Vertical electric Dealer's "prostitute" road, ideal choice only sell

Former rival Lok Bee nets and poly-Mei excellent products, while announcing new capital direction. The former marriage only goods will, 112.5 million U.S. dollars, the latter announced to the United States IPO, raise capital 600 million U.S. dollars.

Behind these two capital operations, there is a common figure-sequoia capital. As the only product will, Lok bee nets and poly-Mei excellent products of the common investors, Sequoia Capital One stone three birds, become the biggest winner. Le Bee removed the loss of channel business, in the future can concentrate on the high profit margin of the private-label business, the only products have been listed by category expansion to maintain a high growth of the imagination, and for the United States, the IPO will bring an immediate return on investment. However, the "prostitution" of Le Bees is only the beginning. After 2010-2011 years of gold development in the vertical electric business, the blood transfusion from capital has been decreasing, and this year for those who have not developed into a platform for the vertical electric operators, "prostitution" or has become the final choice.

Vertical electric Dealer's "prostitution" road

Only the official announcement, will be 112.5 million U.S. dollar holding le Bee net 75% shares, Li led by the Oriental popular group under the other two wholly-owned subsidiary of the Static Jia, the company and media companies will continue to operate in parallel with the Lok Bee network.

"The marriage" is a strategic investment, not an external speculation that the Lok Bee Network was sold or acquired, Li, founder of the Oriental Popular Media Group, and the co-founder of the Lok Bee network.

In Shenya to all the staff of the Mail, the only product will be said that the future will play its own in the field of clothing shoes and hats priority, combined with the Lok Bee network in the past five years the status of the U.S. makeup market, together to create China's largest fashion shopping platform.

"The war is over, Victory is just a new departure," said CEO Chen Au, the biggest competitor of the past. ”

Lok Bee Network founder Li has three major business, including engaged in production and performing arts business in the Oriental popular media, engaged in cosmetics sales agent of the vertical Electric business Lok Bee Network, as well as the development of the star talent of the cosmetics own brand.

According to the previous Le Bee network published data show that the agent channel business contribution of sales accounted for 60% of the Le Bee, while the remaining 40% of the revenue from the Le Bee's own brand business.

And another noteworthy data is, from the gross margin, the own brand's gross profit margin of about 60%, and the agent business gross margin is only 15%~20%.

The sale to the only part of the Le Bee network in the loss of the Agent channel part, and the latter will continue to be operated by the Li Aspects of the development of its own brand.

And why buy the goods? Shanghai million-engine consulting CEO, electrical business expert Ruzenwang that the only product will be the core of the business is clothing sales, but 2013 years of growth in the four-year data has weakened the signs that clothing sales of the ceiling is coming, only goods will need a new business module.

Only goods will be SKU is not high, the current number of goods maintained between 2000 to 3000, the exclusive cooperation brand in more than 800. At the end of 2013, only the product will be revised after the introduction of the United States makeup channel, officially cut into the field of cosmetics. But in the same field, Poly-Mei excellent products have been developed for a period of time, only products will want to rise, the acquisition of poly-US-quality competitors Le Feng Network is undoubtedly the most rapid and convenient way.

On one side is an urgent need to expand the platform of the electricity quotient, one side is a slightly embarrassing status, the profit prospects are not clear vertical electric operators. In such a large background, only the product will be holding the Lok Bee Network case, just a start.

Selling is the ideal choice

In 2010-2011, the peak of the development of the electric business, small and beautiful vertical electric business was once respected, the industry believes that its procurement, warehousing and sales experience, can extend a good quality of service and channel advantages. However, with the acceleration of the competition of the electric business, the electric business industry appears the trend of "strong stronger", the large electric dealers in the bargaining with suppliers, logistics system, price war promotion and so on to show the advantages, so that vertical electric operators can only rely on not rich resources and funds, survive in the gap

There are investors to the South reporters said that after the cessation of capital transfusion, such as footwear, such as some vertical electric operators have faded out of sight, the past year group buying industry also appeared a large-scale acquisition and acquisition operations.

"The vertical electric business website does not make money, the income is between 101.5 billion yuan, the duplicate purchase rate generally is low, obtains the user the cost to be high, but the financing possibility already is not big, in the IPO unlikely situation, the sale is the ideal choice." "He believes that a classic case of this type of acquisition is the 2012 Suning purchase of the red children." "As competition intensifies among large platform power suppliers, the demand for supplementary categories will increase and the market will be quicker to seize, so the likelihood of a vertical electric dealer selling within this year becomes greater." ”

What about the beauty of the upcoming IPO? In fact, Poly-Mei excellent products and only products will go is the special selling mode, there is a high inventory turnover, but one is cosmetics, one is clothing.

Zhao Saijun, an analyst at Analysys, said the female consumer market was becoming a new theme for the competition in the electricity industry, and that clothing and cosmetics were not enough to carry the market forward. "Only goods will buy the music bee, because of its development in the process, encountered bottlenecks, to be from the category and business model on the extension." ”

He believes that the current vertical electric operators, whether for sale or IPO, only solve the problem of "survival", but how to operate and how to achieve profit is still a problem.

Data】

Le Bee: Agent channel business contribution of sales accounted for the entire Le bee 60%, while the remaining 40% of the revenue from the Le Bee's own brand business. Its own brands include cosmetics and health products, of which cosmetics account for 60% to 65%.

Only goods will: only the third quarter of 2013, the results showed total net revenue of 383.7 million U.S. dollars, compared with the same period last year, an increase of 146.1%. 2013 Q4 is expected to revenue of 5.8-590 million U.S. dollars, the industry estimates only the goods will 2013 annual revenue of 1.629 billion U.S. dollars.

Poly-Mei Excellent products: Last March, CEO Chen Au said, Poly-Mei excellent products have been achieved profitability. Among them, 2012 sales of 2.5 billion yuan, its expected 2013 sales of 6 billion-10 billion yuan, is expected to generate 100 million dollars in 2013 profits.