When three consecutive quarters of profit, killed a engagement?

Dangdang this domestic one of the earliest electric business platform, but also the first listed pure business online business company. However, do early and listed early, and did not establish its absolute status in the electric business industry, but is in a period of time by the rising East Beijing, only goods will be suppressed. However, the recent results of the second quarter Dangdang reported that Q2 total net revenue of 1.9608 billion yuan, an increase of 31.3%, when Q2 net profit of 28.8 million yuan. Being a profitable three consecutive quarter is like killing a beautiful engagement!

Success in transition is the key to achieving sustainable profitability

This engagement will kill beautiful, from Dangdang last year drastic strategic transformation. Previously, when before and after the listing in the two years, the site has always been to the logo of the green-oriented color, but now has become a "pink" world. Beginning last May, Dangdang launched the end of the sale of special platform-tail goods, set at the high-end, embarked on a boutique tail goods selling routes. In contrast to this, in the fourth quarter of last year, by virtue of business growth in this area, Dangdang realized the profit. And in June this year, Dangdang again, launched a "New Flash purchase" special selling channel, and the second quarter of 2014 earnings, Dangdang again realized the profit.

In fact, Dangdang transformation, vigorously push fashion brand special selling on the right, this is not only Jingdong, suning and Gome weaknesses, but also a more user-scale market. In particular, the only product will and Poly-Mei excellent appearance after the listing, but also proved that this piece of the market space is huge, "her economy" the rise has been a fact. Two of the launch of a special sale platform, three consecutive quarters of profit, Dangdang in the recent period of time did beautiful.

Therefore, by virtue of Dangdang in the electricity industry decades of accumulation, there is a huge flow to do the transformation, the transformation to do clothing electric dealers, the introduction of the tail cargo special selling and new flash purchase, can directly enhance the profitability of the platform. And the last three quarters of continuous profit can also explain the problem, when the direction of transformation is the right to go!

Book business solid, the advantages of many categories

On the other hand, after more than 10 years of development of the electric business industry, many categories of market structure has been basically set. For example, 3 C is Jingdong, Suning and Gome, the book is when, Amazon and Jingdong, cosmetics are poly-Mei excellent products, the only product will. And before this, when in addition to stick to the book market, in other category areas did not have greater gains, this also makes Dangdang was once the capital market look decline, the market value is far behind the Beijing-east.

Therefore, Dangdang must open up several advantageous categories in order to survive in the platform war of the electric business giant. Moreover, the oligopoly effect of the electric business industry begins to appear, especially in the dominant category. We can see that although the price war between the platforms in recent years is still playing, but basically at present in the main platform of the advantage category price war has basically come to an ending, which makes the electric business platform initially with the conditions of profitability. Dangdang's book business, for example, after the low price of Beijing and east to kill the book market frustration, Dangdang's leading position to consolidate. Earnings data also show that, after the price war, when the gross margin of the book business is significantly increased.

Before Dangdang will rival directly to the Beijing-East Gome and so on, both sides of the lip gun teeth war, has been uninterrupted. In fact, when it may be the wrong opponent, especially in the book business, Jingdong may be the past is to fill a blank, will not mano with Dangdang in the book market. And when the beginning of last May to push the high-end brand tail goods, as well as this June on the line of the new flash purchase, targeting fashion and infant and child market, is obviously found a more user demand a larger market, but also expand their own advantages category.

Old trees sprout, when it is still underestimated!

Dangdang has been profitable for three consecutive quarters, though. However, looking back at the previous two reported earnings, the capital markets did not really give recognition, to some extent, when it was underestimated.

In particular, from the past year Dangdang's share price performance can be seen, Dangdang's share price is a ups and downs, especially in the release of earnings before and after fluctuations. In particular, in the fourth quarter of last year, Dangdang returned to the earnings track, making Dangdang's share price soar, but since then the share price began to fall back, until the first quarter of this year's earnings report, the share price rose again. But this time, Dangdang released earnings, the stock price stability in the rise, there is no sharp fluctuations, the strategic transformation Dangdang has been recognized by the capital market.

In any case, when the electric dealer, "old tree" with the tail of goods and new Flash purchase these two "shoots", with the realization of the reverse attack. From the current overall layout of Dangdang, as well as the main and push the category look, Dangdang fully transform the fashion market has entered a new stage, coupled with the three consecutive quarterly earnings, the capital market should also regain confidence in Dangdang.