Vintage Sincere In The Scandal

Old

The spring of the new year is coming, but not all fans have yet to get rid of the eventful autumn.

In the first month of 2012, somebody broke through micro-blog.

In this regard, chairman and CEO of VCG said through micro-blog that cooperation with designers, especially the strength of local designers, is a good wish for all customers.

I hope that both designers and customers can cooperate with each other in the best sense of goodwill, not the other way around.

The old reply was moderate and gently passed the ball to the other side.

Compared to the past year, it is just an unappetizing appetizer for everyone and Chen.

In 2011, all customers struggled through all kinds of voices.

Everyone's profit model, executive turnover, high advertising costs, big layoffs, IPO failure, high inventory, loss and "acquisition" have become the keynote of all customers in the last year's major news websites.

The ridicule of Chen himself is "lying on the ground and getting shot."

In November 21, 2011, fan did not submit his IPO application document on schedule - the long-awaited fan IPO announced that it had failed, which led to various suspicions in the industry.

Just after a week of IPO's stranding, vice president Wu Sheng suddenly announced his resignation, which left everyone away.

In the past six months, all customers have rejected all media requests to make the Brand Company, which is supposed to be pparent and fast fashion, become extremely mysterious.

A few days after the announcement of Wu Sheng, vice president of vcvp, all kinds of rumors that focused on the outbreak made VCG suddenly become the peak of public opinion.

An anonymous blog set up for all customers, the big explosion of customers crazy expansion of the product line, resulting in a serious backlog of inventory, dead inventory of 10 hundreds of millions, 4 years deficit over 2 billion, serious problems in the capital chain.

Because of the lessons learned from PPG, these messages are constantly fermented, and even once again aroused the suspicion of the industry.

For rumors, Vic and Chen, who are at the cusp of the storm, are constantly responding, saying that the situation is not true.

"I like to control the rhythm most. I haven't let one thing sink into my mire completely. Nothing has dragged me down. Once I get wind and grass, I will clear it up first."

For all sorts of doubts about the outside world, Chen also made a slight denial again: "as a new model of experimenters, it will be normal to grow up in 4 years."

But in fact, from a series of twists and turns such as layoffs to the early death of the listing, these responses are difficult to dispel the doubts of the outside world.

Every guest may not be able to control everything under the rhythm of old age.

Faced with the media, Chen admitted: "this year's category expansion is too fierce, this is what I must review."

He described this out of control state as "horrible".

{page_break}

"Acquired"

At the 2011 Annual Meeting of the fans, Chen said publicly that the storm came from rumors.

In his keynote speech at the annual meeting, Mr Chen said that, before some time, Vic had gone through a test almost to the public company, and he heard the rumour that everyone had been bought.

"I have been in a trance for a few days. Is it true that 2012 has come, the world has not been destroyed, but will it be ruled by rumors? Has the ability to rumor become the core competitiveness of entrepreneurship?"

At the annual meeting, the source of rumors was not explicitly pointed out.

Before that, in addition to rumors of poor management and huge inventory pressure, the Jingdong's (micro-blog) acquisition of all customers was the most widely spread rumor.

Last December 14th, Jingdong CEO Liu Qiangdong said in micro-blog, "there will be a big show coming soon! I will not judge the right and wrong, but I can confirm that this will become an eternal case among entrepreneurs and investors."

Subsequently, a number of electricity traders said they received private letters that Jingdong had bought all customers.

In December 26th of last year, Liu Qiangdong also said, "Jingdong will usher in 25000 new colleagues in 2012". At the same time with micro-blog, a reporter sent micro-blog to say that Jingdong bought all customers.

The news was subsequently denied by both Jingdong and fan.

However, Chen said later that "rumours, forming news and rumours, and forming news.

Thus forming the line of brand building.

How hypocritical and strong heart is backing! "

Liu Qiangdong was also awarded the "golden sprinkling pot Award" by micro-blog media reporters for several times. He announced that he would withdraw from micro-blog and delete all his posts.

Inventory to be thrown away

According to statistics, before and after the six round of financing, the total investment accumulated by VC in several rounds should be above 2 billion yuan, and the sixth round of financing for all customers should be 232 million dollars.

Some analysts believe that the loss of 2 billion is the source.

So is anyone really losing money?

According to media reports, statistics from the Beijing administration of industry and Commerce show that the final conclusion of the past 3 years' financial data is that the customer loss is 600 million yuan.

According to relevant information, sales revenue of VCM from 2008 to 2010 is about 120 million, 300 million and 1 billion 200 million yuan. This data is different from the previous public statements. It can be seen that the growth of VCM is amazing.

But the rate of gross domestic product remained at 40%, with a profit margin of -14.67% in 2010.

After entering 2011, Chen once told the media that the sales target in 2011 was 10 billion.

The old investors said privately, "when people are hot headed, we actually have not given him any pressure."

It is reported that sales revenue of van customer's product in the first three quarters of last year was 2 billion yuan, and its sales volume was 3 billion 200 million yuan last year.

With the expansion of category, there is a trouble for fan: there is a significant increase in inventory.

People close to the age revealed to the media that the inventory of VIC was too high last year between 8 and September, but then after some promotional measures, Vic's inventory returned to normal.

But the bad result of low price promotion is that the profit margins of fan Kai Cheng are beginning to decline.

In 2011, van gain's profit margins began to approach -20%.

"This year's category expansion is too violent. This is something I must review."

One example is that he once found a mop in the corner of the warehouse, which was stacked with van guest mops. He was amazed: who would buy these things?

And similar cases with mops, as well as all guest brand kitchen knife, chopping board, rice cooker......

From 4 Shirts two years ago to today, the company has expanded to cover six categories, men's wear, women's wear, children's wear, shoes, accessories and home furnishing, with tens of thousands of SKU products.

However, Chen did not think that these were too radical expressions, but just the process of trial and error.

"How do you know if socks are sold well without selling socks?"

Trial and error, at the same time, is also beginning to adjust.

According to his statement, customers are streamlining the category appropriately, "this is also a normal process".

Another popular management style in the industry is: "let new people do old things and let old people do new things".

This is also considered to hurt the feelings of the old staff, which is a reason for the loss of customers in recent years.

Chen said that everyone's style of adjustment for executives is quite different from their original excellence.

"Excellence is always a big purge in every adjustment, but times are different. There is room for everyone, and everyone who adjusts has a proper location."