Vip.Com Is In Trouble And Is Unable To Get Out Of The Mire.

Since its entry into November, vip.com has been in endless trouble, and there has been no sign of improvement.

The trouble began with vip.com's third quarter earnings report in 2015.

In this quarter, vip.com's 11 consecutive quarterly revenue growth was no longer, instead of nearly 10% less than the estimated annual growth rate of 71-74%.

The explanation given by the government is also somewhat unthinkable. They believe that China's autumn temperature is higher than expected, causing consumers to postpone the purchase of autumn and winter clothing with higher price per passenger.

This argument is obviously unable to let investors buy.

Although vip.com headquarters is in late winter in Guangzhou, when interpreting financial data, it directly ignores the North China region which has a fast winter and even lower air temperature than the same period last year. This will only make investors feel that vip.com may have some problems in business.

And its rival Jingdong mall CEO Shen Haoyu clearly stated that "the sales of our clothing category are not affected by the weather", and even made vip.com worse. Its share price suddenly dropped 30% after its earnings announcement.

This ended the myth of vip.com's "monster stock", which not only affected investors' confidence in the sale mode of electric business, but also led to more multimedia's attention and query to vip.com.

In November 25th, Tencent technology first reported that the "dawn watch industry" was one of vip.com's watch suppliers, but it did not announce the "dawn watch industry" and vip.com's specific trading patterns, as well as other material evidence of bilateral pactions.

In this regard, the reporter has confirmed to Vice President Wu Bingquan, the other side denied.

Wu Bingquan said, "vip.com has a process of certifying merchants, which will eliminate the unqualified businesses."

For the previous news of vip.com's sale, he pointed out that "false reporting will initiate legal proceedings to safeguard rights".

But he still did not explain the pattern of cooperation between vip.com and manufacturers, as well as the specific process of certification merchants, how to define the qualification of merchants.

As a result, it is still difficult for the outside world to distinguish the authenticity of vip.com's products.

The original idea of vip.com is to cooperate with famous manufacturers at home and abroad, as well as the authorized agents of the state, to provide Chinese consumers with low price, fidelity brand goods, and undertake the function of selling empty goods on line.

But vip.com can't find the name and the agent of the goods sold in the page design, nor can it search the products that have been sold.

If vip.com is still unable to explain its mechanism in the public opinion, it is likely that the public will continue to doubt the authenticity of the products sold on its platform.

If the problem of selling off is most of the electricity suppliers in the country, fake products are only one of vip.com's little troubles.

What vip.com really needs to prove is that in addition to clothing category, which category can be used in the name sale mode?

"Taobao's category, the quality of Jingdong" is the consensus in many investment circles to analyze vip.com's success.

An investor who is concerned about the electricity industry has told the interface reporter that vip.com chose clothing and shoes and hat categories as the main source of revenue. In the early days, it purchased the inventory directly from the brand side and built the logistics itself, which completed the similar service quality with Jingdong, and won many popularity for vip.com when it first appeared.

It is worth noting that when vip.com went public in 2012, traditional clothing manufacturers such as Metersbonwe, Semir and Lining were facing huge inventory challenges, even for the same kind of clothing.

All customers in 2012 also had a stock of up to 1 billion 400 million yuan, and vip.com just catered to the demand of these traditional manufacturers to digest inventory online.

In addition, according to the data released, as of the end of the two quarter of this year, the apparel industry finished product capital was 90 billion 450 million yuan, down two percentage points from the previous quarter, and maintained a downward trend for three consecutive quarters.

Apparel inventories were also lower than the main business revenue growth for two consecutive quarters.

This means

The stock is also gradually decreasing, leaving little for vip.com.

Therefore, from the first half of last year, vip.com has gradually reflected some strength.

The clothing category has been affected by competitors, and no new profit categories have been found. Since the second quarter of 2014, vip.com's operating profit and gross profit have dropped by more than 50%.

In search of other revenue, vip.com executives said in the conference call after the third quarter earnings announcement, they will focus on furniture, 3C and other products in the future, and adopt a more radical marketing strategy to attract new customers and maintain the attention of old customers.

In December 4th this year, the vice president of vip.com vice president Wu Bingquan also proposed that she would try the auto electric business. "Because most of vip.com is female users, and research shows that more than 70% of the female users will buy cars."

Obviously, the car is a more complex industry chain, vip.com also said that it is not yet fully prepared.

According to the interface reporter, vip.com Automotive Division has been established for 2 years, and is now in development stage, and it is only vip.com's two level channel.

Wu Bingquan explained that the main reason is that the current amount of online pactions can only allow 50 thousand yuan per limit, resulting in its relatively slow development.

But whether it's cosmetics, cars, furniture or 3C, every category of vertical industry already has strong competitors.

For vip.com, it is perhaps necessary to come up with some more powerful means to continue the myth of flash buying in clothing category.

We have to look for other potential categories and revenue growth points.

In February 2014, vip.com purchased a 75% stake in Le bee net for 112 million 500 thousand US dollars (about 720 million yuan), hoping to expand its market share.

Then announced in June the Internet financial field, providing financing services for suppliers on the platform.

But times are different now.

In 2011, when vip.com chose to make a famous product tail purchase, it happened that the Internet business had just entered the market. The traditional manufacturers were still doubting the relationship between the enemy and the Internet business platform. Vip.com entered this period with sufficient first mover advantage.

In the market of other categories, the cross-border electricity supplier that has entered the past two years has become a new favorite. Consumers are paying more attention to more categories, richer brands and relatively favorable prices.

Li Yan, a US asset management analyst at I, also pointed out in its Research Report on vip.com, "when users find cross-border e-commerce sites from poly America, koala, Xiaohong book, Taobao Tmall and other global cross-border e-commerce sites, it can be more convenient than ever to buy good reputation products, and when prices are cheaper than traditional offline channels, attention and consumption will naturally be partially shifted, and vip.com's investment in this area is relatively conservative."

Vip.com's earnings report shows that cross-border accounts for only 5% of vip.com's GMV.