Vip.Com'S Share Price Reversed To Seek New Market.

Vip.com P closed at $101.84 in Beijing on January 21st.

In the first day closing price, vip.com's share price jumped 18.87 times in less than two years, compared with the lowest price of 4.12 US dollars in history, its share price was 24 times higher than that in the past year, and its share price soared 500% in the recent one year.

< /p >

< p > reporters contacted vip.com executives for the first time, but they were silent and unwilling to talk more about stock prices.

The capital market seems to be more positive. In January 16th, Bank of America Merrill Lynch released its investment report, gave vip.com stock "buy" initial rating, and analyzed from many aspects such as bargaining advantage, personalized business platform and brand portfolio, and set the target share price to $116.

< /p >

In the fourth quarter of 2012, < a href= "http://www.91se91.com/news/index_c.asp" > vip.com < /a > became the first vertical electricity supplier in China to achieve profit. In the first three quarters of last year, its net profit totaled 26 million 800 thousand US dollars. Therefore, it can be predicted that in 2013, it will continue to maintain its first full year profit vertical electric business name in 2013.

< /p >

< p > a business enterprise that is not optimistic because of the breaking up of the listing and how to finish counterattack in the short time of less than two years in the giant market enveloped Chinese market, the reporter interviewed Tang Yizhi, the senior vice president of vip.com warehousing and logistics.

< /p >

< p > < strong > the secret of reducing cost < /strong > /p >

< p > "2013 is the fastest expansion of vip.com."

Tang Yizhi said that only one order volume increased by 10000 times compared with the initial stage.

< /p >

< p > with the rapid growth of orders, vip.com is also actively expanding in warehousing and logistics.

The logistics center of North China moved from Beijing to Tianjin last year. With the two phase to be completed in April this year, its storage area will reach 120 thousand square meters. In September of last year, the new warehouse in southwest Chengdu opened to a total of more than 90 thousand square meters. At the same time, vip.com's central China logistics center was opened, and the 1900 mu land of Hubei Ezhou will be built into 500 thousand square meters of central logistics center.

With the existing warehouse in East China Kunshan and Southern China Guangzhou, the whole storage structure of vip.com is basically determined.

< /p >

< p > Tang Yizhi told reporters that in vip.com's warehousing and logistics system, goods are delivered from warehouses to users, relying on 10 main lines and more than 80 landing and courier companies.

Over the past two years, the scope of distribution has basically covered all parts of the country.

< /p >

< p > warehousing and < a href= "http://www.91se91.com/news/index_c.asp" > logistics distribution < /a > has been the major infrastructure of the major electricity supplier platforms, and the cost is also the highest.

But although vip.com started to build its positions last year, its pace is completely different from that of its peers.

For example, Jingdong, suning.com and so on, all embarked on the road of first scale and profit making, and vip.com began to actively layout after the fourth quarter of 2012 realized profits.

< /p >

< p > according to vip.com's own scale, its investment in marketing, warehousing, logistics and other infrastructure is not small. Taking the third quarter of 2013 as an example, the current performance expenditure was $44 million 100 thousand, an increase of 103.2% over the same period last year, and sales expenditure of $17 million 400 thousand, an increase of 137.7% over the same period.

However, the proportion of net revenue has declined. Last year, Q3 saw a 2.4% decrease in the proportion of its expenditure. The proportion of net revenue from marketing spending dropped by 0.2% over the same period last year.

Looking at its previous data, such financial data have maintained a downward trend.

And this trend has also contributed directly to vip.com's gradual realization of profitability.

< /p >

< p > the method of vip.com is to decompose the work to the smallest particle, to think clearly about every detail and then to achieve the ultimate goal.

Tang Yizhi explained the above phenomenon.

He believes that the current warehousing and logistics infrastructure is the standard of every electricity supplier, and must be invested. Therefore, we must meticulous management if we want to reduce costs.

< /p >

< p > he gives an example of packaging in the smallest part of warehousing and logistics costs.

In the vip.com warehousing and logistics center, there is a team of more than ten individuals who are responsible for the research and design of packaging boxes, and a series of packaging containers have been developed based on several indicators of size, quality, appearance and stuffing.

He said that the paper was provided by the Nine Dragons Paper, and the team had strict rules on the weight of the paper inside and outside the carton, and it was required to get professional accreditation every month.

< /p >

On the surface, P is so demanding for details that the cost is undoubtedly rising.

But Tang Yizhi's logic is that countless such details will lower the cost ratio of the entire operation chain, thereby enhancing efficiency.

"Do you know how the rate of repeat purchase of vip.com 73% comes? This is the case. The user experience is good and the customers are more natural."

< /p >

< p > in the logistics center, another major reform of Tang Yizhi is to optimize the sorting process, upgrading from the previous series picking to parallel picking.

That is, before a picker receives the order, it will be responsible for all the orders, and now it will be changed to pick up the same batch of orders, and each of them is responsible for a shelf area. Each person is only responsible for the goods in his area, and then he will assemble to the goods area.

< /p >

< p > according to its introduction, after the reform, the per capita labor efficiency increased by 20%, which means that 5 people could be responsible for the workload of 6 people, both in terms of efficiency and manpower costs.

From the financial data, in 2009, the cost of warehousing and logistics accounted for 21.8% of net operating income and fell to 18.6% at the time of listing.

Last year's third quarter financial report did not release the data, but Tang Yizhi said the proportion continued to decline.

< /p >

< p > < strong > expansion > a href= "http://www.91se91.com/news/index_c.asp" > three or four line market < /a > /strong > /p >

< p > the cost of logistics, warehousing, marketing and other expenses falls at the end of the cost reduction, while the other end is the continuous expansion of the scale.

< /p >

In January 9th, at the 2014 vip.com logistics supplier investment conference in January 9th, Tang Yizhi was encouraged and mercilessly criticized by the 90 landing companies in the country.

It can be seen from the above that in the "trunk + landing match" mode, vip.com is in an absolutely dominant position.

< /p >

< p class= "p15" style= "margin-top: 0pt; margin-bottom: 0pt" > span style= "font-family:" Song body ";" font-size: ";" "" "" > "< < >", "song";

Through the cooperation with regional express companies, vip.com has rapidly covered the three or four line market in the country in more than two years at P --EndFragment--.

< /p >

< p > to build this logistics system, in the past year, vip.com has raised its price against the three counter trend, and the current landing company will get 6.5 yuan from vip.com alone.

According to the person in charge of a landing company in Beijing, Dangdang, which is "trunk line + landing match" mode, is less than 4 yuan each.

But in the face of the uneven management level of regional express companies, it will also greatly test vip.com's ability to control.

It is understood that some landing companies frequently encountered low availability and incomplete data entry.

< /p >

< p > Tang Yizhi said that on the whole, vip.com has initially formulated a set of management rules.

In the mainland, each province is selected as a unit to choose a number of land distribution companies, and the distribution scope of the province can be divided into five levels: provincial, city, District, county, township, street, factory, school and hospital. In the same area, each floor allocation company can distribute, but if a company has problems with its services, its order volume will be reduced by vip.com until it is cancelled.

At the same time, for part of the low management of the landing company, vip.com will directly send staff to management.

< /p >

< p > Tang Yizhi told reporters that the logistics network is gradually maturing. In 2013, the growth rate of orders in the three or four tier cities was faster than that in the first tier areas.

According to vip.com, in 2013, the size of the three or four line market was flat with that of the first tier cities.

< /p >

< p > it is learnt that, while continuing to expand the first tier markets such as the north, Guangzhou and Shenzhen, Chengdu and Hangzhou, vip.com also began to promote in the three or four line cities, and listed them as the key areas for expansion in 2014.

< /p >

< p > < strong > turn to "new product" and develop < /strong > < /p >.

< p > in the second half of 2012, the market has been singing about the vertical electricity supplier.

After that, the business platform such as good Lok, red children and other businesses declined or chose to sell, even though Dangdang and Mcglaughlin, who had already gone to the US market, were also losing money repeatedly.

Vip.com, which only sells the "special sale", is all the way red. Its "special sale" daily discount mode is regarded as the core competitiveness, which has greatly improved the repeat purchase rate. However, the cost has accounted for a continuous decrease in net income and the expansion of the market scale, and the improvement of gross profit has further accelerated its profit.

< /p >

< p >, as mentioned in the investment report released by Merrill Lynch and Merrill Lynch.

At the initial stage of vip.com, there were less than 1000 brands, and up to now there were 7000 brands sold.

According to a person familiar with the matter, last year's "double eleven" online shopping festival, Tmall's more than 80 brands shifted inventory to vip.com sales, which was confirmed by vip.com.

< /p >

< p > the expansion of vip.com market will undoubtedly enhance the bargaining power of the platform and further raise the gross profit margin.

According to its earnings data, from 2009 to 2012, its gross margins were 8.2%, 9.8%, 19.1% and 22.30% respectively, and the gross profit margin increased further to 24.2% in the third quarter of last year.

This is also one of the difficulties for other electricity providers to make profits.

< /p >

< p > Where is the next growth point? Vip.com said that the company will gradually tear up the label of "selling stocks" and turn to new products.

According to the reporter's understanding, at present, its new products account for about 70%.

< /p >

< p > this pformation has already begun, and the policy of "one generation" has attracted attention for a long time.

Its mode is to sign an agreement with the brand, exclusive agent new products.

In the platform, rich categories, users at low prices; brand companies to shorten their new products sold to the mass production cycle.

According to the traditional mode, it takes months for brand new products to be sold to mass production, while in special sale vip.com, the cycle is shortened to 5 days.

< /p >

< p > but adding new products does not represent the expansion of vip.com products. Its future will still focus on women's consumer goods, cosmetics and so on.

And on the basis of this, we should further subdivide and tap potential users in depth.

According to press reports, in 2014, vip.com will launch cross platform marketing, subdividing users according to their identities, and promoting them through different platforms.

For example, through a financial software company, vip.com will be directly sent to the financial group across the country.

< /p >

< p > vip.com's share price exceeded 100 US dollars, and it depends fundamentally on its "special sale" and "flash buying" mode, and the category and crowd focus.

At present, it has 40 million members, although the absolute number is far below the big platform, but the repeat purchase rate of 73.8% is also unmatched by the same industry.

Thus forming a standard Internet fan economy, and then continue to subdivide the crowd, precipitate the user, and increase user activity with fast discounted merchandise.

< /p >