The Red Star Mei Kai long electric business name change the symptom not cure: Half year burns 200 million output 40,000 only

February 1, home circulation industry giant Red Star Mirs under the electronic mall was confirmed by the "Red Beauty Mall" officially renamed as the Star-Yi home. It is rumored that the star will be led by Red Star Mei Kai Dragon Group vice President Macalline (sister of Chei) management.

2013 is considered as home and other major categories of e-commerce in the year. Red American Electric Business in the on-line operation of six months, the report card show only about 40,000 yuan turnover, and the red U.S. has for the electricity business investment 200 million yuan, whether the latter continue to adhere to the operation of the electricity business, is still in wait and see wandering stage.

Six months to burn 200 million

Home circulation tycoon Red Star U.S. Kai Long Electric Business Project "Red Beauty Mall" online six months after the outbreak of shock. Electric dealer in charge of the job completed a recent change, the company has appointed a regional general manager of the south of the new electricity dealers in charge. Some sources said that the Red Star Mei Kai Long electric business will be chaired by the group Vice President Macalline management.

In the online operation of six months, the Red American mall turnover of only about 40,000 yuan, but upfront investment has reached 200 million yuan.

At the same time, nearly 400 people of the red American Mall's Corps team was also forced to slash. "The target could be 150 people. "Just leave the Red American Mall, the head of the original electric dealer immediately away from the media line of sight, keep a low profile." Although the Red Star United States Kai Lung officials did not explain the main reasons for the personnel changes, but outside speculation, online performance is still the main reason.

Operating in the line within six months, the Red US mall turnover of only about 40,000 yuan, but the upfront investment has reached 200 million yuan, only the staff wages and advertising costs accumulated close to 100 million yuan. "The money has been burned almost." ”

It is reported that the Red Star United States and Kai-Lung hope that the project can see the results as soon as possible, Red Star United States Kai Lung has declared: "Then burn 200 million, if you can not hit the results, simply forget." "This time, in addition to replacing the person in charge of the electricity business, also includes renaming the" Red Beauty Mall "as" star-Habitat "program, in order to gain more online user awareness, even at any additional investment.

For the future of business, the Red Star Mei Kai-lung side temporarily did not release more information. But from July 2012 on the line of the Red Beauty mall business lines, including home building materials products based online platform, home textiles and small pieces of household goods on the line of flash shopping and household items Group buy three major sections.

Reporters from the industry to understand that its electrical business in the last six months the root cause of the lack of improvement in the initial strategic positioning of the deviation, so that its line under the business fragmented, separate. Red American Mall on the first line did not take the Red Star United States Kai long as the backing, fully borrow the offline store resources, but to carry out the home building materials products mainly business.

However, in the current electricity market, the difficulty of doing independent business is obvious, there is not enough flow support, suppliers can not find the reason to be settled in the Red Beauty Mall. With the cat, Beijing-east and other comprehensive platform for home and other special categories of attention to deepen, independent of the general is gradually marginalized.

Renaming a symptom, not a cure

"In essence, it is not a substitution, burning more money can be solved." Management does not fundamentally address strategic positioning and electrical business thinking, I expect him to burn 2 billion in the future is also white burn. "A household industry in charge of electrical business, the Red Star of the United States and Kai-long treatment of electric business attitude has been drifting between doing and not to do, too much entangled in the line under the interests of online," This is very much like the early gome, the lack of a general like suning broken wrist determination. ”

Analysis from the organizational structure, hongxing Mei Kai Dragon's electric business is only in the form of a department, the real leading electric business is still the company's top, the department responsible for the implementation level, so whether the key decision-making, or coordination of resources are limited.

On the other hand, the failure to clarify the position of the electric operator will directly affect the staff absorption and the formation of the team. Red Star American Kai Lung is more inclined to find knowledge of online business professionals. For example, from the cost of a good and neat home network, such as focus on group purchase of electric business enterprises digging people, that is not familiar with the play and strategy of the Business Mall, but also with the Red Star Mei Kai Dragon Master Traditional Enterprise thinking and experience of employees difficult to integrate. "Now moved to the area of the boss, whether really understand the online business has yet to be tested." ”

In essence it is not a substitution, burning more money can be solved. Management does not fundamentally address strategic positioning and electrical business thinking, I expect him to burn 2 billion in the future is also white burn.

"Star Yi Ju this name is very difficult to let people and Red Star United States Kai Lung linked together, simply want to do online traffic, a large amount of publicity fees inevitable." But the problem is that the big investment in the past has not been able to gain positive accumulation, the Red American Mall once renamed, and even lead to naught. "One of the red-American insiders said.