How Long Can Vip.Com Fire In The Market?

< p > > a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > the industry rich group collectively fell into the "high inventory" when vip.com was in the process of pformation and inventory clearance of the website and achieved success.

However, vip.com's high growth has attracted a large number of peers to follow suit. How long can vip.com continue to thrive under the "chase and chase"? < /p >

< p > 2013, the clothing industry encountered a cold winter. "Decline in performance", "high inventory" and "close shop" became the sword that hung on the top of the rich people of clothing industry, and tested the ability of these entrepreneurs to deal with crises.

In the fashion industry, when vip.com was cleaning up its stock business, it welcomed the development of the spring. Its chairman Shen Ya was also selected as the "Fortune 500 rich list" for the first time, ranking 131st in terms of wealth of 9 billion 140 million yuan.

< /p >

< p > < strong > clothing winter of the rich: inventory, close shop, performance decline < /strong > /p >

< p > the clothing industry's stock crisis continued from 2012 to 2013. In 2013, < a target= "_blank" href= "http://www.91se91.com/" > textile < /a > clothing industry was also known as "the most difficult year in history".

Because of the sluggish demand, the garment industry's extensive and extensive extension mode has been seriously challenged.

According to the research situation of China Cotton Textile Industry Association, in the first half of 2013, the operation rate of large enterprises was 85-90%, about 65% of medium-sized enterprises, small businesses ceased production, production restriction further intensified, and the operating rate was only 30%, and the average turnover time of cotton yarn products reached 20-30 days.

< /p >

< p > in the "new wealth 500 rich list" of 2014, the Ma Jianrong and Huang Guanlin of the clothing industry were selected only by the top three top players in the consumer goods industry. Shen Zhou International is not a typical clothing brand business. It mainly engaged in foundry and export, and achieved the growth of performance by reducing the cost of building factories in Vietnam and Kampuchea. "02313.HK"

Over the past 3 years, the rankings of the Ma Huang group have risen from 13 in the consumer goods industry to third this year.

< /p >

< p > most of the rich people in the clothing industry do not have the luck of Ma Jianrong. Many of the rich have lost their fortune list because of their declining performance.

From 2012 to 2013, the "new wealth 500 rich list", 7 leading enterprises of clothing enterprises disappeared from the list, these enterprises include Lining (02331.HK), 01234.HK, China trend (03818.HK), 31st degree (01361.HK), Pathfinder (300005), PEAK sports (01968.HK) and Saturday (002291).

From 2013 to 2014, two leading clothing companies fell out of the list of rich people. They were Ma Hong's family and the forest peace brothers of rich birds. (002503)

< /p >

< p > annual report shows that in 2013, Lining, Anta (02020.HK), PEAK, 31st degree, China trend, XTEP (01368.HK) six brand inventory reached 942 million yuan, 689 million yuan, 366 million yuan, 409 million yuan, 183 million yuan and 537 million yuan respectively.

Affected by inventory, Guan Dian Chao took turns in various sports brands. The number of these six brands in 2013 was over 3000.

In addition to the net profit growth of China in 2013, the other companies' performance has not increased, and the net profit of 321% has dropped to 7.

Although the Anta family of Ding Shizhong and the XTEP international Ding Shuibo family still remain in the list of rich people in 2014, it is inevitable that they will experience a miserable business.

Anta closed 318 stores last year, net profit fell by 3.2%, XTEP's net profit dropped 25.2%, and the front line was retractile, moving part of the business department of Guangzhou branch to Xiamen and headquarters Quanzhou.

< /p >

< p > non sports brands also feel the chill chill brought by the downturn of the industry.

In the list companies of the "new wealth 500 richest list" in 2014, the us a target= "_blank" href= "http://www.91se91.com/" > dress < /a > (002269), Bosideng (03998.HK), nine herd King (601566), seven wolves (002029) and AOKANG International (603001) all recorded a decrease in net profit, of which the net profit of the United States was down to 49%.

Due to the weak retail channel, the first half of 2013, seven wolves closed 152 stores due to inventory pressure, accounting for 1/4 of the total number of terminals.

Nine Mu Wang also closed 59 stores during the same period to control operational risks.

In January 2013, a letter from the founder of Hong Zhaoming, the founder of the real strong group, circulated to the staff on the Internet.

< /p >

< p > < strong > vip.com against the market red fire < /strong > /p >

< p > in the face of enormous inventory pressure, brand operators usually digest inventory through four main means: to sell products onto various electronic business platforms, to sell products through electronic commerce channels, to increase sales discount for online and offline stores, to promote sales, and to cooperate with professional tail cargo channels, such as some tail goods mall, etc.

< /p >

< p > when the branding business is running out of stock, the e-commerce platform that helps businesses clean up inventory has ushered in the development of spring.

The flash purchase mode of vip.com (VIPS.NYSE) is one of them.

The so-called flash purchase is that every commodity will have a shelf life. All products will be sold out in the next few days.

Vip.com will not have many products on the same day, and there is no search box on the web page. Consumers can only accept the goods listed on their shelves.

This mode allows users to pay more attention to the recommended products, and also achieves the high efficiency of vip.com inventory.

According to statistics, vip.com usually can finish inventory clearance in about 3 days, and the selling rate of each brand is between 50-80%, and its efficiency is higher than that of offline channels.

< /p >

< p > in addition, vip.com adopts membership mode, and brands do not need to invest in marketing and promotion.

It can also provide free analysis of target customers' characteristics, such as gender, age and geographical location, so as to help businessmen accurately locate potential customers.

Compared with offline 40-50%, vip.com's buckles are located between 20-30%, leaving more profit margins for brands.

< /p >

< p > vip.com didn't sell stocks at first. It started as a luxury website. In March 2012, it landed on the New York Stock Exchange as a luxury discount provider, but suffered a bloody listing.

Its original price was set at a low of $6.5, the first day's close down 18%, followed by a few days.

Before listing, vip.com has lost 3 consecutive years, and the net loss in 2011 has reached $107 million.

< /p >

After P 2012, vip.com's performance improved significantly, mainly because the company's strategy to pform its luxury discounted business to mass brand "outlets" has achieved success.

Due to the gradual formation of the scale effect, the bargaining power of the company and the supplier has been improved, and the gross margin and performance have been promoted.

Its net loss in 2012 narrowed to $9 million 470 thousand, and revenues increased by 204.7% to $690 million.

In 2013, vip.com turned a profit, realized net profit of 52 million 300 thousand dollars, and revenue increased 145.14% to 1 billion 697 million dollars.

< /p >

< p > the continuous improvement of the performance also brought the stock price to rise vigorously.

At the closing price of US $142.53 in April 17, 2014, vip.com's growth rate has reached 77.74% at the beginning of this year, and its share price has increased by 426.48% over the past year.

Its market value reached US $7 billion 933 million, and it was far ahead of China's Internet retail stocks. The share price of Dangdang (DANG.NYSE) was $12.08 during the same period, and its market value was $970 million, which was only a fraction of vip.com's.

Mcglaughlin (MCOX.NSDQ) has a stock price of US $3.68 and its market value is only US $46 million.

Lanting Pavilion stock market (LITB.NYSE) has a stock price of US $5.58 and a market capitalization of US $273 million.

Deutsche Bank also released a research report in April 14th, and expects vip.com to double its revenue in 2014.

< /p >

Under the stimulus of vip.com's stock price, Shen Ya, chairman of vip.com, who never boarded the "New Fortune 500 rich list", was selected for the 2014 list. At the end of 2013, vip.com's share price of 83.68 dollars was calculated, Shen Ya's personal wealth reached 9 billion 140 million yuan, ranking 131st in the rich list.

< /p >

< p > < strong > the tail cargo market is fiercely competitive < /strong > < /p >

Less than P, vip.com has made a difference in the past year, and is also a leader in China's listed e-commerce companies.

But how long can this kind of red fire last? < /p >

At the end of P > 2013, a number of agencies reported that the apparel industry had gradually completed the process of stock elimination.

Northeast Securities believes that the industry leading enterprises such as Smith Barney clothing, Semir clothing and seven wolves inventory year-on-year decline, inventory sales accounted for a reasonable range in the industry - around 20%.

Zheshang securities's April 2014 research report said that the garment industry has already bid farewell to the extensive mode of opening stores to promote growth, and more enterprises have begun to pay attention to the integration with new channels and new technologies. Inventory digestion has also come to an end. Anta and Semir, which first entered the inventory adjustment cycle, have entered a new round of replenishment cycle.

Shen Yinwanguo, Dongguan securities and other institutions believe that leisure clothing, home textiles and other industries clear inventory close to the end, the turning point appears.

< /p >

< p > with the end of the large-scale inventory of apparel enterprises, vip.com and other e-commerce enterprises mainly selling inventory will inevitably be affected by this.

However, for vip.com, "big trees" is the biggest problem they are facing at present.

< /p >

Vip.com's impressive gross margins and net profit margins, and the rapid growth of its performance, have attracted a number of competitors to move to the field of P.

Jingdong, Dangdang, Tmall, fan, No. 1 store and other electronic business platforms have launched a special sale mode. For a while, the low price online shopping group found themselves many choices, Jingdong flash buying "red" channel, Dangdang tailing exchange, Tmall special sale, fan sale, and first shop brand sale.

< /p >

< p > in vip.com's stronghold three or four tier cities, competition has become increasingly fierce.

Consumers there are much less selective in goods than in second tier cities, and are more sensitive to prices.

But at present, the three or four line city has not yet been fully excavated and has become the focus of every big business platform.

< /p >

< p > {page_break} < /p >

< p > January 2014, Shi Tao, vice president of Jingdong group, pointed out that the penetration rate of Jingdong in the three or four tier cities is still relatively low. This work has become the focus of 2014, and will be a series of improvement in marketing, category management, regional inventory management and regional sales forecast.

Jingdong's cooperation with Tencent will also be more effective in influencing consumers in the three or four tier cities.

In April 2014, Dangdang also lowered the free shipping threshold to fight for "price sensitive" online shopping users, especially those of the three or four tier cities.

< /p >

< p > in addition, Dangdang also used the "low price strategy" to force the stock flash market and share a slice with vip.com.

In March 2014, Dangdang launched a propaganda poster to "treat the only you". The main page was directly switched to the terminal sale channel. The selling price was "welcome to the price, the price was doubled," and the gunfire was directed at vip.com.

Dangdang demanded that the price of all clothing brands is 8-9 fold of other platforms over the same period of the same period of vip.com, and attack at low price as the core strategy to vip.com.

< /p >

< p > the sale of all customers will increase the profit margins of suppliers by reducing the deduction points.

Customers receive platform commissions from merchants. According to the category, the customer's charge points are different. The general deduction is 5%, which is lower than the vip.com 20-30%'s deduction level.

< /p >

Less than P, the challenges facing the only product club are just beginning.

At present, vip.com is mainly bound with a low popularity brand. When suppliers have more inventory clearing platforms, they are inclined to turn back under the interest orientation.

In June 2013, vip.com forced the merchants to stop and asked suppliers to sign the "exclusive sales agreement" to prohibit suppliers from selling products at the end of the sale, the sale of all customers, the sale of the first shop name, and other channels.

< /p >

< p > but in the short term, vip.com does not seem to worry too much. It has established the image of a website specializing in sale, which has established a preemptive advantage in the flash buying mode and the sale area.

On the contrary, for Jingdong, Dangdang and van guest websites, special sales are only one channel in their huge businesses. As the sale may be related to the main business, the big business providers are just testing water and will not go into this relatively small stock market.

In addition, the clothing market is relatively low degree of standardization than the 3C and other commodities. The price of the clothing market is relatively small, and the time limit sale can also avoid the price difference to a certain extent.

If vip.com expands to other high standard products in the future, it will inevitably fall into the whirlpool of low price competition.

Vip.com has already bought Lok bee net and entered the field of cosmetics vertical electricity supplier.

< /p >

< p > in the long run, the pattern of the stock sale industry is not clear. Once Jingdong and Dangdang enterprises attach importance to their efforts, combined with their technical and logistics advantages, they will be able to pose a real threat to vip.com.

< /p >

< p > January 2014, Jingdong formally launched the brand sale channel - Jingdong flash buying "red".

Unlike a href= "http://www.91se91.com/news/index_f.asp" > vip.com < /a > providing only clear inventory services, Jingdong hopes to meet the overall needs of brands from the new to the inventory clearing.

At the same time, the goods on this line can also be fully used by Jingdong's proprietary warehousing and distribution services, relying on the advantages of its supply chain.

In contrast, vip.com's warehousing and distribution is based on the mode of distributing the whole country's sub stations, establishing warehousing centers in the core cities of the region, storing goods from suppliers and serving consumers in specific areas, and distributing on the basis of landing matches with other regions. The service quality of the couriers is still different from that of the self operated Jingdong.

In the account period, Jingdong can buy the first payment after 7 days of online purchase, while vip.com is the two week buyer who returns 70% of the sales return.

< /p >