Broken electric provider business, McCaw 'Brokeback' to survive text / Hao Fengling earnings eclipsed McCaw (Mcox.Nasdaq) look tired. This time of listing at the end of 2010 at $ 17.5 opening of the company, the stock all the way down the past onimenokyo wigs two years, and now it is below $ 1. However, there is a company apparently did not mind the poor performance of McCaw. On November this year, Giosis from Korea will McCaw Lincheng Li new venture 'Fun day Mecoxlane' (Giosis Mecoxlane), the former accounting for 60% of shares. Under the agreement, both parties to the joint venture, respectively $ 15,000,000 and $ 5,000,000 in cash.
In addition, Giosis will also provide online shopping platform technology, related intellectual property and the formation of the management team, McCaw is to provide domain name and trademark rights include M18.com of. McCaw move was widely regarded as a desperate plight under a stroke. Only from the performance point of view, from fiscal year 2011 onwards, McCaw's revenue began to appear negative growth, profits are falling; In 2012, the situation has not improved. In the situation in the entire Chinese e-commerce market scale is still growing, the net revenue Mecoxlane the first three quarters continued to decline, falling by 22% -30%, and continued losses. Plus the US capital market downturn and other factors, 'Chinese electricity supplier first unit,' McCaw faces dilemma will be delisted. History is always surprisingly similar. 11 years ago, Gu Chun stepped in as CEO, saved the brink of collapse McCaw. Today, the plight of the founder of McCaw again Giosis Korean Ku Young Bae entrusted with the task, in the hope that his leadership can revitalize the close hemorrhagic electronic business assets. This time, it can do so it? Swing or do little bigger strategy? On the road leading to the electronic business platform, McCaw a mistake and try again. In 'The Internet (e-commerce) + Call Center (directory) + store' multi-channel retail business model McCaw, after landing in the capital market, and gradually the emphasis electricity supplier business. In the first three quarters of 2012, these three channels in the proportion of revenue were approximately 48%, 30% and 22%. But entering 2012, the three channels have appeared declining revenues. McCaw electricity supplier has become the most serious decline in revenue channels, the first three quarters, the electricity supplier revenue declines of 35.1%, 40.0% and 42.8%. McCaw this explanation as 'reduced online ads, resulting in traffic decline electronic business platform.' Let Gu Chun was, paradoxically, the need for advertising to pull the electricity supplier industry, McCaw has been performing poorly in the conversion rate index. In his view, only 'tens of thousands' SKU (Stock Keeping Unit, SKUs) Mecoxlane compared with a few millions or even tens of millions of SKU's Taobao, Jingdong big platform, 'investment in advertising is the same , but the value of the customer generated, repeat purchase rate is not the same input and output is not proportional. ' Thus, McCaw becomes more 'stingy', while reducing advertising revenue also makes subsequent shrinking. Earnings data show, McCaw 2012 third quarter revenue of $ 112 million, compared to 2011, reduced by nearly 30% over the same period. Mai network of third-party sellers also feel this change. A women's brand insiders told reporters that at present their monthly net sales in the wheat only 'around 3 million,' and two years ago to do a day of activity in the wheat network will be able to sell more than 900 million. The official blamed 'propaganda is not enough, especially for active propaganda', in his view, McCaw's propaganda 'or the continuation of early detection brochures (catalog) approach, compared with other platforms too vulnerable.'
As early as 2010, McCaw had been 'department' of action, that is, through the introduction of third party brands, be a 'fashion' as the core platform expansion, increased SKU. Only in 2010, McCaw on the introduction of the 317 third-party brands. But, 'Later, they slowly closing (reduced),' and in 2011, reduced to 183 third-party brands, department of emerged repeatedly. McCaw store revenue rate of decline after the electricity supplier, which is a major reduction in the number of stores. Pre-IPO, McCaw has been called 'the next three years developing stores in 2000,' the grand plan, in the prospectus, which explicitly mentioned the use of a portion of the financing will be used for store expansion. But the end of 2011, the number of its stores from 478 before June 30, 2010 listing, reduced to 400, enter 2012, continued reduction. McCaw believes that to focus on the electricity business transformation. But in practice the past two years down Gu Chun and other executives found that:. 'Rely on the original gene McCaw, to make an electronic business platform, low probability of success,' the lack of electricity suppliers gene 'in the final analysis, the company's entire team of genes or do the brand genes, including myself. 'Socrates said, know yourself. In the history of Mecoxlane 16 years, we continue to be the practice of the aphorism. McCaw was established in 1996, initially only a mail order catalog sales of women by the company. That time, the international management team do not understand the Chinese market is 'very in line with European tastes in the elderly,' so poor performance, on the verge of collapse. April 2001, Gu Chun was appointed as the Warburg Mecoxlane CEO, previously, he has accumulated a lot of experience in mail order catalog Bertelsmann. Gu Chun new government took office after Mecoxlane drastic reforms, he first cut off the traditional clothing product line, find some trinkets from the market, using direct sales channels Mecoxlane brought the price advantage to sell; then, McCaw target customers from rural consumers to line the city's white-collar workers. With the price advantage, McCaw trinkets by consumers, less than a year, to reverse the situation. McCaw was growing as 'China's largest mail order catalog company.'
After that, McCaw has gradually expanded the clothing, household goods and other categories, and the creation of Euromoda, Rampage own clothing brand. Since 2004, with the tide of online shopping from Mecoxlane wheat timely promotion network, network sales channels open; in 2009, McCaw Lin and expanding rapidly offline stores. October 2010, McCaw Lin 'Chinese electricity supplier first unit,' the identity of the NASDAQ. Its prospectus shows that from 2007 to 2010, revenues 'online platform' for its contribution accounted for 92.2%, respectively, 86% and 72.8%, but mostly from the call center, real revenues from the Internet gundam seed wigs platform were only 24.4%, 25.4% and 28.9%. Moreover, the Internet platform, about 70% of its revenue from sales of own-brand McCaw. As early as March 2011, Mecoxlane Sina and China Dongxiang has introduced the two strategic shareholders. But now, such transactions Mecoxlane help is not obvious. Change can only start from within. The reason for the nearly two years of development policies 'swing', the Gu Chun own reflection is: 'Ultimately, the company's entire team of genes or do brands, including myself, too.' And a company of the gene and if a person's character, it is difficult to change radically. These are the company changed several times before they realized the truth Yi, Gu Chun would like to take this cooperation, allow the company to return to 'make the brand' of origin. Jimmy network will be incorporated into fun days after McCaw, McCaw existing electricity supplier sector role change will take place, is responsible for the supply of its own products to rebuild after Jimmy network and Jingdong, Lynx and other platforms, is also about their own homing as 'online brands.' 'According to our experience and genes, can only do the brand,' Gu Chun said, 'I finally do not force yourself to change, to change the team, put the team out of different genes in it together, this may be more powerful.' M18 'New Deal' of several major business platform to force Jingdong, all passengers in the rapid, M18 hopeless situation? Fun day McCaw in the composition of the Board of Directors to create more space for the Ku Young Bae. In a total of five board members, one is Ku Young Bae, one is Gu Chun, one from Sequoia, the other two independent directors, one member of the board of directors from McCaw, one with Ku know a long time resident of Beijing people. Overall calculation, McCaw Giosis day in interest and McCaw 6: 4 ownership structure represents both a corresponding right to speak on the board. As co-chairman, Gu Chun will participate McCaw interesting day affairs, but its main focus will be spent on McCaw's brand construction, site construction of distribution channels, specific operations McCaw interesting day will be solely responsible for Ku Young Bae. 'We need to give the decision-making ability of an entrepreneur, and mother more difficult to do things.' Gu Chun said. Resume Ku Young Bae show that a successful operating experience electricity supplier.年 2000, Ku founded Gmarket, and the $ 2 million from a small company into South Korea's largest business platform, the market value of billions of dollars. 2009, Gmarket to eBay. As early as last June, Ku it was introduced, he met McCaw CEO Gu Chun, the two played golf together, get along, and that the mutually trust each other. At that time, Ku had considered the possibility of bilateral cooperation. However, the 'hybrid gene' electricity supplier companies seem to have not been successful precedent. In 2010, Japan's largest electricity supplier had set up a joint venture company Lotte music cool days and Baidu, intended for Chinese users to create large integrated class B2C online shopping mall. But in 2012, the music cool days ended in failure.
Acclimatized, cultural differences are viewed as an important reason for the failure of cool days. Whether Gu Chun or Ku Young Bae, this is not new, but they strongly emphasize different interest days McCaw and cool days: the cool days of Trader is a professional manager, the boss sits Japanese remote control; and Ku is successful electricity business experience entrepreneur, he personally came to China, operational flexibility and the concept is completely different. However, China's e-commerce seems to have entered a 'scale, Cosplay Costumes no profit,' the vicious circle. In the price war intensified, more and more market share to Jingdong, Lynx, Suning Tesco, where customers and other major platform for aggregated trend, M18 How to win a place? Status of China's electricity but also to Ku Young Bae full of concern. Although earnings M18 when no definite answer, but he was not prepared to compete on price with other electricity suppliers players. 'We will try and effective, new ways to communicate with the user to create flexible platform,' he said, interesting day McCaw play is 'minimal investment to bring the greatest benefit.' Moment, Ku Young Bae believes that the most important is that the M18 this new platform within the next year to start color and draw some ability, professional local talent to come, after all, this is a very local business. (Via 21 Century Business Review)