Vip.Com: From The Main Clothing To The Cosmetics Industry
Last Friday, vip.com announced the acquisition of 23% stake in the Oriental Fashion Group for $55 million 800 thousand, which is related to its own brand and media business in the Orient fashion. < /p >
"P", known as the "monster stock" of vip.com, launched a group of investment buying combinations at the beginning of 2014. A week ago, vip.com announced the acquisition of a 75% stake in the Oriental pop music company. < /p >
At P, vip.com has held the second largest vertical cosmetics suppliers in China, and has been involved in cosmetics brand and related media business. This means that the original vip.com a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > a target= "_blank" href= "http://www.91se91.com/" > shoes less than "hat" is vigorously entering the cosmetics field. < /p >
< p > "2014, we hope that the proportion of cosmetic sales can be doubled over 2013." Tang Yizhi, senior vice president of vip.com, told reporters yesterday that if there are other private brands that meet the requirements, vip.com will also consider investing. < /p >
< p > for Oriental fashion, it is probably the best way to find a strong club for its own brand after selling the agent channel of one of its main businesses. < /p >
< p > < strong > Why are there two spanactions? < /strong > < /p >.
< p > Oriental Fashion Group has its own cosmetics brand and media business. According to this spanaction, the Oriental cosmetics group's own cosmetics brand and media business value is valued at $243 million. < /p >
< p > through this spanaction, vip.com and the Orient fashion group have reached all-round strategic cooperation to open up the front-end fashion e-commerce sales platform and the fashion products manufacturing platform at the back end and fashion content manufacturing platform, and further improve the fashion ecological industry chain from "production to marketing, from content manufacturing to brand building". < /p >
< p > this is the second "hand in hand" between vip.com and Oriental Fashion Group in a short span of a week. < /p >
Prior to "P", vip.com has just announced that it will buy 75% stake in the Oriental pop music company under $112 million 500 thousand. According to estimates, Le bee network is valued at $150 million. < /p >
< p > Le bee net, Jing Jia Da people's own brand and media business are the three major businesses of Orient Group. Why should they be divided into two spanactions? < /p >
Li Chengdong, an independent e-commerce analyst, told reporters that Li Jing (the chairman and founder of Oriental Fashion) is a media person. Her goal of making a bee bee network is to make her own brand strategically instead of making professional cosmetics channels. P When cosmetic channels enter the stage of homogeneous competition and low gross margin, the Oriental fashion chooses to sell channels and retain their own brands and media businesses. < /p >
< p > Oriental popularity was originally founded by Li Jing as a media company with multiple TV programs. After obtaining A investment from Sequoia Capital, the oriental culture expanded from media business to its own brand and electricity supplier domain, and created a happy bee network. < /p >
< p > in the initial stage of promotion, Le bee network is mainly based on the mode of agency, through the drainage of famous brands, and then pushing its own brand after a certain volume of users. < /p >
< p > but the mode of agent channel is easy to kill in the Red Sea. Lok bee network has been turned up by the rising star jumei.com. According to official data of Le bee network, as at 12 noon on August 1, 2013, the 5th anniversary sale of Le bee net sales exceeded 122 million yuan on the first day, 15 times the daily sales volume. According to this estimate, the sales volume of Le bee network in 2013 was around 3 billion yuan. And jumei.com CEO Chen Ou has previously revealed that it expects us sales in 2013 to be 6 billion ~100 billion yuan. < /p >
< p > a person close to Lok bee net told reporters that the top executives in the East have felt very tired about the operation of the agency channel, and their own brand and media business will be the focus of next development. < /p >
< p > for vip.com, its favorite value is the channel value of Le bee net. Tang Yizhi told our reporter that Le bee network has many years of experience in the field of cosmetics, and can enrich vip.com's short board. In addition, the user group of Lok bee network and vip.com are highly coincident, which helps to expand users. < /p >
< p > however, the Oriental popular brand and media resources also have considerable attraction for vip.com. Vip.com chairman and CEO Shen Ya has expressed his appreciation of the Oriental fashion's own brand. He believes that with the increasing demand for personalized brand and personalized consumption, the Oriental Fashion Group's brand will be more popular. But after all, this is the core resource of Oriental fashion, and it can not be sold at a price. Vip.com can only switch to a share of the stock market. < /p >
< p > on the one hand, on the one hand, the Orient wants to sell the agency channel. Vip.com wants to enter the cosmetics field quickly through the acquisition. On the other hand, the Oriental fashion should retain its own brand, but it must find more powerful channel support for it. Its own brand and media business also have certain added value to vip.com, which constitutes the two spanaction, that is, the first acquisition and the second stock purchase. {page_break} < /p >
< p > < strong > vip.com's expansive defense < /strong > < /p >
< p > vip.com's two shot can be reduced to five words -- expansive defense. < /p >
< p > this company founded in 2008 is an early domestic supplier who has been involved in the flash buying mode. That is to say, in the form of time sale, the products of internationally famous brands are regularly and regularly launched, and the selling price is only 1~5 of the original price. At present, vip.com's products include clothing, shoes, bags, household products, cosmetics, luxury goods and so on. < /p >
< p >, it is precisely with the flash buying mode, vip.com has been profitable for four consecutive quarters since the fourth quarter of 2012. Earnings showed that vip.com's total net revenue in the third quarter of 2013 was $383 million 700 thousand, an increase of 146.1% over the same period, a net profit of $12 million and a net loss of 1 million 500 thousand US dollars in the same period in 2012. < /p >
< p > in the face of the general loss of electricity supplier enterprises, vip.com's share price has been boosted by its continuous earnings performance. In March 2012, when vip.com listed on the NYSE, the issue price was $6.5, closing at $5.5 on the day and below the issue price. In 2013, vip.com's share price soared, rising 6 times from the $16 in early 2013, breaking through 100 dollars. As of press release, vip.com's stock price was as high as $110, its market value was more than $6 billion, and its P / E ratio was 157.14 times. < /p >
< p > at current market value, vip.com is 7.3 times as many times as Dangdang, 11.2 times the Lanting Pavilion collection, and 127 times that of Mcglaughlin. < /p >
< p > however, behind the rising share price, vip.com is facing the pressure of business expansion and the challenge faced by all sides. < /p >
< p > last year, including Tmall, Dangdang, jumei.com and other electricity providers have been involved in flash buying business, which made vip.com's exclusive sale market quickly changed from blue ocean to red sea. Although vip.com has signed the exclusive sales agreement with a large number of brands with the advantage of first mover advantage, with the entry of large B2C platforms such as Tmall and Dangdang, some brands may be diverted. < /p >
< p > "along with Jingdong's visit to IPO, vip.com also needs to make some achievements to keep investors." AI media consulting CEO Zhang Yi said, vip.com is an early domestic sales mode of the electricity supplier, it needs to build a fence through investment or acquisition, to consolidate the position of the boss. < /p >
One of the measures to be taken by vip.com P is to invest in expanding products and expanding user groups. Cosmetics with high gross margins become an optional category. < /p >
< p > Shen Ya said: "the growth of China's cosmetics online shopping is huge. It is estimated that the scale of cosmetics online shopping spanaction in 2015 will exceed 120 billion yuan. Vip.com's strategic stake in this business platform will not only help enrich our product supply, expand customer groups, but also continue to consolidate our advantages in building China's largest fashion shopping platform. < /p >
< p > Tang Yizhi said that cosmetics were the main category of vip.com in 2014, and hoped that the sales of cosmetics in 2014 could be doubled than last year. If there are other private brands that meet the requirements, vip.com will also consider investment, but there are no specific targets yet. < /p >
< p > according to Goldman Sachs Research Report, cosmetics accounted for 11% of vip.com's sales in 2012. < /p >
< p > to expand to other categories, Tang Yizhi told reporters that vip.com's core goal this year is to make clothes, < a target= "_blank" href= "http://www.91se91.com/" > shoes and hats "/a" well, and there is no clear road map in acquisition and holding. < /p >
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