Saturday, December 12, 2015

Beautiful round depression finance controversy immediate solutions sustainable

  After following the ripped know Internet car Ranger truth, known among the exposed group is in a financing dispute.

  Not long ago, have participated in the Group on the new round of investors in the know say GMV is 47 billion in the first half of the Group was officially announced, among them, the takeaway: 4.25 billion; film: 6 billion; Hotels: 7.1 billion; deal: 29.65 billion yuan.

  "Beauty mission data is very beautiful, but making money from this thing, GMV digital value is not very high, and revenue is the core. 47 billion of the GMV, actually create revenue (income) is? "

  Exposure material quoted one participation beauty mission latest a round financing of investors of said said, beauty mission the article front losses serious, recently of financing material in the Commission rate has Xia fell to 2%, first half of, its monthly loss about 600 million Yuan around, equivalent to each coming 1 Yuan on synchronization net losses 2.7 Yuan; and high turnover zhixia, is low returns low gold, beauty mission new a round financing suspected blocked.

  Knowing exposed issued shortly, when you prove this to the group by a reporter, the group said, exposed are completely erroneous, and Sequoia Capital, one of the investors said, he was just small shareholders, not easily respond to mission to the United States.

  Meanwhile, exposed "group burn about 600 million a month", a a O2O Tencent technology industry executives said, the results and its internal research estimated that a single month loss. If a loss of 600 million a month is true, then around 7.2 billion loss that year. Group financing of US $ 700 million earlier this year, only last 8 months.

  Industry sources said, the group is engaged in a new round of financing, but the burn speed of the amazing beauty college financing did not go smoothly. According to people familiar with the matter said, "burn a billion dollars a month, Wall Street investors are scared to vote, US stock markets are not good. Change group were more likely to find some reasons for financing of the Fund. But the domestic capital market is not good, everyone is watching. "

  According to another Insider revelations said mainlander cat CEO Shen Li, have already left. Shortly after departure, Shen served as cat's eye CEO just us in the critical period of financing of a compromise measure.

  Once a dominant, unstoppable, but now suffered burning of Shu's camps. Group's current predicament, and the battle of Cao Cao during the three kingdoms, seems to be quite a fight.

  Now beautiful round faced financing difficulties, is what they call the "false", or if the community says "burning money woes"?

  Three pillars of loft

  Dilemma of the United States Mission was not unilateral, but is the result of several factors.

  Commission, advertising, use of money precipitated the Internet financial, is the American dream of the three pillars of income, are also the most likely source of revenue, but in fact, the three pillars was almost vacant, become castles in the air, dream does not shine into the reality of the American Mission.

  Three or four lines of large market area had fallen, is the nightmare began. Three or four line group's traditional strength lies in the cities, is pumped into a granary can be maintained, but now even burn camp, powerful incoming BAT, especially Baidu Hao hit 20 billion to support rice racing, American traditional territories are being eaten up, forage to sustain.

  Business model to save significant deficiencies, is the Achilles ' heel of the American Mission. Majored in high-frequency business group, is the low stickiness and price-sensitive market. Group to rely on subsidies war subsidies to compete for market share, relying on blood transfusion is not stable, lack of customer loyalty, once the subsidy less aggressively than competitors, users will not be reluctant to abandon it. Baidu, Ali into the Council, first of all, is aimed at the United States Mission in this part of the price of HF-sensitive users.

  Same user viscosity is low because, beautiful round platform imagination of limited value, even if the advertising model, there is a big difficulty.

  Huge amount of precipitation from high-frequency trading funds was a potential gold mine of the American dream. Huge capital is a cornerstone of Internet financial, also originally supported Ali, foundations of the vast Empire. Half-month payment term, it could be up to tens of billions of Yuan for GMV Group offers huge capital precipitation, help its Internet financial dreams. Is a pity, that dream almost lost at the moment.

  Rivals such as Baidu, the mass comment lately to attract customers, increasingly T+0 into account in real time, which is equivalent to directly burn the Group bridges to make it capital in smoke. Beautiful round up the dare, continue to follow T+N road, tantamount to their user base to push rivals hug and share the beauty of the fall mission categorically did not dare to take the risk.

  On top of that, us support behind the mission does not have any flow, the mass comment Tencent, Baidu glutinous rice, both from the danger of no flow. Group investments, although Ali, but the investment side of Ali but did not provide any flow to the United States Mission support, instead of at the end of June to invest 6 billion to restart Word of mouth network, obviously meaning leave us in the lurch.

  Immediate solutions, sustainability in doubt

  2010 was US $ 10 million series a investment in July 2011, $ 50 million b round of funding in May 2014, $ 300 million c round of funding in January 2015, $ 700 million d round of financing ... ...

  Does not have a long history of the United States has a long history of financing. This is where the tragedy of the American Mission. In the case of the business itself cannot be transfusion of cash flow and business expansion needs money, can only rely on financing. Financing after the expansion, and then burn, then a new round of financing, a new round of money, so the cycle, fall into a vicious circle. BAT lead what Huawei are betting cloud computing

  Although financing can temporarily solve the immediate problems, provide support for business money, but not a long-term solution. About O2O industries, burn only temporarily to attract customers, bring about expansion of the size of the surface. Neither enhanced stickiness, not for profit, not sustainable. If you can burn money and low threshold for opting to build and wear down opponents, future prospects, but there seems to be blind to this possibility.

  In the face of Baidu, Tencent, is worrying about money not spend advocate, beautiful round with game money, obviously it would be wise.

  Commission rate continues to decline being questioned

  Mode can now be expected three income (commissions, advertising and use of money precipitated the Internet financial) of vacant situations, the group vigorously burn results, it seems that the Commission rate steadily declines. Group Commission rate has now dropped from 5% in the previous round of financing 2%. So of low of Commission rate, not only makes beauty mission by Commission into local of dream basic lost--at least now also see not to way, more led to beauty mission of business expansion became "loss earned yell" of sale, GMV more high, deficit more serious, according to projections, currently beauty mission of monthly of loss General in 600 million Yuan, in losses surface not continues to expanded of situation Xia, this year annual losses will up 7.2 billion of giant. Could only finance a rising on the blood transfusion.

  Future unless Wang can create more barriers to new revenue models and competitors. Now, perhaps, but more is not possible, in this regard, Wang might also know perfectly well. But it is obvious that the repeated "Finance-money" must not help the Group built the threshold.

  It is reported that the Group had said at the Investor Conference, Commission rates will rise to 7%-8%, or even 10%. This vision is nothing but wishful thinking. On current industry trends, the competitive environment and corporate model perspective, Commission rate is in fact very difficult to rebound. The current three or four of the most competitive cities, to compete for business, competitors will reduce rates, merchants preferred low rate, of course. Reduced commissions have become industry trends, are on 0 and end up with might formed rule is similar to a credit card rates, only 6 thousandths.

  Moreover, O2O in terms of patterns and drainage is better suited for service-oriented businesses, advertising platforms, rather than trading pattern-oriented. Furthermore, takeout, movies, hotels and other areas have formed oligopolistic effects, many competitors, improve the Commission apparently does not reality.

  As one of the few survivors and winners from the "thousand wars" bloody baptism breakout group, buy business also leapt to the top, accounting for more than half of the buying market, market share was as high as 55%. However, the start of the year, with group buying industry "to buy" a rising tide of, and BAT began to accelerate its O2O, beautiful round face unprecedented pressure and challenges.

  The end of July, the Group announced turnover of cat's eye movies in a high profile, but vague attempts to 2.2 billion proved his box office success. Since July the national box office only 5.49 billion, cat-eye box office accounted for half of the United States Mission? when was the film industry after the questioning, cat's eye movies says, 2.2 billion transaction, ranging from pure box office contribution, as well as movie ticket service charges, face charges and income involved in movie marketing. Such results have led to new film company General Manager Zhou Tiedong ridicule on Twitter: "you also talk about the data?"

  Beautiful round and so upset, but let the film industry does not see the people any longer. Can only say Jiyan are enemies of the United States Mission, really nervous sweat.

  Business model to encounter bottlenecks, money in an emergency, perhaps in early July the Group Executive team squad present at the press conference, Wang "generously" confided felt behind the privacy of data. May the Group wanted to strengthen confidence in the capital markets to its mode, order to raise and the next round of financing.

  Investors can be expensive, but you have to see this prospect. Group financing difficulties, the root cause is that its business model.

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