Revenue of 13 billion yuan
The founder Xiao Shangluo was originally a Taobao perfume seller. In 2003, Taobao was still in its infancy, and Xiao Shangluo opened a “small store”, and the industry also called Xiao Shangluo “Xiaoya”. By 2012, Xiaoye Perfume became the No. 1 in the industry of Taobao perfumes with a market share of 12%.
Founded in 2015, Gathering is a self-operated e-commerce company, similar to JD.com, but uses social e-commerce to sell through the user’s social network. According to the prospectus, from 2016 to 2018, the total revenue gathered was 1.284 billion yuan, 6.444 billion yuan and 13.015 billion yuan respectively; the net losses were 24.668 million yuan, 105 million yuan and 56.326 million yuan respectively.
Compared with the competition, in the revenue, in 2018, the total amount was 13.12 billion yuan, which is comparable. In terms of net profit, the gathering is much more beautiful, and the latter has a loss of 3.958 billion yuan.
Another advantage of the collection is that the user quality is good, the viscosity and the customer price are high. The repurchase rate of the gathering users reached 93.6%, and the average customer unit price in 2018 exceeded 978 yuan. In contrast, the average customer price in 2017 is 32.8 yuan, and the average customer price in the first quarter of 2018 is 38.9 yuan.
“It’s a pity that such a high repurchase rate and customer unit price are not listed.” An early investor commented.
According to the prospectus, from 2016 to 2018, the number of platform buyers was 2.5 million, 16.9 million, and 23.2 million, respectively, with a growth rate of 576% and 372.78%, and paid members of 900,000, 2.9 million, and 7.4 million, respectively. The growth rates were 222.22% and 155.17%, respectively.
Transformation member e-commerce
The viscousness of the collection is largely due to its membership.
In 2018, 64.7% of the trading members will promote the products through social networks; 66.4% of the GMVs are from the members’ consumption, and the repeat purchase rate of these members with trading behavior is as high as 93.6%.
According to the prospectus, the total revenue in 2016 was 1.284 billion yuan, of which the online sales revenue and membership fee income were 1.129 billion yuan and 155 million yuan respectively; the total revenue in 2017 was 6.444 billion yuan, and the online sales and membership fees of the products were respectively 5.912 billion yuan and 511 million yuan; 2018 billion yuan in 2018, online sales of goods and membership fee income of 11.388 billion yuan and 1.552 billion yuan.
For a long time, the gathering is a typical representative of the “S2b2C model”. The platform supplies small sellers, and the small sellers distribute them again, through multi-level distributors to C-side consumers.
On the gathering platform, non-members can accept membership of existing members and purchase a member package of 398 yuan to become a member. 398 yuan is a unified pricing, the package content has different combinations; in theory, 398 yuan is lifelong, the platform does not charge renewal fees and regular membership fees. Members can purchase goods at a lower price, or they can develop sub-sellers to extract commissions from sales of products sold at lower levels. The platform provides ready-made promotional materials, including product descriptions and comments, for easy posting on WeChat, QQ and Weibo.
There are a large number of members, based on WeChat, Weibo and QQ. The prospectus shows that some of the member services are outsourced to third-party service companies, which are based on prospective employment service managers. Most service managers are also members. The service manager is responsible for organizing online and courses to train members, such as teaching how to use apps and platforms. , daily response to member consultation. By September 30, 2018, there were 60,000 service managers.
The clouded operating model was caught in the allegations of pyramid schemes. In 2017, the “Administrative Punishment Decision” issued by Binjiang Market Supervision Administration showed that in January 2016, the Supervisory Bureau investigated the investigation and found that there were “entry fees”, “pull heads” and “team compensation”. Suspected of violating the provisions of Article 7 of the Prohibition of Pyramid Regulations, the fine was 9.58 million yuan. Soon after, the WeChat public platform subscription number and service number gathered were sealed by WeChat platform.
CEO Xiao Shangluo has responded that the late ticket is aimed at the APP socialization push model before the gathering, and the collection has been rectified.
There are many social e-commerce companies that are on the verge of pyramid schemes. In the same year that the collection was fined, the global catcher official WeChat public number was permanently banned by WeChat official because of “multi-level distribution involved”. In the second year, Zhejiang Industrial and Commercial Bureau also said that the online shopping platform of Daren Store was suspected of pyramid scheme. The Yuhang District Market Supervision Bureau confiscated the company with an illegal income of 2.41 million yuan and a fine of 1.5 million yuan. The total penalty was no more than 3.91 million yuan. Not long ago, social e-commerce spent a birthday note on the alleged pyramid schemes that were fined 74.56 million.
Many investors told AI Finance and Economics that for companies with suspected pyramid schemes, they have held a wait-and-see attitude in the industry. Can they vote, and whether they can be washed in the future, so the prospectus is very curious. Next, global catchers, shell stores, flower birthdays, onion overseas warehouses and other similar projects are likely to appear one after another.
Declining growth rate
In August 2018, the slogan gathered from “use it to save money, share making money” into “registration gathering APP, shopping enjoy the wholesale price”, which means that it emphasizes the ordinary consumer as C-side, weakening the “b” Attractive.
A member of the gathering revealed that there are three types of members in the collection: self-use, which is usually understood by members, and can get discounted prices; retail type, only the owner and the consumer, not invited to become the owner; entrepreneurial, superior The owner invited the lower-level shop owner to get the commission of the latter’s sales.
According to the collection of prospectus, from 2016 to 2018, the revenues gathered were about 1.284 billion yuan, 6.444 billion yuan, and 130.15 billion yuan respectively. The year-on-year growth rates in the next two years were 401.56% and 101.97% respectively; the GMVs were 1.8 billion and 96 respectively. Billion and 22.7 billion, the growth rate in the next two years was 433.33% and 136.46% respectively.
How much can a member earn? Calculated in 2018, GMV 22.7 billion yuan, 7.4 million paid members, an average of 30,617.57 yuan per member contribution, assuming that the pumping is 30%, each member earns less than 1,000 yuan a year, showing that the incentive effect is very limited.
But is this transformation feasible?
In terms of revenue and GMV indicators, the growth rate in 2018 has dropped significantly. The same is the establishment of a three-year listing, the data is much more eye-catching. In 2018, revenue and GMV growth rates were 652% and 234%, respectively.
The growth rate is also a concern for investors. Although it has been widely questioned by the fakes at the beginning of the listing, the stock price has been high because of the rising trend, and the market value is close to 30 billion US dollars.
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