small. Compared to Jingdong, the cat, the only product will indeed be a relatively small amount of electricity quotient, but small size does not mean that can not be profitable.

In addition, Greenwich's report also questioned that only the high gross margin can not be explained, the number of users and average consumption is unreasonable, and doubts that the only product will sell low-end products strategy is effective.

Greenwich didn't understand the profit model of the only product. "A senior electric business analyst told The Beijing News reporter, the only product will be in many of the manufacturers, there are indeed many unique."

Jingdong Mall former President assistant Liu Yan to Beijing News reporter said, only the goods will be different with other electrical quotient, it is mainly to clean up the tail goods, for some clothing brands, with the Cat docking department may be the company's electric business Department, marketing department, and for the only product will, they are mainly with the brand of the clearance department contact.

"The tail cargo clearing goods, itself has a channel circle, this has been formed for many years." Only the buyer of the goods will enter such a circle. "Liu Yan said.

There have been reporters to China's largest clothing distribution center Guangzhou Shi Jing Zhen visit, and said "Here is the Chinese clothing tail goods paradise, the entire stone well more than 10 billion annual turnover, corresponding to the normal channel hundreds of millions of sales." ”

A former employee told The Beijing News reporter, Guangzhou, the city as the largest clothing, retail trading Center, E-commerce has not been seriously. Only product will form the investment team, quickly and Guangzhou's major trading market for accurate docking. "Only the product will be this platform, it is equal to the series of all the trading market in Guangzhou, the effect is very good." ”

Liu Yan said that in the United States there is a very mature Austrian channel, but in China, only the goods will basically play the role of outlets.

In the face of Greenwich shorting, others expressed different views. The muddy waters of a well-known shorting agency wrote that there would be no fraud but doubts about the future growth of the flash-purchase model.

"Crazy" buyers and sellers

Why is China's first profitable business operator the only product? Analysis said, "Only the success of the product will benefit from the domestic economic environment."

"In the market share, only goods will definitely be a single big." "A traditional company in charge of women's electric companies in the network forum, said:" For the only product will repeat the purchase rate, more to the two or three-line city to see, especially enterprises and institutions. ”

According to the data released by the only product, the repeat purchase rate of its users reached 70% to 80%, and the price of each order exceeded 200 yuan.

Tang Tanji, senior vice president of the Commodities conference, told the Beijing News reporter only the consumer 75% of the product is female, age to 18-35 years old mainly, "but this year found an interesting phenomenon, many older, many are female civil servants, female teachers, become our loyal users, every day 10 o'clock in the morning in front of the computer, This is a new change that we see.

Fujian Changle, a 40-year-old female civil servant, in July this year, the only consumer goods will have a good thousands of yuan. She told the Beijing News reporter, she usually rarely Taobao, but almost every day to go to the only thing will look, because compared with the environment Taobao mixed, only goods will be basically brand-name authentic, and there are discounts.

Her shopping list included a three-mouth dress, a pillow at home, a quilt cover, and even a variety of household appliances. Select the only product will be because this site can be paid on the goods, and returns convenient, return goods do not have to bear the freight.

"Most of these consumers are in favor of discount promotions at the mall, and they will pull them offline. "said a senior electric analyst.

It is in the strength of these consumers, only the goods will have become the largest sales platform of tail goods.

A clothing supplier told the Beijing News reporter, he recently just let his brand on a only product will, small half-day sales near 600,000, almost is the day cat flagship store one months of sales.

The head of the women's electric Business company said Hangzhou is a women's clothing seller, in his sales experience, the only product will be the current sales of other flash channels 8-15 times, "more than 8 million sales, the general 1 million to 2 million sales, small 500,000 to 800,000 sales." ”

Tang Tanji said, it is such a huge sales, so that only products will gradually accumulate more and more suppliers of resources, brand traders have inventory to deal with, the only product will be the largest channel.

"Only the success of the product will benefit from the domestic economic environment." "Liu Yan analysis, on the one hand, economic growth slowed down, leading to consumer demand for tail goods, on the other hand, the domestic apparel enterprises in the past few years a large number of inventory, eager to cash out.

"The gilt of the United States is the rapid growth in the worst years of the economy. "Liu Yan said.

Crisis

Many electric dealers enter the market of flash purchase

The cat, when all have a flash purchase business, flash purchase from the blue Sea into a piece of the Red Sea

When only goods will achieve profitability, many electric dealers plan to enter the flash market. Cat, when, Jing Dong, every guest, Shop No. 1th ... Now, these electric dealers have a flash business, trying to compete with the only product market cake, flash shopping has become a red sea from the blue Sea.

August 15, only goods will release 2013Q2 earnings, revenue growth of 159.7%, up to 351.3 million U.S. dollars, net profit of 9 million U.S. dollars, and last year was a loss of 5.8 million U.S. dollars.

That night, only the CFO Yangdonghao in the Analyst conference call, said, "regardless of the chain or year-on-year, only the goods will be the revenue and profits are a big increase." Other electric dealers entered the field of flash purchase, did not give the only product will exert too much pressure. ”

Although Tang Tanji, senior vice president of the Commodities Council, said it would take at least three or four years to imitate the only product, but would it still be able to maintain its high growth as the latter became increasingly competitive?

"Forced warehousing" mode was spit

Since last year, many of the manufacturers have launched a "flash purchase" or similar "flash purchase" of the limited-time special selling platform, these platforms from the formal view, and the only product will be similar. Among them, Dangdang directly to buy the platform named "Tail goods Sinks", the market has also once spread "only goods will be when acquisition" rumors. In recent months, the media have often been able to see a reference to the "Double Hui" war.

Logistics, procurement, these products will be regarded as the core competitiveness of the elements, in some suppliers and the "Flash" later in the eyes, may also be a hindrance to development.

Stockings underwear brand "One Kam" boss Zhu Wenjian told the Beijing News reporter, according to the rules of the only product will be the supplier to all the goods will be pulled first to the warehouse, a week later, not sold out of our car pulled back, this "mandatory warehousing" way to ensure that consumers buy a number of goods once issued, but for suppliers, The whole process is tedious and time-consuming.

"Freight is the second, this come and go to prepare, clean up, classification and other processes add together to one months of time, if the sold out rate is low, for the supplier is a huge cost." "Zhu Wenjian analysis, if the sales are large, only the goods will be this way of warehousing is more appropriate, but the smaller the sales, the less cost-effective warehousing."

In contrast, when, Fank and other brands do not require suppliers to be in the warehousing, it has attracted some suppliers ' interest.

Dangdang's PR manager said that in logistics, the goods do not have to enter the warehouse, when the seller can choose their own shipments, can also choose to use when the logistics services provided.

Day cat, the relevant person in charge of public relations told the Beijing News reporter, Days cat brand special sell do not buy goods also do not sell goods, is entirely by the merchant to do commodity price control and Inventory Control. Logistics is through Third-party logistics to achieve, customer service is also the business of their own control. In the eyes of the cat, the self will pay more cost, warehousing, human resources, and so on, the platform will be more lightsome.

In the choice of goods, the cat, when there is no "buy hands", but the choice of goods to the supplier, the site is just a sales platform.

The cat Aspect said, as long as is the day cat merchant, the shop satisfies the day cat certain grading, may apply for the brand special sale, registers from the brand, to on-line, only needs 30 days.

Tang Tanji said that at present more than 95% of the goods are still to enter our warehouse, through our own system shipments, but there are 5% of goods, such as some large furniture, not suitable for our library, only products will only as a platform, by the supplier direct delivery.

"The platform is an integral part of us." Tang Tanji said, do not warehousing, only goods will be able to choose more categories, such as some large furniture, etc., through the platform can be sold.

Compete for Suppliers

"Where goods are good, and cheap, of course, go where!" "Beijing News reporter interviewed a number of heavy" flash shopping "enthusiasts, in a large part of people, they have" flash shopping "site does not have much loyalty, if competitors can provide better goods and services, do not mind around.

In addition to logistics, procurement, suppliers compete or become the most competitive part of the competition.

As early as this June, there are rumors on the Internet that only the goods will require some suppliers to sign "exclusive sales agreement", in giving the goods will be supplied at the same time, not with when the tail of goods, where the special sale, shop No. 1th store famous special selling and other "flash purchase" platform supply.

For such a network exclusive sale agreement, only products will be said, "the true and false on the network, do not rule out being a competitor spoof", for the only product will have 800 exclusive suppliers, only the goods will be said, this is the two sides of the consultation to do, will not force suppliers to sign.

In order to attract suppliers to enter, some of the "flash-buy" platform in the sales buckle point on the less than the only goods will be much lower.

I said in a U.S. stock article, the only product will be significantly higher than other platforms, "the first line of the (brand) signed 25%, this year 28% to sign off on the good." The article also revealed that when the deduction point for 12%, 1th Mall for 6%, the cost of 5.5%+3%, brand tour 3 days 150,000, Jingdong 12% plus 5000 group purchase fee.

For such a competitive price, Tang Tanji said, only the sale of goods will be deducted points include logistics, customer service costs, can not be compared simply.

He said that only products will be goods will be shipped, returned by the only goods will be responsible. In contrast, suppliers in other platforms need their own shipments, logistics costs far more than the only goods will be high logistics costs, and the entire operating quality and level, with the only product will still have a big gap, shopping experience is difficult to guarantee.

"Only goods will indeed be the biggest flash-buy platform." In an interview with the Beijing News reporter, Dangdang public relations manager admits that when the end of the goods exchange hope to be able to do the second.

"Flash purchase" itself or a bottleneck

Beyond the competition of other "flash-buy" platforms, the "flash-buy" model itself may be a bottleneck. If this factor is taken into account, coupled with fierce competition from the same trade, only the goods will have to pay more efforts in the future if they want to maintain high growth.

"I want to buy a pair of jeans, I heard that the only product will be very good, but after the discovery can not search." "I went to the cat," Mr. Yang, who works in Beijing, told the Beijing News.

Search on the Internet "only product will", it is not difficult to find similar spit, "unexpectedly no commodity evaluation", "20 minutes without payment unexpectedly from the shopping cart disappeared" ... For some first-time users, some of the features of the "Flash-buy" site have made them somewhat difficult to accept.

As Chinese consumers become more mature, the "impulse consumption" emphasized by "flash purchase" has also become an object that some people try to overcome.

"Promotion for me, has passed the absolute temptation period." "Feifei is a Fuzhou network of people, the past 10 years Alipay payment amounted to 700,000 yuan."

In an interview with the Beijing News reporter, she said: "Now before I do, I would rather know what I want to buy, whether it is useful." ”

Her friend Ms. Liu also said: "I have been to the only product will, but I will not buy every time." Because I will ask myself, is not really need, if not, that is not really like, if not, I will turn off the computer, empty the shopping cart. ”

"End consumers are extremely divisive in their approach to the pattern of flash-buying-people who like to indulge in them and those who dislike them. "The World Network Business" reporter Yang Qin in the analysis of the only products will be user data, only the product will even though the user stickiness is very high, but the user's loss is also very large. According to his observation, within one year, the users who did not produce duplicate purchases in the only product will be lost in the future.

The challenge, on the other hand, may come from the apparel industry itself. In the past few years after the pain of inventory explosion, many apparel enterprises began to increase the management of inventory, and strive to control the inventory in a reasonable range.

Special Step group Vice President Sholiwa told the Beijing News reporter, special step official with only goods will have cooperation in 2011, last year and this year are not. "We want to keep a virtuous supply chain, rather than simply clearing the goods." Sholiwa said: "Every customer has looked for us several times, we have not agreed." ”