Is There Any Future For Vip.Com To Make A Special Sale?

Consumption sped up, and there was a silent retreat between Internet companies and traditional retailers.

Entering this year, the old formats of supermarkets, department stores and other lines keep shrinking. On the contrary, vip.com's opposition has accelerated the pace of shop placement.

Steering is not good at the line, not only reveals the urgency of revenue and user growth, but also rests the desire of this veteran electric business to pull back to a city.

Offline development of new users for slow growth of online drainage - although the effect remains to be tested, it is still a good idea.

From the point of difficulty, vip.com's action is no less than an adventure.

Under heavy line

In the 3 and April of this year, the offline outlets of vip.com were concentrated and opened to the shopping center of the second tier cities such as Shenyang, Changchun and Guiyang.

After the ground gas, the painting became unprepared.

Dense, messy shelves replace models. The world's folded billboards attract a lot of customers who are addicted to eyes. The majority of the 40 middle-aged and old customers in vip.com's special store are totally different from those on line 80 and 90.

"Is it true?"

A uncle turned over from a shelf, picked up a pair of shoes, looked at the tag and said to himself, and then turned away.

Prices also have gaps, such as the same Folli follie wallet, Beijing new Hui City store marked "only product price" cheaper than APP.

The clerk in charge of the tally did not explain the price difference. She said she was only responsible for the goods in the store.

On the other hand, vip.com has more "Internet sense" than other traditional brand stores.

The electronic screen in the field can check the two-dimensional code of goods. After scanning, you can jump to the product page of WeChat applet, choose online order, or open WeChat applet, automatically correspond to the nearest store. In the small program, the order goods will be shipped from the store, which will save a lot of time than APP shopping.

"In fact, we are distributing goods to all offline stores, acting as the offline experience field, and also our warehouse."

A shop assistant told China News Weekly.

According to the observation, 10 customers tried to operate in front of the electronic screen in half an hour, but no customers placed the order in this way.

For most people, the habit of shopping in shopping mall is to buy clothes directly, but it seems a bit more troublesome, and most fundamentally, it is not necessary.

Offline shop - sweep code shopping - speed logistics to the home, the main business operators' "new retail" business mode, the background is the growth of online traffic is peaked, under the line get more "flow", guided pactions online.

The essence is a traffic pformation business, the difficulty lies in the expansion of quality offline store resources, changing customer consumption habits.

Vip.com's play is similar to that of the original box and horse, and the backstage strong box Ma Shang also has to adjust the store because of the loss. The vip.com franchised store's competitiveness geometry under the rival line is still waiting for long-term observation.

In the first quarter of 2019, after the release of the financial report, vip.com only said that "line shop business is an innovative project launched by vip.com according to the company's special sale strategy. Some stores have begun to try and are still in the experimental exploration stage."

The government did not disclose the specific business data, and it was far from forming the climate only from the passenger flow situation in some of the stores.

Struggle for survival

Vip.com's "radical" is easy to understand.

In April 2015, vip.com's stock price hit a record high of $30.72, followed by a concussion, and the market value shrank by 73% at the closing price of $7.21 in June 7, 2019.

What happened in the middle?

Judging from several key indicators such as revenue, net profit and active users, the turning point of vip.com appeared four years ago.

In the first quarter of 2015, vip.com's revenue grew by less than 100% for the first time. The growth rate continued to decline in the next two quarters. In November, the company issued a warning that its annual revenue was not as good as expected. The stock price fell nearly 30% on that day.

Earnings data show that in the past year, vip.com's revenue growth continued to slow down.

As of the first quarter of 2019, the latest report, total revenue of 21 billion 300 million yuan, an increase of 7.3% over the same period last year, in the fourth quarter of 2018 fell into a single digit growth interval (8%) further decline.

The growth rate of vip.com's active users has slowed down since the two quarter of 2016, and the growth rate dropped to zero in the first quarter of 2018.

Vip.com had to go to the Tencent and Jingdong camp to jump out of the dilemma of user growth.

With the help of WeChat's nine palace and Jingdong's home page, the growth of active users has finally risen.

In the four quarter of the 18 year Q2-19 Q1, the number of active users increased by 6%, 11%, 13%, 14%, respectively. Among them, 24%, 22%, 23% and 25% traffic flows came from Tencent and Jingdong. The growth of total number of active customers directly contributed to the growth of revenue.

This means that without the blessing of Beijing Teng, vip.com's ability and space to pull itself will be very narrow and its performance data will be even worse.

The electricity supplier industry has undergone significant changes: the bright spot of active users and business growth has been completely pferred to the platform of social interaction such as spelling, red book and so on.

Figure /trustdata

Ten years of ups and downs, vip.com's vertical electricity supplier is no exception being rolled over by the comprehensive electricity supplier strength.

According to the latest market data, 86% of the retail B2C market has been cut off by Ali, Jingdong and more than three competitors. Vip.com is still less than 5%. It has become "others" with other vertical electric providers such as Suning and Gome. Let alone jumei.com, which has been on the rise for a while, has almost disappeared.

In the past, vip.com made clear positioning of the main category and tail cargo sale of clothing shoes, avoiding the positive competition with many kinds of Big Macs, such as Ali and Jingdong, and luckily ate the huge bonus from the apparel industry to stock, and completed the IPO running in three years.

The clothing market has changed for a long time.

National Bureau of statistics data show that in 2016, China's clothing retail terminal inventory fell from 59 billion 500 million yuan to 54 billion 900 million yuan, and then all the way down.

Changjiang Securities also pointed out in the report that China's textile and garment industry has basically been completed in 2016, and the inventory problem has been substantially resolved.

Vip.com's high growth rate ended abruptly in the same period, and its growth rate began to decline year by year since 2016 Q2.

"Vip.com sale is cyclical in its own way, just like PC's search Baidu is unique, and enters the mobile terminal era by different APP."

Some analysts say that the dividend period may not be the most troublesome thing in the past. Vip.com is now watching its basic business increasingly cramped.

As the category with the highest participation in online shopping, clothing is the field that all major electric providers are struggling to defend.

In 2017, China's clothing B2C market was dominated by 80% cats, leaving only a small share of vip.com and other platforms competing fiercely.

Tmall Juhuasuan, Dangdang Taichung, koala limited time purchase and so on copied the form of time limit sale; the rise of cross-border electricity providers, customers are more likely to be able to buy big cards; to pour a lot into the low tier cities, to invade vip.com's important position; even Jingdong also jumped out of the thin profit 3C field, in the clothing category strength, vip.com's market encountered unprecedented huge squeeze.

During this process, the mainstream business penetration continued to strengthen, and vip.com's obvious stamina was insufficient.

Many social networking providers, such as spice and little red book, have risen rapidly and captured a large number of young consumer groups. They are constantly hitting vip.com's "third pole" seat.

Mainstream electricity market penetration map / Aurora data in the past year

"Vip.com did a great sale, but this gene is also its ceiling."

There is an analysis of the electricity supplier practitioners. "The key indicator of capital concern is the growth rate. The continuous growth of the sale mode has its limitations, and new users can not find channels and channels. The growth rate has dropped, and the market value will definitely not rise."

In order to jump out of the stereotype, vip.com has also tried to expand the category, and set foot in the new formats of fresh electricity suppliers and boutique electricity providers.

In October 2017, vip.com launched the "fine life" fresh community store. Its main vegetables, seafood, meat, cooked food, etc. were totally independent of its clothing strength, and put forward the goal of "200 stores in 2018 and 10000 stores in the next three years".

Publicly available information shows that after the eighth lives of pin Jun's life, there was no news.

Since then, vip.com has also mimicked NetEase's strict selection and launched a "preferred Pavilion", which includes food, home textiles, bedding, bathroom and outdoor travel.

In September 2018, vip.com built a shopping scene offline in Chengdu twenty years later. It incorporated many elements such as laser scanning, 3D magic mirror fitting, Siri shopping guide, unpaid and so on.

After that, they joined various brands to set up many flash shop activities with different themes.

A series of small-scale tests did not cause much spray.

In 2018, vip.com chairman and CEO Shen Ya announced a new focus on "special sale", emphasizing "do what you are good at".

"In Shen Ya's view, the importance and importance of this decision is no less than the strategic cooperation with Tencent and Jingdong."

A vip.com insider said.

Can physical stores quench their thirst?

At the 2018 China strategic communication conference, vip.com management clearly put forward a bid against the US retail discount giant T.J.MAXX, focusing on vip.com's specialised selling mode and "cargo control" capability, and did not rule out the subsequent opening of retail stores, from online to offline.

T.J.MAXX's core strengths lie in its strong supply chain, streamlined inventory turnover and low price advantages. Similarly, vip.com has accumulated considerable strength in the supply chain over the years. Now it has reached long-term cooperation with more than 6000 brands at home and abroad. A strong moat has been built around the core category of clothing.

There are different ways to achieve the benchmarking: T.J.MAXX pactions are almost finished online, and vip.com wants to sell offline retail outside the electricity supplier.

From this point of view, the dense shop opening trend under the line is the inevitable step of vip.com's strategic adjustment.

"This store is the most negative layer in the shopping mall, and it is estimated that the rent is cheap."

In a small red book, a shop user has no desire to buy in a crowded environment.

Compared with the traditional outlets selling outlets, and even the general shopping mall's tail cargo area, the special store gives people the feeling that they are shopping in the department stores of the two or three line cities.

The competition with online rookies is strong enough to come down to the three or four line market with a slightly lower consumption level. Vip.com's shop is undoubtedly facing more intense pressure to survive.

"Honey embarrassment" store atmosphere, experience is not good offline shop, I am afraid it will affect or even subvert the long term consumer sentiment in the "big brand" aura, word-of-mouth bad customer turnover, for users who rely heavily on vip.com is fatal.

An observer said: "not too optimistic, do not belong to their own genes to try and innovate, the probability is the end of failure."

However, online growth will not be able to open up the situation in a short period of time, and the pressure on vip.com will continue.