Can Chen Ou Return Jumei.Com'S Decline?

Big trees catch the wind, but the wind is too strong.

In May 16th this year, after four years, jumei.com boarded the stage of the US stock market. On the closing day, jumei.com's market value reached US $3 billion 433 million.

Before this is not too optimistic about the situation, jumei.com told foreign investors about the "beautiful cause of China" and finally touched their hearts.

In the late spring of New York, Chen's heart was also intoxicated by the warm wind of New York. At that time, he was sure that he was like "Jack of The World" at the same time as the bow's Jack.

But there are still many people in the industry who have never forgotten the suspicion of poly America. They also frequently raised questions about "selling fake goods and parallel imports" on the day of listing.

After the successful listing, polyamerica and Chen ou have attracted much more skepticism. People can't wait to take a magnifying glass to look for problems.

Before long, the pigtail was really caught by them.

In June 10th, the famous C son, who I spoke for myself, came to the stage.

The author tells the story of Chen Ou's fictitious "pioneering door" with the attitude of the client.

As soon as the article spread through the Internet, it is fermented and amplified, and the questioning of Chen Ou has pushed the new champion from Wall Street to the top of the storm.

CTO Liu Hui, who gathered in the United States, issued a few days later through media channels. He refutes all kinds of "black articles" in his identity as a co participant of Chen EU venture. However, because of the late delivery and no active use of a large number of public relations channels, he is still remembered as "Mr. C".

Failing to respond at the first time of the dispatch was a big mistake made by Ju Mei at that time in public relations.

It is reported that Chen Ou has been rather negligent in the construction of public relations teams. Even before the listing, their public relations team even had 5 people.

In the face of serious public relations crisis, mature Internet companies generally respond to hours or even minutes, but it takes 24 hours for N to come up with countermeasures.

The lost time is a very expensive price for poly America. The price of poly America dropped from $30.7 high in June 10th to a mere 23 dollars after ten days, with a loss of 1 billion 100 million dollars in market value.

It was scraped away by 1 billion 100 million of the evil spirit of "black script", and the United States paid a painful price for its "Tucson break".

What is even more dangerous is that the relationship between poly and "fake and parallel imports" has not been ignored. "Jumei.com's business after listing will become pparent, and the trust of consumers can be established".

"Informal channels"?

Just as poly Mei was still somewhat ambiguous about its "fake and parallel imports", the sale of the Xiang Peng Hengye, a supplier, was exposed by the media in July 28th.

The reaction speed of the poly American public relations team finally rose quickly. In the afternoon, a statement was released on Tencent technology that it closed the "Yi Peng Heng Ye" shop and removed all the third party supply commodities and stopped selling. Meanwhile, consumers could return unconditionally for the goods they had purchased.

The choice of the third party channel should carry the risk of "selling off" and the gross margin is not high.

Because of the lower gross margin of products sold by two or three line brands at a discount price, the gross profit margin of the United States last year was 24.5%; the retailer under the line, Sasa's gross margin could reach about 50%, and those international gross margin could even reach more than 70%.

In fact, poly America wants to get a big enough brand of upstream goods from regular channels.

Why can't Ju Mei get the products of big brands from regular channels? We must first put the perspective in the cosmetics industry.

In the cosmetics industry, major pactions occur in various channels.

For local enterprises such as Jahwa in Shanghai, the volume of goods sold by provincial dealers may be worth a year's sales volume in one year. For the big international brands, the amount of goods pported by the United States is even worse.

Therefore, for the cosmetic companies on the scale, the United States is very backward in customer priority. In other words, the sales volume of the United States is not seen by the industry.

Under such circumstances, poly America has no chance to win discounts lower than senior dealers.

Conversely, such an e-commerce like trading situation in the United States has been murderous, which has caused tremendous pressure on offline pactions.

And cosmetics are fast moving products, and sales channels are the gate of the enterprise. Therefore, it should be emphasized by cosmetics manufacturers that why such a fast business channel should be taken care of. Why do they still not focus on the raging electricity supplier?

According to the understanding of small, this is because: first, the sales channels of cosmetics are too large.

It takes a lot of distribution steps to complete this huge amount.

There are hundreds of thousands of people who have been bought from factories to the shelves of big cities and small cities.

Secondly, the cosmetics buying process requires a lot of emotional communication and practical trial.

This determines that there must be physical stores and shelves, so cosmetics manufacturers only have to keep the channels under the line.

Once again, even if L'OREAL and other companies are currently doing an attempt to make electricity suppliers and cooperate with poly America and other platforms, but the sales volume of the US 6 billion is made up of hundreds of thousands of brands.

Therefore, whether it is from necessity or possibility, poly America is not the necessary choice for big name manufacturers.

The United States often only gets a small quantity of goods from the upstream channel, and the downstream channel price is too high for goods to take.

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Therefore, only 15% of the exclusive agent brands are in the United States, among which the proportion of big brands is very small, and the rest of the big brands are mainly supplied by third party suppliers.

We have seen seventy percent off of the Estee Lauder people in the United States, all of which are similar to Xiang Peng Hengye.

These suppliers are timed bombs. Although they do not want them to explode, they are trying to get more low-cost goods from regular channels, but what they do not want to happen eventually happens.

Can the king return the decline?

After the Xiang Peng Hengye incident, a comprehensive self-management strategy was adopted to prevent similar incidents from happening again.

After reaching its highest value of $37.99 in August 15th, poly US plummeted for nearly 4 months, and it closed for $17.7 after rebounding slightly yesterday.

In these more than 100 days, they lost 2 billion 880 million of their market capitalization, which is more than their current market value.

Although some people have pointed out that this is actually poly America, because the stock price has been overestimated natural shrinkage, but also related to the overall performance of China's stock market.

But after in-depth understanding, we found that after the lifting of the ban, the United States did not encounter a large number of stockpiles of stocks. Therefore, the situation of "100 consecutive days down" should be the result of the market behavior of the two level retail investors and institutions.

Because cosmetics are sensitive products, consumers are more concerned about quality, empowerment and other issues than other products.

The occurrence of Xiang Peng Hengye incident has had a great impact on the brand image of the United States and the confidence of shareholders.

Having said so much, we can find that Chen Ou really disappeared from the cusp. For two years, he had hardly seen any major crises.

Seeing that the price of poly us was falling all the way down to the issue price, Chen Ou finally couldn't sit still.

Chen can face now, in addition to the United States share price downturn, there are two months of revenue growth of zero to zero, gross profit margin decreased, operating profit year-on-year ratio is declining.

Although jumei.com has been in line with the trend of "Hai Tao" for some time, it has opened up cross-border electricity business in the bonded area, but it is still in the preliminary stage of preparation and can not contribute significantly in the short term.

As an Internet company less than 5 years old, the United States seems to have met the bottleneck of growth.

Although this is not an anomaly in the industry, it is probably not good for the United States who wants to carry out the "beautiful cause" for a long time.

With Chen's return to public view, the drama of a return of the king seems to be staged.

That's how easy it is! How can it be? The competitive Internet industry is not a place for empty talk. As a listed company, if the United States can not effectively reverse the trend of decline, the final fate will only be defeated.

In 2014, Chen Ou had been silent for a long time, but did jumei.com wake up?