Sumo Fans

In essence, customers are very much like "sumo wrestlers" in China's electricity supplier and clothing industry.

The growth path of van guest can easily be associated with SUMO sports in Japan.

Sumo is very popular in Japan.

Sumo movement has the best of both worlds' three step success method. The first step is to increase the weight of the fastest speed and maximum weight at any cost, ensure that it has an advantage in weight, ensure no lap, no fall and no exit in every game; the second step is to become a professional sumo wrestler, and to maximize the speed of gathering wealth. The third step is to find ways to extend the length of life and return to normal life after gaining fame and wealth.

The "three step method" looks beautiful, deluding and attracting successors. But the successors are rare and more, the losers who are "squeezed out" out of the circle. They will be depressed for life in humiliation and desolation. Even if they are successful, they must pay a price for their former behavior and pay more than they imagined. The average life span of the Japanese sumo wrestler is only 57 years old, and the once physical and psychological traumas have made them tormented their life for a lifetime and can not return to normal life.

In 2007, the founder of van guest put forward "utilization".

In essence, customers are very much like "sumo wrestlers" in China's electricity supplier and clothing industry. Their genes are derived from capital. When customers are still in the matrix, capital is ready for its birth and growth.

It must be pointed out that the growth path of every guest born in the cross between traditional clothing industry and modern e-commerce is distinct from that of capital gene. First, we can attract capital market by business mode, establish brand cognition with capital influence and advertising force, pform brand cognition into brand consumption, build customer resources with brand consumption, expand the scale through speed, attract more capital through expansion, and achieve profits by IPO.

Needless to say, the eyes of capital have never left the sales volume and growth rate of customers.

Following the capital mind, many behaviors of customers in the four years become easier to understand: in 2008, sales revenue was only 120 million, but eight had been sold to Internet advertisers. No matter what they did, it was important to raise their popularity first. By 2010, the operating expenses of customers were 539 million, of which sales cost was more than 400 million, and sales cost accounted for 1/3 of revenue.

To some extent, this is the logic of everyone's customers, which is advertising, and sales and repeat buying are squeezed out.

Under the alternating cycle of "input and extrusion", passengers are like chariots.

It must be affirmed that the ultimate goal of capital is to maximize capital gains through IPO.

Speed, speed or speed! Scale, scale, or scale! Perhaps, the only value of the existence of customers before IPO is to maximize sales volume by maximizing speed, and to push up the valuation of enterprises with the scale of enterprises.

For the electricity supplier industry, sales volume and speed are always the focus of attention in the capital market, so that there is a legend that every dollar sale of electricity providers means that VC can get one yuan of financing.

This may be one of the logic of everyone's customers at all costs to occupy a good competitive position. The stock problem is solved by increment and IPO.

In order to increase sales and speed, customers have been doing "addition" for four years, and the expansion of all customer categories is accelerating year by year, and the product line is also growing.

As a result of the "addition", sales volume has soared and market position is also rising.

Of course, not all good news is coming, stock is on the rise, operational capability is decreasing, and "de Stocking" is endless. Low price promotion leads to the risk of brand depreciation.

It is precisely because of the special nature of the electricity supplier industry that the profitability of enterprises is often ignored. The risk of enterprise operation is also used to solve the problem with the help of future development. However, the electricity supplier is also a business in the final analysis, and it is the most basic business ethics and common sense that business is profitable.

The current capital performance of the electricity supplier industry sales and speed of the pursuit, the disregard of profit, apparently with this most basic business ethics seems to run counter to it.

It is noteworthy that the "loss of customers" momentum seems to be more and more fierce, but the company's value is soaring against the trend.

When the growth rate of the "Van guest" deficit seems to be unstoppable and the media condemn it, the capital market expresses its will and choice in action language. The F round of financing ended in August 2011, and the "fan" got $232 million in financing. The well-known "Temasek" and "CITIC industry fund" investment, "IDG capital" and investment.

Things are far more than that. After the completion of the F round of financing, the valuation of the enterprises in the capital market for "customers" has soared to 3 billion 200 million dollars in a stunning look.

At present, the most important thing is that everyone is wearing them.

However, from the perspective of dynamics, the two cards of a customer can not seem to rely on it: first, the cash flow of customers is composed of two parts: cash reserves and customer repeat purchases formed by VC financing. Long term good cash flow will become a severe test for all customers. Secondly, the core of customer value lies in the assets formed by the existing customer resources, and perhaps from a point of view, customer assets can become a liability of customers.

Therefore, there are enough reasons to ask in good faith: can these two cards really support the huge body of a guest? If not, what will become the last straw to crush camels?

At present, Internet and capital are very important to China's clothing industry.