Who Supports The Volcano Behind The "Billion Dollar" Volcano?

< p > March 2014, vip.com's stock price stood at 170 US dollars, and its market value exceeded US $10 billion. It became the fourth largest market Internet Co after the "a href=" http://sjfzxm.com/news/index_p.asp "Tencent" /a, Baidu and Qihoo 360, and the hottest new hot spot in the electricity supplier circle.

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The stimulation of vip.com's ambition by P high price can be imagined. "The electricity supplier in China has ended the age of hegemony, and the overall situation has been decided, and vip.com will occupy one of the top three."

In March 6th, vip.com CFO Yang Donghao vowed to Chinese entrepreneurs.

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< p > as an enterprise that is partial to the corner of Southern China and away from the vortex of electric business, vip.com was ridiculed as "sewer" to clean up inventory at the beginning of its establishment. Its business mode is simple, page design is "rustic" and shopping experience is not good.

But the reality is that as of the fourth quarter of 2013, vip.com gross profit was 24.5%, while Dangdang was 17.6% in the same period and Jingdong was 9.8%.

The almost highest gross margin in the electronic business platform has created vip.com's "myth" which has been singing and soaring 45 times.

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< p > as the exclusive media that has interviewed vip.com's founders and executives, Chinese entrepreneurs have witnessed the process of vip.com sitting on the "platform outlet". How does an electric company without background create a blood route from the jungle of big companies? Is vip.com's high share price a big bubble in capital market or a new long-distance race to track? After a year, vip.com is on the cusp.

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< p > < strong > draught and foam < /strong > /p >

< p > Shen Ya is considered an alien in the electricity supplier.

Shen Ya and another partner, Hong Xiaobo, a traditional trade company, have been immersed in the field of communications equipment for 10 years. Unlike Ma Yun, Liu Qiangdong and other Internet or IT entrepreneurs, Shen and Hong Xiaobo do not understand the Internet. This is also criticized by investors when they are listed. They never claim to be "product managers" or even micro-blog accounts.

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< p > "I am different from their Beijing school."

Shen Ya explains, "I am from Wenzhou and work in Guangzhou. Guangdong school is more pragmatic."

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In the interview P, Shen Ya has repeatedly said, "actually, we are different from them in doing the Internet, because I do not think that only Internet thinking can do well" a electricity supplier < /a >".

He added again, "what are we doing at the right time, we are going to be a cloud computing center. Is that not crazy?" < /p >

< p > interestingly, the company, known as "Internet thinking", has been on the seat of China's fourth largest market Internet Co in a year.

Of course, this seat is more like a crater. Since the listing of vip.com, the stock price and market value have been disputed continuously. When the stock price reaches 170 US dollars and the market value exceeds 10 billion US dollars, the market's worries about its market value "bubble" have further intensified.

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< p > as a loyal American investor, Xu Zhihong paid much attention to vip.com.

He was the first person to talk about vip.com on snowball in the US investment forum.

"The first impression that vip.com gave me was the hao123 of the group buying community. It was very deep rooted. It knows very well the Chinese ordinary users. I know that girls earning 3000 to 4000 yuan are waiting for the new products at 10 o'clock."

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< p > Xu Zhihong discovered that one of vip.com's two largest investors, the DCM fund, has invested in a series of Internet projects in China, all of which are not sexy, and the stock is huge. For example, the easy car network and the 58 city are all behind DCM.

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< p >, which is why vip.com is very optimistic at the beginning of vip.com's bloodshed.

However, as vip.com shares soared, like many investors, Xu Zhihong began to doubt whether the true performance of vip.com could support high valuations. He compared vip.com with Dangdang, Amazon and other Chinese and American counterparts, and concluded that they were "seriously overestimated" and he even had the impulse to "short".

To his surprise, vip.com did not give him the chance to sell short, but instead went up to $170.

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Li Chengdong, an independent business analyst at P, told Chinese entrepreneurs that the different calculation methods of valuation are the main reasons for the divergence.

"The US mother to child flashover electricity supplier Zulily, in 2013 only $700 million in revenue, the market value of 7 billion 715 million dollars, the Wall Street analysts see the electricity supplier mainly see is the selling rate P/S (common stock market price per share and sales per share ratio), rather than price earnings ratio P/E (stock market value and its earnings per share ratio)."

Li Chengdong believes vip.com's net revenue in the fourth quarter was $651 million, an increase of 117.3% over the same period last year, which achieved its first profit year, while most of the other electricity providers were still losing money during the same period.

This brilliant performance has greatly increased vip.com's confidence in vip.com: vip.com's net profit and revenue are higher than the Zulily10 times sales rate, while the sales rate of less than 6 times still has room for improvement.

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Below P, vip.com's $10 billion market capitalization has become another focus of market doubt whether its "clear inventory" mode has hit the ceiling.

Yang Donghao explained to the Chinese entrepreneur that there is a general misconception about the scale of the tail cargo market. It is considered that the economic situation is not good, and the recession economic cycle has led to a large number of stocks. But in fact, even in the mature markets of Europe and the United States, about 20% of the sales will come from the tail cargo.

The scale of clothing in China is 330 billion dollars a year, 20% is about 400000000000 yuan, we only made about 10000000000 in 2013, and there is no bubble at all.

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< p > however, vip.com's current share price is still controversial. In the eyes of some investors, it has overdrawn the driving force of the next two years and is facing a new dilemma: the electric giant began to grab the cake with it, while vip.com's current growth rate began to slow down. Its revenue growth in 2010 was 1061%, 597%, 204% and 145% respectively, and it urgently needed new stories to boost the growth.

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< p > 2014, vip.com set up the "investment and acquisition" strategy department. After the establishment of this department, the first move was to win the "Happy Bee net". In February 14th, vip.com announced that it had a strategic stake in the 75% stake of the Oriental pop music company, which is the first big M & A investment since vip.com went public.

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< p > "beauty market is very large, 120 billion, and in 2015 there will be a major change. The electricity supplier will surpass Carrefour and Watsons, becoming the second largest channel in the beauty field."

Feng Jie Lu, vice president of vip.com, said when explaining the motives of the two parties' marriage.

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< p > the main consumer of the Internet is women. Shenyang's Wenzhou merchants circle knows this very well and knows how to make money from women.

One of vip.com's early shareholders, Oushi Li, a Wenzhou made women's clothing brand made a valuation of 2 billion dollars, attracting LVMH group's investment, "such a person stealth behind vip.com, decided that vip.com and any electricity supplier's genes are different."

Zhang Heng, chairman of Shang Dao consulting company, which focuses on female consumption, commented.

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< p > < < a href= > http://sjfzxm.com/news/index_p.asp > > vip.com < /a > rise, the biggest impact is Tmall.

Zhang Heng told Chinese entrepreneurs that 70% of the original brand sales channels for the Internet were in Tmall, and now the diversion effect is obvious, and Tmall has dropped to 50%.

On the other hand, Jingdong, which has been dominated by male consumption, is also considering expanding into the female consumer market.

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< p > March 8th, a business competition for female consumers opened: "cheating girls, the consequences are very serious!" Jingdong, which has always been dominated by 3C household appliances, unexpectedly put in a series of advertisements based on women's consumption, mainly including "beauty makeup" and other categories. At this time, the Peach Blossom Festival of Lok bee net is in full swing; and Taobao is invites the woman's "long legged male god" Lee Min Ho to speak for herself.

Behind all this, it shows that the electricity supplier has realized the great potential of the female consumer market.

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Besides P, vip.com will also face the big reshuffle of the electricity supplier pattern.

Tencent's $214 million stake in Jingdong has come to light, and Tencent's B2C platform QQ online shopping and pat Network will be merged into Jingdong. Once the alliance is aligned with the alliance, the electricity supplier's structure will be rewritten.

In response, vip.com's response is to force mobile terminals. In mid March, WeChat launched the "limited time rush" of mobile terminals on WeChat's "select products" channel.

Shen said in a recent conference call that vip.com mobile accounted for only 8% of the total sales in the first quarter of 2013, and increased to 23% in the fourth quarter of 2013. It has increased to more than 1/3 in the past month, and will continue to grow in the future.

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< p > < strong > reverse Internet survival < /strong > < /p >

Is there a "pushing hand" behind the vip.com P high price? A version is that the stock price of vip.com dropped sharply at the beginning of the listing, Shen Ya could not support it, and called the Wenzhou chamber of Commerce responsible person for help.

As a result, within a short period of time, the businessmen in Wenzhou gathered enough money to solve the urgent need for Shen Ya.

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< p > no matter how true or false this edition is, the Wenzhou business circle behind vip.com and Shenya is indeed an element that can not be ignored.

Statistics show that vip.com angel investment per capita is Zhejiang Wenzhou people, and founder Shen Ya, Hong Xiaobo for the Yangtze River business school students, of which two are clothing brand France Group boss Peng Xing and domestic women's clothing brand Xu Yu, no one has internet background.

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What does P, a company without Internet gene, get from its capital? There are some little known secrets about vip.com, which may, to some extent, stabilize the outside world.

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< p > Shen Ya and Hong Xiaobo have shared an office for a long time. Besides the deputy general level, they use the fully pparent glass partition independent office. They are basically open and have no obvious Department logo.

Apart from these pparent arrangements, very few traces of typical Internet Co can be seen.

Unlike traditional Internet Co, vip.com occupies the largest customer service department and shooting room, and the IT Department occupies only a tiny corner.

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Less than P, Shen Ya never wants to talk about the fashionable words of IT. "Big data" and "cloud computing" are too far away from him. "We are more of a traditional retailer."

Shen admitted to "Chinese entrepreneur" that vip.com's technology is not strong in the whole IT field, "we know business better than electricity."

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< p > vip.com has several peculiarities which are easy to be ignored.

First of all, vip.com is a "heavy company".

Jingdong focuses on 3C and other highly standardized products, while vip.com is the lowest standardized clothing, shoes and hats and other general merchandise.

"The biggest difference between us and Jingdong is that Jingdong does not need to buy a hand, there is no professional threshold, and we have to say that we should pick up the selling from the things we can't sell. How high is the threshold?" Yang Donghao said vip.com has a team of more than 600 buyers.

Most of the buyers are editors of beauty and fashion media such as Ruili and Xinwei, which are highly sensitive to fashion. This is the first hurdle for dealing with the inventory oriented website.

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< p > even vip.com's huge offline customer service team is more important than the general electricity supplier company.

"Jingdong has almost no telephone service, and we have a call center for more than 300 people."

Shen Ya told Chinese entrepreneurs that fashion consumers are very different from 3C stores, and vip.com is more like online outlets.

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< p > electric business circle has been arguing about vip.com's "buying system" operation mode.

A Dangdang employee told reporters, "when Amazon is using the long tail theory and big data to accurately match the needs of customers, there is still such a heavy line of vip.com to do the procurement, which is against the essence of the electricity supplier."

Shen Ya believes that vip.com's clothing based products determine the way of operation. The operation of personalized categories is quite different from that of standardized products.

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< p > secondly, vip.com is the only e-commerce website without search.

While other electric providers are making great efforts to improve the user's search experience and improve the precise matching of search, vip.com is going against the same path. It does not set up a search box on the full page.

Only users can buy them based on the brand links set by vip.com, which stems from Shen Ya's understanding of women's business.

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< p > Zhang Heng said to Chinese entrepreneurs that it is a male thinking to set up search on the Internet.

Feminine thinking is perceptual and fragmented.

"You see Suning and Jingdong are mainly written, unlike vip.com, which uses big pictures, pink and purple pages to stimulate women's consumption."

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Less than P, Shen Ya does not want to enter the trap of the "price comparison" mode in the electricity supplier industry, but constantly launches new products to stimulate the impulse consumption of women.

In Shen's view, most women purchase is not purposeful, mainly for shopping. Vip.com attracts this kind of woman. If she starts to search, compare the price and think about it, then there will be no perceptual consumption.

This is why vip.com's repeat purchase rate is the highest in the electricity supplier industry, reaching 70%, which is 70% of the repeat customers contributed 90.6% of the order volume.

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< p > "vip.com is very close to Xiaomi in terms of operational thinking. It only serves a specific group of people, with high loyalty and repeated purchases."

A supplier of vip.com is amazed at vip.com's inventory digestion capability. According to him, vip.com is second to none in brand operation.

"For example, if a brand is to be sold on vip.com, one of its metrics is to have at least 200 stores online."

The supplier told reporters that vip.com did not sell the best brands abroad, but rather the two or three line cities with more local brands.

Shen Ya knows very well the needs of customers in non tier cities. The name has been heard, plus cheap enough, these two points can be sold online.

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< p > with the help of this series of seemingly "anti Internet thinking" moves, vip.com has seized the hearts of a large number of female consumers in the three or four line cities.

"Most of them earn 2000 to 8000 yuan a month. They are not so sensitive to styles. They pay more attention to brand and cost performance."

Yang Donghao described China's entrepreneurs as the main target group of vip.com.

According to Yang Donghao, vip.com's orders in the first tier cities accounted for only about 13%, while the second tier capital cities accounted for 30%, or even four line cities and counties and townships accounted for more than 20%.

This is also confirmed by vip.com logistics director Tang Yizhi's interview. "Our orders in Inner Mongolia and Guizhou have entered the top ten provinces."

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< p > to a certain extent, it explains vip.com's "polarization" performance: you may not even hear the name of the website while the stock price and performance are going all the way, and you seldom see anyone around this website.

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< p > if vip.com can target Yang Donghao > electricity supplier < /a > three strong ones as vip.com said, "Jingdong and vip.com will have a war in the future". Gong Wenxiang, a senior supplier of electricity supplier, said to Chinese entrepreneurs that vip.com regards Jingdong as "the most important competitor" in private, and the marketing battle of the 38 quarter will trigger the first shot for them.

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< p > "according to the pattern of three points of electricity supplier, vip.com now has a very low valuation of US $10 billion."

Yang Donghao said to Chinese entrepreneurs.

Another competitor, who was a competitor, fell short before the dawn of the listing.

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Less than P, this is precisely what the outside world worries about vip.com, whether it will become another bubble.

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