Vip.Com: The Epitome Of China'S Electricity Supplier Development

Liu Qiangdong's small goal in 2018 took a big step forward.

At this year's Wuzhen Internet Conference, Liu Qiangdong mentioned that in 2018

The small target is "let more women like Jingdong".

The group seems to be a more appropriate option. Among the 300 million members of vip.com, there are more than 80% female members.

According to the world clothing and shoe net, in December 18th, Tencent and Jingdong will subscribe to the new class a common shares issued by vip.com. The subscription amount is about $604 million and $259 million respectively, holding 7% and 5.5% of vip.com's shares (including the shares already owned).

Up to now, there are eight Chinese business enterprises listed in the US, of which Dangdang and Mcglaughlin have been delisted. The latest listing is the first stock Temple database of China's luxury goods business.

Thanks to favorable news from Tencent and Jingdong, vip.com's stock price rose sharply in December 18th (East time), the highest gain approaching 50%.

Founded in December 2008, vip.com, founded in less than three years, went to the US IPO. Although it was listed on the bloody market, it quickly became a monster after more than a year. Its share price rose 60 times higher than its lowest point. At present, vip.com has achieved 20 consecutive quarterly profits. However, the slowdown in revenue growth, the pressure of new revenue and the pressure of active users have made vip.com's share price in the doldrums for a long time since 2015. Until the Tencent and Jingdong's stake, vip.com's share price had a big boost.

Behind the nine years of vip.com, you can see the epitome of the development of China's electricity supplier.

It took only three years to establish the stock market.

Vip.com is known to the world, but Shen Ya, CEO, is rather low-key.

Shen Ya rarely appears before the public. He will not play a single movie, nor will he return to his hometown with a high-profile brocade. In reply to a question about "what kind of person is vip.com CEO Shen Ya", one answer is, "as CEO, very close to the people, ordinary employees often see him in the dining hall, and what we eat is staff meals."

In 1998, Shen Ya, a Wenzhou Shenyang who was working on battery export business, met another smart Wenzhou man, Hong Xiaobo, who began to partner in the business of mobile accessories, and quickly made the first pot of gold in partnership business.

In 2007, when Shen Ya and Hong Xiaobo entered the Yangtze River Business School, they decided to start their second venture, aiming at e-commerce.

One morning, Hong Xiaobo saw his wife snapping up the famous brand discount package on the French VP (Vente privee) discount online, which provided Hong Xiaobo with a clear idea of starting a business.

After three months of research, in December 2008, vip.com, the flagship discount + limited time rush purchase + genuine insurance, was formally established in the Xinyi guild hall in Guangzhou. The five co founders jointly invested 30 million yuan as capital, and Shen Ya served as chairman of the board, and Hong Xiaobo was deputy director general.

At that time, China's consumption upgrade had not yet been nurtured, and the people's consumption ability had yet to be improved. Vip.com's comprehensive imitation of French VP's luxury discount mode was not smooth, with a turnover of only ten odd per month.

Shen Ya analysis, "the test proves that consumers are extremely cautious about buying more than 1000 yuan online products. No matter how big your discount is, they will never play it easy.

If vip.com insists on doing luxury goods, I'm afraid it will soon be closed. "

Vip.com has ushered in its first strategic adjustment, defining itself as "a website specializing in special sale", on the one hand, connecting with a large number of two or three lines.

Boutique, to help them clear inventory and over season goods, on the other hand, for seasonal merchandise discount.

In October 2009, vip.com launched a handheld vip.com online.

Consistent with the Jingdong concept, vip.com also attaches great importance to logistics. Shen Ya believes that logistics is one of the core competitiveness of the electricity supplier. "After the reception is received, if the goods are stacked in the suppliers' storeroom, they will not be able to speed up. Without speed, consumers will abandon you."

In the second half of 2010, in order to reform the logistics system, Shen Ya came to Tang Yizhi, who worked in Huarun, Dangdang and the three party logistics company. He served as the director of warehousing and logistics at that time.

After taking office, Tang Yizhi led vip.com into the "trunk logistics" mode, that is, the order in the same area was first packaged and delivered to the central city by its own logistics company, and then delivered by the local logistics company for two times, and handed over to the consumers.

The clear direction and reasonable strategy led vip.com to embark on the road of listing in just three years after its establishment. In March 23, 2012, vip.com successfully landed on the New York stock exchange.

Bloody listing, and then creating magic stocks

In March 23, 2012, on this day, the chill in early spring was still in the air. The stock market was still immersed in a depressed atmosphere. It was not optimistic by investors in the United States. The issue price of vip.com dropped from $8.5 to $6.5 per share. The first day it broke down, and it fell to 4 U.S. dollars per share. It ended up at $5.5 per share, down 15.38% from the issue price, and was called the "bloody listing" by the industry. -10.5

Until half a year later, vip.com's share price returned to the issuing price of $6.5 per share, and then it was nearly half a year later. In February 2013, vip.com released its 2012 fourth quarter earnings report, which turned out to be a profit for the first fourth months. The share price rose rapidly, while the data from vip.com's 2014 financial year, the company's revenue and net profit were 3 billion 770 million US dollars and 137 million US dollars, up 122.4% and 162.4% respectively.

Shen's personal fortune has broken through ten billion yuan, but he does not like the name of the "monster stock". It has never been recognized. In his view, vip.com's rocket rise is winning.

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In February 14, 2014, Valentine's day, the biggest news of the electricity business was settled. Vip.com spent $112 million 500 thousand in cash and strategic investment in the bee net, which accounted for 75% of its shares. This is also the first large-scale acquisition investment since vip.com went public. Shen Ya said that the marriage is a beautiful beauty product channel and customer resources that are watched by Le bee net, with a view to enriching vip.com's sale category.

In the next month, vip.com further expanded its product category, first launched a special car sale, and by the end of 2014, vip.com registered members exceeded 1 hundred million.

Widely reported by the media, a clothing brand leader has revealed four reasons for cooperation with vip.com: Handling tail goods and over season products; making free brand advertising; limited time sale mode will not affect suppliers' offline price system; brand operators can also take some new products to vip.com to do some sales tests; accounts are very short, only 1 months or so (most electricity providers account for more than 3 months), and do not pressure suppliers to make loans.

It was a very beautiful year for vip.com, but then the challenge and storm began to hit.

The storm is constantly questioning.

In April 2015, vip.com's stock price was at a record high of 30.72 US dollars. At that time, its market capitalization was US $17 billion 879 million. Compared with now, vip.com's stock price fluctuated at US $12, its market value just exceeded 7 billion US dollars, and its market value shrank by 60%. What happened in the middle?

The data show that in the second half of 2015, vip.com has already ended its crazy growth, and the slowdown has become a reality in terms of revenue, net profit and active users.

In the first quarter of 2015, vip.com's revenue growth fell to less than 100% for the first time, while the next two quarters of growth continued to decline rapidly. In the third quarter, vip.com issued an early warning in November 13, 2015, with a revenue of 8 billion 600 million -87 billion yuan, 10% lower than the expected annual growth of 71% -74%, and vip.com's share price fell, or 27%, on the same day.

In the face of the slow growth of the overall business users, vip.com is also facing its own pressure.

Tmall Juhuasuan, Dangdang Taishui, Jingdong flash group and so on have used the mode of time sale to clear goods; Ali, Jingdong and other e-commerce platforms have sunk to the low tier cities, invading vip.com's important camp, and the rise of cross-border electricity providers has brought a positive impact on vip.com.

The latest report shows that as of September 30, 2017, vip.com's total net revenue in the third quarter was 15 billion 300 million yuan, an increase of 27.6% over the previous year, and net profit attributable to vip.com shareholders was 338 million 100 thousand yuan, down 1% compared with the same period last year. In the past 12 months, the number of active users was 60 million 500 thousand, an increase of 22% over the same period.

Shen Ya in the subsequent executive interpretation of the earnings call conference, said, "although our new user growth is not as good as before, it is worth noting that in the third quarter of this year, the quality of new users and even old users has increased a lot, so that our average revenue per user in this quarter has increased significantly."

In the third quarter of 2017, vip.com's user stickiness kept rising.

The per capita consumption of users reached 643 yuan, the rate of repeat purchase reached 84.4%, and the proportion of repeat users accounted for 95%, which benefited from the year-on-year growth of 4% of passenger prices and 7% of per capita orders. Vip.com's per capita consumption grew by 11% over the same period last year.

Although Shen Ya said, the user sticky rise, the per capita consumption also grew year by year, but compared to the past, vip.com's net profit still fell 1% compared with the same period last year, and the profit rate declined. This is due to the continuous investment in finance and self built logistics.

In May 16, 2017, vip.com released its first quarter financial results in 2017, and officially announced the separation of Internet financial business and restructuring logistics business. Vip.com said its strategic layout of "three carriages" of e-commerce + Finance + logistics will also become a new engine of growth.

New stories linking Jingdong and Tencent

In June 2017, vip.com once cleared more than 30 thousand micro-blog, officially announced the brand upgrade, and upgraded the location language from "a special sale website" to "global selection genuine sale".

Jingdong and vip.com jointly issued a statement on resisting unfair competition in July 12th this year, saying that an electronic business platform used its market monopoly status to require businesses to sign "exclusive" agreements in various ways, and to withdraw from Jingdong and vip.com platforms.

Despite the fact that Jingdong had been secretly negotiating with vip.com for M & amp; a rumors earlier, the joint declaration this time meant that the two sides had an alliance to defend Ali.

Hearsay is always true.

In December 18th, Tencent and Jingdong will invest $863 million in vip.com, which will hold 7% and 5.5% of vip.com's shares, including its existing shares, respectively.

It is reported that Tencent will give vip.com entry to its WeChat wallet interface, and Jingdong will also access vip.com at the main interface of its mobile APP and the main interface of WeChat shopping first level entry, so as to help vip.com achieve certain paction volume targets on Jingdong channel.

For the current vip.com, the growth of new users is slowing down, and new traffic portals are urgently needed. Vip.com aims at social platforms, and WeChat's 1 billion month live traffic black hole is the best choice.

In the 2017 Q3 earnings executive interpretation, vip.com said it is currently focusing on social platforms, including WeChat and even Mini Mini programs.

So far, we have only enabled a mini mini program, which is not bad at present.

Of course, we need further evaluation. For vip.com, this may become an effective way to get traffic. "

The alliance between vip.com and Jingdong may be more of a kind of sympathy. Vip.com's core clothing apparel and makeup are precisely the weaker part of Jingdong compared to Tmall and Taobao. In terms of user structure, the number of female members of vip.com 300 million is more than 80%, while Jingdong is based on 3C digital, and male users account for a relatively high proportion. Both sides can form complementarity of user structure.

The notice also mentioned that Tencent and Jingdong subscribed A-class common stock will be restricted by a two-year lock up period.

During the two years' lock up period, Tencent has the right to appoint a member of the board of directors of vip.com. Jingdong can appoint an observer of the board.

After the expiration of the two-year lock up period, Tencent and Jingdong can continue to retain the right to appoint their directors and observers as long as Tencent and Jingdong hold shares of about 12% and 8% of all issued shares of vip.com, or in accordance with the common agreement with vip.com.

After the completion of the joint equity investment of Tencent and Jingdong, it will hold a total of 12.5% of vip.com's shares and close to the 14.1% share of Shenyang, the largest shareholder of the company. In the Q&A provided to Phoenix network technology, vip.com's shares are classified as B common stock, 1 shares have 10 votes, and other shareholders except Shen Asia belong to class a common stock, while 1 shares only have 1 votes. Therefore, Shen Asia is not only the largest shareholder of vip.com, but still has nearly 60% of the voting rights.

At the same time, vip.com has repeatedly stressed that "vip.com will continue to operate independently, Shen Ya will continue to maintain absolute control, vip.com is still a company that Shen Ya can fully control."

According to reports, a business entrepreneur who had contacted Shen Ya said: "Shen Ya is not a man who easily compromises. One of his manifestations is that he has never sold vip.com shares.

This means that vip.com is more willing to pursue its own independent development if it is not forced to do so.

Maybe Tencent and Jingdong have the possibility of further increasing vip.com in the next two years, but the good news of the current stock market is already reflected in vip.com's stock price. Vip.com's share price rose sharply in December 18th (the US Eastern time), with the highest gain approaching 50%.

When the Matthew effect of traffic aggregation becomes more and more concentrated, it becomes more and more difficult for vertical electric providers to obtain traffic.

Ali, Jingdong and other giants have reached the starting point of all kinds of vertical fields, and the situation of the vertical electricity providers will be more and more difficult.

Even vip.com, known as the "third pole of China's electricity supplier", let us see that instead of being an enemy, it is better to form alliances with giants to take the flow.

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