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Jumei.Com Went To The US IPO To Fight Against Leukemia

2014/4/16 19:30:00 32

jumei.com, a cosmetics supplier, submitted the application document for IPO to the US Securities and Exchange Commission (SEC).

In China's electricity business, "Liu Qiangdong" promotes the company through the mode of "external blood pfusion", while jumei.com Chen Ou chooses the "internal hematopoietic" path to compete in the arena.

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the prospectus submitted by jumei.com to SEC shows that as of the end of 2013, the company has been profitable for 7 consecutive quarters.

By inference, jumei.com began to profit at least in the second quarter of 2012.

it is noteworthy that in 2012, it was the climax period of China's platform electricity suppliers burning money to grab shares. For example, Liu Qiangdong, who was convinced that "it is foolish to make money when making money" is the business logic, with capital as the background driving force and market share as the pursuit goal, and then set off "6 to 18" and "8 15" two electricity supplier burning money wars.

The difference between "P" and "Liu Qiangdong" in making money is that Chen Ou tends to self hematopoiesis.

"Daily economic news" reporter noted that in 2012, "8 - 15 electricity business war" just passed, in the morning of October 12th, Chen OU on Sina micro-blog said: "only the scale and not profitable enterprises have been abandoned by the capital market, more and more business enterprises will be more rational thinking about the foundation of enterprises, that is, profits and survive, only in this way, the industry can win together."

jumei.com prospectus shows that the company has made a profit in the second quarter of 2012, and the net profit amounted to $8 million 370 thousand in that year. Net profit in 2013 increased by nearly 6 times to 58 million US dollars.

The p a href= "http://www.91se91.com/news/index_c.asp" > jumei.com < /a > was founded in March 2010, and it has only been established for nearly 2 years in the second quarter of 2012, and has only raised nearly $13 million.

in contrast to jumei.com's hematopoietic growth path, Jingdong, which chooses blood pfusion mode, has been financing for about 10 years in Jingdong over the past 2 billion 230 million years in 2004. The updated F1 document submitted by Jingdong to SEC shows that in 2013, the net loss of Jingdong was 49 million 900 thousand yuan.

the secret of profit: to cut down the cost less than /strong > /p >

jumei.com can enter the profit track only two years after its establishment. The reason can be dissected from two dimensions: profit space and cost control.

from the point of view of profit space, jumei.com has a bright future in the field of cosmetics business.

According to a report from Frost&Sullivan, P found that the total retail sales of China's cosmetics industry reached 136 billion 200 million yuan in 2010, when it was founded in 2010, and almost doubled to 220 billion 900 million yuan in 2013. In 2018, it was expected to increase to 431 billion 800 million yuan in 2018, and the market capacity reached 3.17 times that in 2010.

In the meantime, the share of online cosmetics business will also gradually increase. By 2010, online B2C cosmetics sales account for 1.3% of the total retail sales of China's cosmetic products to 10.2% in 2013, and the proportion is expected to grow to 21.9% by 2018.

Less than P, the huge capacity bred in the field of cosmetics business provides a market premise for jumei.com's growth.

Jumei.com's revenue also surged nearly 8.85 times from its $92 million in 2011 to $817 million in 2013.

in addition to the market capacity for the development of jumei.com to provide a huge space for the industry, cosmetics in the field of high gross margin characteristics also give jumei.com a huge margin of room for improvement.

jumei.com prospectus shows that the gross profit margin of the company was 24.5% in 2013. It is worth noting that in 2013, the cosmetics retailers Sasa (SASA) and Watsons reached 47% and 35% respectively, and some famous international cosmetics brands even reached 70%.

At present, the gross margin of jumei.com is lower than that of them, mainly due to their sales structure, that is, the products sold by jumei.com are mainly composed of two parts: agent brand and exclusive brand.

Among them, sales accounted for about 15% of the exclusive brand, the general gross margin can reach 70%; correspondingly, about 85% of the third party agent brand, the gross margin is relatively low, thus pulling down the gross gross profit margin.

the gross profit margin of cosmetics is relatively high. With the improvement of jumei.com's premium capability in the ecological chain, the proportion of exclusive brands will be increased. Under the condition of basically keeping the operation efficiency, its gross profit margin can be further improved.

on the one hand, in the background of broad market capacity and high gross profit margins, jumei.com has a strong earning power. On the other hand, jumei.com also has the surprise cost control ability in the expense side, which can be reflected from the indicators such as the cost of acquiring new customers, market charges, and performance costs including warehousing, sorting, logistics, etc.

in terms of performance cost, due to the small volume of cosmetic units, and in terms of warehousing, sorting and logistics distribution, cost control has more advantages than 3C, clothing and other categories.

The content of jumei.com prospectus shows that the warehousing and logistics rates of the company in 2011, 2012 and 2013 were 12.8%, 8.8% and 7.2% respectively, showing a declining trend year by year.

The average cost for jumei.com to acquire a new customer in 2013 is 38 yuan, while vip.com is 64 yuan, while the former only accounts for nearly 60% of the total cost of acquiring new customers.

market cost, jumei.com prospectus shows that the proportion of total market expenditure from 2011 to 2013 is 10.1%, 11% and 6.3% respectively.

Less than P, jumei.com's breakeven point was 16% in 2013, that is, if the gross profit margin of the company exceeded 16%, it would be profitable.

it is worth noting that the main brand of its own bee, the gross profit margin is close to 30%, more than 24.5% of jumei.com, but in 2013, the bee bee lost 150 million yuan, the difference lies in the cost control ability.

if you want to go deep into the cost control ability of jumei.com, you have to mention the marketing logic of Chen Ou's alternative entrepreneur.

March 2010, after graduating from Stanford University, Chen Ou returned to China to create a group buying website, which was targeted at Groupon of the United States. After that, he turned to jumei.com of cosmetics B2C in the background of 1000 regiment war in 2011.

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The marketing logic of --EndFragment-- > jumei.com is a typical Internet thinking mode. Chen ou and his management team portray their own media brand image through their own values and personality charm marketing, and then attract fans from the corresponding circles through the media brand image, and then create a fan environment around the fans community.

For example, Chen Ou intends to take part in such programs as Tianjin satellite TV's "none other than yours", Hunan satellite TV's "day to day" and "lift" programs, as well as the introduction of "I speak for myself" series of ads, and quickly build themselves into the future and struggling and passionate representatives of post-80s entrepreneurs. Chen's body has aroused strong resonance.

Reporter P has worked with many marketing people in the industry. They believe that the product advertising marketing mode is the industrialization thinking, and the value marketing, represented by the entrepreneurs and the media, is the product of Internet thinking.

For example, Lei Jun of millet, Ren Zhiqiang of Huayuan Real estate, SOHO China's Pan Shiyi, Alibaba's Ma Yun, and Dong Mingzhu, who are walking on the road of entrepreneurs' self marketing, have created their own media image through their own personality charm, and then carried out the ecological management of their fans.

The entrepreneur self marketing mode of < a href= "http://www.91se91.com/news/index_c.asp" > Chen European style < /a > has relatively low cost and high customer loyalty.

jumei.com prospectus shows that in 2011, 2012 and 2013, the total number of active customers in the United States (at least once purchased in the time period) was 1 million 300 thousand, 4 million 800 thousand and 10 million 500 thousand respectively, and the total number of repeat customers accounted for 53.8%, 56.3% and 62% of the total customers respectively. In terms of order volume, the total number of orders for jumei.com in 2011, 2012 and 2013 were about 4 million 500 thousand single, 16 million odd and 36 million, respectively, and the average order volume of each active customer remained at about 3.4.

< a > href= > http://www.91se91.com/news/index_c.asp > mobile terminal < /a > accounted for nearly half of /strong > /p >.

the content of jumei.com prospectus shows that jumei.com's mobile pformation is also more smoothly.

In December 2013, the contribution from mobile terminals accounted for about 43% of jumei.com's total paction volume, and the proportion continued to rise to 49% in the first quarter of 2014.

in the current business circle, or even the entire IT circle, the mobile terminal has become the strategic commanding height. It is also one of the most important indicators of the future imagination of a IT company. This can be reflected from the mobile terminals of Ma Yun net layout and the decisive influence of the mobile terminals on the market value of Tencent, Facebook and Baidu.

Jingdong has submitted the IPO application to SEC. In view of the ineffective layout of its mobile terminals, it has joined hands with Tencent.

In this paction, Liu Qiangdong paid a lot of money to get WeChat's entry.

Correspondingly, Tencent's physical assets such as quick and easy assets, patting, QQ online shopping and other real assets paid for in this paction have become a new trend. WeChat's entry value has become the protagonist in Tencent asset pack.

The reason why jumei.com mobile account for nearly half of P is not only the strategic importance of its management team, but also its sales mode and target customers.

when the layout of the mobile terminal is limited by the electricity supplier, the problem of the width and depth of the product information has been more puzzled due to the reason why the screen size of the mobile terminal is limited. However, the sales mode of jumei.com is a limited time sale mode, and the product categories selected daily are relatively concentrated.

The vertical sale model simplifies the search and selection process, which gives consumers a more convenient browsing experience with a specific recommendation model, and is more suitable for mobile end force.

enlarge to the perspective of the entire cosmetics business, it is also more suitable for mobile terminals.

Compared to clothing, 3C and other categories, cosmetics category SKU (stock unit) is relatively small, such as jumei.com's partners have 1700, but only more than 10 thousand SKU.

This SKU less case will also slow down the difficulty of mobile terminal display to a certain extent.

in addition, jumei.com's target customers are mainly young women who are easy to accept the mobile terminal shopping mode.

apart from the basic layout of mobile terminals, another fundamental work of jumei.com is the mechanism construction of counterfeit prevention.

2013, with the total trading volume as the evaluation standard, jumei.com has become the biggest beauty supplier in China with a market share of 22.1%.

As the leader of the industry, the higher the degree of trust in the cosmetics business, the more benefit it will benefit itself.

Based on this logic, according to the reporter's understanding, under the supervision of China Association for consumers' Association and China's quality Wanli, jumei.com joined the 100 cosmetics Brand Company to set up a genuine alliance, pushing the Chinese cosmetics authenticity alliance anti counterfeiting code system out of pocket.

The basic logic is: striving to put every SKU into jumei.com storage, we need to bring a security code based on the two-dimensional code, and this anti-counterfeiting code can only be used once, then it will be eliminated after being swept, so as not to be used by the fake chain for the two time.

When consumers buy jumei.com's related products, consumers can scan through the two-dimensional code anywhere, immediately enter the real alliance anti-counterfeiting code system, check the authenticity of the products through the only anti-counterfeiting code, thereby purifying the electricity supplier environment from the mechanism settings, and dispel consumers' doubts about fake products.

"daily economic news" reporter noted that jumei.com plans to raise up to 400 million US dollars through IPO pactions, to be listed on the NYSE or NASDAQ, and the stock trading code is "JMEI".

The funds raised by IPO are mainly used for marketing and brand promotion activities, including establishing more physical stores, increasing the scope of exclusive products, expanding the logistics network, enhancing logistics support capabilities, enhancing the IT architecture system, and other enterprise expenditures, including personnel expenditures and potential acquisitions, investments and alliances.