Deconstructing The First Share Of Red Net Business: From Red Man Incubator To Creating Fashion Brand

"What I can choose now is to keep working hard, and 996 is not enough for 997." Feng Min, chairman of Han holdings, shook the ashes and spit out such an answer.

Net red business service platform such as Han holdings in April this year, landing on Nasdaq, through IPO to complete the scale of about $125 million in capital raising. According to the information disclosed in the prospectus, these funds will be used for investment in technology and big data, and nurturing KOL.

It was still a window period for Chinese enterprises to list in the US. In the past 18 months, the new type of e-commerce enterprises that landed in the capital market included many spells, mogujie.com, and so on.

In the window period, if we wish to visit the capital market, we will see the stock price falling successively. By the end of May, shares of such holdings had fallen by nearly 70% compared with the issue price.

In June this year, Feng Min accepted an exclusive interview with the economic report in twenty-first Century at the company headquarters in Hangzhou, answering the market's query about the company's business mode and operation mode, and also put forward the company's new vision: "in the past we were one of the players of China net red business. Today we hope to create a place for KOL to trade, so as to improve matching efficiency and reduce spanaction costs."

Such as Han holding headquarters is located in Chaoyang Industrial Park, Yuhang District, Hangzhou, which is adjacent to Hangzhou's largest clothing distribution center, Jiu Bao, Feng Min and wife Chen Sijia jointly founded the Amoy. brand "Li Bei Lin" also starts here.

After many years of entrepreneurship, some business teams such as Han holdings have moved to new office buildings, but the headquarters office has been retained in Chaoyang Industrial Park. Here is the appearance of entrepreneurship, even the logo of a company is only the size of a street sign.

Once the Amoy brand has been spanformed into an electric business like a culvert and has grown into a capital market. Their next step is to create one. fashion Brand Co creation platform.

Copy if "Han"

In May 29th, Hangzhou's Cmi Holdings Ltd (such as "Hangzhou") appeared many industrial and commercial changes, and several investment institutions quit the ranks of shareholders. For a time, there were four criticisms and even collective Exodus interpreted as shareholders.

The change of industry and Commerce in Hangzhou is part of the restructuring of the company. Alibaba, Jun Lian capital, Sai Fu investment three institutions shareholders listed in the main body, such as Han holdings still hold 7.5% of the shares. These shares are subject to periodic restrictions and will not be sold or spanferred within 180 days after the listing.

In the interview, the investors and core team of Han holding company laughed at the "withdrawal" of oolong, but without exception, they spoke seriously about the market's understanding of the business mode of the Han holding company.

In the view of Shao Zhenxing, managing director of Junlian capital, the emergence of many voices of doubt is based on the 2019 point of view, as seen in 2015. "The problem they talked about is also deeply discussed by us four years ago. Zhang Dayi can not be duplicated, such as the business model of Han is not copying more "Zhang Da Yi".

In short, most people in the market think that the business mode of holding shares is just like the electric power MCN business of Han culture, which is owned by Han holdings. (see our newspaper in 2015 reported that "net red incubator realized by electric business: closed mode of electric business")

In 2015, with the booming development of Chinese red man business, such as the network red incubator model of the "nanny + broker plus supply chain" function, became the service provider of net red business. They not only helped the Internet red man interact with fans, advertising marketing, but also the integration of the supply chain involved in the net red shop.

Today, the core competence of the company has been integrated into four aspects: marketing, product, supply chain and TP operation. Specifically, it includes support from all parties including KOL, fashion brand and social media platform to provide social traffic, product selection, supply chain capability and store operation order fulfillment capability.

"Service level can be categorized into three dimensions: methodology, tooling, product delivery or hosting, which can be used not only in the electricity supplier industry, but also in big health, finance and other fields." Feng Min believes that, such as Han not only in the field of electricity business replication capacity, is also exploring and partners in different industries, such as replication.

From self run to joint venture

In 2019, the "618" big promotion, such as Han holdings, the signing net red people, as expected, continue to create a new sales record.

Today's Taobao is the best partner in the social media platform. This network of red pioneers broke into the vision of Ali, but it can be traced back to 2015.

This year, a batch of Women's wear The store had a large scale of revenue growth in a few months. In 2015, "6. 18" promotion, 7 of Taobao's women's clothing stores sold Top10 were "net red" shops; in the same year, "double 11" activities, Zhang Dayi's "my favorite Wardrobe" became the only personal network red shop crowded into the Top10 platform of women's wear.

These women's clothing stores have some common characteristics: they rarely advertise in Taobao, traffic is mostly from micro-blog, and models are owners themselves.

"There was no C2M statement at that time. These personified tags don't depend on Taobao's search flow. They also surprise us with the ability to control the supply chain of clothing, a typical non-standard product. Taobao content business general manager Wen Zhong recalled.

Such as Han Holdings has built and operated online stores on the third party e-commerce platform at the beginning of the network business.

Beginning in 2018, the company formally tested the water platform mode, matching the net red with third party online stores or businesses, on the one hand, promoting the sale of third party online stores, on the other hand, providing advertising services to third party businesses on the social networking platform of nethong.

According to the latest financial data released by Han Han holdings, the platform mode GMV has increased from 100 million 800 thousand yuan in fiscal year 2018 to 713 million 500 thousand yuan in fiscal year 2019, which has increased by more than 7 times.

The most direct value of the spanformation from self run mode to joint operation mode is to get incremental revenue from KOL traffic multidimensional realisation through cooperation with third party businesses. The social traffic, products, supply chain and TP operation capability can be given to brand businesses, which brings more business income.

According to the twenty-first Century economic report reporter, such as Han Holdings has been awarded Saturday. footwear industry The online operation right, through the signing of the red man for Saturday brand marketing, the company's internal incubator know clothing technology to provide product selection services, and the entire business supply chain can be assigned to the cooperative brand.

Such as the definition of "service wake-up" by the Han holding company, we are trying to build a new business model through several similar businesses.

Joint shareholder resources

In mid June this year, such as Han holdings released the 2019 quarter of fiscal year fourth quarter and full year unaudited financial results: the company's GMV grew 81.3% compared with the same period last year; net revenue increased 20.7% over the same period last year; net loss attributable to the culvert narrowed 53.3% compared to the same period last year.

On the day of the announcement of the financial performance, the shares rose rapidly, closing up 23.01% to close at $4.01. However, it should not be overlooked that the stock price of the company still has a significant decrease compared with the issue price.

"We are a team that is used to concentrating on business, and lack experience in communicating with two level market investors. Plus, we are still a new species, which is very different from the market environment, technology and business mode they are familiar with. Feng Min rethinks that the capital market is cruel and realistic. It will have more healthy profits and control the cost of trial and error on the basis of creating greater value for shareholders.

It is understood that, as Han holdings responsible for investor relations in the U.S. capital market professionals in May this year officially arrived at the post, has been with the two tier market institutional investors to initiate more proactive communication.

"The past only represents the past, such as Han will prove itself with the performance of quarter by quarter". Shao Zhenxing said in an interview that he was optimistic about the trend of stock prices. He believed that the new business enterprises in the US stock market had been left in the cold.

It is worth noting that the effect of expanding the mode from self run mode to joint mode has begun to emerge. It has become the cornerstone of cooperation between the company and the external electronic business and social media platform.

Wen Zhong told reporters: "these KOL seem to be made up of clothing, but in fact, the 6 million fans they connect are also the target users of beauty and other goods and advertising modes. By investing deep in the way of investment, we are trying to build a "model room" to drive the whole industry.

It is understood that not only in the Taobao ecosystem, such as Han holdings also in the WeChat system and praise has reached a strategic synergy relationship. From the shareholders' perspective, micro-blog and B stations are shareholders of such holdings, and the quick hands and the joint venture invest in the AI e-commerce solutions provider, known as clothing technology, which is incubated internally.

Speaking of the future, Feng Min said, "we are both MCN and supply chain, as well as technology genes. At the same time, we have these three elements, together with the platform resources and cognition that we have accumulated over the years. We believe that our strategic position is relatively good.