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Dangdang Continued Profit In The First Quarter: Platform And Clothing Two Times Faster Growth

2014/5/25 12:03:00 51

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Dangdang A Continuous Profit In The First Quarter Clothing

> a > May 15th < /a >, Dangdang announced the first quarter earnings report, total revenue (including third party platform GMV) 2 billion 850 million yuan, an increase of 53%, and achieve sustained profit, net profit 2 million yuan. Among them, the third party platform grew by 103%, and the garment growth rate exceeded the platform. It is worth noting that in the first quarter, Dangdang net gross margin rose to 18.2%. 
 strong > growth rate, Mao Lilian's innovation high into the "healthy fast lane" /p >
 despite the seasonal decline in China's retail market in the first quarter of 2014, Dangdang continued to maintain its revenue and gross profit in the quarter. 
 earnings report shows that the total transaction volume of Dangdang network increased 53% in the first quarter, and the growth rate continued to win the electricity market. It is noteworthy that Dangdang's fine operation results are further apparent, profitability continues to grow, gross profit margin reached 18.2% in the first quarter, a record high since the Q2 quarter of 2011, and net profit was achieved, compared with a net loss of 72 million 710 thousand yuan in the same period last year. 
 before that, Dangdang has gone through nine quarters of profitability to "climb the slope", consolidating the profit base is the main reason for sustained profitability. Data show that the Q4 quarter of 2011 has been the biggest pressure of Dangdang performance, with a net loss of 10.5% and a gross margin of 10.5%. However, since the Q4 quarter of 2011, the gross profit margin of Dangdang has been steadily upending in the nine consecutive quarters. Gross profit has reached 18.2% in the first quarter of this year, and has continued to make profits. 
 senior business people say that continuous profit is a turning point for Dangdang. Dangdang has entered a new normal with high growth and continuous profits, opening up space for its next expansion and development. 
 platform apparel growth is the same as over 100% flash shopping industry ranking three, /strong < /p.
 category strategy and open platform are the main driving force to support Dangdang to achieve high growth and sustained profitability. 
 in the first quarter, Dangdang library revenue increased by 33% over the same period, and the market oligarchs' status was further strengthened. In addition to books, clothing category, third party platform and flash buying business have played a "growth engine" to make a strong contribution to the performance. 
 2014, the image of Dangdang comprehensive e-commerce shopping center has been deeply rooted in the hearts of the people. Data show that department store sales increased by 71% over the past 6 consecutive quarters, exceeding Book revenue. In particular, the growth rate of the third party platform is as high as 103%, and the commodity richness is further improved. 
 clothing category performance is also outstanding, its growth rate exceeds the platform growth rate, Nautica, ELLE men's clothing, BOB DOG Babu children's shoes and other more well-known brands entered Dangdang. 
 Electric Business Analyst Li Chengdong pointed out: "throughout the past two years Dangdang financial report, Dangdang is the boss of the book market, but it has no dependence on books at all. The turnover of department store's clothing open platform is close to half of its turnover in the fourth quarter of 2013." 
 he said, "looking at the earnings report, from 2010 to 2013, Dangdang's GMV grew by 5 times, and its revenue grew by 3 times. During this period, the active users of Dangdang increased from 8 million 600 thousand in 2010 to 20 million 900 thousand in 2013. Besides the increase of users, the core of promoting Dangdang's revenue growth is the outbreak of clothing. 
 2013, the flashback platform of the flash purchase platform was completely revised in 2014, and the scope of flash purchase expanded to more categories such as baby, book and so on. The low price commitment of the whole network folded and folded further attracted Chinese consumers, opened the development space of flash buying business, and ranked first in the industry. 
 User < a href= > http://sjfzxm.com/news/index_h.asp > quantity > /a > continuously rising rate of transformation leading the whole industry /p >
 earnings report shows that Dangdang added about 2 million 800 thousand of its customers in the first quarter of 2014, with a total number of odd orders exceeding 16 million 400 thousand. 
 Analysys data show that in many B2C e-commerce sites, Dangdang users have the highest conversion rate. There are many factors that affect the conversion rate, including the number of online products and brand attractiveness, user experience, logistics efficiency, customer service and so on. 
 the main reasons for the highest conversion rate of Dangdang include: (1) Dangdang brand has a high degree of brand recognition and has accumulated a large number of loyal high-quality consumers; (2) self catering and platform products are abundant, discount intensity is large, and price appeal is enhanced. 
 Dangdang also implements intelligent shopping guide through big data analysis, and makes personalized recommendation according to order data, brand characteristics, price grade and purchase behavior, so as to improve browsing experience. 
 in addition, Dangdang's fine operation capability is also reflected in the cost of new customers. The average cost in 2013 is 24~27 yuan, the lowest to 20 yuan in the single quarter, and the number of new customers is 12 million 280 thousand, which is in the leading level of the industry. 
 senior business person Gong Wenxiang thinks, "the most fancy two data, the first is Dangdang new passenger cost 24~27 yuan, the lowest electricity supplier; two is Dangdang network conversion rate of 9%, the highest in the electricity supplier, so the fine operation of the electricity supplier must watch Dangdang." 
 Logistics and market input speed up the largest single warehouse and IT system startup 
 Dangdang invested heavily in optimizing storage efficiency and IT service system. 
Supply chain scheduling algorithm (CPFR), which is developed independently, is applied to warehouses around p to ensure inventory richness and customer order satisfaction. The largest 100 thousand square meter new warehouse in the world has been officially launched in April, and the supply chain response capability has been significantly improved. 
 in the first quarter, Dangdang accelerated the development of the three or four line market, the lowest threshold of free mail delivery, effectively reduced the cost of shopping for customers, and the delivery speed of the whole country was further improved. In April, 50% parcels were implemented every other day to achieve the next day. Customer satisfaction was significantly improved, and the customer complaints caused by the delay were reduced by 40%. 
 the outstanding performance of Dangdang in the first quarter allowed the capital market to recognize Dangdang's competitive advantage and reassess its reasonable market value. At the end of April, Dangdang shares and Groupon and Microsoft were listed by Wall Street analysts as super bull stocks. In May, HSBC published the latest research report and pointed out that "we think that Dangdang" has great attraction and huge potential to increase. 
Yu Yu, chairman of Dangdang network, said, "Dangdang has made good progress in transforming the online bookstore into an integrated online shopping mall with prominent target category." P Looking ahead, we will continue to promote the healthy and sustainable development of enterprises through balanced platforms and proprietary businesses. " 
 > a > industry voice < /a > /strong > /p >
 for the performance of Dangdang's continuous profit, investors compare the valuation of several American IPO electric providers. Dangdang's performance and market value are obviously "upside down", which belongs to a seriously underestimated electricity supplier. 
 reference to Jingdong, jumei.com and other electricity providers, the price of Dangdang should rise from US $10 to 40~45 US dollars, and the market value will reach US $5 billion, which is about 1/5 of Jingdong. 
Prior to the P, Wall Street has begun to re-examine the real value of Dangdang. In April, the famous American investment advisory company released a report that will link Dangdang and Groupon, Microsoft and other IT Internet giants to the most worthy holdings of the super ox stocks. 
Last week, HSBC analyst also released an analysis report to strengthen Dangdang, saying that "Dangdang shares are very attractive at the moment, and the first quarter earnings report will show the great potential of Dangdang P". 
 at present, Dangdang's underestimation is mainly based on the following key data: the revenue scale of 10 billion yuan is seriously deviated from the existing market value of US $800 million; after nine quarters of profitability, it has been profitable for two consecutive quarters and has no doubt about profitability; last year, about 20000000 active users and nearly 70 million orders were in the leading position in the 6 US stock market; the growth of Dangdang network was equal to several other stock market listings, and the clothing category grew by more than 100%.