Such as the holding of the "net red e-commerce" business: a year's valuation increased by 6 times half a year to sell 300 million yuan

At the same time that the “Net Red Economy” cake is bigger, competition is becoming more intense. As chairman Feng Min Han Holdings, he said, "the business model is not a barrier, will increase the technical inputs, Charge second leap. Strengthening information systems and supply chain construction, to create their own electricity supplier network Red ecosystem."

Standing at the "net red economy"

Standing on the "net red economy" outlet, last year's "net red first e-commerce" landing in the new three board, such as Han Holdings recently released the 2017 semi-annual report. In the first half of the year, due to increased investment and seasonal reasons, the loss was 15.311 million yuan, but the operating income was as high as 305 million yuan, a year-on-year increase of 293.48%.

It is understood that Ruhan Holdings owns many well-known net reds such as Zhang Dazhao, Dajin, and Auntie. Among them, "Electronics first network red" Zhang Dazhao has 5.42 million Weibo fans. During the “Double Eleven” period in 2016, Zhang Dazhao’s Taobao store sold more than 100 million yuan, and created a sales record of Taobao live broadcasts with a 2-hour turnover of nearly 20 million yuan. The ability to “suck gold” is amazing.

Feng Min, chairman of Ruhan Holdings, told the China Securities Journal that “manufacturing net red” has a strict process. “The main stage is divided into three stages. The first stage is to find and discover the seedlings. This is a bit like the scouting; the second stage is to verify whether it can become a net red; the third stage is to prepare the team to open the store.”

Under the above strict selection process, the net red ratio of the final signing of the company is only 20%. Feng Min said, "The current redemption of the network is close to 100. The model for realizing the market is still based on opening stores. There are about forty or fifty online reds, and we are also exploring other monetization models. For example, through advertising, entertainment, etc. Ways to cash out, and some net red are in the hatch."

Judging from the current situation, Zhang Dazhao is still the most "golden" net of Ruhan Holdings. Its joint venture with Rugao Holdings, Daxie E-Commerce (such as 51% of Chuang Holdings), became the main source of net profit of Ruhan Holdings. Taking the first half of this year as an example, Ruhan’s loss was 15.3111 million yuan, but Daxie’s e-commerce realized a net profit of 18.192 million yuan. In this context, whether Ruhan Holdings can replicate Zhang Dawei has been a hot topic in the market.

Shao Zhenxing, an executive director of Junlian Capital and a partner of the cultural sports investment team, who participated in the three rounds of financing of Ruhan Holdings, believes that Zhang Dazhao has a first-mover advantage and is suitable for net red, which is understandable as the main source of profit for Ruhan Holdings. From the trend point of view, the absolute value of Zhang Dazhao's contribution is still growing, but the proportion is decreasing, and the proportion of other net red is rising.

"We have never said that we want to 'reproduce Zhang Dawei', but other net reds reach half of Zhang Dazhao's level. It is worth looking forward to. At present, Zhang Daxuan's contribution per month is tens of millions of yuan, and we have over ten million nets. There have been two or three, more than five million, more. It is pyramidal and spiraling up." Shao Zhenxing said.

In order to create a "net red matrix", Ruhan Holdings has continuously increased its training of its network red. The semi-annual report showed that in the first half of the year, the sales expenses of Ruhan Holdings reached RMB 118 million, accounting for 38.7% of operating income, which was 9 percentage points higher than the 29.7% in 2016. Among them, advertising promotion fees and red service fees are the two highest, totaling 72.275 million yuan, accounting for 23.7% of operating income.

Capital chase

As the “first share of the network red e-commerce”, Ruhan Holdings has won the competition of various capitals, and Saifu Asia, Junlian Capital, Kunlun Wanwei and Alibaba have successively invested. In November 2014, Ruhan Holdings won the A round of financing from Safran Asia. Feng Min recalled that “there was no concept of a net red economy at the time, and we just tried it. Safran Asia recognized the practice of importing traffic through social platforms.”

In October 2015, Ruhan Holdings won the B round of financing from Junlian Capital and Safran Asia. "At that time, the model of the culvert was initially verified, and the red man Zhang Dazhao and several reds of the second tier were signed. The monthly data performance was also good, and the direction was relatively certain. However, the transition time was short and belonged to the early project. There is a certain risk in investment.” Shao Zhenxing said that the valuation of Ruhan Holdings had exceeded 500 million yuan.

By 2016, the company's monthly data is getting better and better, the number of signing reds is increasing, and the valuation is rising. At this time, Ningbo Kunlun Point Gold Equity Investment Co., Ltd., a subsidiary of Kunlun Wanwei, took the lead in investing. Junlian Capital had the priority investment option and made a follow-up investment.

As the volume grows geometrically, the demand for capital continues to increase. After the Spring Festival of 2016, Ruhan Holdings launched the C round of financing, and has met several mainstream investment institutions, and the lead investment plan has been determined. However, with the addition of Alibaba, the party was reinstated until the November 2016 increase plan was confirmed. During the period, Ruhan Holdings listed the new three board market.

In the end, Ruhan Holdings raised a total of 430 million yuan. Among them, Alibaba subscribed 3,110,100 shares at a price of 96.43 yuan per share, and obtained 9.58% of the shares of Ruhan Holdings. Based on this calculation, the valuation of Hanhan Holdings reached 3.132 billion yuan. At the same time, four organizations including Junlian Capital conducted a follow-up vote. According to the data, Feng Min, chairman of the company, is ranked as the largest shareholder with a shareholding ratio of 40.05%. Junlian Capital, Safford Asia and Alibaba are ranked second, third and fourth largest shareholders respectively.

In addition to funds, a number of highly powerful shareholders joined, bringing a strong industrial chain resources to Ruhan Holdings. Feng Min said, "The net red dividend period is coming, more and more investors want to enter. In addition to funds, it is more important to the industry chain resources brought by investors."

For example, Junlian Capital, which participates in multiple rounds of financing by Ruhan Holdings, is focused on TMT and investment in innovative consumption, modern services and smart manufacturing , medical health, culture and sports, and is rich in industrial chain resources. “Junlian Capital's resources can be grafted throughout the entire industry chain. Around the content, IP shaping related fields, investment projects that specialize in marketing and content production. These cultural resource related projects can be grafted with the same. In the supply chain, In other categories of goods and services, Junlian Capital and investment projects also have a large number of resources, which is a potential cooperation object," Shao Zhenxing said.

Increase technical investment

The net red economy is booming, all the capitals are chasing each other, and the market competition is becoming more and more fierce. Data show that in the second quarter of this year, the number of Chinese online red fans increased from 390 million in 2016 to 470 million, an increase of 20.51%. At the same time, the number of net reds increased even more. For example, in the case of net red with a fan size of more than 100,000, in 2017, its scale increased by 57.3% compared with 2016.

In the semi-annual report, Ruhan Holdings pointed out that the current sales category of the company is mainly clothing. In 2016, the first year of “net red e-commerce” broke out. Traditional e-commerce clothing brands have joined “net red e-commerce” and “net red broker”. "In the competition." Many net red e-commerce brokerage companies have gradually emerged. Coupled with the establishment of e-commerce channels by some internationally renowned “fast fashion” brands, the company faces greater market competition risks.

The drastic changes in the market have made Feng Min more aware of the "net red e-commerce". “In 2015, I will mistake the bonus as a trend. For example, Weibo used to be a valuable place, but now there are more and more players, and the dividends are shrinking. After three years of training, we have grasped the trend and pain points. More accurate.” Feng Min said, “The business model is not a barrier. The real barrier is to establish and iterate the business model to gain dividends. At the same time, to gain technical lead through investment, extend the bonus window. In addition, in some Application scenarios can be established on the product."

As early as last year, Ruhan Holdings took precautions and dealt with the fierce competition in the market in advance. Feng Min told the China Securities Journal reporter that in addition to actively expanding the business categories of luggage, beauty and other products, enriching the online sales product line and sales field, more importantly, increasing investment in technology applications, through technological advancement and model innovation, utilization Big data technology predicts demand.

In November last year, Ruhan Holdings raised a total of 430 million yuan. Among them, 130 million yuan invested in the development and promotion of B2B projects, integrating the resources of garment processors and fabric suppliers, and creating a flexible supply chain platform for apparel through demand matching and supply chain integration. At the same time, it is planned to invest 30 million yuan for the R&D and promotion of the Chaoshang APP project, to realize the storage, management, query, statistics, analysis and application of big data around the user consumption data that the company has mastered, and promote the new retail brand for the company. Provide policy support.

Feng Min’s greater ambition is to build his own network of red e-commerce ecosystems with the help of information and supply chain systems. "I hope that in the future, where Taobao and Weibo can't cover the two giants, we will do some services that are more applicable, such as the supply chain."

For cooperation with new retail brands, Feng Min said, “New retail needs new manufacturing, and new manufacturing represents the supply chain. Unlike traditional supply chains, new technologies must be used. Data will become production materials.”