Four Years Of Money Burning

"We have layoffs, but this is a continuation of structural adjustment since the beginning of the year."

In the face of micro-blog's recent layoff of 25% of all customers, Jiao Hongyu, the director of public relations and public relations, pointed out that the 25% data was not true.

CEO, Mr Chan, said that a year ago, customers were ready to list in the US. "Stopping IPO in 2011 is now the right thing to do."

"Look at the Chinese stock market this year, we are very lucky that we did not choose to go to the market."

Jiao Hong Yu.

Now, over the past year, problems such as capital, inventory and personnel changes that have been criticized are still mentioned.

The reduction also caused everyone to be criticized in 2012.

However, Chen himself was not very concerned about the criticism of the outside world. In November 29th, he responded, "as long as everyone becomes a healthy company, it is not important to be strong and not to be listed."

Reduction traceability

"Wind business is not that I do not open to other electricity providers, but this demand does not exist."

According to the old age, "I went to Hongkong to invite Soros to dinner in November 2011." he said nothing should be done from today until December 8th.

Later, Chen learned that Soros wrote a letter to the European Union two days after the dinner, and published a view on the situation in Europe. It was also in December 8th that Soros and others met and predicted the economic situation.

According to Chen, coincidentally, customers expect the listing date to be December 8th.

Since US stocks continued to be weak after December 8th, customers eventually gave up IPO.

As a result, the reason why customers failed to go public was attributed to inventory, capital and personnel changes.

Everyone in the query began to "scrape away the poison".

"Now it is not listed, but also to do some major structural adjustment, if once listed, every action is going through the examination and approval at all levels. If you find the wrong way after the listing, it will be more painful."

Jiao Hong Yu.

In August 2012, Vancl, a wholly owned and self built distribution company, contracted to operate the express city from 26 to 6, but only kept north and Wuhan and Xi'an.

"Customer service"

Business, sales are light and high season.

Such as Feng Da as a courier company is also facing the peak season.

Chen explained, "once the off-season, such a large team how to digest? From 2010 to 2011, the electricity supplier bubble, numerous small businesses everywhere.

If this is done, then the demand for express delivery industry is blowout.

However, contrary to expectations, the small business has died a lot, "such as wind business is not I do not open to other electricity providers, but this demand does not exist."

Chen said.

Van guest responded, "there is no need to support such a large team without order business."

Introspection and rash advance

Mutual exclusion and personal rights are too large or even cause corruption in individual links.

In addition to staff adjustment, the structure that has quickly lifted performance has been completely dispersed.

Before this year, there were only two first level business units, the basic product department and the new product department.

The 7 two level centers include marketing, promotion, brand, warehousing, logistics and call center.

The basic products department is responsible for shirts and canvas.

Sales planning and product planning for all kinds of products; the new product department is responsible for production and factory orders.

There are probably hundreds of products in each product, such as shirts or shoes, which leads to a person who may manage several product lines at the same time. One person even has the right to sign tens of millions of contracts.

At that time, the old age also said a heroic language, from 1 billion in 2010 to tens of billions in 2011, and then to 2012 to 30 billion.

The scale of the five years has reached an astonishing 150 billion.

Or the impulse to have a listing before, such a plan would create a great leap forward development for all customers.

Chen once revealed that a new leader of a product line decided to vigorously develop accessories to undertake the 500 million task.

Only 10 people in the Department decided to hire 50 people in three months.

But before the staff is in place, each person needs to complete 300 SKU (single product) every day to ensure the completion of the task.

Therefore, constantly looking for suppliers and expanding the category, the quality is also affected, and a large number of stocks are backlog.

On other product lines, the situation is similar.

The result is that every day the product line is frantically recruiting people to complete the task, resulting in a few years of office building.

The production departments and marketing departments are deeply grieved, and the marketing department is not good enough to blame the products.

Such mutual shifting and personal rights are too large or even lead to corruption in individual links. Old age must be reorganized for the whole structure.

At present, in June of this year, customers eventually identified 6 big 6 small business units, 19 product lines, 4 production centers and 1 quality inspection centers.

Major products will be run as business units, including shoes, sports and leisure products, shirts, knitwear, women's wear and so on.

"This kind of advantage is special person specially designed, each person may only be responsible for a single product or several single products in shoes, rather than the original several product lines."

Jiao Hongyu said, "every business department has a marketing center, so the business unit can also be responsible for its inventory."

And the 4 production centers are parallel to the division, responsible for contact with suppliers, and completely eliminate the previous departments' crazy orders to inventory regardless of performance.

While adjusting the structure, customers are also reducing suppliers and SKU.

"We now have more than 100 suppliers, half of which is reduced, and SKU has been reduced to about 200000 from the top of the previous peak, and sixty thousand or seventy thousand of the products have been sold, because it was thought that as long as there was a platform to do everything, there were all kinds of small appliances and daily necessities, but in the long run, such products were not suitable for brands like fans, so they were cut down, while the marketing cost was reduced by half compared with last year."

Jiao Hongyu said that a series of reductions eventually resulted in the increase in gross margin from 30% last year to 40% to 50% this year.

"By adjusting, we know what can be done and what can not be done.

Let van guest products return to the scale we can do.

In the future, we will slowly explore the possibility of innovation and trial and error, even if we are wrong, we also know how to control the company.

Chen said.

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How do I hematopoiesis?

In the absence of listing, the burn will burn out.

In the past, we hope to make profits in the fourth quarter.

Such behavior seems more like a "guarantee" for its future.

All the time, customers are losing money and burning money.

Especially in the past four years, customers have attracted 6 rounds of investment of $422 million.

A van customer executive has admitted: "the 6 round of financing has been made, even if it is not listed, no one will invest."

Therefore, in the absence of listing, burning money will burn out, and it is essential that we have our own hematopoietic capacity.

And the current idea is also important whether listing is or not, as long as the company is healthy.

Whether customers can make profits in the fourth quarter is very important, which is related to whether it can boost investor confidence and whether customers have their own ability to hematopoiesis rather than continue to rely on blood pfusion.

However,

Big moves to adjust and reform are still not so easy to go public.

It is reported that the valuation of IPO should be as high as 4 billion 500 million US dollars, but now the capital market environment, the Investment Bank Underwriting pressure is very great.

For the upcoming 2012, Chen said, "capital market is good, we are not good, we live well."