Cosmetics electricity supplier PBA growth story the secret of high margin

 

to do the first brand of cosmetics in the era of network, PBA how far? [electricity supplier sample] is a long river. From March 1998 China completed the first Internet transaction, business enterprise of health birth and death, raging like a storm, which has established dangdang.com from 1999, has held heavily into a high-profile but only 3 months on the line of products together. From July onwards, sina science and technology will select one or two representatives of the electricity supplier companies to do a weekly observation. We have no intention of respect is willing to attribute their success or failure, or to review its mode, or reported its growth, to record the current electricity supplier sample.

PBA is located in Xiamen, grew up in the network of the cosmetics brand, from it, you can get a glimpse of a local cosmetics brand in the era of electricity providers growth story and high margin secret.

in Xiamen electric business circle, someone told such a joke: one year, PBA Su Guiqiang Meng do online promotion, spent 900 thousand year sales of 1 million, guess what, apart from the cost of goods and personnel wages and other operating expenses, Su Guiqiang also earned 90 thousand. Of course, this is just a joke, you do not have to consider whether the logic can be established, it is just that the electricity supplier’s gross profit margin is high.

indeed, in the current electricity supplier in the removal of a superb collection of beautiful things, diamond jewelry and luxury goods, cosmetics than the higher gross margins? Perhaps health products can be with one of the spell, but the electricity supplier of health care products is a climate, such as the cosmetics business lefeng.com, jumei.com (micro-blog), rice, Royal mud square and is like a raging fire.

PBA is a cosmetics business which is different, lefeng.com, jumei.com is a platform, PBA, Royal Square mud do brand. Focus on network marketing for many years to win the era of President Ceng Rongqun introduced to Sina Technology, Xiamen electricity supplier circle, the highest rate of electricity supplier on the number of PBA. To this extent, the gross margin of PBA founder Su Guiqiang’s answer is: about 80% to 60%, the former is 80%, and now the cost of marketing, down to $60%.

According to the

peer data, PBA gross margin does not seem obtrusive. Is currently listed sprint affordable herbal cosmetics company prospectus shows that its 2011, 2010 and 2009 network channel distribution of gross margin was 71.84%, 75.63% and 76.41%.

high margin source

in the case of certain efficiency, gross margin often means that the profit space, while the net interest rate means that the internal control and management capabilities. Also do electricity supplier, compared with other categories of electricity providers, cosmetics electricity supplier seems to be a good business.

election on the industry can be profitable it is not necessarily, sina science and technology found that cosmetics electricity supplier is also no shortage of cases. In October 2011, Shenzhen B2C cosmetics website network came to bankruptcy due to funding strand breaks, before taking the rice.

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