Behind The Resignation Of Wu Sheng: Spread Cash Flow Has Been Negative.

In November 29th,

A senior B2C member immediately fired. "

Repeat the mistakes of PPG?

And whether Wu's personal choice to go to Jingdong mall or Li Guoqing's "talent poaching", in the hot business of the electricity supplier, there is a little bit of wind and grass will stimulate the eyes of investors.

In fact, since the two quarter was announced by the foreign media to be listed on the Q4, until now, the progress of business has become a halt.

Lips and teeth are cold.

The honeymoon period between NASDAQ and China's concept stocks has passed, and the VC market is now very cautious about the domestic electricity supplier industry.

The days of Internet group buying are becoming more and more embarrassing for the "twin brothers" of the electricity supplier industry. It is hopeless to seek stable capital sources through VC, venture capital and other primary markets.

The Internet business enterprise with anxious and locked eyes can only focus on the two level market nuggets.

In October this year, media reports pointed out that all customers had officially launched the listing: they have submitted the prospectus to the securities and Exchange Commission, and have successfully held a IPO roadshow in Hongkong. If the plan remains unchanged, everyone will release the listing information after November 12th.

It is understood that VANCL has appointed five investment banks responsible for its US listing of up to US $1 billion.

The five investment banks include CICC, Citigroup, Credit Suisse, Goldman Sachs and Morgan Stanley.

Unfortunately, the overall market environment is poor, and the way of listing customers is suddenly cut throat.

There are also people who worry that if everyone listings successfully, will they go back to the way of PPG? The factory's "light asset" mode of PPG, the PPG of the shirt e-commerce website, has made PPG once spectacular. However, the annual cost of hundreds of millions of yuan in scale marketing and the "zero inventory" mode that are hard to control will eventually lead to the failure of the industrial chain fault.

If we simply imitate PPG's "light assets" business path, is the future of Vancl worth looking forward to?

What is the biggest problem facing customers? What is the cost pressure caused by too fast expansion?

In the era of "lack of money for all" in the electricity supplier, customers with free brands and annual sales of nearly 2 billion yuan are growing healthily, but behind the scenes is already a crisis.

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Who broke the way of financial services?

"Born 1984, we are all guests."

From Han Han, Wang Luodan, Huang Xiaoming to Li Yuchun, with its highly publicized "viral" e-commerce marketing, it has become a household word since its inception in 2007.

It never conceals the enthusiasm for market promotion, behind the "arbitrary object" heroic "raging" is the support of the five round of VC huge financing.

According to media analysis, every sale of a commercial product will contain 10 yuan advertising and marketing expenses, compared with the 29 yuan, 69 yuan, and 99 yuan products on the website, the advertising fee can be described as extravagant.

In fact, the rapid growth of all sincerity is relying on its "viral" advertising support.

It is a great move to hire celebrities to endorse, spread advertisements everywhere, and raise the popularity of "all guest" activities on the Internet.

The fruitful marketing and strong alliance enabled the chairman of VIC to have full confidence in the future of the company. Chen once predicted that sales in 2011 will increase by 200% compared with 2010, and the sales scale will reach 6 billion yuan, and the sales performance in 2015 will exceed 150 billion yuan.

Perhaps you can not imagine how much SKU support will be needed to build the "150 billion electricity supplier kingdom" by playing the "civilian card" price fan product.

By contrast, the cost of marketing is far from expensive.

In early this year, Chen told the media that the scale of Vic's advertising in 2011 amounted to 1 billion yuan, with sales expected to reach 100 million.

In recent years, there has been a rising trend of promotion fees.

In twenty-first Century, the website learned the advertisement survey report of 2009 in the international apparel industry in the year of 2009, and found that the advertising sales in 2009 were almost RMB 200 million yuan.

From 200 million to 1 billion, the annual advertising budget of every customer accounts for nearly 1/3 of annual sales, which makes everyone's cash flow "breathless".

In November, there were rumors that there was an advertising dispute between fans and good advertising, and there was a nearly $one hundred million advertising fee in arrears.

At present, the news has not been publicly clarified.

It is understood that the good Ye advertising for growing customers in the Internet advertising services, the list of customers includes the famous fans, dream bazaar, Lok bee net, handle network, Wo Wo Group, Le Tao and so on.

Recently, many Internet business enterprises have cut the advertising budget in order to "spend the winter".

Although the capital favors this young e-business enterprise with free brand and individuality, however, how long can it continue to pour into every customer's enthusiasm through the infusion of private equity and venture capital?

In November 30th, people in the industry disclosed exclusively to the twenty-first Century network that "all customers are expanding too fast, and the cash flow is likely to be unsustainable."

Another reason for the pressure of cash flow is likely to be another "bruising" in the e-commerce industry, logistics.

"Capital is all in favor of e-commerce, looking forward to the listing of electricity providers, but this meager profit industry may be careless loss." Chen Ping, President of star emergency, has talked about the relationship between e-commerce and logistics in this year's generation e-commerce year. "We are actually a logistics company for e-commerce companies, and logistics companies are actually serving bridesmaids for e-commerce companies."

People in the electricity business circle know that the electricity supplier is not an absolute "light asset" mode. If we want to imitate the promotion of PPG like burning money and not control the lifeline of the supply chain, there will be no way out for everyone.

In fact, customers have long known this.

Self built third party logistics distribution team, such as Feng Da, has won many good shopping experiences for customers.

However, the electricity providers pay more for logistics than the distribution system and logistics base. In fact, the input of information system, automated storage system and pportation management system is the real "big head".

At home, only Jingdong, mall, van Dang, Dangdang, shop 1 and other rookies can be "qualified" to play this "burn money" to the dawn of e-commerce game.

Earlier, some media sources revealed the number of prospectus of fan's products. "Logistics costs account for 30% of every customer's paction," he said.

Jingdong mall CEO Liu Qiangdong said, every guest logistics costs will not be less than 20 yuan.

On the broad road leading to the US capital market, who obstructs the financial resources of everyone?

To achieve the goal of high-speed development, not only the product line should be expanded, but also the pressure of the supply chain will be relatively large.

In twenty-first Century, according to the public information released by the network, at present, all customers have chosen to locate the 10 cities in Qingdao, Harbin, Nanjing and Lanzhou. In the second half of the year, 10 cities will be opened in Hangzhou, Changsha and Chongqing. With Beijing, Shanghai and Guangzhou, the total number of warehouses is expected to reach 28 by the end of the year.

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3 years financing $200 million

The dispute between "off line" and stop loss

"For all customers who have experienced many rounds of financing, it is difficult to further finance, and listing may be their last financing path."

Yi Kai Vantage Capitals Ltd CEO Wang Ran said that at present, some of China's "electricity burning" as the main characteristics of the electricity supplier companies, more or less faced with financial difficulties.

According to the twenty-first Century network understanding, all customers in October 2007 on-line operation, as of now, has gone through five rounds of financing, contacts private equity, venture capital financing up to seven rounds, investors include IDG, LIAN strategy source, Lei Jun, Qiming venture capital, Sai Fu partners, tiger capital (Tiger) and Temasek, and so on, the latest round of financing scale of 1 billion yuan.

Financing time, amount, investor

The first round of financing was $2 million in October 2007, LIAN policy source, IDG

The second round of financing was $10 million in January 2008.

The third round of financing in August 2008 tens of millions of dollars Qiming venture, IDG, LIAN strategy source, Softbank Sai Fu

Fourth round of financing May 2010 40 million ~5000 million Tiger Fund

The fifth round of financing was $100 million in December 2010, LIAN strategy, IDG, Tiger Fund.

Chart notes: the five round of financing history, 3 years total financing amounted to $200 million.

In the 3 years since the start of the venture, VC/PE has invested more than $200 million in its brand name.

The capital market has valued more than $1 billion for the "Van customer" brand.

In recent years, he had confidence in the outlet of all customers. He had more than once raised the sales expectations of all customers: "if 2011 sales of VMC can reach 10 billion yuan this year, it will be over 30 billion yuan in 2012."

Not long ago, all customers reduced the Commission of net alliance cooperation, and the ratio decreased from 16% to 10%. At that time, there was an analysis that the move could bring at least 20 million profits to all customers.

At the same time, Chen also said frankly that Vic is not yet profitable, and is expected to show a deficit this year, but the margin of loss will be narrowed compared with last year.

Liao Bin, CEO of Yintai network, said that "the whole capital market and the global economic situation are not good enough for the enterprises to come to the market early in the morning", according to the case of IPO blocked.

Jingwei Zhang Ying said, "listing is not necessarily a good thing, not listing is not necessarily a bad thing."

On the way to capital market, customers have always followed the logic of high-speed expansion.

If we do not think about the breakthroughs in pformation and the business model of "losing money and making money", I am afraid there is only one way to go.

It seems that if everyone wants to be beautiful, he must make "addition and subtraction".

It is urgent to coordinate the game relationship between high advertising cost and heavy logistics cost.