Business Concept Is Hot, Foreign Trade B2C Development Constraints

< p > "Lanting Pavilion's rally is gratifying. Such growth has not happened in the past two or three years."

A fund partner in charge of US stock investment told reporters that the stock market was relatively low and continued to rise sharply.

< /p >

< p > after the stock price of vip.com has been constantly rising, China's stock market has ushered in a new "magic stock", the Lanting Pavilion of domestic foreign trade B2C.

< /p >

As of June 13th, Lanting Pavilion's stock price closed at $15.14, and its market value was $741 million. P

This is 60% higher than its $9.5 issue price.

< /p >

In the evening of June 6th P, Lanting Pavilion gathered on the New York Stock Exchange and jumped 22.21% on that day.

From June 7th to June 13th, the 4 trading days of Lanting Pavilion increased by 9.47%, 7.92%, 16.44%, 7.99%, respectively.

< /p >

< p > "Lanting Pavilion's rally is gratifying. Such growth has not happened in the past two or three years."

A fund partner in charge of US stock investment told reporters that the stock market was relatively low and continued to rise sharply.

< /p >

< p > Lanting Pavilion's amazing stock price increase, let investors once again see the stock market's warmer, and the concept of electric business is hot.

An investment director responsible for PE investment told reporters: "ten years ago, it was the tide of software stocks going to the US.

Ten years later, the business was sought after.

However, there are also some unfavorable factors of "internal and external troubles" in the B2C of Lanting Pavilion in China's domestic and foreign trade.

In the fierce competition, Lanting Pavilion should keep its advantages and solve many problems such as traffic, brand, logistics and services.

< /p >

< p > < strong > the concept of electricity supplier tends to be hot > /strong > /p >

< p > a fund partner who is responsible for US stock investment told reporters that there are not many "good targets" in the stock market.

IPO that night, many funds hit the "Lanting Pavilion rally" new shares.

Because of the large number of funds that have been snatched, most of the funds have only grabbed 1 million ~200 $78 million 850 thousand in total financing.

< /p >

< p > this partner predicts that "generally speaking, new shares will be more active in a week or so."

After a week, the trading volume curve will be more balanced, "at that time, the funds that were intended to sell shares were also sold almost."

< /p >

< p > as of Beijing time in June 13th, the market value of Lanting Pavilion has reached US $741 million.

In the eyes of global investors, this is a relatively small market with relatively active trading stocks.

< /p >

< p > the fund partner told reporters that the recent pactions in China's stock market are more active as the US economic situation improves.

"But this does not mean that the gate of IPO has opened."

< /p >

< p > in 2011, after the IPO continued to run aground, such as handle, fan, Shenzhou renting and other companies, China's stock IPO entered a sustained downturn.

In 2012, YY and vip.com were listed on the market.

< /p >

< p > prior to this, a US trader told reporters that in the third quarter of this year, the IPO door of China's stock market will be reopened. At that time, the thunder and Shanda literature will take the lead in the listing of Ali and Jingdong.

But now, the thunder and Shanda literature are seriously undervalued, and IPO has been postponed.

According to industry sources, Ali will be listed in Hongkong.

Jingdong CEO Liu Qiangdong said Jingdong will not be IPO until 2015.

< /p >

< p > although Lanting Pavilion has not yet opened the window of IPO, but it is of great benefit to the valuation of stocks.

< /p >

< p > "China's e-commerce is beginning to be recognized by global investors."

In June 14th, a fund partner who was in charge of US stock investment told reporters that the electricity supplier was a natural cut in the area after the development of the Internet.

The huge size of China's electronic market has also rapidly increased recognition.

< /p >

P, a global market research firm, said that the scale of China's e-commerce market will surpass that of the United States in 2015, reaching 2 trillion yuan in 2015.

By 2015, Chinese online consumers will also become veteran online shoppers, who will spend an average of $6100 a year on online shopping, approaching the average annual online consumption level of US $1000.

< /p >

Less than P, in the stock market, the electricity supplier was sought after and software shares were "contrasted" by investors.

The share price of China's software stocks listed by the United States has been on the decline for two or three years.

< /p >

< p > < strong > foreign trade B2C development constraints < /strong > /p >

< p > foreign trade B2C, the blue ocean is not as fresh as the outsiders see.

All foreign trade B2C, such as Dalong network, DealExtreme and other websites, have problems such as high marketing cost and uncontrollable logistics.

< /p >

< p > Lanting Pavilion's gathering report shows that Lanting Pavilion's marketing expenses are high, and it is a typical marketing drive sales company.

In 2010, 2011 and 2012, the sales and marketing expenses (or marketing expenses) of the Lanting Pavilion group were 22 million 600 thousand US dollars, 38 million 460 thousand US dollars and 53 million 410 thousand US dollars respectively, accounting for 38.5%, 33.1% and 26.7% of the net revenue in the same period.

By comparison, Amazon's marketing cost is 3.9% and vip.com is 4.7%.

< /p >

< p > such a high degree of dependence conceals no small risk.

As competition intensifies, the cost of Internet marketing naturally rises, which is directly engulfed in net profit, just as China's software companies are being pushed up by the cost of human resources.

< /p >

< p > the fund partners of the previous paper told reporters that Lanting Pavilion's gathering potential mainly depends on search, social marketing, website alliance and other ways to acquire new customers abroad, such as wedding dresses and so on, which is a "hammer" sale, which makes users' repeat purchase rate not high. "In the eyes of foreign consumers, Chinese products are cheap pronoun, and few have brand loyalty."

< /p >

< p > Jia Penglei, editor in chief of the billion state power network, believes that with the development of foreign trade, the electricity supplier of the foreign trade will gradually shift the users from the terminal consumers to the customers of the small B category.

"Only small B customers can form stable purchases. For a long time, brand loyalty will also be high.

Of course, this also extends new problems such as warehousing, logistics and so on.

< /p >

< p > prior to this, Dunhuang network CEO Wang Shutong told reporters that Dunhuang network has been building its own storage center overseas, and has also opened "warehouse delivery" and the US Line "International E postal treasure" service to supplement foreign trade B2C's short board in logistics.

< /p >

< p > Wang Shutong believes that after the establishment of warehouses overseas, the goods will be pported to overseas warehouses in a concentrated manner, so that the unit express pportation costs can be greatly reduced. The delivery time will be shortened from 1 weeks to 2~3 days. And when the goods are returned or exchanged, they can also be returned by domestic returns, which will eventually reduce many costs.

< /p >

< p > at present, China's foreign trade B2C adopts the way of international package to send goods, the rate of packet loss is relatively high, and some even reach 5%.

After years of development, the price of the traditional international packet has been minimal, and the space for reducing the freight rate has been very small.

< /p >

< p > Lanting Pavilion gathered CEO Guo Guo Chi said in an interview with the media that Lanting Pavilion collection will increase the international language, open up new national markets, add new categories, and seize the opportunities of mobile terminals to find room for growth.

< /p >

< p > in the category, the Lanting Pavilion group is also actively increasing household gardening, electronic products and accessories such as high purchase frequency and higher gross profit category in the proportion of revenue, and gradually reduces the proportion of category a such as < target= _blank "href=" http://www.91se91.com/ ">" clothing /a > "," electronic communication equipment "and so on.

However, there is no way to solve the bottleneck of logistics.

< /p >

< p > in addition to facing the difficulties of its own development, Lanting Pavilion also encountered the impact of Amazon and Jingdong.

< /p >

< p > for China's small and medium-sized enterprises, Amazon has launched a global shop planning.

According to the staff of an Amazon POP open platform, many 3C product owners have settled in Amazon. After two or three years of adaptation, many of them are willing to shop in the world.

"Unlike other platforms, it is also a great attraction for Amazon to attract businesses," he said.

< /p >

In October 2012, Jingdong also opened offshore outsourcing, opening about 400 thousand new products, serving nearly 40 countries in North America, Britain and France, and plans to open logistics centers overseas to shorten the delivery time.

< /p >

< p > "vertical foreign trade B2C platform will feel the pressure from the comprehensive platform in terms of flow, brand, logistics and service."

Jia Penglei believes that foreign trade B2C needs to change the trap of over reliance on Internet marketing.

< /p >