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Vip.Com Electric Business Dig More Than 600 People To Build Buyer Team

2014/4/24 13:22:00 98

> the world's < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > a target= "_blank" href= "_blank" > shoes < < hat net "Xiaobian to introduce the vip.com business logic: traditional channels dig more than 600 people to build buyer team.

Less than p ago, vip.com released its 2013 performance data showing that it has continued to make profits for 5 consecutive quarters, stimulating the US stock price to soar, and increasing its market value by 50 times over the past two years.

This rise has made it the fourth largest Internet listed company in China after Tencent, Baidu and 360.

How can we make profits when many electricity providers are still struggling in the loss? From the two Wenzhou businessmen came together to start a business, and the business model was lost in the course of business. What are the unknown stories in the course of vip.com's growth? How did the company's business model change before and after the introduction of Sequoia Capital? How did it achieve the surge of share price 2400% when it was listed on the stock market? What is the logic behind it?

Wen Shang net > /strong > /p >

P, 1990, Shen Ya, a native of Wenzhou, got his diploma from the former Shanghai Railway Institute (now incorporated into Tongji University).

Like his friends and relatives in Wenzhou, young Shen Ya was involved in the tide of business.

His initial venture was to make the battery agent business step by step until he got all the first-line battery brands in southern Zhejiang.

After tasting the sweetness from the channel side, Shen Ya gradually went upstream, built a battery factory and set foot in the battery export business.

Hong Xiaobo, who also came from Wenzhou businessmen's family, emigrated to France with his family at the age of 8. After finishing college, he began to start his own business.

When Shenya contacted foreign trade business, Hong Xiaobo was also looking for business opportunities in the field of communications and trade.

In the late 1990s, two Wenzhou businessmen who lived in the East and west of Asia and Europe began their intercourse: Shen Ya operated import and export trading companies in Guangzhou, coordinated domestic communications manufacturers, and organized the supply of goods; Hong Xiaobo founded t t Europe Pacifique Distribution in Paris suburb of Paris, responsible for Europe's channels and agents.

In the era of Internet consumption has not yet risen, this business partner will continue to move from the brand to the channel of marketing the basic business path.

After P, the business of communication and foreign trade has been done, Hong Xiaobo, who likes to embrace new things, and the diligent and practical Shen Ya are not satisfied with the status quo. He aims at the next battlefield.

In 2007, Shen Ya enrolled in the EMBA project of the Yangtze River Commercial College and joined Hong Xiaobo. The latter returned from France to the same class.

In this important gathering point of Chinese businessmen, they want to get connections and broaden their horizons, and more importantly, find a suitable business model for new venture projects.

When p entered the business school, Shen Ya and Hong Xiaobo had only one vague direction: e-commerce.

From traditional industries, Shen Ya's electricity supplier reserves are close to zero.

This year, he used "almost sleeping with computers" to make up for all kinds of business knowledge.

P, a business school student, gave Hong Xiaobo and Shen a lot of inspiration. An entrepreneur suggested that Hong Xiaobo should make full use of foreign resources and information to try out business models that were not yet available in China.

Other students helped to recommend a number of e-commerce cases, including French Vente Privee's luxury shopping rush.

The mode of Vente Privee is in the middle of Hong Xiaobo.

Mrs. Hong, who lives in France, is a loyal fan of this website. She often sits at the computer at seven in the morning and sits on the computer to rush to buy luxuries.

Mrs. Hong Xiaobo's behavior was full of curiosity. What magic did she fascinate her? Hong Xiaobo found that the website's characteristics included all kinds of world famous brands, and offered discounts within a limited time for users to rush to buy.

two partners decided to imitate Vente Privee, starting from luxury flash shopping to do business.

Three EMBA students supported their ideas by angel investment, and five people joined together to set up 30 million yuan to start vip.com.

Among them, Xu Yujun, chairman of the board of the French group CEO Peng Xing and hkei International Group, and President of the European times, are Wenzhou businessmen. They are well known in the brand "a target=" _blank "href=" //www.sjfzxm.com/ "dress" /a ".

when vip.com is unknown in the business circle, this business is just regarded as a common example of Wenzhou people's Tuen Tuan project.

In Peng Xing's words, "it is normal for Wenzhou people to start their own businesses and friends to invest money together".

But it is precisely this time that vip.com has buried the foreshadowing with the clothing brand business from the founder shareholder level, and has different genes with the pioneer customers and other Internet providers.

lost return > /strong > /p >

December 2008, vip.com was founded in Guangzhou Xinyi hall.

In the first impression of many people, vip.com is an e-commerce website selling luxury goods.

But in fact, after the establishment of vip.com only in March, it was decisively abandoned by Shen Ya and Hong Xiaobo.

Hong Xiaobo later admitted that when he saw the circle of friends sweeping the goods abroad, he had a feeling of "China a href=" //www.sjfzxm.com/news/index_f.asp > luxury goods < /a > great market.

He and Shenya personally flew to Europe to negotiate with the brand dealers.

The first vip.com is this kind of discount luxury, the average price is more than 1000 yuan.

P > but the last month of the line, vip.com sold only 18, mostly from Shen and Hong Xiaobo's friends.

Because of the buyout mode, a large number of luxury goods purchased from Europe are stacked in the warehouse.

The decline continued until the end of March.

They found that vip.com had too early positioned itself in an area that had not yet been accepted by consumers, and even those who had desire and ability to buy it were not easy to trust goods that were "discounted".

two people quickly decided to turn to the popular fashion brands that people could afford, facing ordinary consumers in a second tier city, and even more distant people with basic spending power.

Luxury is only retained as one of the channels.

Less than P, the purchase chain has been pferred from Europe to China. Vip.com has started a process of dealing with domestic apparel brands.

Hong Xiaobo once recalled that the brand name had not heard the name of vip.com, did not understand the concept of time limit snapping, telephone and door-to-door, vip.com's initial team "asked grandpa to tell Grandma about the family."

in order not to allow windows to be opened, they bought the goods at their own expense and sold them on the website after discount.

Fortunately, Xu Yu and Peng Xing's two shareholders provided support, and used their own clothing brands to solve the supply problems for vip.com.

P is always hard to start. By the end of 2009, vip.com had accumulated 300 brand supplier resources.

This year, vip.com's net income was $2 million 800 thousand.

vip.com mobile company, which has many years of friendship with Zhang Xiaowei, has evaluated and compared with the traditional electricity supplier. Vip.com has made small adjustments in the business of vip.com, and has adjusted its business at a very young age without any heavy baggage to go forward lightly.

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inventory opportunity > /strong > /p >

"P" began brewing in 2009, and the crisis of clothing industry concentrated by 2012 may be the biggest structural factor contributing to vip.com soaring.

4 trillion large scale investment has accelerated the rapid growth of many industries in the short term before and after 2009.

A group of enterprises are optimistic, expanding product lines and increasing scale, including a large number of garment enterprises.

other data show that the domestic women's clothing market has a volume of 10000 billion RMB, men's clothing is about 500 billion yuan, and children's clothing and other categories also have 500 billion yuan.

And inventory is the core issue of the clothing industry: even in the US, the mature clothing brand has a 20% stock after a quarter.

Moreover, a brand takes 12-18 months from design, purchase, production and circulation to a long time, and a long cycle means continuous inventory.

accompanied by the economic downturn, the enterprises that have not yet come out of the optimism of the expansion of production capacity have found that the existing inventory problem has been further enlarged.

And that's vip.com's chance.

vip.com is a good partner for apparel brands seeking inventory dumping channels.

First, the limited time sale of vip.com created the scarcity of commodities, stimulated consumers' desire to buy, and the discount price allowed three or four line city residents to reach the brands that they could not buy through physical businesses. The long tail users brought by the channel sink supported the scale consumption on vip.com.

In the definition of vip.com, the first tier cities are north to Guangzhou and Shenzhen, the sales volume of four cities is about 13%, the two or three lines are provincial and prefecture level cities, accounting for 60%, and county-level cities and towns are fourth lines, accounting for about 20%.

, and under the time sale mode, the brand on-line time will not exceed five days, and will not affect the value of the brand itself due to excessive discount.

Take a well-known clothing company in Southern China as an example. A year ago, the stock was sold on the similar platform such as vip.com. Tmall sold the new product of the network price. Then another part of the clothing was sold by the department stores such as intime network. The sales volume on the line accounted for about 20% of its total storage.

despite the fact that vip.com has helped the clothing brand in reducing the pressure of inventory, the depth of cooperation between the two sides also depends on the brand characteristics of the brand itself. If the amount of clothing brand is low and the quantity of inventory is scattered, it is not conducive to dumping the form of vip.com flash buying.

In addition, if the Commission of vip.com is too high or the discount is too low, the profit margins of the brand will be narrow, and the enthusiasm of cooperation will also be affected.

at present, vip.com has more than 5000 cooperative brands.

Through internal brand grading and channel setting, vip.com has layered these brands.

By sales, all brands are divided into several levels from A+ to D.

Most of the low-end brands are digested by group buying channels, and the main channel will focus on more than 3000 brands, including 1000 brands with B+ or above ratings.

vip.com has signed the framework contract with most of its brand partners one year at a time, planning the number of lines at the beginning of the year.

Usually, they can sell more than 50%, and the rest will be returned to businesses, effectively reducing the risks vip.com bears.

But this strategy is more effective for small and medium-sized brands, but for Nike, Adidas and other strong brands can not be returned, luxury goods are even more so.

Redwood visit > /strong > /p >

however, at the time gate of 2010, there are few investment institutions that can realize the inventory problem.

Until the time of vip.com's listing, investors in the two tier market are constantly asking whether China has enough stocks to sell.

"clothing is a trillion level market, stock is the tail cargo, accounting for about 20%, two hundred billion scale.

How much did vip.com do? There were only 16 billion pactions in 2013, and only half of them were garments.

The space is enough. This is what we wanted to understand two years ago. "During the boom season of the electricity supplier investment, the Sequoia Capital China fund first stepped through the psychological hole of inventory and hit the vip.com gate beside Guangzhou's drunk View Park.

at the beginning of 2010, Liu Xingshou Shen Napeng, vice president of Sequoia China, supported Southern China electricity supplier.

The investor, who focused on technology media and consumption, joined Redwood China in 2007. He served as vice president of the investment banking division of Merrill Lynch, and served clients like Ctrip, home and digital China. He also worked in Xerox and Silicon Valley's pioneering technology company for 7 years.

Shen Ya learned the news from Liu's visit from the guestbook of the customer service desk. "They are quite famous in China, so I called them back," Hong Shan said.

The reputation of Sequoia in Shen Ya's heart is mainly attributed to the nearly brilliant investment achievements of this group of P.

That year, Sequoia China invested in High German software, Qianzhao photoelectric, rural base, Mcglaughlin, and lnong international and other projects have landed in the US stock market or China's growth enterprise market.

but in fact, just in 2010, the investment strategy of Sequoia China is quite different.

Most of the above exit cases came from traditional industries, and the time of capital entry was concentrated in the Pre-IPO stage. The proportion of Internet Co accounts for far behind the genes of Sequoia Capital "king of Silicon Valley".

The choice of "P > Sequoia caters to the trend of China's PE/VC industry at that time: in the IPO boom around 2009, a large number of Chinese local funds invested hot money in Pre-IPO projects to earn listed returns, and Sequoia was no exception: they worked hard in industries with high human resources, low cost and relatively low added value.

Shen Napeng did not lose his performance after P.

The Sequoia China led by him will return to the new technology and new economy with a focus of investment, and quietly embark on the helm to return to the camp of the Internet.

In 2010 and 2011, a group of Internet business companies were concentrated. Vip.com and jumei.com, the United States network, tuniu.com and donkey mother were here.

in a pparent office shared by two people, Liu Xing saw Shen Ya and Hong Xiaobo two Wenzhou businessmen.

Now, Liu Xing, who has become the fourth partner of Sequoia China, recalls the situation and still felt "something special".

He has seen countless entrepreneurs in his investment career, and the two founders worked in such tacit way without him.

tamping sale

After the investment of A and B, vip.com's operation is getting better and better. The seduction of Shenyang and Hong Xiaobo is increasing.

Do you want to continue to make a discount sale or to break into the new market without discount? Do you want to do normal sales? After all, there is no real online department store in China that sells the fashionable goods continuously. If vip.com starts to do it, can it break through another new world? {page_break}

Shen P played an important role in the intersection of expansion and concentration.

Liu Xing recalled that after several rounds of board discussions, investors and the founding team reached a consensus, subtraction, positioning in a "special sale site."

"vip.com's flash buying mode," the evaluation of the supply chain is based on the word "fast", an electric business insider, which means that the model of the front supply chain is very different from that of the traditional electricity supplier.

on the one hand, due to the majority of purchases, the quality inspection requirements for warehousing are very strict.

"Consumers need to make judgments when they buy discounted goods at the mall. Vip.com has to use a quality inspection team to make serious judgments, close to the quality inspection of production"; on the other hand, vip.com's return rate is 20%, while Jingdong has no return on products, the return rate is only 1%.

For this reason, vip.com needs a special process to meet the needs of logistics.

In the second half of 2010, P came to vip.com with Sequoia Capital and DCM almost as well as Tang Yizhi, vice president of warehousing and logistics.

The logistics and warehousing executive who worked in Huarun, Dangdang and third party logistics company has designed the whole warehousing and logistics system for Dangdang, and has the experience of traditional retailing and electricity supplier.

when Shen Ya handed over warehousing and logistics to Tang Yizhi, Tang Wei Wei introduced the leading international logistics system in Manhattan.

An important way to increase vip.com's gross profit margin is to reduce the rate of logistics costs.

Vip.com's practice is to rent warehouses and use third party logistics for distribution.

In the industry's view, vip.com's milestone in improving logistics lies in the introduction of new warehousing systems and distribution methods.

by the end of 2013, the warehouse rental area of Beijing, Shanghai, Guangzhou and Chengdu was about 300 thousand square meters, and the total warehouse area was about 400 thousand square meters.

2014 and 2015, efforts will be made to expand the warehouse and plan to spend 200 million US dollars to expand the storage area of Guangzhou and Hubei to 300 thousand square meters. It will be completed in 2015 and is expected to reach 900 thousand square meters by 2015, which will be 4 times the current level.

according to the contract, vip.com warehouse rentals have a small increase every year.

Compared to the real estate industry, especially the increase in commercial real estate, the current rent of vip.com has been quite substantial. "Of course, from the cost calculation, the self built warehouse is certainly cheaper, but first of all, it has to produce several billion cash construction, followed by less liquidity and greater risk," vip.com CFO Yang Donghao said.

in addition, vip.com insists on the unified delivery of rental warehouses, rather than the direct delivery of the brand, the fundamental reason is that it can not meet the requirements.

In a customer order, there are often several items, which belong to brands in different regions. Although several manufacturers need to send the goods to vip.com's warehouse, truck pportation is relatively cheap, and thousands of clothes are diluted, and the cost of each piece is only a few cents.

under the "trunk + logistics" distribution mode led by Tang Yizhi, the order in the same area is packaged and distributed to the target city by the bulk logistics company, and then the local express company is selected to do the two distribution.

Large scale pportation on the main line has brought huge cost savings.

purchase of goods is another moat which is purchased by time and data.

So far, vip.com has a team of more than 600 buyers, including women's clothing, men's wear, men's shoes, bags and more than ten professional groups.

Most of the members are from the traditional channels, or from the editor of beauty and fashion media such as "Ruili" and "Xin Wei". They are highly sensitive to fashion.

Hong Meijuan, the senior vice president of the company, led by Taiwan, a female executive, displayed hundreds of pairs of shoes in her own room.

"with her 20 years of purchasing experience, the fashion trend is very subtle. It may have hit a lot of money and bought it back into stock, which is too risky."

Yang Donghao said.

Listing bitter music /p >

In January 2011 and April, Sequoia and DCM jointly completed vip.com's two rounds of private investment, with a total investment of 6140 Wan Meijin. Before P, Sequoia and DCM held 19.3% and 19.2% respectively.

May 2011, vip.com had sought C private placement, but failed.

At that time, it was speculated that the key reason for the failure of the financing was the price: "the valuation of the B wheel has already been about 400 million dollars, and no one of VC is willing to accept the price at this price, and the price reduction financing is not cost-effective for Sequoia and DCM."

By the end of this year, vip.com decided to go public at P.

It is not only because the company has capital needs, but vip.com is still losing money, and it is also from the consideration of promoting the brand through listing.

In February, vip.com submitted a IPO application to the US SEC, with a planned maximum of $120 million.

At this point, the concept of stock market listing is extremely optimistic.

For a long time before vip.com, there was no listing of Chinese companies.

The market is skeptical about China's stock market.

the investment bank hopes to have a good company to open the new China stock market < a href= "//www.sjfzxm.com/news/index_s.asp" > Listing < /a > window.

Before the roadshow, Goldman Sachs and other investment banks patted their breasts and said, "it will definitely raise the issue price", so that vip.com is confident that it will follow the road.

But who can guarantee foolproof?

"P" held in March 22nd at the annual summit of AI, Dangdang CEO Li Guoqing publicly said that vip.com roadshow was cold, and did not get any investor's order in Hongkong.

In March 24th, vip.com confirmed that the issue price was $6.5, which was 23.5% lower than the previously announced 8.5-10.5 US dollar price range.

According to the issue of US $6.5, vip.com valued at about $317 million, and according to the original pricing range, its valuation was between 400 million -5 and more than US $100 million.

On the day of "P", "vip.com's bloody listing" has spread throughout China's financial media.

Yang Donghao recalled the situation after several months: heavy hearted, no celebration dinner.

in the mistrust of the market, vip.com went to the third quarter of 2012. In November 13th, the Q3 earnings report showed that vip.com's net revenue increased by 197% compared to the same period last year, reaching 156 million US dollars, and the net loss was reduced from $1.754.6 to $1 million 456 thousand in the same period last year. After the elimination of the term incentive, vip.com's third quarter earnings actually reached a profit of 640 thousand US dollars.

when the quarterly breakeven is realized, the capital market is no longer worried about whether vip.com can make money. Competition has become another proposition that vip.com needs to confirm with time. "If Jingdong and Dangdang are also offering discount channels and huge sums of money to buy clothes, what is the living space of vip.com?" Liu said overseas, hoping that in 2013, we can tell you whether competition is really a problem, and whether vip.com can develop independently or independently.

up to now, 10 million users are still too little for vip.com.

In order to attract more users, categories need to be expanded and strengthened.

"Coming out of your own box and expanding on the category is taking into account the new stage of our ability.

In those days, subtraction was due to lack of confidence. Now the ship is bigger and more stable, and can do some experiments more confidently. For example, skin care products, compared with clothing, are actually shallow, and the purchase of bee bees is largely due to this consideration.

What's the threat to the "a href=" //www.sjfzxm.com/news/index_s.asp "vip.com < /a" after resolving the problem of inventory ceilings and competition? "For a business company, the biggest risk is whether it can keep up with the consumer's habit of consumption," P said.

Why mobile is so important, because consumer behavior is moving in this direction, mobile e-commerce is the general trend.

"Whether enterprises can keep up with the sudden changes in the future is a matter of life and death," Liu Xing said.