Such As Culvert Business Growth Of Over Two Times Net Red Electricity Supplier Into The Turning Point?

Recently, "net red business first share" such as Han Holdings (referred to as "Han") handed over second months after the listing of the transcript, which is mixed.

The joy is that revenue is still growing at a high speed. According to the financial report, the first quarter of the year, such as culvert GMV, reached 758 million yuan, an increase of 50.4% compared with the same period last year, and net income reached RMB 312 million 800 thousand yuan, an increase of 34.3% over the same period last year.

Although both GMV and net income are growing, it is still unable to escape the curse of loss, which is adjusted to a net loss of 21 million 600 thousand yuan. Although net losses narrowed by 51.6% over the same period, the outside world is still worried about its profitability.

It is worth mentioning that, if the platform business revenue is quite bright, its year-on-year growth of 201.3% to 65 million 500 thousand yuan, on the contrary, the total business income of the total revenue is only 17% to 247 million yuan.

The unbalanced development of "two legs" reveals the strategic adjustment and tilt. This MCN institution, known as the "net red manufacturing plant", has been questioned by the outside world since it was launched in April. Now it seems to be the turning point of the speed change lane.

What strategic adjustment is behind the growth of platform business by 201.3%?

First, let's talk about business models.

The whole service business and platform business mentioned above are the most important two realizable modules. The full service business is like building up a channel for itself, making profits by relying on its own network, and it can be understood as self operated business. The platform business relies on net red to provide services for the third party brand, such as carrying goods, marketing and so on, which can be understood as third party business.

For the net red under their banner, their popularity and carrying capacity determine which business sector they will be assigned to.

Back to this earnings report, the growth of revenue in the whole service business is mainly attributable to the growth of the sales of the head net self operated store. It is reported that, in the first quarter of 2020, the number of net red signed in the first quarter was 133, of which 3 were head net red, 8 shoulder net red, 122 waist web red, while 3 head net red, Zhang Da Yi, Daikin and Liberlin contributed 369 million GMV to the company, almost half of the total GMV, no doubt they were the main force attracting money.

The main reason for the growth of the platform business is that the sales of clothing and cosmetics from some shoulder and waist nets are transformed from proprietary mode to platform mode. The number of brands provided by the net red service under the platform mode has increased to 701, an increase of 136% over the same period last year.

Overall, if the whole service network red has been reduced by 11, the platform network red has increased to 122. It can be said that this part of the whole service sector under the network red "transferred" to the platform plate, resulting in a substantial increase in platform plate revenue.

This is a very important signal, which means that the next strategic focus will be tilted to the platform business.

In fact, this change was reflected in the 2019 quarter of fourth. According to its fourth quarter financial report in fiscal 2019, such as the new signing of the whole service network red compared to the same period decreased by 56%, on the contrary, the newly signed platform plate network red increased 114% over the same period.

Purely from a financial point of view, this strategic adjustment is related to the profitability of the two sectors. Over the past three years, the average gross profit margin has been 33%, while the average gross profit margin of the platform sector is 51%. Although the proportion of platform plate revenues is still not comparable to that of the whole service sector, it is necessary to turn its attention to a more profitable sector, such as its own continuous loss.

Why do we choose to reduce self employment and cultivate platforms?

Financial data is only the cold number on the books. The underlying reasons for the strategic adjustment are the individual and market changes hidden behind the figures.

First of all, the next "Zhang Da Yi" is still far from being born.

From the first day of listing, the share price dropped by 37%, and the outside world's doubts about its business model have not stopped. The main point of doubt is that it relies heavily on Zhang Dayi's head nets, such as culvert, which spends a lot of resources to copy the next "Zhang Dayi".

At present, there is no nature, such as culvert is still the three GMV billions of head net red.

But in fact, it still spent a lot of energy in building the head net red. Its marketing cost of packaging and promotion has been growing rapidly. According to the financial report, the sales and marketing expenses in the two quarter of 2019 were 71.7% to 74 million 100 thousand yuan over the same period.

The 74 million 100 thousand yuan fund is mainly used to increase gross margin of product sales and net red hatching. It is obvious that the gross profit margin of product sales in the whole service sector has been raised. However, efforts on net red incubation are still weak.

This weak result is due to the fact that the cost of Internet traffic is increasing day by day, although it may not be able to achieve the same effect if it is hit by heavy money. On the other hand, net red hatching itself is an uncertain event. In the complex and complicated world of Internet, the birth of net red is becoming an unplanned stage play.

It is worth mentioning that when the effort was made to cultivate the next Zhang Da Yi, the slightly deserted track became lively this year because it broke into many competitors. If Jingdong recently announced that it will invest at least 1 billion of its resources to launch the hatchet hatching scheme, mogujie.com has also begun to recruit large numbers of network celebrities and institutions for the whole network. In the future, the battle of Red Net competition will become more intense.

It can be said that the difficulty of cultivating the next "Zhang Da Yi" mentioned earlier is one of the reasons why the strategic focus is tilted to the platform business, and the other reason is that its new fans are too few.

Although it claims that its net red has accumulated 148 million 400 thousand fans, its distribution of fans is seriously unbalanced, most of which are from micro-blog (111 million 100 thousand) and micro Tao (30 million). While the short video channel is coming, such as Han's slow action in this field, its slow and slow fans are much slower than micro-blog fans.

As the fans are still concentrated on the red web of the head, the number of new shoulders and bottom net red fans is relatively small. The whole service mode is not obvious for them in the short term, so the quicker way to cash in is to divide them under the platform.

Faced with the pressure of losses, such as Han had to speed up the process of realisation, the strategic tilt is also the situation.

In fact, the distribution of net red can be compared with other similar platforms Revolve abroad.

Revolve, a fashion business platform in the US, has a similar business model, that is to say, through Internet red and KOL bring goods to make profits. However, with the US listing, investors have opposite attitudes towards the two platforms. For example, listed shares fell 37% on the first day, while Revolve shares rose 94% on the first day.

In fact, the relationship between Revolve platform and net red is not a simple employment relationship. Its playing is to increase the exposure rate and the volume of goods on the social media by absorbing the net red that matches its positioning. That is to say, the net red and Revolve platform are symbiotic relations, and their development converged into the development of the platform.

Obviously, the focus of Revolve's business model is not hatching net red, but by attracting cooperation with massive network red to expand its market influence. This light asset operation mode can relatively occupy a larger market in a short time, and it is not easy to see clearly the financial crisis.

Of course, such as Han itself is relying on hatching head net red fortune, and Revolve can not be the same language. But judging from its actions in recent years, it is also trying to become "lighter".

In 2015, at that time, there were also a whole process system from factory to operation, and 1700 employees were serving the process. By the beginning of 2016, the factory assets had been divestied, and the number of employees had been reduced by more than half. In 2017, the third party service business began to be launched. At the same time, the construction pace of self operated channels was also reduced. For example, in June last year, the red guys were gentle and did not make their own brands after signing the contract, but chose to provide marketing services for third parties.

It can be said that in recent years, in recent years, it has been reducing the financial burden of continuous losses. It is also looking for a business model that can be replicated continuously.

In the future, how to develop platform business naturally has its own considerations, but I believe that its deep cooperation with Alibaba and other electronic business platforms will be one of them.

First of all, if Han and Alibaba have already tied up capital, as early as Han 2016, Alibaba invested 320 million yuan to become the fourth largest shareholder when the new third board was listed. After this year's IPO, Ali and Jun Lian share a 7.5% stake in the company, with 1.5% of the voting rights. The bundling of capital will give the two businesses a deep green light.

In addition, if the self carrying goods itself is to guide micro-blog fans on Taobao stores, and Ali's Taobao live broadcast has entered a period of rapid development, the large number of cargo anchors on the platform have great demand for marketing services provided by Han. It can be said that the intersection of the two platforms will generate more cooperation space.

Domestic network red business story about where?

Such as the electric business process continues, and the whole network red business story again about where?

Any retail mode can not escape from the three core points of "people, goods and markets". The same is true of the network Hong Kong electricity supplier. The difference is that the net red business has highlighted the functional attributes of "people" and "field", and has hidden the role of "goods".

From the "person" point of view, according to the relevant report data, from 2004 to 2019 15 years, the number of red net has exceeded 3 million 500 thousand. In recent years, with the successive entry of MCN institutions like Han, there has been more possibilities for mass production of net red. For example, the number of Internet celebrities with fans over 100 thousand last year increased by 51% over the same period last year, and the net red of fans over 1 million increased by 23% over the same period last year.

At the same time, the number of fans has increased to 588 million, accounting for 45% of the total population.

It can be said that the essence of net red is actually the Internet of marketing, and its marketing target is the huge purchasing power contained in huge fans.

The ultimate ownership of any business model is realized. The major Internet platforms, namely, the electricity supplier in the "field", provide more possibilities for the realization of net red economic realisation. Whether it is Taobao, Jingdong and other pure electronic business platform, or WeChat, micro-blog, Xiaohong book and other community platforms, or the short video platform such as jitter and fast hands, these have provided the traffic flow and site realisation for the net red economy, such as Taobao store, micro-blog big V, live broadcast reward and so on.

It can be said that the net red + electricity supplier's essence is a new channel for traffic realisation. This "traffic" is not only a group of net red, but also a platform for providing major traffic, and the two complement each other.

Then, when the head platform of the red internet electric business started to tighten up the red hatching of self operated network and turn to serve the third party brand with the stock net red, does it mean that the business flow of net red electricity supplier is difficult to sustain? Or is the net red electricity supplier a false proposition?

In fact, the author thinks that the net red business can continue to be divided into two parts, that is, how net red is born, and how the net red fits perfectly with the electricity supplier.

First of all, the birth of "net red" is far more dramatic than the emergence of "actors". The general public's taste and preferences for the red people have long been elusive, and more and more net red appear and disappear.

MCN agencies naturally have the ability to produce the perfect red man packaging plan. However, whether or not to succeed in building a red bull is still a random event. And now the traffic cost is getting higher and higher. Net red is becoming more and more difficult to plan and package.

In addition, how to better integrate the net red and the electricity supplier to play a higher efficiency of the network Hong Kong electricity supplier is also worth considering. For example, Li Jiaqi, the beauty net red, is now a brother who sways the voice and cargo. But he is a live circle from Taobao. At that time, he was not so strong in carrying goods, and the short video platform was obviously more suitable for him, and Zhang Dayi was obviously more suitable for micro-blog.

That is to say, putting the net red on the right platform can exert its endless skill of carrying goods. In fact, it depends on the MCN organization's characteristics of net red itself, the assurance of its aesthetic output, and its operational capacity.

In short, the biggest problem that net Hong electric providers are facing is still difficult to replicate the problem of red money. This determines whether the huge flow of the source can be continuously provided. Once the traffic comes in, which platform will flow to, which is only looking at the operational strength of the underlying institutions. I believe that the net red business is still a good traffic business in China, but this business should pay more attention to how to cast a net to connect the existing net red and targeted development of electricity supplier potential, rather than sticking to the hatching of its own net red, after all, it has been a "thankless" job.