“Global Internet Red First” was launched less than 5 months, but the market value once evaporated 75%

Editor’s note: This article is from WeChat public account “DT Finance” (ID: DTcaijing), author Huang Yuanzhang, Edit Lu Yi,Design Zhang Haohao, is authorized to publish.

On August 12th, the first net of “Net Red” finally ushered in a wave of gains. As of press time, the stock price of Ruhan has been adjusted back to 4.6 US dollars, a 37% increase in a single week.

But even if it’s such a slick single-week result, it’s impossible to cover up the continuation since the listing.

On April 3, 2019, as the date of listing on the NYSE, Zhang Dazhao stood in the front row as the company’s major shareholder, and joined the partner Feng Min to open the city bell. The issue price is US$12.5, and the planned issuance scale is US$125 million. The total market value exceeds US$1 billion. In the ribbon and cheers, Ruhan shares successfully listed on the “Global Network Red First”.

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But the bad news comes very quickly. On April 3, the share price of Ruhan fell 37.2%, and the market value fell to 704 million US dollars. Capital gave the new man a punch. A week later, the stock price continued to leak to $6.08. After that, if the stock price of the stock fell to a minimum of $3.09, the market value once evaporated by 75%…

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We have some doubts, clearly that the business of cyber red is bright and beautiful, and it is easy to enter the tens of thousands of stories of wealth creation, attracting countless young people to flock to this track, but for the first share of the net red, but can not make a beautiful Performance table? DT Jun will carefully “dissection” and found that the business of Net Red is actually not good.

1, classic case of net red e-commerce

The story begins in 2011. At that time, Zhang Dazhao, a graduate of the tourism management profession, failed to pass the tour guide card.I will put the dream of traveling around the world aside for a while, and then turn to my part-time model at the university. Zhang Dazhao’s sweet looks immediately attracted readers of a number of magazines. She also took advantage of this fiery heat and took the first wave of powder to her newly registered Weibo account.

This new social approach has brought Zhang Dazhen together to bring his fans together, and also gives fans a chance to talk directly to Net Red – “hi, is it? Ask for a XXX link.” Zhang Dazhao, who has been a model, found that this was a potential business opportunity, so she began to look for a chance to open a store.

On the other side, Tmall “Double 11” has been held for two times, and the “half-price” gimmick hit hundreds of millions of buyers, which in turn attracted millions of sellers. Feng Min, who smelled the business opportunity, and his wife, Chen Sijia, immediately registered a company called “Ruhan” and started to operate the women’s Taobao shop named after his wife’s Weibo name “Li Beilin”.

After the opening of the store, Chen Sijia found that his peers began to look for models to shoot. Therefore, Feng Min and his wife also began to look for models for the store. Until one day, they saw a favorite model in the China Merchants Bank advertisement – Zhang Dazhao.

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(Zhang Dazhao, who won the first place in the Taobao Suyan contest)

The three hit it off. Feng Min and his wife found their own model, and Zhang Dazhao also successfully introduced Weibo fans to Li Pei Lin. Ruhan embarked on a road of realizing traffic.

Under the combined effect of sweet models, reasonable management and Taobao traffic support, Liblin has developed rapidly. By 2014, Liberin has accumulated millions of fans, and sales have also ranked among the top ten in Taobao women’s clothing stores.

But the bonus period always has a past time. In 2014, Taobao successively went online to collect special activities, daily specials and other activities, and took away some traffic. Liberin, who is developing at a high speed, has hit the bottleneck of development.

At the time, there were two choices in front of Liberin, either to spend money to buy traffic or to find new traffic portals. Choosing the former, the promotion cost of the ship will bring a huge burden to the operation; the latter will take time to study and grab a new entrance before most people.

Under the dilemma, Liberin tried to continue to tap the power of fans. Although Zhang Dazhao was still only Liberin’s model, she has accumulated more than 300,000 fans with certain purchasing power on Weibo. Feng Min and his wife, who saw the potential, joined forces to open a new Taobao store, “I am happy with the wardrobe.” This store is mainly designed by Feng Min and the clothing is designed by Zhang Dazhao.

The new traffic brought by social media is like a painkiller that stops the pain caused by the disappearance of e-commerce dividends. On the day of the 2014 anniversary, my happy wardrobe sales exceeded 10 million yuan, and Zhang Dazhao’s Weibo fans rose from 300,000 to 1 million in half a year. This model, which was later called the “net red e-commerce”, achieved early success.

Seeing the emergence of the network red economy, such as Han’s transformation into a network red incubator. Xinruhan’s business consists of the Red Man Economics (cultivating incubating new media opinion leaders), marketing promotion (advertising endorsement and brand marketing consulting) and e-commerce business (using the red-haired positioning store brand).

From the beginning of the red hatching road, the culvert has entered the fast lane of development.

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Since the acquisition of SAF Capital’s Series A financing in December 2014, the financing rhythm of Ruhan Holdings has accelerated. In less than two years, such as the completion of a series of capital operations such as the B round, the C round, the landing of the new three board and the fixed increase, the valuation continues to climb. The capital injection from large institutions not only allowed Ruhan to obtain funds, but also obtained strong industrial chain resources.

As of June 2019, Ruhan has 128 net reds, with a total of 155 million fans. In the 2019 fiscal year, the GMV (Gross Merchandise Volume) totaled 2.86 billion yuan.

But when the pain relief effect brought by social media disappears, the disease is even heavier.

2, If the culvert does not make the next Zhang Dawei

As a net red e-commerce, retouching is a housekeeping skill.

The growth rate of the business is very fast, and the moisture of the financial report is also very large. In the three years from 2017 to 2019, the GMV of Ruhan surged from 1.236 billion yuan to 2.86 billion yuan, with an annual growth rate of 65.4% and 39.9% respectively. During the period, the number of net reds signed by han increased from 62 to 128. But to make it clear, GMV itself is a water-filled indicator – orders placed but not paid are counted, and the ratio is over 50%.

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In fact, the days of Han are not good. past