Another Million Dollars To Invest In &Nbsp; Le Tao Continues To "Shoe Business".

In June 8th, the domestic footwear vertical B2C Le Tao announced that its more than ten million dollar B round of financing has been fully accounted for in June 4th. The investor is Tiger Fund and Tak Tong capital. At this point, the previously unravelled financing news finally unveiled the mystery.

"It is less than three weeks from invitation to contact, negotiation, due diligence, signing of agreements and capital account." Yue Tao network founder and CEO Bi Sheng told the China economic times that, compared with the industry's 3 to 6 months' financing cycle, Le Tao's financing process can be called "flash investment".

This is actually an encounter between "seeking money" and "crazy money": on the one hand, venture capital is holding high capital to search for new targets; on the other hand, the B2C market is thrived and actively invites financing invitations.

　　 When "change the money" encountered "throwing money"

In April 7th, Le Tao issued invitations to friends and investment institutions of Bi Sheng, including tiger funds, Baidu investments, Baidu's old investors, Tak Fung Jay, Tak Tong capital, us light speed capital, highland capital and so on.

There was once a rumour that Baidu had invested in Le Tao. Bi Sheng served as assistant and marketing director of Baidu. For the absence of Baidu, Bi Sheng used "Baidu colleagues very busy, I am busy, has been about time until today is also no agreement" to explain.

In the current round of financing, the most active one is Tiger Fund. "When they received the mail in April 7th, they only called half of them and called me." no problem. How much do you need? When is the interview details? It was 1 in the morning. " Bi Sheng said.

The Tiger Fund, which has just ended the $150 million financing of Jingdong mall, has gradually emerged in China's B2C market. The first tier B2C websites in China, including excellence, Dangdang, Jingdong mall, van gentry, etc., have been involved in tiger funds.

Chen Xiaohong, general manager of the Tiger Fund, said: "Yue Tao's footwear business has increased rapidly in less than a year, and this growth is achieved on the premise of hardly advertising. B2C is a field of long distance running. We believe that in pursuit of speed and scale, companies with fine control of input-output ratio are more sustainable. In fact, Tiger Fund's global electronic commerce strategic layout has been started many years ago. Its netshoes website invested in Brazil is a local shoe brand B2C.

"As for Tak Tong capital, its partner, Chen Weili, has successfully established an online payment company in the United States and has many years of experience in e-commerce. This will provide more help for the development of Le Tao. Bi Sheng said.

Data show that the establishment of less than two years of Yue Tao, the current average daily signing of more than 1000, the daily sales of more than 300 thousand yuan. "At least in the next 3 to 5 years, Le Tao will only make shoes business, and strive to cover all footwear products." Bi Sheng revealed. {page_break}

　 Strengthen service system

Double speed growth is not uncommon in the field of B2C. Data show that since 2004, Jingdong mall has been involved in e-commerce and has maintained a growth rate of more than 300% for 4 consecutive years. Why does B2C pursue this speed so eagerly? Cao Fei, an analyst with Analysys International, believes that "if the sales of vertical B2C websites such as shoes and 3C classes account for 10% of the total sales volume, it will be possible to enter the profit stage."

Therefore, in the current situation, whether "flash investment" is not the key, the key is whether vertical B2C can be bigger and stronger in the first time.

Many e-commerce businesses have put their treasure on services. Yue Tao is no exception. Chen Hu, vice president of Le Tao net operation, said that after the financing of this round of financing, there will still be no large-scale Internet advertising. In his view, the cost of Internet marketing is too high.

"Le Tao will mainly use funds in the logistics center, customer service center, software development and other aspects. Among them, Le Tao will build four to five logistics centers in North China, East China, central China and the Pearl River Delta. This will be a great expense. In a way, win the user, and win everything. This is a challenge without end. " Bi Sheng said.

In fact, Le Tao is not the only website dedicated to the vertical B2C of shoes in China. After the success of ZAPPOS in the US online shoe market and its sale to Amazon at a price of 1 billion 200 million US dollars, along with the wave of B2C e-commerce in China, selling shoes online has become a venture project popular among venture capitalists. It is reported that the online shopping mall is also financing, and is expected to be completed in one or two months.

However, this Lok Tak attack will probably seize more market opportunities for him. At present, the profit rate of Le Tao is around 30%, but almost all of the profits are subsidized into the cost of logistics. Bi Sheng revealed that by the middle of next year, Le Tao will initially make profits. "Le Tao has crossed the line of life and death now, and the principle of doing things is not aggressive. A successful B2C company needs years of work." Bi Sheng said.

It is predicted that in 2010, China's B2C website will increase by more than 1 million, and the components of the bubble will inevitably become inevitable. Any B2C is not to advance or retreat. If it is not careful, it may be bought as low as Qian search net, or rise like a tomato tree and PPG, and suddenly fall down. "Now is the bubble era, Le Tao may be a bubble, maybe precipitation." Bi Sheng said.