Electricity Providers Wrestle "Her Economy": Vip.Com Focuses On Female Consumer Groups

As the two channel for women in the vertical field, jumei.com and vip.com have made new moves recently. Almost on the same day, Chen EU published "you never know what Chen EU is doing in the past six months" announces the transformation of jumei.com's broken arm, while vip.com jointly with the Economist Intelligence Unit released the first Asian women's online shopping Research Report "rising Asian women online shopping power".

　　 Asian women love online shopping

It is reported that the report was commissioned by the Economist Intelligence Unit EIU and commissioned by vip.com. According to EIU forecasts, the Asian retail market in 2015 is expected to grow by an average of 4.6%, reaching US $7 trillion and 600 billion, far exceeding the European (0.8%) and North American (2.5%) markets and the largest consumer market in the world. With the popularity of e-commerce and the vigorous development of mobile terminals, Asia is expected to replace North America as the world's largest electricity supplier market this year. It is worth noting that women play a decisive role in the whole Asian consumer market. Online shopping has become a new way to promote Asian women's consumption.

It is said that among the 90 million members of vip.com, female members account for 80%, contributing nearly 90% of sales.

At the press conference, Feng Jialu, vice president of vip.com, said: "vip.com believes that" women get the world's electricity providers ", and thus pioneered the" economic "in the electricity business. As revealed by this survey, the power of online shopping at any time and anywhere will be further released under the trend of mobile e-commerce. This report is of practical value not only for vip.com, but also for a wider range of female consumer industries. "

Research shows that women are not only responsible for clothing (88%), cosmetics (88%), household (85%), daily necessities (85%), mother and baby (69%) budget decisions, but also in home (85%), travel (84%), electronic products (81%) and other categories have a strong influence, the consumption trend of female dominated gradually formed.

It is worth noting that, compared with offline shopping, nearly half (49%) of women prefer online shopping (China is 69%); 63% of women browse internet products and services at least once a day, nearly 30% of them browse two or more times a day. Moreover, women are more willing to shop for themselves, and more than 62% of the surveyed women spend most of their time online shopping (China is 74%). In addition, 41% of women feel guilty when they feel they are buying too much. They will compensate for their husbands, children, parents and other family members (67% in China).

　　 Vip.com focuses on women Purchase demand

Such a report is undoubtedly the right thing to say that vip.com has been focusing on women's shopping needs.

This can be seen from vip.com's recent Q3 earnings report. The report shows that vip.com's total net revenue in the third quarter was US $882 million 600 thousand, an increase of 130% over the same period last year of 383 million 700 thousand US dollars. The net profit attributable to vip.com shareholders was US $27 million 700 thousand, a 130.3% increase over the 12 million US dollars in the same period last year.

But vip.com's outlook for the four quarter is less attractive than history. Vip.com expects net revenue in the fourth quarter to grow by only 84%-87% over the same period last year. From IPO to the 8 quarter, vip.com has more than 100% of its quarterly revenue show in Wangdu.

In addition, the total number of active users of vip.com Q3 was 9 million 500 thousand, although there was an increase of 136% over the same period in 2013, there was little growth in the ratio of 9 million 300 thousand. In the evening teleconference, the first problem for analysts is the growth of Q3's new customers. Vip.com CEO Shen Ya also gave an explanation: because the company cut off the new customer advertising of group buying, because this part of users came in to create low value and low retention rate, and the company wanted to introduce more flash customers instead of group buying. Moreover, Shen Ya emphasized in the last sentence: "there is no need to worry about the four quarter user growth."

　　 Vip.com Although the outlook for the four quarter is not sexy enough, it is still upward trend. Jumei.com, another household appliance manufacturer in Vertical Women's field, has had a lot of twists and turns recently.

　　 Jumei.com is full of ups and downs.

From the Q3 report, jumei.com is obviously inferior to vip.com. In the three quarter, jumei.com's net revenue was $157 million 700 thousand, an increase of 28% over the same period last year. The net revenue of US $157 million 700 thousand has not yet reached the average expectation of Wall Street analysts. The year-on-year growth rate of 28% is also beyond the background of the annual compound growth rate of the entire electricity supplier industry by about 30%. The total active users in the three quarter were 5 million 200 thousand, up 23.8% from the same period last year.

This may be attributed to the difference between the two main products. Although both are flash buying mode, jumei.com is cut from cosmetics, while vip.com starts from clothing.

Cosmetics online sales is an inevitable trend, but at the moment, online cosmetics sales are not a good business. We can see some clues from the figures: vip.com Q3's cosmetics GMV is US $190 million, but gross margin is only 20%, while vip.com's gross profit can reach 25% or even higher.

But in addition to the main category, the reason why it has always been a failure is jumei.com.

Chen Ou also said in micro-blog, a few days ago, the seller's third party platform watches selling fake events broke out, and countless electric providers were involved. The core business of jumei.com is self made cosmetics. The third party watches are totally marginal businesses, but they hurt the most in this incident.

Chen said, "I must admit that there is a loophole in our management. When jumei.com made the non cosmetics platform business at the early stage, as long as the merchants provided the power of attorney, plus the scale of its operation on other large platforms, we would allow merchants to enter our platform."

　　 Jumei.com broken arm Transformation

After realizing the destructive effect of the third party luxury goods, jumei.com cut off the entire third party luxury business line, which directly led to serious damage to jumei.com's performance.

Recently, jumei.com has been the largest prosecution and investigation since its listing. The reason for the prosecution of the US law firm is that jumei.com has multiple false disclosures, misleading statements, and undisclosed information. Among them, jumei.com failed to accurately disclose the change of its business mode, that is, the transformation from the original merchandise sales mode to the online store mode. The change of this business mode will pose a great risk to jumei.com's financial performance. Besides, jumei.com has not expanded the online store business according to the information disclosed.

In fact, the source of litigation is jumei.com's third quarter earnings performance lower than market expectations. Jumei.com's Q3 growth in 2014 was the lowest growth rate in several quarters. Jumei.com executives said in their earnings analysis that the growth rate did not meet the market expectations, which is closely related to jumei.com's strategic adjustment and business transformation.

Jumei.com is facing greater challenges after its own knife. Since no longer expanding the category through third party business lines, jumei.com will compete directly with vip.com in its proprietary business.

Although the two families started in different categories, they will come to the same goal in the future. Jumei.com was first cut into cosmetics, and now gradually extended to clothing, shoes, mothers and babies. Vip.com has been cut into garments, and now it has developed into a comprehensive flash buying platform with clothing as the main body, mother and baby, home, home textiles and beauty makeup as the four major features. User groups are mainly women.

The difference is that compared with cosmetics, clothing is non-standard. Non standard products emphasize individuation and operation is also more difficult. From clothing to cosmetics is relatively easy, from cosmetics to clothing is relatively difficult.

In any case, the economist's research report is in the direction of women's purchasing power. In the field of women's vertical electricity providers, who knows women's heart and who gets the heart of women will win the world.