The re-privatized Jumei Youpin and “Chen Outi” fluttering in the wind


Editor’s note: This article is from the micro-channel public number “Financial loudly” (ID: caijwj), Author: Du Peng Xiao, 36 krypton release authorized.On January 13, Chen Ou, the current chairman of Jumei Youpin, submitted a privatization invitation to the Group’s headquarters on January 11, intending to purchase the remaining shares of the company at a price of $ 20 per ADS (American Depositary Share).Once the privatization invitation is completed, it will signal the delisting of Jumei Youpin from the NYSE.This is not the first time Chen Ou has proposed a privatization of the company.In February 2016, Chen Ou tried to privatize Jumei Youpin far below the issue price, but was opposed by shareholders and failed.In November 2017, Chen Ou withdrew his invitation to privatize.The privatization offer of $ 20 / ADS issued by Chen Ou this time has a 14.7% premium on the surface, but before the privatization, Jumei Youpin adjusted the ratio of ADS to A shares and converted them into Class A ordinary shares.The privatization offer price is equivalent to $ 2 per share. In this context, the success of the company’s privatization remains to be seen.After the halo, Jumei Youpin is a cosmetics limited-time shopping mall. Its predecessor was, founded by Chen Ou and Dai Yusen in March 2010.In September 2010, officially launched the new Jumei Youpin brand. On the evening of May 16, 2014, Jumei Youpin was officially listed on the New York Stock Exchange under the stock code “JMEI”.It was up to $ 5.65 billion.Chen Ou, born in Deyang, Sichuan, bachelor’s degree in computer science from Nanyang Technological University, Singapore, and obtained an MBA degree from Stanford University.Later, they resonated strongly, setting off a wave of “Chen Outi” imitation on Sina Weibo.Chen Ou’s Jumei Youpin was founded in 2010.That was the Pentium era of Chinese e-commerce.In that year, the national transaction scale was 4.8 trillion yuan, an increase of 33.5% year-on-year.This year, the US Mission was established, and the most intense “Thousand Regiment War” on the Internet is about to erupt.In fact, Jumei Youpin first earned the first bucket of gold by buying cosmetics.In 2013, Jumeiyoupin, with a market share of 22.1%, ranked first in China’s beauty online retail platform.On May 16, 2014, Jumei Youpin was officially listed on the New York Stock Exchange, with a market value of more than 3.5 billion U.S. dollars. Chen Ou became the youngest CEO of a listed company in the NYSE’s more than 220 years of history.One hundred million U.S. dollars.At a young age, he became the helm of a well-known enterprise.In the year before listing, Jumeiyoupin, with a market share of 22.1%, ranked first in China’s beauty online retail platform.According to data disclosure, the GMV of Jumeiyoupin has fallen from 8.9 billion in 2015 to 4.6 billion in 2018, which has not actually reached a fraction of China’s current mainstream e-commerce platform.At present, Jumei Youpin 2019’s interim report has not yet come out.Calculating a current stage of business, Jumei can take it, actually from Chen Ou Yu Wang Sicong’s shared charging treasure.In just a few years, the development process of Jumei Youpin is embarrassing. Can this privatization plan save the former “God’s Favor” and whether it is a “ambition” layout of Chairman Chen Ou?No conclusion can be reached for the time being-but from another perspective, it also reflects that Chen Ou is unwilling to watch the company founded by the first hand “sink”.It’s hard to stand alone. The pre-branding of Jumei Youpin cannot be separated from the “ambition” layout of Chairman Chen Ou. In 2012, “I am Chen Ou, I speak for myself”. The hot “Chen Outi” once made JumeiyouIt has a good reputation, but the current Jumei Youpin has struggled in the development process.Soon after listing, Jumei Youpin ushered in the first difficult period.In July 2014, the supplier of Jumei Youpin was found to be selling fakes, which also directly caused Jumei Youpin’s stock price to continue to plummet. Chen Ou was furious and turned all the luxury product lines into self-employed.Started the “Speed ​​Duty Free Shop” business which was directly purchased worldwide.Through some vigorous and effective measures, the stock price of Jumeiyoupin began to recover, and even a small peak appeared.According to its financial report, in 2015, the total revenue of Jumei Youpin surged 88.7% from 2014, reaching 7.34 billion yuan.This time also shows Chen Ou’s tough management style.However, the problem exposed at the same time is the high operating cost of Jumei Youpin.The profit is too small, and the stock price of Jumei Youpin has plummeted. After the introduction of the new 408 policy, the overall volume of Jumei Youpin and the order volume have fallen by 60%.Chen Ou’s “ambition” has also been hit as never before.According to the “Deep Web” report, due to disagreement, Chen Ou had a dispute with co-founder Dai Yusen, and even eventually suffered a physical conflict.The main contradiction is that the executive team represented by Dai Yusen hopes to adhere to the position of an e-commerce company and focus on the upstream and downstream operations and control of the industry. From the perspective of Chen Ou, Jumei Youpin is more dependent on its personal influence.Blog operations are more important.Perhaps because of different business ideas, in 2017, Dai Yusen resigned and joined Xu Xiaoping’s Zhenge Fund.In addition, Liu Hui, who was withdrawn due to poor management in 2013, is now the only founder of Chen Ou.The privatization behind privatization, just because nobody cares about Jumei Youpin?Maybe more than that.At the 2016 Annual Meeting of Jumei Youpin, Chen Ou announced Jumei’s future grand plan “Economic Value”.According to his speech, Jumei Youpin’s “face value economy” will include star economy, Internet celebrity economy, eyeball economy, film and television economy.”E-commerce is just called the E-commerce Division in the future.”In addition, that year, he also set a goal: 200 million users and 100% growth in performance.However, the result of this round of “strategic transformation and upgrading” was the overall deterioration of Jumei Youpin’s financial data.Looking at this plan, it is easy to see that the purpose of Chen Ou’s attempt to re-privatize is, in a sense, to build space for the strategic transformation of Jumei Youpin.Looking back on the predicament of the time.The dissatisfaction of the shareholders of the company was mainly caused by Chen Ou’s two investments in 2017-one was to purchase 300.07% of the shares of the shared charging company Street Electric for 300 million yuan, and the other was to invest 96 million yuan to shoot the TV series “Warm Strings”.Since then, Street Power, like other shared charging treasure companies, still has a hard time getting rid of the difficulty of making profits.The TV series also received very little response and could not make ends meet.Of course, the core problem lies in Jumei Youpin.Although Jumei Youpin was the boss of cosmetics vertical e-commerce when it was founded, the low ceiling of vertical e-commerce is still criticized so far.In the era of mobile Internet technology, in order to survive in the e-commerce industry, stable customers are the core. In addition, excellent product quality and excellent after-sales service are essential.However, in the new round of e-commerce shuffling, Jumei Youpin lacked the support of technology and logistics. When the audience’s advantages were not prominent, its shortcomings began to show quickly.Coupled with the countermeasures taken by Chen Ou, which could not cure the disease at all, Jumei Youpin began to be left behind far behind.According to data from Analysys Consulting, in Q3 2019, Jumei Youpin’s market share is only a poor 0.1%.In the past 10 years, what has Jumei Youpin most impressed consumers?The answer is only “Chen Outi”.In a sense, the popularity of “Chen Outi” has indeed brought fame and benefit to Chen Ou. Chen Ou has become a representative of the “Internet celebrity” entrepreneurs in the new era. Weibo has nearly 43 million fans, which is twice that of Lei Jun.Tens of thousands of comments were posted on Weibo.Chen Ou also seems to be particularly keen to increase the popularity of himself and the company through the “Internet Red” publicity. While posting red envelopes and selfies on Weibo, he frequently appeared in variety shows to create a “warm man” for himself.”CEO label.But “Chen Outi” alone cannot save Jumei.Although the boss has become more and more “Internet red” through unremitting efforts, Jumei Youpin has been losing ground in the e-commerce competition.Frequent exposures can indeed lead to a surge in user numbers in a short period of time. This is what is currently known as the fan economy, but this economy is not solid. To be precise, these fans have not produced the Jumei Youpin platform itself.Any value recognition or consumer trust—Chen Ou, as an entrepreneur, seems to be pushing too hard, and the image of “Internet celebrity” has distracted people’s attention from their business ability.Enterprises want to retain users, the core is still products, technology, services; entrepreneurs want to retain posts, they still need those basic qualities.The privatization invitation of Jumei Youpin may be the last time that the former “net celebrity” Chen Ou has desperately faced the competition of e-commerce.I do n’t know if Chen Ou will still use the phrase “dream is doomed to travel alone” to exhort himself to show his vigorous “ambition” in this wave of transformation?Seeing friends leaving one by one, Chen Ou, who was nearly 40, should have figured it out.Only those hard-working simple entrepreneurs should do so that Jumei Youpin can survive in the cracks.The cover image is from pexels.

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