Jumei.Com'S IPO Interpretation Of Profit Logic

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< p > after the Jingdong, another business enterprise in China started the road to the US this year.

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On the morning of April 12, 2014 P, jumei.com submitted an application document for IPO (initial public offering) to the securities and Exchange Commission of the United States (SEC). It plans to raise up to 400 million US dollars through IPO pactions, and it will be listed on the New York stock exchange / Nasdaq, with the ticker symbol "JMEI".

Regarding this, jumei.com said that it had not yet known the specific situation of IPO.

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Since P was founded in March 2010, jumei.com has maintained explosive growth and has been profitable for 7 consecutive quarters.

But the industry believes that jumei.com's listing in the United States needs to face two difficult problems: first, according to jumei.com's current strength and volume, the IPO financing amount of US $400 million is relatively high, and the risk of listing failure or breakage increases.

Secondly, how to ensure 100% no fakes is also a matter for jumei.com to pay attention to.

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< p > < strong > profit logic < /strong > < /p >

< p > as a vertical industry B2C website, jumei.com has rapidly expanded the business of the mall with the a href= "http://www.91se91.com/" group buying /a mode.

At the beginning of its founding, Xu Xiaoping, the founder of New Oriental (26.51, -0.30, -1.12%), invested $180 thousand in jumei.com's first investment. In 2011, several -1.12% VC such as Sequoia capital invested 13 million dollars. After that, jumei.com did not get a penny of financing until IPO was launched.

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< p > from the prospectus, jumei.com plans to raise up to 400 million US dollars through the IPO paction. It will be listed on the New York stock exchange / NASDAQ and the stock trading code is "JMEI".

Goldman Sachs Asia, Credit Suisse and JP Morgan chase are their IPO underwriters.

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< p > the main reason why jumei.com chooses to go public now is the driving force behind capital.

Investors need to cash in through these years, and from the current market situation, e-commerce companies have shown good performance in the US capital market. For example, vip.com, including Jingdong, has also been listed in the US, and it is expected that it should be good with capital speculation and capital return.

In addition, jumei.com has been profitable for 7 consecutive quarters with certain listing conditions.

AI media consulting CEO Zhang Yi in the "China business" reporter interviewed.

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< p > data show that jumei.com was launched on-line in March 2010 and the start-up capital was $13 million.

The net loss in 2011 was US $4 million 29 thousand.

In 2012, the net profit was $8 million 104 thousand.

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Less than P, jumei.com has been able to enter the profitable track only two years after its establishment. It benefits largely from the flash buying mode. It exists in the form of flash buying boutique cosmetics website, attracting a large number of users who are not sensitive to price but have high brand loyalty.

This is a proven business model. In the United States, there are mother child flash purchase website Zulily, and there are vip.com in China.

In the first 3 years of vip.com's flash buying business, its public disclosure data showed a compound growth rate of 800%.

In 2013, vip.com's total revenue grew to $1 billion 700 million, an increase of 145%.

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< p > in fact, after vip.com, many imitators came into the game, including < a href= "http://www.91se91.com/" > Dangdang > /a > tail products, Tmall special products, Jingdong "red" flash purchase platform, etc., to push the flash buying mode to a climax.

According to vip.com insiders told reporters, "there are some websites that do flash shopping in China, but the scale is not as large as ours.

Although the threshold of flash shopping is not high, it is still very good to see the ability and strength.

On the one hand, vip.com started early, and accumulated a lot of experience in flash buying mode. Secondly, our whole operation and team are quite perfect. Many buyers come from offline department stores.

In the future, there will be some unique features to launch independent luxury websites.

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< p > in addition, the low cost rate is another key.

For the electricity supplier industry, the two parts of customer acquisition and logistics will cost a lot of money, so only by capturing the category of Gao Mao interest rate, establishing scale effect, and controlling the cost of customer acquisition and distribution, will it be possible to make profits.

Jumei.com's gross profit margin in 2013 was 24.5%, which was basically the same as vip.com's, which was much better than the gross margin of Jingdong's 9.9%.

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< p > it is worth noting that the planned financing of jumei.com is US $400 million, which is equivalent to that of sina micro-blog.

Compared with some more mature companies, such as where to go, the planned financing amount at that time was $125 million, and the planned financing amount for the 58 cities was $190 million. There are concerns in the industry that according to jumei.com's current strength and volume, the amount of financing for us $400 million is relatively high, and the risk of listing failure or breakage increases.

However, in Zhang Yi's view, the financing of US $400 million is still reasonable for a platform like jumei.com. After all, jumei.com is doing e-commerce in kind. It is necessary to strengthen the supply system, the logistics system and the market system. These three aspects are costly, so there is no comparison between Sina and micro-blog and where to go.

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< p > < strong > the risk of "fake" is less than /strong > /p >

< p > the report of Frost & Sullivan from global business consulting firm shows that the total retail sales in China's cosmetics industry increased from 136 billion 200 million yuan in 2010 to 220 billion 900 million yuan in 2013, with a compound annual growth rate of 17.5%.

By 2018, this sales volume is expected to reach 431 billion 800 million yuan.

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.

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< p >, it can be seen that the Chinese cosmetic industry is showing an upward trend, and the user demand is very strong, which objectively provides a market premise for jumei.com's explosive growth.

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

However, it is precisely in such a beauty industry, the industry has not been able to solve the licensing problem of big brands, sometimes bogged down in fake products.

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In P, March 19th, CCTV's "economic half-hour" exposes Amazon and Dangdang's sales of counterfeit international brand cosmetics, including two cosmetics Biotherm moisturizing essence and Estee Lauder red pomegranate day cream, which is not authentic, and reveals that many cosmetics sold online come from the wholesale market.

Alibaba, the Internet giant, was also beset by fakes.

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< p > recently, jumei.com was bombarded by BELLE.

BELLE said jumei.com website launched the "4th anniversary BELLE spring" a target= "_blank" href= "http://www.91se91.com/" > shoes "/a special" on the famous sale channel. As BELLE's sole network sales and distribution channel, excellent purchase has never had any cooperation with jumei.com, nor has it supplied to jumei.com.

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"P >" jumei.com's products should not be fake, but it may be a leap in the goods, that is, products that might have been sold in a certain place have been sent to jumei.com's platform.

Generally speaking, jumping goods is harmful to dealers. For example, the dealers in Guangdong have ordered 1 million sets of equipment or products, and the result is not sold out. The reason is that the goods in Beijing have come over, so the market has been shunted. This happens frequently, but there is no law that is against the law, and this is also tacit for the manufacturers who only sell the total volume.

However, because of the opinions of the agents, the manufacturers will speak out, and in fact, they will not really go to jumei.com to sue.

Zhang Yi thinks.

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< p > while vip.com insiders say, "although we can not say that a big 100% is authorized, we must sell licensed products if we want to sell them.

And the cosmetics industry is also specially authorized to import products from authorized dealers in China.

The cosmetics sold on vip.com are genuine.

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< p > jumei.com is not the first vertical business enterprise to IPO in the US, because vip.com has already made a good start.

If jumei.com can be listed successfully and has excellent performance, it will undoubtedly be an enhanced version of the industry. It will stimulate and encourage the entire vertical electricity supplier in China.

Opportunities and risks coexist, and the phenomenon of Dangdang is gradually marginalized.

"It mainly depends on the running in between jumei.com and its competitors, as well as the marketing strategy of the marketing strategy, and it is also very important for the ability to grasp the product system and the market system."

Analysis of the industry.

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