The multi-category strategy has a significant effect on the performance of Ruixing.
文 | Daily Business Collection
Rui Xing Coffee Q2 continues to burn money for growth, and no one has seen the possibility of profitability
Rui Xun coffee, which was listed in the US in May, released its first financial report a few days ago. Q2 revenue was 909 million yuan, an increase of nearly 6.5 times compared with the same period of last year. It was basically the same as market expectations; the operating loss was 681 million yuan, compared with the same period last year. Doubled, but better than analysts expected.
At the financial report meeting, Rui Xing attributed the reasons for the increase in revenue and loss in the quarter to the following:
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The number of consumers is growing. In the second quarter of this year, Ruixingxin added 5.9 million users;
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The number of products purchased by consumers every month is increasing, which is calculated by the average monthly sales of goods and the number of monthly average orders. Currently, Ruixing users consume an average of 4.48 items per month;
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Effective sales prices continue to rise, the official explanation said that technology helped Rui Xing complete flexible pricing of goods;
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The reduction in pre-opening stores is mainly due to the fact that Ruisheng does not open high-cost stores (corresponding to Starbucks core stores), but instead focuses on simple decoration and low cost caches. Shop.
From coffee to light food and tea, one of the great attempts of Ruixing in the past year was the diversification of product structure. From the second quarter earnings report, …
Editor’s comment: The increasing competition in the Chinese coffee market is also slowing down the pace of profitability. In the face of Ruixun’s self-raising cache strategy, Starbucks launched…
WeWork encountered a profit problem, how to build a moat in a shared office space?
Another company that is expanding but continues to lose money is going to go public.
On August 14, WeWork, a shared office space company, formally submitted an IPO prospectus to the US Securities and Exchange Commission (SEC). Informed sources said that WeWork will be listed in September, with plans to raise $3 billion to $4 billion, the second largest IPO for US stocks after Uber. WeWork’s valuation reached $47 billion after it received Softbank’s investment earlier this year. However, according to the work of the public late “LatePost”, in a private stock market trading document that it acquired, WeWork valued its waistline. 47 billion US dollars fell to 23.1 billion US dollarsyuan.
For the high valuation of WeWork, the industry has always had doubts. Since its establishment ten years ago, WeWork has continued to expand. The prospectus shows that the company currently has 528 locations in 111 cities in 29 countries around the world, half of which comes from outside the United States. In the first half of 2019, revenues reached $1.535 billion. At the same time…
Editor’s comment: The sinking market has become an important battleground for all major platforms. Liu Qiangdong also stressed at the earnings conference call that Jingdong will be in the future…
This article is from the paid section “Daily Business Featured” – August 15
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