Yoho! founder Liang Talk about electricity business: from the focus on profit to cash flow

June 5, 2013/Mintong News Hotline/-June 3 afternoon news, positioning "Chao people" of the distributor yoho! have goods, in the last May to achieve a profit. When talking about ways to achieve profitability, yoho!, founder of Liang, said that the business has been focusing on profits, not crazy sales, but last year began to pay more attention to cash flow, and through a variety of business, can achieve the group's own healthy operation.


　　


According to the yoho! has the goods before the disclosure of data, its 2012 turnover of more than 200 million yuan, 2013-year goal breakthrough 500 million yuan, and in the last May, the electric business also basically realized the profit, this is not easy to burn the money loss of the electric business industry.


　　


according to Liang introduced, from 2008 to enter the field of electrical business yoho! have goods, experienced the electric business crazy development period, also experienced the electric business industry bubble period, give them the most profound feeling is, do electricity business if rely on external investment risk is very big, more important is to look at internal operation efficiency.


　　


"When everyone does not count the rate of return, crazy to burn money to fill sales, we always profit, so we can achieve break-even." And since last year we've been paying more attention to cash flow and thinking about how we can continue to grow on our own. "Liang said.


　　


how to make cash flow right?


　　


electric business industry often has a break in the flow of capital, why the industry overall cash flow is bad, this China's procurement environment.


　　


Liang said that the current electrical business industry is the distributor model, is to take cash to buy goods, the specific process is to participate in the order, pay 10%-20% deposit, the new products need to put the rest of the money to the manufacturers, and then the goods into their own inventory, but the sale of the cycle at least 1-3 months Although can have a certain profit space, but the cash flow is negative.


　　


"Such a business model, the scale is growing, the cash flow gap is getting bigger and larger." "Liang says there are three ways to improve the situation when yoho! have turned to paying attention to cash flow.


　　


First, and a lot of brands to negotiate, see whether the distribution into the account period, such as first to 30% deposit, the remaining 70% in the next 2-3 months, batch time to the supplier.


　　


second, from the distribution into the consignment, that is, advanced goods warehouse, sold after the settlement.


　　


third, is to support the designer brand. Some designer brands do not have the funds to advance the cost of production, yoho! will first give 20% production costs, goods produced in the backward warehouse, after the start of the sale of profit stratification.


　　


through and different levels of brand, the implementation of the above different strategies, yoho! have the goods to achieve cash flow is.


　　


How to choose investors?


　　


prior to yoho! has been the goods have been received, including Ding-hui venture, Bertelsmann Qing Peak investment, including the risk of the capital, the recent news that the trend of the Japanese fashion apparel dealers Zozotown, and the British trend shopping website Asos is interested in and yoho! have the goods to cooperate with the stock.


　　


Liang Frankly with these companies have contact, but specifically investment or cooperation, whether the capital is still in communication. At present Liang want to introduce the investor, need to be able to understand yoho! to have the goods mode.


　　


"The first investor and I said, you cut the magazine business, such investors do not see our essence." Everyone for yoho! the impression of the goods from the media, this is an important path, if not this trend of the nature of the line of business, there is no upstream trend resources, as well as downstream users. "Liang said.


　　


According to him, the current yoho! of the types of investors who are in contact with the goods include:


　　


first, Europe, Japan and other companies have designer brands, want to enter China but do not know how to enter the company, if the simple local goods through the entry into China, transportation and so on, the cost is too high and inefficient, so need to find partners to operate together.


　　


Second, a lot of the original line of commercial real Estate Group, very concerned about the electrical business but do not want to simply do the electricity business site, and that the next line online integration is a trend, so I hope that the investment line of the retail enterprises, then the hand again to do offline integration.


　　


third, some traditional financial investors after the bubble, also began to pay attention to the value of the electricity business. More and more investors began to understand the focus of the vertical category of television opportunities and values, so the future does not rule out and a number of strategic cooperation.


　　


at the same time, as the headquarters of enterprises in Nanjing, yoho! have access to the government and local resources, such as the Nanjing Science and Technology banking system joined by 8 banks, began to yoho! the goods as collateral loans.