Why Is Jumei.Com No Longer A Myth?

In order to sell goods, everyone is fighting for net red.

Chen ou, who spoke for himself, was once a representative of CEO after 85. He was in the list of the richest man after he was born. However, with the Jumei.com The stock price has been sluggish, and the CEO has also shrunk.

According to the world clothing shoes and hats net, jumei.com (NYSE:JMEI), which was listed in the US in December 23rd, released the first half of 2016. In the first half of this year, jumei.com's net revenue was 3 billion 500 million yuan, an increase of 1.7% over the same period last year, and net profit of 141 million 200 thousand yuan, down 29.8% compared with the same period last year.

This tragic business is no longer a case. According to the world clothing and shoe net, its average earnings per share declined by 183.09% and 58.93% in the third quarters and fourth quarters of 2015, compared with the previous two quarters.

Compared to that year, Chen Ou was the first CEO to stand on the New York Stock Exchange. After 85 years, he looked back. Why did this limelight ever have two vertical cosmetics business?

　　 Starting from marketing makes a myth.

Jumei.com was founded in 2010, and it is known as the founder of Chen ou for his endorsement, and it is widely known throughout the world. It claims to have saved at least one hundred million.

At the same time, the goods on the platform are very cheap. After searching jumei.com, the netizens are basically asking: "why is jumei.com so cheap? Is it fake?" at that time, the United States said it was only from the brand Manufacturers, regular agents, domestic and international counters and other trusted purchase channels purchase goods, so 100% is genuine, cheap because it reduces the additional channels and operating costs.

In addition, jumei.com also invested in filming the micro film "women's public enemy", advertising the film into a movie, creating a way of entertainment marketing, and many executives involved in the shooting, saving advertising fees, but also attracted a lot of traffic.

CEO marketing, word of mouth marketing and other marketing assists, jumei.com took only three years to complete the single month sales from 100 thousand to 600 million yuan breakthrough, boarded the status of China's beauty cosmetics business first stop. It also realized the miracle of going on the market in eight consecutive quarters and just four years.

According to the world clothing and shoe net, jumei.com was listed on the NYSE in April 2014. JD.COM Ali and other business tycoons also need to be early. It is China's first vertical cosmetics supplier to the United States.

Its initial offering price was $22 per share, and its share price rose to $28.28 on the first day of listing. In the following months, share prices continued to rise, reaching $39.45 at the peak, with a total market value of US $5 billion 780 million.

　 Extreme decline and dilemma

However, since then, the share price of the United States seems to have started to decline, down from nearly 40 US dollars to the current US $4.4, and the market value has shrunk by 90% compared with the peak.

The United States may not be alone in the stock market. Since October 2010 to September 2014, Mcglaughlin, Dangdang, vip.com, Lanting Pavilion, jumei.com, Jingdong and Ali have come to the United States for 7. However, besides the two giants of Jingdong and Alibaba, others are rarely heard now. From stock prices, there are probably only two of them.

Seeing the collapse of stocks, CEO can no longer sit still. Mcglaughlin and Dangdang have completed privatization and are ready to return to the domestic market. Jumei.com also expressed this intention, but did not indicate whether to return to China. Chen said jumei.com was seriously underestimated.

According to the world clothing and shoe net, in February 17, 2016, jumei.com (NYSE:JMEI) announced that it received applications for privatization of $7 per US depositary share (ADS) submitted by the buyer of CEO Chen ou, vice president of product Dai Yu Shen, and Sequoia Capital. At that time, jumei.com's market capitalization was only $900 million, but the price of $7 was still dissatisfied.

Even with the privatization plan started, poly's share price continued to fall, which is now only $4.4, and its privatization plan is in a dilemma.

Why is myth no longer? Brand is damaged and competition is fierce.

In the US stock market, which always focuses on performance, jumei.com's stock market has slowed down since then, and profits have dropped. Its performance has not reached analysts' expectations for many times, and foreign investors are not optimistic.

From its own perspective, although it is known as "China's largest authentic cosmetics group buying website", it seems to have been entangled with counterfeit goods since its birth.

After being accused of having counterfeit goods, Ju Mei first refused to admit that he had fakes and was unable to stand up. Chen Yu finally attributed the blame to third party businesses. In order to provide quality and after-sales service, jumei.com said it would change its operation mode, strengthen its channel control, cut all the third party luxury business, and turn most cosmetics to self marketing. Although apparel business continues to operate under the third party platform, it also hopes to become an important growth point in the future. But in the user's impression, poly beauty is still a place to sell cosmetics.

What is more unexpected is that such a transformation has been targeted by "vulture vultures". In December 2014, a number of law firms in the United States launched class action lawsuits. Class action has already formed an industrial chain in the United States. Many law firms focus on the stocks and aim at the opportunity to make profits. These firms and lawyers are also known as "stock vultures".

What is more sad is that even with its own efforts, it has been repeatedly complained about selling fake products, and its business is also declining. It can be said that in the early days of poly America, the brand advantage accumulated by marketing and low price has been tainted.

This reflects the control of supply chain. Some analysts believe that what jumei.com needed to do at that time should be to optimize its own supply chain. It is to grasp the part that can be grasped by itself, that is, the dealer level, to eliminate fake products from this level, to ensure product quality and consumer experience.

However, I do not know whether I am capable or not. Chen Ou announced in a high-profile manner that the key business next step is to buy overseas businesses.

Unfortunately, there is money to be rich, but giants such as Jingdong, Alibaba and even NetEase have cut into the sea. On the brand, the former sea's business is tired by fake goods; on capital, the latter is more abundant.

Brand, the vertical cross-border electricity supplier has not been popular among the people, Ali and Jingdong have been killed on the way. For those who are not familiar with vertical electricity providers, the integrated e-commerce platform such as Tmall and Jingdong is obviously easier to accept.

In terms of capital, jumei.com senior vice president Liu Huipu also said in an interview in 2015 that cross-border e-commerce business did not have a domestic agency mechanism abroad, making it easy for the e-business platform to be plagued by inventory, and that the postal tax on cosmetics was relatively high, which was also mainly borne by the United States.

This means that cross-border electricity providers are burning money, and their operating costs are relatively high and the cost of paying bills is higher. Can they afford it?

Li Chengdong, an e-commerce analyst, will weaken the company's financial capability and affect its share price. Jumei.com is a "small and beautiful" electricity supplier, it is difficult to achieve more large-scale business. With the test of supply chain, logistics and other links intensified, today's electricity supplier is already a competition among giants.

Return to the old routine: do you want to develop marketing by direct broadcasting outlets?

Looking back at the old days, we found that poly America had a very poor performance in supply chain and logistics management. Besides fake goods, it was also repeatedly complained about supply and after-sale. Probably, it is the most serious marketing.

This year, Chen Ou did not know whether or not he gradually realized that his talent was eventually linked to the two characters of "net red", playing the mode of entertainment + electricity supplier. At the beginning of this year, a film and television company was set up. Its first work is called "warm string". Chen Ou said that jumei.com will move closer to the direction of "fashion entertainment media + e-commerce", and integrate entertainment and e-commerce business more closely.

In addition, poly America also started the live broadcast of the electricity supplier, training the net red business, in order to pull the flow.

Li Jinjie, general manager of poly American direct innovation department, said that the main purpose of marketing is to increase the number of new customers and increase the conversion rate. The cost is lower than that of the original hard, wide or CPM and CPC forms of advertising.

However, the content of the electricity supplier, more and more enterprises have entered the Red Sea. Ma Yun's father's marketing is not built. Ali, the business tycoon, has begun to play the entertainment + business routine. It has launched the two floor of Taobao, launched a Tmall live party, and sold products at the concert. I wonder if jumei.com will be able to get out of this difficult situation on its own.

More interesting reports, please pay attention to the world clothing shoes and hats net.