Exclusive: Jiang Fan, President of Taobao tmall, apologizes for rumors and asks the company to investigate
Tmall Jiang Fan apologizes to Ali: a formal investigation will be conducted to seriously affect the reputation of the company
The market value of Zhang Dayi’s company disappeared overnight by 150 million yuan
Source: 21tech (NEWS-21)
Author: Tao Li, intern Zhang Yiying
Editors: Li Qingyu, Liu Xueying
In the capital market, the Internet red economy is not a panacea.
On the evening of April 17, as soon as the U.S. stock market opened, the share price of Ruhan holdings fell 8.31%, the share price was $3.75, and the market value was only $315 million. Compared with the market value of more than $1 billion at the time of IPO on April 8 last year, it has dropped nearly 70% of the market value. On the same day, its closing price rose to $3.83.
This abnormal fall is closely related to Zhang Dayi, the company’s senior executive, who was involved in the scandal with Jiang Fan, tmall’s Taobao president, and made the negative continue to ferment. As the first share of China’s netred economy, Ruhan holding used to be popular with capital. According to 21st century economic report, from 2014 to 2016, in three years, Ruhan successively obtained hundreds of millions of yuan of financing from Alibaba, Lenovo and other institutions, and the valuation once reached 3.1 billion yuan.
According to the latest financial report information, Feng min, chairman of Ruhan holdings, holds 25.7% of the shares, Zhang Dayi, Wang Hong, who is the CMO of Ruhan holdings, holds 13.2% of the shares through a company called Himalaya investment, with a value of more than 600 million yuan at one time. In a short period of one year, according to the current stock price, Zhang’s value has been reduced by at least 400 million yuan, with the latest shareholding ratio of 12.97%.
Tieda’s e-commerce, the flowing net is red. Today’s Jianghu has changed.
In an interview with 21tech, Mo daiqing, a senior analyst at ECOSOC e-commerce research center, said that Ruhan had caught hold of the tuyere of netred e-commerce, and had some mistakes in the live broadcast of netred, and did not complete the self iteration in time.
Although there are Kwai Fu live broadcasting providers, Taobao’s live broadcast, Xiao Hong book, jitter, and fast tiktok are facing strong competition pressure. The bottleneck lies in the dependence on the head of the network red, a lot of money will be bet on the centralized network red, the risk is too large. In addition, it also faces the bottleneck of looking for traffic, the division of other rising platforms, and the difficulty of obtaining users.
Hard to copy “Zhang Dayi”
At the same time of rumors, Jiang Fan finally responded today. An internal Alibaba employee confirmed to 21tech that Jiang Fan apologized to the company and colleagues for the bad influence of the network rumors on the Alibaba intranet (the internal discussion network of all Alibaba employees), and asked the company to investigate himself.
He expressed two main views on the intranet:
First of all, I’m sorry that my family’s comments on Weibo and some untrue Internet rumors have had a very bad impact on the company;
Second, he urged the company to investigate itself.
Alibaba officials did not say anything about this. It is said that Tong Wenhong, CPO of Alibaba Group (Chief Human Resource Officer), replied to Jiang Fan’s post in Alibaba’s internal forum that Jiang Fan’s personal and family problems had not been handled properly, which seriously affected the company’s reputation. He should seriously reflect on them and apologize to everyone. For the related rumors, the company will formally establish a working group to investigate.
According to industry observers, Alibaba’s investigation focuses on whether Taobao tmall under Jiang Fanzhi and Ruhan holdings have interest transmission. The purpose of Jiang Fan’s “asking the company to investigate himself” is to show his innocence and integrity.
In fact, the relationship between Zhang Dayi and Taobao is very deep. In 2014, Zhang Dayi and Feng min, who have the first-class ability of carrying goods on Weibo, jointly opened a Taobao store and won the sales champion in one year. Since then, with the booming of online economy and live sales, the performance of Zhang Dayi’s Taobao store has also constantly created new records. In 2016, the annual sales of this Taobao store exceeded 300 million yuan. Since then, Zhang Dayi has become the “first net red” on Taobao and Weibo.
Zhang Da Yi
In November 2016, Alibaba invested 300 million yuan in Ruhan holdings, a company owned by Zhang Dayi and Feng min, with a valuation of 3.13 billion yuan. According to the information on Ruhan’s official website, the company is the No. 1 e-commerce company in China. As the largest e-commerce incubation and marketing platform in China, Ruhan has ranked No. 1 in the industry in terms of incubation number of red people with the help of Taobao.
However, Cheng is Zhang Dayi and defeat is Zhang Dayi. The excessive dependence on the head net red makes it difficult for Ruhan holdings to break through the bottleneck. According to the third quarter financial report of fy2020 issued by the company, the total net revenue of the company is 482.1 million yuan (about US $69.2 million), up 25% year on year; the net profit attributable to Ruhan is 10.7 million yuan (about US $1.5 million), while the net profit of the same period last year is 15.5 million yuan, down 46.43% year on year.
So far, Ruhan has signed 159 KOLs. Among them, there are 3 KOLs in the head (Zhang Dayi, Dajin and libelin), 12 in the waist of Ruhan holding, an increase of 5 on a year-on-year basis; 144 in the new KOL, an increase of 41 on a year-on-year basis. In total, waist and new KOL realized Gmv of 658 million yuan, a year-on-year increase of 77.12%.
The Gmv contribution ratio of the three top KOLs, including Zhang Dayi, was 60.7%, 65.2% and 54% respectively in the 2017-2019 fiscal year, reaching 61.43% up to now. Zhang Dayi’s contribution to revenue has increased year by year: 50.8% in 2017, 52.4% in 2018 and 53.5% in 2019.
In the nine months up to the end of 2018, Ruhan Holdings has signed a total of 113 net red contracts, which are divided into three levels according to the transaction flow: first line net red, mature net red and new net red. “At present, Ruhan has three first-line online celebrities: Zhang Dayi, Da Jin and Li Beilin.”
Two years later, Ruhan holdings did not cultivate more “Zhang Dayi”.
Missed live air outlet
At present, Zhang Dayi’s micro-blog certification is still “Ruhan holding CMO”. However, a former employee of the company told 21tech that he was also confused about the title. “The reason why Ruhan has reached today’s low point is still the problem of the team. In the big trend of live and short video, it didn’t adapt well, but it was later that some networks became popular. ”
During the epidemic period, in order to alleviate the business difficulties in special periods, many physical retail enterprises also started the online sales mode to resume sales. Among them, the direct broadcast e-commerce is the main way to help.
According to live eye data, the number of Taobao’s single day live stores increased from 28866 on February 21, 2020 to 74884 on March 6, and the number of single day shows increased from 30633 to 46559. Many enterprises are also realizing good sales revenue through online channels. The February “opportunity” report released by Taobao’s list shows that the number of new businesses on Taobao live TV in February 2020 rose by 719% month on month. Among them, the total number of orders received by the live broadcast merchants increased at an average rate of 20% every week, and the transaction amount doubled compared with last year.
According to Guoxin Securities Research Report, at present, live broadcasting has gradually become one of the most important channels for online Red e-commerce to bring goods. According to the data of microbroadcast e-commerce, Gmv of direct broadcast e-commerce is growing rapidly, and the total scale may reach 440 billion yuan in 2019, a year-on-year increase of 214%.
In the era of short video live broadcast, the popularity mode of the first generation of microblog celebrities has declined. 21Tech tiktok noted that Zhang Dayi’s fans were only 274 thousand, and Li Jiaqi and tiktok fans were 42 million 530 thousand and 5 million 320 thousand respectively in 2019. According to the statistics of Kaidu consulting, 90% of the brands started live broadcasting during the double 11 of 2019, with the number of start-up businesses growing by more than 200% year on year. The cumulative sales volume of the single live broadcast (5.3 hours) on the day of pre-sale of anchor Li Jiaqi is RMB 660 million; the cumulative sales volume of the single live broadcast (6.6 hours) on the day of pre-sale of anchor Wei Ya is RMB 660 million.
For example, the head of Han net, Zhang Dayi, Dajin, etc., carry more than 100 million Gmv every year. In terms of influence, Li Jiaqi and Wei Ya have far surpassed Zhang Dayi. On the other hand, operating costs are also rising. Ruhan financial report shows that in the first three quarters of 2019, marketing and sales expenses reached 158 million. According to the announcement, most of it has been spent on red man marketing and services, i.e. Ruhan has invested heavily in online Red incubation, but Ruhan did not copy the second “Zhang Dayi” with the results of a loss of 15.32 million in 2017 and a loss of 72.35 million in 2018.
Since the second half of 2018, Ruhan has also started to try e-commerce live broadcasting, but obviously, Ruhan’s ranking is not high among the 700 + organizations of Taobao live e-commerce. For example, it’s too late to enter the tuyere of e-commerce live broadcast.
“Shuffle” in Ali ecology
Over reliance on head resources is a risk.
Ruhan has always been committed to incubating netred, but it also wants to solve the company’s dependence on the head netred, but the problems of the traditional netred incubation model make it difficult to do so. For an e-commerce company, every netred has a life and traffic cycle. Just like the process of creating a burst fund, it is difficult to guarantee a sustained effect. Once the follow-up development fails to keep up, faults will appear.
Last year, Cheng Wenqiang, chairman’s assistant and market VP of Ruhan, said that according to the plan for the next 2-3 years, Ruhan holdings would be a platform for CO creation of fashion brands driven by technology and operation. “On the Alibaba platform, our value has not been fully developed. There will be many models about valuation, but it is a head company in emerging fields. On the one hand, it is different from the expression mode of secondary market. For the cooperation point with ALI, we will continue to do it. Ali is not only an e-commerce, but also an ecosystem. ”
In his opinion, the biggest difficulty of digitalization is algorithm, which must rely on large ecological organizations. Ali concept and Ali ecology are more like a soil. We must strive for more sunlight and water by ourselves, and it will grow more. “You have to rely on yourself to grow your business, as do Ali’s internal business. I think it’s still natural selection. ”
According to qixinbao data, there is no direct equity relationship between Zhang Dayi and Jiang Fan, but there is a certain relationship between the two parties through the origin of Ruhan shares and Ali department.
At present, there are two affiliated companies of Zhang Dayi, namely, Hangzhou wunaiyi Trading Co., Ltd. as the legal representative and Dayi (Shanghai) film and television culture studio as the investor, but the former shows that it has been cancelled.
Alibaba has participated in two rounds of financing, including Ruhan C round and the new third board fixed increase. Alibaba (China) Network Technology Co., Ltd. holds 9.5846% of Ruhan’s shares, which is the third largest shareholder.
Even with Alibaba, the growth of an organization still needs its own driving force. In the fierce competition situation of e-commerce industry, it is like sailing against the current. Facing the loss of traffic dividend, the flexible cost of back-end supply chain and the non replicability of netred, the future of Ruhan is still full of uncertainty.