Vip.Com: Special Business Logic For Inventory

< p > < < a href= > http://www.91se91.com/news/index_c.asp > > dress > /a > is a trillion level market, stock is the tail cargo, accounting for about 20%, two hundred billion scale.

How much did vip.com do? There were only 16 billion pactions in 2013, and only half of them were garments.

The space is enough, this we want to understand two years ago, "in the season of business investment in the season, Sequoia Capital China fund first step through the psychological level of inventory, Guangzhou drunk View Park next to the gate of vip.com.

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< p > at the beginning of 2010, Liu Xingshou Shen Napeng, vice president of Sequoia China, supported Southern China electricity supplier.

The investor, who focused on technology media and consumption, joined Redwood China in 2007. He served as vice president of the investment banking division of Merrill Lynch, and served clients like Ctrip, home and digital China. He also worked in Xerox and Silicon Valley's pioneering technology company for 7 years.

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< p > Shen Ya learned the news from Liu's visit from the guestbook of the customer service desk. "They are quite famous in China, so I called them back," Hong Shan said.

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The reputation of Sequoia in Shen Ya's heart is mainly attributed to the nearly brilliant investment achievements of this group of P.

That year, Sequoia China invested in High German software, Qianzhao photoelectric, rural base, Mcglaughlin, and lnong international and other projects have landed in the US stock market or China's growth enterprise market.

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< p > but in fact, just in 2010, the investment strategy of Sequoia China is quite different.

Most of the above exit cases came from traditional industries, and the time of capital entry was concentrated in the Pre-IPO stage. The proportion of Internet Co accounts for far behind the genes of Sequoia Capital "king of Silicon Valley".

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The choice of "P > Sequoia caters to the trend of China's PE/VC industry at that time: in the IPO boom around 2009, a large number of Chinese local funds invested hot money in Pre-IPO projects to earn listed returns, and Sequoia was no exception: they worked hard in industries with high human resources, low cost and relatively low added value.

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Shen Napeng did not lose his performance after P.

The Sequoia China led by him will return to the new technology and new economy with a focus of investment, and quietly embark on the helm to return to the camp of the Internet.

In 2010 and 2011, a group of Internet business companies were concentrated. Vip.com and jumei.com, the United States network, tuniu.com and donkey mother were here.

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< p > in a pparent office shared by two people, Liu Xing saw Shen Ya and Hong Xiaobo two Wenzhou businessmen.

Now, Liu Xing, who has become the fourth partner of Sequoia China, recalls the situation and still felt "something special".

He has seen countless entrepreneurs in his investment career, and the two founders worked in such tacit way without him.

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< p > < strong > tamping sale < /strong > < /p >

After the investment of < p > A and B, the operation of "a href=" http://www.91se91.com/news/index_c.asp "vip.com /a" is getting better and better, and the seduction of Shenyang and Hong Xiaobo is increasing.

Do you want to continue to make a discount sale or to break into the new market without discount? Do you want to do normal sales? After all, there is no real online department store in China that sells the fashionable goods continuously. If vip.com starts to do it, can it break through another new world? < /p >

Shen P played an important role in the intersection of expansion and concentration.

Liu Xing recalled that after several rounds of board discussions, investors and the founding team reached a consensus, subtraction, positioning in a "special sale site."

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< p > "vip.com's flash buying mode," the evaluation of the supply chain is based on the word "fast", an electric business insider, which means that the model of the front supply chain is very different from that of the traditional electricity supplier.

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< p > on the one hand, due to the majority of purchases, the quality inspection requirements for warehousing are very strict.

"Consumers need to make judgments when they buy discounted goods at the mall. Vip.com has to use a quality inspection team to make serious judgments, close to the quality inspection of production"; on the other hand, vip.com's return rate is 20%, while Jingdong has no return on products, the return rate is only 1%.

For this reason, vip.com needs a special process to meet the needs of logistics.

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In the second half of 2010, P came to vip.com with Sequoia Capital and DCM almost as well as Tang Yizhi, vice president of warehousing and logistics.

The logistics and warehousing executive who worked in Huarun, Dangdang and third party logistics company has designed the whole warehousing and logistics system for Dangdang, and has the experience of traditional retailing and electricity supplier.

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< p > when Shen Ya handed over warehousing and logistics to Tang Yizhi, Tang Wei Wei introduced the leading international logistics system in Manhattan.

An important way to increase vip.com's gross profit margin is to reduce the rate of logistics costs.

Vip.com's practice is to rent warehouses and use third party logistics for distribution.

In the industry's view, vip.com's milestone in improving logistics lies in the introduction of new warehousing systems and distribution methods.

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< p > by the end of 2013, the warehouse rental area of Beijing, Shanghai, Guangzhou and Chengdu was about 300 thousand square meters, and the total warehouse area was about 400 thousand square meters.

2014 and 2015, efforts will be made to expand the warehouse and plan to spend 200 million US dollars to expand the storage area of Guangzhou and Hubei to 300 thousand square meters. It will be completed in 2015 and is expected to reach 900 thousand square meters by 2015, which will be 4 times the current level.

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< p > according to the contract, vip.com warehouse rentals have a small increase every year.

Compared to the real estate industry, especially the increase in commercial real estate, the current rent of vip.com has been quite substantial. "Of course, from the cost calculation, the self built warehouse is certainly cheaper, but first of all, it has to produce several billion cash construction, followed by less liquidity and greater risk," vip.com CFO Yang Donghao said.

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< p > in addition, vip.com insists on the unified delivery of rental warehouses, rather than the direct delivery of the brand, the fundamental reason is that it can not meet the requirements.

In a customer order, there are often several items, which belong to brands in different regions. Although several manufacturers need to send the goods to vip.com's warehouse, truck pportation is relatively cheap, and thousands of clothes are diluted, and the cost of each piece is only a few cents.

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< p > under the "trunk + logistics" distribution mode led by Tang Yizhi, the order in the same area is packaged and distributed to the target city by the bulk logistics company, and then the local express company is selected to do the two distribution.

Large scale pportation on the main line has brought huge cost savings.

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< p > purchase of goods is another moat which is purchased by time and data.

So far, vip.com has a team of more than 600 buyers, including women's clothing, men's wear, men's shoes, bags and more than ten professional groups.

Most of the members are from the traditional channels, or from the editor of beauty and fashion media such as "Ruili" and "Xin Wei". They are highly sensitive to fashion.

Hong Meijuan, the senior vice president of the company, led by Taiwan, a female executive, displayed hundreds of pairs of shoes in her own room.

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< p > "with her 20 years of purchasing experience, the fashion trend is very subtle. It may have hit a lot of money and bought it back into stock, which is too risky."

Yang Donghao said.

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< p > < strong > > a href= "http://www.91se91.com/news/index_c.asp" > Listing < /a > bitter music /strong > /p >

In January 2011 and April, Sequoia and DCM jointly completed vip.com's two rounds of private investment, with a total investment of 6140 Wan Meijin. Before P, Sequoia and DCM held 19.3% and 19.2% respectively.

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< p > May 2011, vip.com had sought C private placement, but failed.

At that time, it was speculated that the key reason for the failure of the financing was the price: "the valuation of the B wheel has already been about 400 million dollars, and no one of VC is willing to accept the price at this price, and the price reduction financing is not cost-effective for Sequoia and DCM."

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By the end of this year, vip.com decided to go public at P.

It is not only because the company has capital needs, but vip.com is still losing money, and it is also from the consideration of promoting the brand through listing.

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In February, vip.com submitted a IPO application to the US SEC, with a planned maximum of $120 million.

At this point, the concept of stock market listing is extremely optimistic.

For a long time before vip.com, there was no listing of Chinese companies.

The market is skeptical about China's stock market.

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< p > investment bank hopes to have a good company to open a new listing window.

Before the roadshow, Goldman Sachs and other investment banks patted their breasts and said, "it will definitely raise the issue price", so that vip.com is confident that it will follow the road.

But who can guarantee foolproof? < /p >

"P" held in March 22nd at the annual summit of AI, Dangdang CEO Li Guoqing publicly said that vip.com roadshow was cold, and did not get any investor's order in Hongkong.

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In March 24th, vip.com confirmed that the issue price was $6.5, which was 23.5% lower than the previously announced 8.5-10.5 US dollar price range.

According to the issue of US $6.5, vip.com valued at about $317 million, and according to the original pricing range, its valuation was between 400 million -5 and more than US $100 million.

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On the day of "P", "vip.com's bloody listing" has spread throughout China's financial media.

Yang Donghao recalled the situation after several months: heavy hearted, no celebration dinner.

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< p > in the mistrust of the market, vip.com went to the third quarter of 2012. In November 13th, the Q3 earnings report showed that vip.com's net revenue increased by 197% compared to the same period last year, reaching 156 million US dollars, and the net loss was reduced from $1.754.6 to $1 million 456 thousand in the same period last year. After the elimination of the term incentive, vip.com's third quarter earnings actually reached a profit of 640 thousand US dollars.

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< p > when the quarterly breakeven is realized, the capital market is no longer worried about whether vip.com can make money. Competition has become another proposition that vip.com needs to confirm with time. "If Jingdong and Dangdang are also offering discount channels and huge sums of money to buy clothes, what is the living space of vip.com?" Liu said overseas, hoping that in 2013, we can tell you whether competition is really a problem, and whether vip.com can develop independently or independently.

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< p > up to now, 10 million users are still too little for vip.com.

In order to attract more users, categories need to be expanded and strengthened.

"Coming out of your own box and expanding on the category is taking into account the new stage of our ability.

In those days, subtraction was due to lack of confidence. Now the ship is bigger and more stable, and can do some experiments more confidently. For example, skin care products, compared with clothing, are actually shallow, and the purchase of bee bees is largely due to this consideration.

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What is vip.com's threat to vip.com after resolving the problems of inventory ceilings and competition? "For an electric company, the biggest risk is whether it can keep up with consumer spending habits.

Why mobile is so important, because consumer behavior is moving in this direction, mobile e-commerce is the general trend.

"Whether enterprises can keep up with the sudden changes in the future is a matter of life and death," Liu Xing said.

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