When the transformation: to do a culture with a comprehensive category of fashion electric dealers

Absrtact: Not only is China's largest online bookstore. On the evening of August 5, when the official network issued a statement, declared that September is about to open the road of transformation. In the so-called statement, when said: to be a cultural heritage of the comprehensive category of fashion electric dealers. In addition to books,

"Not only is China's largest online bookstore. "On the evening of August 5, when the official network issued a" statement ", claiming that the September is about to open the road of transformation.

In the so-called statement, when said: "To be a cultural heritage of the comprehensive category of fashion electric." In addition to books, there are clothes, shoes, accessories, beauty makeup, household items. ”

Aside from the marketing level, you can see that when you're trying to weaken the label of the book you're selling, it's going to be on the bigger electric dealer's plate.

Now, when has passed 15 years, is called the Chinese electric Business profession veteran. But its market value status is far less than the successor of the United States and the only product will be, the transformation may be just for the larger plot.

On the one hand, widen the moat of his book business, while another in the field of apparel to play a new well, when the idea has already sprouted, and has been stalking for some time. And see if it succeeds? And this process, perhaps also in the near future when the stock price ushered in a big cause of soaring.

When the stock price recovers: 3 months rose 40%

In recent days, when the share price ushered in a new wave of flying tide, on August 6, the 14.14 U.S. dollar close, compared with May this year, less than 10 U.S. dollars, three months rose more than 40%. If compared with last July's lowest share price of 7.6 U.S. dollars, its share price rose by 86% per year. At the moment, Citi is still taking a "buy" rating.

What is the reason for pushing the price of a stock?

As the first wave of listed electric business enterprises, 4 years ago in 2010, when the successful landing in the United States NYSE, the issue price of 16 U.S. dollars. Then he went down to the bottom of last April, nearly 4 dollars. and peers only goods will, Jingdong listed after the soar of the momentum compared to when the contrast is sharp.

Even at present, when the market value is still only 1.1 billion U.S. dollars, and the United States excellent products, only goods will, Jingdong compared to a magnitude.

In the eyes of the industry, when valuations are undervalued. Li Chengdong, an analyst at the electricity business, said the income was not proportional to the previous market capitalisation.

Li Chengdong once calculated that Amazon had a net profit of $345 million a year in 2013, a market capitalisation of $134.4 billion, and a price-to-earnings ratio of 400 times. The only product will be about 70-80 times P/E, Beijing East 2013 years loss. Suppose that when the Full-year revenue increases by 30%, the net profit margin is no less than 4%, and the Full-year profit is 338 million, giving a conservative 35 times-fold earnings ratio of at least 1.9 billion dollars.

Another reason to think that market capitalisation is undervalued is its larger user volume. When active users from the 2010 's 8.6 million, growth to the current 21 million, while the United States excellent products active users of 10.5 million, only the goods will be 9.4 million.

But capital markets are not a simple P/E game. All along, when the brand impression of the outside world is a sell the book of the electricity quotient, category single, water less growth slow, and the book market by the Beijing-East encroachment. When you have not been able to tell a new sexy story out, to attract investors interest.

When the new story: Quietly exerting the "her" economy

When already aware of the importance of telling new stories, it is also trying to get rid of its mere label as a book dealer. At present, when the home page on the clothing category has occupied the visual center.

When an internal executive also Chen, there is a key factor behind the price rise, that is, when the apparel business is quietly exerting force, to promote the core of revenue growth.

Last May 7, when the online flash sales channel when the tail goods, the main push-tail goods flash purchase mode. Early June this year, when the launch of new products, new clothing also added to the flash mode. Recently, when the mobile phone client also began to revision, strengthen the clothing flash shopping business.

Data show that the first quarter of this year, when the overall GMV (total turnover) growth rate of 54%, of which the platform apparel category GMV reached 550 million, the growth rate of 116%, and apparel growth has been 6 consecutive quarters of more than books.

"Clothing on the one hand expands when the category, on the other hand also increased the width of its moat." "When internal executives say that clothing flash shopping is already a key strategic platform in recent years, all resources are focused on the core clothing category.

From the industry, the apparel market is big enough, before it looks like a lone cat, unbreakable, but its display of advertising-type mode, it is difficult to let the brand continued exposure, profit meager, the ultimate brand to the only product will be the special sale mode, created the only product will be today's volume.

When an insider said, only goods will require the entry of the brand business must have a certain scale, and when the approach is to reduce the threshold of their clothing platform. The same category of items will be deducted points as high as laminatiion, when the buckle point in the 6-10%. For commodity pricing, when the said will be 10% lower than the only product, as one of the competitive advantage.

In the opinion of analysts, when the transformation is meant to be the nuggets "her economy." In the entire power of the electric business, female users are the backbone of the "her" economic consumption and active degree has been very eye-catching. The only product will be through the female "her" economy, sitting on the fifth of China's Internet, the market value of 360. Mushroom Street is also aimed at women shoppers, the transition 8 months time, the valuation has increased by more than 5 times times.

If you can capture the hearts of a large number of female users, it will usher in a big blowout.

However, do apparel market, but also in the procurement of the eye bead, in the accounting period, supply, buy hands, logistics, marketing, operations management, the whole chain of painstaking effort to accumulate.

In the future, when you want to really borrow clothing market, still need to go a long way.