Vip.Com CEO Shen Ya: How Far Can We Lead The Third Pole Of China'S Electricity Supplier?

In the past 9 years, it has started from the "flash buying" market segmentation. It has experienced bloody listing, soaring stock prices and large platform encirclement and suppression. But it still creates a miracle, which is the two largest in Taobao and Jingdong.

In the crack of the giant, the stubborn growth has become the third pole of China's electricity supplier and the largest sale platform in the world, with the highest market value exceeding 100 billion.

It's vip.com.

Since mid July,

and

The rumors of the merger have made the electricity supplier "go one step" into the public view again.

For 18 consecutive quarters of profit, the stock price is not optimistic. What does vip.com claim to be undervalued? What will vip.com support its future? Will it be a good story with its merger with Jingdong? Vip.com's Shenyang Asia will lead the third pole of China's electricity supplier to where?

Compared with Ma Yun, Liu Qiangdong, the two symbol figure in China's electricity business, Shen Ya, the helmsman of vip.com, is a special presence.

His public comments or reports are so few that he has circulated such statements in the electricity supplier group. "Shen Ya is the most electric supplier that Ma Yun wants to see". "Can you invite Shenya to judge the standard of an electricity supplier's activity?"

These arguments are based on Shenyang and vip.com's past commercial success.

Shen Ya has sold a company with a market value of over 100 billion in just a few years under the pattern of Taobao and Jingdong dominating the Chinese electricity business.

Vip.com CEO Shen Ya

But now vip.com seems to be having problems.

Although 18 consecutive quarters of profit, but its stock prices in the past year are in a downward channel, the PE (P / E ratio) is significantly lower than Ali and Jingdong.

What's wrong with vip.com? What brand of Shenya as the helmsman has left behind in vip.com? Where will he lead vip.com?

In this regard, all weather technology visited the former executives, brand suppliers, two level market investors, former peers and business observers, trying to restore a real Shen Ya.

We found that apart from "mystery" and "low key", Shen Ya had more labels.

One

Low key or conservative?

In August 2008, after founding the only product conference, Shen Ya became chairman and CEO, and was responsible for vip.com's management.

Shen Ya rarely attended public events, but a number of vip.com executives said to all weather technology that "Shen Ya does not go out to speak does not mean that there is no communication with the industry".

Li Qi, a former executive of the product fair, told the all-weather technology. Shen Ya maintained the way to communicate with the industry. He asked many consultants, experts, big coffee and other companies to talk to him (Shen Ya) and talk to employees in the company.

According to Li Qi, most of the people invited by Shen Ya are experts in the industry, including data, operation and products.

In 2014, Shen Ya accepted an exclusive interview with reporters. This is also one of his few media interviews.

When asked why he did not want to accept the media interview, Shen Ya explained, "we feel that it is very hard to do interviews.

If we do not interview, you write us outside, do not have anything to do with us, write me very bad, it doesn't matter, write me very good, and you, because it doesn't matter to your own voice, it also can't affect me.

But we have to weigh ourselves.

Yuan Chang (a pseudonym) is a investment and financing manager who once participated in the refinancing of vip.com. In his view, Shen Ya does not accept media interviews, which does not mean that vip.com's PR work is not active.

"Jay Chou's advertisement for surprise officials is also PR, and the nature of vip.com determines that its advertising will not be less. Ultimately, these will have an impact on the mentality of investors," Yuan Chang told all-weather technology.

In an interview with the media in May this year, vip.com CFO Yang Donghao revealed that vip.com's overall marketing expenses were very large, and the proportion of advertising investment was only 4 or 5 points. But last year, the total sales revenue of the company was 56 billion 600 million. This year, it is expected that there will be an increase of about 30%, which will generate billions of marketing inputs.

In addition, Yuan Chang believes that vip.com's IR (Investor Relations) "very high profile", "you see Ali, Jingdong have not done so many open investor relations interviews, vip.com initially for each broker's overseas research team, Sina, snowball are spending money to do public relations maintenance."

Two

Pay attention to cost performance

On the user side, the core value that vip.com has been emphasizing is the price performance ratio, which is visible from the advertising slogan of their "brand name, stay at the price" and "global selection, genuine sale". One or two

Paying attention to cost performance is also the work concept of Shen Ya. In media application, he also grasps the yardstick of "cost performance" equally.

In February 2014, vip.com held a large conference at The Ritz-Carlton Hong Kong, announcing that it would invest $112 million 500 thousand in cash to acquire a 75% stake in the beauty shop electric bee network, founded by well-known female hostess Li Jing.

To the media reporters, there is no media that is invited to participate in the press conference except for a media in the electricity business circle.

The site was even strictly controlled, and pictures and news sources were sent to the media by vip.com public relations.

Behind this is Shen Ya's personal test of media value.

According to the world clothing and shoe net, in 2013, vip.com launched its first sponsors ad on Cheng Lingfeng's public account. Although it didn't cost much money, it was the first advertiser to eat crab. It triggered more than 10 traditional media scrambling to report this incident and gained a wave of media coverage.

"The marketing of high cost performance lets Shen Ya taste the sweetness". As a pragmatic businessman, Shen Ya values the actual marketing effect of the media and strictly controls the budget of the media.

Three

All kinds of work, no matter how big or trivial

However, for Shen Ya's "low key", Li Qi thought it may not be his own idea. "One of the reasons is that he is really too busy. He likes the command of everything and likes to control everything."

In the eyes of a supplier, Shen Ya is a manager with little details. "Shen Ya and suppliers meet, even the cost of a carton should be controlled and communicated in person."

According to a report by Chinese entrepreneur, vip.com has worked with a Southern China media to discuss outdoor advertising cooperation, because an advertising budget Shen YADU is going to negotiate in person.

Wang Hui, who is the founder of management, is also an evaluation of Shen Ya by his (a pseudonym). He used to be an executive at IDG's investment website, poly net. "To some extent, this is not a bad thing."

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In Wang Hui's view, Shen Ya's meticulous management style has ensured the efficient operation and rapid growth of vip.com in the past few years.

"Flash buying this business mode is particularly demanding for operational capability. It needs dozens of brands every day, and every garment is a non standardized commodity. Each product has pictures and descriptions and sizes," Wang Hui said. In the past few years, vip.com's operation Department is a high-speed running machine, the left side is brand inventory resources, and the right side is the replacement of new customers and old customers. The middle is a set of internal operation systems supporting countless brands on-line, order delivery, and consumer services.

"Shenyang is in charge of the operation of this system."

But when vip.com became a team of tens of thousands of people and a company of 100 billion market capitalization, Shen Ya still managed very well.

As a former executive, Li Qi's feeling is, "you can't be an expert in every aspect, but he, as the highest leader of a company, will appear in any meeting and declare his judgement on all teams. Everyone will take his advice as a task."

Li Qi told all weather technology, "I think Shen is too tired. His management style has room for improvement.

His role should be the best strategic planner in the company.

However, Li Qi stressed to all - weather technology that he was not denounting or complaining about Shen's management style. In his view, Shen's success was great, but "every entrepreneur needs a process of learning."

Four

Heavy detail strategy?

Since its inception, vip.com has been digging deep into the sale business longitudinally, including digging deep into the three or four tier cities, expanding its category, and constantly upgrading its business services, trying to achieve the ultimate goal of e-commerce.

User awareness is a particular issue of Shen Ya. His point of view is, "who is sorry for customers, but I am sorry."

An example is: a few years ago, vip.com had a shoe on the line, because the system error, the stock of 1 shoes made two members at the same time produce effective orders.

In the case of no suppliers, Shen Ya decided to contact the shoe maker and reproduced a pair, and the monthly salary of the planner was as high as six digits.

In vip.com, the net recommended value of users is a data index that has been persisted for many years. This is a user survey method, which reflects the loyalty of users.

Over the years, at vip.com's monthly and quarterly meetings, net recommended value reports are mandatory.

On the horizontal, vip.com has also bought Le bee network, and recently split the logistics and financial services from the electricity business, forming three major business segments: logistics + electricity + finance.

But in China's top three e-commerce platforms, vip.com has the least strategic layout than Ali and Jingdong.

Looking back on the past few years, Li Qi believes that vip.com has not made any big mistakes, but the other side of the coin is that vip.com has missed many opportunities because of its "conservative".

When its volume is bigger and bigger, it is even more afraid of trial and error. This also leads to the lack of "strategic depth" for vip.com today, and there is not enough room to expand new growth points.

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