Vertical electric quotient Mai Lin sustained losses exacerbate the recession

Silicon Valley Network integrated with Prudential attitude to online business/

In the fourth quarter of 2012,
's net revenue was $39.7 million, a year earlier, at $58 million, down 31.5% per cent, and a net loss of $7.2 million trillion, a year earlier, at $11.5 million trillion, the results showed.


's net revenue for fiscal 2012 was $151.8 million, a year earlier, at $217.9 million trillion, down 30.3% per cent, and a net loss of $22.4 million, a year earlier, at $33.3 million trillion.

In its earnings,
reporters saw a sharp decline in all of Macquarie's businesses last year.


2012 net revenue, net platform business revenue of 71.8 million U.S. dollars, the same period last year, 118.5 million U.S. dollars, a year-on-year decline of 39.4%. Net revenue from the call center was $48 million, a year earlier, at $52.8 million, down 9.1% per cent.


In addition to poor online business performance, offline performance is also in a state of recession. The net revenue for its direct-operating stores was $17.3 million trillion, compared with $25.8 million a year earlier, down 32.7% per cent. The net revenue for franchise stores was $14.7 million, a year earlier, at $20.8 million, down 29.6%.


at the same time, Mai Lin line of related outlets are shrinking. The average number of its direct-operating stores in 2012 was reduced from 117 to 91 in the same period a year earlier, with the average number of franchises reduced to 266 from 306 a year earlier.


line related to the reduction of network, by some people in the industry questioned for the cost of the MAI Lin reduction. However, in an interview with the Daily economic news reporter, Mr Mak did not respond directly to the above statement: Although the volume of offline shops is decreasing, Macaulay did not deliberately shrink the business. On the contrary, Macaulay has been cautious about online business, and the future will be more focused on providing fast fashion products, and on the major electric platform with an open and cooperative attitude.


It's worth noting that last November, Macaulay suddenly announced a new joint venture with South Korea's Giosis Skynet parent company, "Giosismecoxlane", which was controlled by the latter and transformed into an electric business platform. and "Macaulay Forest" brand became one of several shops on the platform.


said, "After all, the net is still a piece of our assets, but also a brand." Although we are now focused on building brand products, it is also one of our important platforms. ”


Vertical electric dealers are in a difficult situation/


Electric business platform continued to burn money situation still let Macaulay forest can not get away.


, CEO Beichun in a conference call, said, "The E-commerce industry fierce competition, online advertising and promotion of the cost of more and more, our 2012 years of business income has also declined." As a response, we carefully control costs and improve operational efficiency. In the fourth quarter of 2012, we continued to reduce online marketing costs in order to keep cash, which in turn led to revenue from our online platforms and a fall in the number of independent visitors, but also increased our gross profit by 2.2%. ”


He also revealed that, in addition to its own platform, Macaulay will also put their products to the cat, Jingdong Mall and Dangdang and other third-party platforms for sale.


may be the end of the cotton net and red children let the vertical electric operator feel the chill, cut costs dormant winter becomes the only way to survive. The relevant people in the Macquarie also admitted the dilemma to reporters, "We are also reducing costs, since 2011, the reduction of advertising investment, the other wage costs are also falling." Of course, the most important thing is to do a good product, can fundamentally change the status quo. ”


Coincidentally, every guest CEO aged before also told the media, where the first three quarters of last year's sales growth of only nearly 30%. In the past 3 years, the sales growth rate of customers has been about 250%, 285% and 175% respectively.


industry price war led to low gross profit margin significantly reduced the possibility of profitability, in addition, Mai Lin's industry dilemma on its impact can not be ignored.


public data show that 2012, offline apparel industry as a whole into stagnation in sales, inventory growth dilemma. In the first half of 2012, including Anta, 361 degrees, special steps and other domestic 42 listed apparel textile Enterprises Inventory of up to 48.3 billion yuan.


every guest insider to the reporter discloses, "The scale is again big, cannot the profit still belongs to the not benign development." Now the company's goal is to reduce all the costs can be reduced, the company to make profits. ”


Electric Industry observer Ruzenwang to the daily economic news reporter said that the clothing industry is not good environment, so that the survival of vertical electric operators become more difficult. "On the one hand to clean up the inventory, the other side will face the squeeze of the big platform." Reducing costs and enhancing user recognition are the problems that need to be solved by Macaulay. ”


is unlikely to be acquired/


After the Nasdaq exit warning for the stock price below 1 dollars, Macaulay conducted a 5-and 1-share plan at the end of last year.


Despite the move in the short term to relieve the crisis, but the prospects of the Mai Lin is still worrying, industry integration speed is also intensifying.


March 4, where guests officially announced to the cash plus stock in the form of a wholly-owned purchase of vertical commodity brand, the first time the team will be merged into every customer, and the first time the valuation of the yuan tens of millions of yuan level. At the same time, the guests also disclosed that this year will continue to carry out mergers and acquisitions.


5 Buy CEO Yin Ruje in the "Daily economic news" reporter interviewed, said the vertical electric quotient of the tragic situation is rooted in the high homogeneity of its goods, and do not value the user experience. "Only a price war, no independent brand, to do marketing and channels, can only fall into a vicious circle." Once the ad stops, sales and traffic will come down immediately, which is clearly not sustainable. "Ruzenwang that the first quarter of this year's losses may be reduced, because of their joint operations with Korean-funded enterprises may be a certain degree of improvement." "If you can't change the status quo, you can maintain a maximum of three quarters at the current loss rate," he said. Macaulay is also struggling to be further merged, because its remaining value is not much, and investors have no confidence in it. ”


in March 2011, Sina announced a $66 million trillion purchase of 76986529 shares of Macquarie Common stock, accounting for about 19% of the total number of shares in Mai, which is $0.8571 per share. And the continued loss of Macaulay also put Sina into embarrassment.


insiders estimate that if mecoxlane cannot reverse the trend this year, it does not rule out the possibility of privatization.