O2O Market Merger Tide Such As Tsunamis Brand Profit Margins Decline Year By Year

In China, O2O is the most popular field of entrepreneurship. Its core idea is to attract users to physical stores by mobile phone applications.

But after a period of virtual fire, the situation dropped sharply.

With the popularity of smart phones,

With the rapid growth and low price labor force, O2O has had a strong development period in China. Entrepreneurs have developed various O2O applications.

According to CBInsights, a market research firm, under the big Internet situation, many Unicorn companies (valued at more than $1 billion Private Held Company) appeared in China. However, these companies basically did not make profits, and this terrible bubble appeared in O2O.

In order to open up the market, many companies keep burning money, and then turn the unicorn into a unicorn corpse.

Gary Rachel, founder and managing director of Qiming venture, said: "the number of" unicorpses "will soon exceed that of GaryRieschel unicorn.

In the fiercely competitive Chinese market, the fast, Uber, new big, glutinous rice and hungry have been fighting in various fields. Lin Xinhe, co-founder and general partner of DCMVentures, said: "this is an arms race."

O2O market is irrational, the market subsidies are too big, the cost of getting new users will be bigger and bigger, and the possibility of profit will be smaller and smaller. Without profit, financing will become an empty talk.

Qiming venture Rachel: "when financing becomes more and more difficult, you will find who is swimming naked, who lacks the real business mode."

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In the overall downturn of the apparel retailing industry, the price performance ratio has become an important criterion for consumers to choose clothing products.

Revenue is increasing, but profit margins are decreasing year by year.

Founded in 2008

The brand of Korea's clothes house grew very fast. The annual sales volume was 3 million yuan, and the team was 40. By 2014, the two figures had increased to 1 billion 500 million yuan and 2600 people respectively.

According to the figures revealed by Jia Peng, deputy general manager of Korea's clothing house at the 2015 Business Review Conference, the average daily visits of the shops are 5 million, and the "double eleven" has reached 130 million visitors per day, with sales reaching 284 million yuan.

Yin man, who belongs to the first camp of Amoy brand, has many brands and categories.

Also started in 2008, Yin man started a multi brand operation in 2013. Its parent company, sinomi group, currently operates 9 sub brands, such as Yin man and Chu language.

This year's "double eleven", Yin man's total sales reached 166 million yuan, the first on-line.

The largest pen order for "Home" is more than 310 thousand yuan.

However, there will be a substantial increase in the cost of marketing promotion as a result of multi brand operation.

According to the financial data, Hui Mei Group achieved operating income of 216 million yuan, 590 million yuan and 956 million yuan respectively from 2012 to 2014, and the net profit was 20 million 17 thousand yuan, 34 million 125 thousand and 300 yuan and 38 million 907 thousand and 700 yuan respectively, while net profit increased while net profit rate was declining.

In this regard, Chen Yu told reporters that since 2013, the United States has carried out multi brand operation, the loss of the new brand in the early operation and the marketing promotion for the mature brand has had an impact on net profit.

In February 2015, La Natsu Bell held a total stake of 200 million yuan, and Hangzhou shares a 54.05% stake in Agel Ecommerce Ltd (mainly online brand "seven grid"), strengthening the channel operation ability of e-commerce.

At present, La Natsu Bell is also a multi brand operation strategy.

However, whether its fast fashion brand can stand out in the shadow of foreign brands such as Zara and H&M has become a new profit growth point of the company.