Electricity Supplier First Shares Mcglaughlin From The United States To Withdraw From The Vertical Category Of Electricity Providers Have A Crisis?

Announced the withdrawal from the United States.

The wave of the US stock market withdrawal is still continuing.

In July 21st, Mcglaughlin, known as China's "electricity supplier first share", announced that its board of directors had received a preliminary non binding takeover offer from Nanjing business circle network and LeadingCapital.

Mcglaughlin said he plans to recover Mcglaughlin's tradable shares at a price of 4 US dollars or 0.114 dollars / share in /ADS.

Mcglaughlin is representative of the domestic electricity supplier camp.

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It announced the delisting, the market generally questioned the vertical electricity supplier has reached the end of the road.

But there are also different voices: "it is overstated to say that vertical electric providers will be encircled by the comprehensive category of electronic business."

In fact, vertical business like jumei.com, Shun Feng optimization, net wine network and other vertical businesses are still playing in their respective fields.

The path of vertical electricity providers to personalize and branded has proved to be a right direction.

Vertical electricity supplier is no longer the first electricity supplier Mcglaughlin announced delisting

Mcglaughlin takes the clothing electricity supplier + directory mail order + call center as the core business, the main mode is mail order clothing.

This vertical pattern has brought glory to Mcglaughlin.

In 2010, Mcglaughlin listed on Nasdaq, becoming China.

B2C was listed on the first issue, when the listing price was $11.

Behind Mcglaughlin is the famous capital of Hua Ping and Sequoia.

2010 is also a crazy year for vertical electricity providers.

Mcglaughlin and Dangdang listed, pushing the financing of vertical electricity providers to a peak. At that time, all vertical electric providers were full of energy.

Data show that in the year, more than 24 electricity suppliers were financing, amounting to 600 million US dollars. In 2011, the total number of electronic business financing was 95, and the total amount was over 4 billion 691 million US dollars.

Within a week of Mcglaughlin's listing, shares rose to a maximum of $18.5.

But this is also the highest point of Mcglaughlin's stock price up to now.

Subsequently, Mcglaughlin's stock price fell all the way, and was hovering around $1 for a time.

By the end of the last trading day, Mcglaughlin's stock price was $3.38.

With Mcglaughlin's share price falling, its losses are rising year by year.

After the listing, Mcglaughlin announced the first quarter of fiscal year 2011, the unaudited financial results show that Mcglaughlin's first quarter net revenue was $48 million 100 thousand, down 2.4% from the US $49 million 300 thousand in the same period in 2010, and the net loss was 3 million 900 thousand US dollars, a 153% increase over the net loss of 1 million 500 thousand US dollars in the same period in 2010.

The fourth quarter financial report released in the 2011 fiscal year showed that Mcglaughlin's net loss in 2011 was US $33 million 300 thousand, while the net profit in 2010 was US $4 million 400 thousand.

In his earnings report, Mcglaughlin analyzed the reasons for the decline in performance: "mainly due to the growth of China's e-commerce industry, the number of orders placed through the company's customer service center has been reduced, as well as the corresponding changes in user preferences for Internet shopping and the decline in the volume of company catalogues."

Changes in the market environment led to a decline in performance, which is also a microcosm of vertical electricity providers.

In the second half of 2011, the vertical electricity supplier's investment environment has plunged rapidly, and the major vertical electric providers have suffered different degrees of attack.

Category and user access cost are "ceiling".

In fact, not only Mcglaughlin, such a vertical electricity supplier is facing difficulties.

People, easy network, music and so on these once scenery vertical e-commerce, now have been far from the focus of the market.

Although the difficulties encountered by these providers are different, their loss makes the market once again question the vertical business models they represent.

Recently, Jingdong CEO Liu Qiangdong talked about the views of vertical e-commerce platform.

Liu Qiangdong said that for the vertical platform, it is not optimistic in the long run.

Liu Qiangdong said the vertical platform has advantages in the short term, but because of the user system establishment (especially the new user acquisition) and the comprehensive operation cost and other reasons, the integrated platform is more competitive.

Then, where is the "ceiling" of the vertical electricity supplier? The chief executive of an electric business enterprise said that the weakness of the vertical electricity supplier lies in its single category. "When your category is too standard, even if the current and upstream bargaining power is strong, once the giant is involved, it will easily be destroyed by others."

In addition, the acquisition cost of the current users has been getting higher and higher. "Spend a lot of money to attract a user to their own store, and the result is that users will go away once they buy something, and this website is sure to lose money."

In order to avoid competition with giants such as Ali, many electricity suppliers first choose to start from a standard category.

But in the process of development, many vertical electric providers have found that they must grow into a comprehensive electronic business platform, because standard category vertical electric providers have an insuperable weakness.

But there is little chance of being a platform based electricity supplier.

"On the track to the comprehensive electricity supplier platform, the only chance to survive is the champions, the Asian and the third army, and most enterprises are late when they enter the stadium, and there are few time windows left."

Analysis of the industry, after more than 10 years of development, Ali and other comprehensive e-commerce platform is growing, Matthew effect has also been very obvious, to create comprehensive e-commerce platform window of opportunity has been basically closed.

Personalized vertical electricity providers become new possibilities

As Liu Qiangdong said, many enterprises have chosen second modes.

"If the vertical electricity supplier will be encircled by the comprehensive category of electricity providers, it is obviously overstated.

In fact, vertical business like jumei.com, Shun Feng optimization, net wine net and so on are still playing in their respective fields.

Insiders say that vertical electricity providers are individualized.

The path of pformation has been proved to be a correct direction.

In July 22nd, jumei.com announced the $250 million strategic investment platform for mother and baby website baby tree.

Bao Baoshu's daily active users are in the tens of millions, and the current round of financing will be used for business development, especially the electricity business.

As a listed company in the vertical electric field, jumei.com has gone through a low ebb.

One year after listing, jumei.com's share price fell to $12, and its share price was $27 at the time of listing.

Jumei.com was once blocked by foreign shorting agencies.

By the end of 2014, jumei.com CEO Chen Ou said that the United States should pform itself into a cross-border electricity supplier and take the maternal and child field as the key direction to expand the category.

Since then, jumei.com has rapidly expanded the category of mother and baby products and increased the volume of goods. Its growth in Q2 is expected to exceed 75% in its Q1 earnings report. At present, its cross-border mother to child orders and shipments rank first in the industry.

Jumei.com's success shows the feasibility of vertical electricity supplier mode.

Generally speaking, the comprehensive electricity supplier can only satisfy people's general shopping needs. With the progress of society and the improvement of people's consumption level, the pursuit of personalized goods and services will become more and more people's consumption concept. This is the opportunity for vertical electric providers.