Luxury e-commerce first stock Temple Library Facing delisting

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Chen Ting times weekly
Stock price and valuation decline, luxury e-commerce’s first stock market( SECO.NASDAQ )They are facing or will withdraw from the market.
As of the close of January 15, Siku closed at US $2.86 per share, which was 76.36% lower than when it was listed on September 22, 2017.
On the afternoon of January 11, Siku announced that the board of directors of the company had received a preliminary and non binding privatization proposal from Li rixue, the founder, chairman and CEO of the company.
Li rixue proposed to acquire all the issued class a common shares of the company and not owned by Li rixue and its subsidiaries at a total price of about US $230 million in cash at US $3.27 per ads (equivalent to US $6.54 per class a share).
If the acquisition is completed, Siku will delist from the NASDAQ Global Market and become a private company. At present, the Siku board of directors has set up a special committee to evaluate the proposed privatization transaction.
On January 14, a reporter from the times weekly wrote to the temple library about the future development planning of the temple library. As of press release, no reply has been received.
On the same day, Kuang Yuqing, founder of lens research, told the times weekly that the reason for the delisting of Siku may be related to the current low valuation. “We can’t rule out the possibility of privatization and delisting first, and then looking for opportunities to return to China for listing. The domestic valuation level is probably higher than that of US stocks. ”
As of January 15, Siku closed at $2.86, with a market value of $202 million.
Whether delisting or not, the situation is not optimistic. On January 15, some people in the industry told the times weekly that Siku was facing many difficulties, such as vague positioning, slow growth of users and fierce competition in the track.
According to the financial report, in the third quarter of 2020, the revenue of Siku was 1.373 billion yuan, a year-on-year decrease of 29.3%; the net profit was 20.8 million yuan, a year-on-year decrease of 66.5%, and a month on month increase of 252.5%.
Growth bottleneck
The delisting of Siku has something to do with its development trend.
At the beginning of its establishment, Siku was engaged in second-hand luxury consignment business. Since 2013, Siku has claimed to be a “high-end consumer service platform”. Until 2017, Siku has formed four core business segments.
In 2017, the performance of Siku increased rapidly, with revenue of 3.74 billion yuan, a year-on-year increase of 44.21%, and net profit of 133 million yuan, a year-on-year increase of 399.3%.
After 2017, the growth of the temple library will continue to slow down. From 2017 to 2019, the net profit of the temple library was 133 million yuan, 156 million yuan and 162 million yuan, with growth rates of 399.3%, 16.59% and 3.94% respectively.
In terms of the number of active users, the temple library also encountered growth bottlenecks.
According to the financial report, the number of active users of Siku in the third quarter of 2020 was 518700. In 2020, the growth rate of active users of q1-q3 Temple library will be 11.5%, 9.2% and 7.5% respectively.
In the first three quarters of 2020, the revenue of Siku was 3.685 billion yuan, a year-on-year decrease of 23.69%, and the loss was 15.826 million yuan, a year-on-year decrease of 113.42%.
On January 14, Chen Tao, an analyst in the circulation industry of Analysys, told the times weekly that under the influence of the global epidemic, people’s income and consumption habits are affected, and the consumption demand for luxury goods is correspondingly weakened, “which may affect the performance of Siku to a certain extent.”
Even if not affected by the epidemic, the growth space of the temple library is still questioned by the outside world.
“The development space of luxury vertical e-commerce is closely related to the number of users. Compared with the overall consumer group, the luxury consumer group originally belongs to the minority group, so the growth space of the temple library is limited. ” Chen Tao said.
Lack of moat
At present, in the positioning of “high-end consumer service platform”, the temple library has many layouts.
According to the official website, Siku has opened six offline experience centers in popular shopping destinations and central business districts in China, Hong Kong and Malaysia.
In 2013, Siku began to lay out cross-border business and set up bonded warehouses in many places. At present, in some cities in China, it has been possible to achieve “2-hour speed”.
In addition, Siku also cooperates with Prada, Lanvin, Valentino and other top international brands, and continues to expand its product line. In September 2020, the temple library and China’s famous Baijiu brand Guizhou Moutai established direct cooperation. As part of the cooperation, the 53 degree flying fairy Maotai has been put on the market in Shiku.
On January 14, Mo daiqing, director of online retail department and senior analyst of ECOSOC e-commerce center, told time weekly that Siku does not have its own advantages. “After years of deep cultivation in the field of luxury e-commerce, Siku has accumulated resources in channels and other areas, forming its own system.”
Nevertheless, the above accumulation is hardly the moat of the temple.
On January 15, Lai Yang, President of Beijing Jingshang Circulation Strategy Research Institute, told the times weekly that the threshold of luxury e-commerce is not high, and it is impossible for the platform to reach exclusive agency cooperation with brands. It is difficult to obtain goods at low prices. If the platform wants to continue to develop at a high speed, it must continue to have price competitiveness.
Lai Yang said that although vertical luxury e-commerce has certain advantages in providing relevant life services, it is also prone to problems in the provision of relevant services.
“If you are looking for a third-party organization to provide identification and other services, in order to give members a good service price, it is difficult for the platform to have a profit margin.” Lai Yang said.
It is worth mentioning that in September 2019, Siku was fined 300000 yuan by Beijing Xicheng District Market Supervision Bureau for false publicity. According to the relevant punishment decision, Siku could not provide materials to prove the fact that it had previously publicized “more than 80 top senior experts in the world”.
Live break through
In recent years, the cooperation between the head integrated e-commerce platform and luxury brands has become more and more close, and the squeeze on the temple library has become more and more serious.

Mo daiqing mentioned that in recent years, Alibaba, Jingdong and other giants have made great efforts in the luxury market. In addition, luxury brands have also accelerated the digital process in China, which has a strong impact on luxury e-commerce such as Siku. Many players share the luxury market, which also weakens Siku’s advantage.
According to media reports, so far, more than 200 luxury brands have settled in tmall. In 2020, Prada, baleshijia, Gucci and other luxury brands, as well as the jewelry and wristwatch brands of Richemont group, will settle in the market.
Under heavy pressure, Siku tried to break through the siege through live broadcast.
On December 17, 2020, Siku officially opened its first luxury live broadcasting base in Beijing. The base has three floors, covering a total area of 7000 square meters. The whole exhibition area can accommodate 300 anchors. It will be broadcast in various forms, such as “walk broadcast” + independent live studio.
On the road of vertical luxury e-commerce plus live broadcasting, Siku also faces many competitors.
In February 2020, the second-hand luxury live e-commerce channel brand “Feiyu” completed a round of financing of tens of millions of US dollars. As of March of that year, Feiyu had established dozens of live broadcasting rooms in nearly 10 cities in China, with nearly 60 self-supporting anchors.
In December 2020, the second-hand luxury service platform “red brin” also completed the B2 round financing of tens of millions of dollars. The brand set up a MCN team within the company to select anchor from luxury practitioners and give internal training.
At present, red brin has a live account matrix on tiktok and other platforms, and GMV has broken 100 million in January.
“Live broadcasting has been very popular since 2020, with many e-commerce companies taking part in the game, and the temple Library’s bet live broadcasting has also opened up a new channel. But at present, the live broadcast market is highly competitive and has been divided up by many platforms. It is not easy for Siku to break through the live broadcast. ” Mo daiqing said.
Nowadays, the luxury e-commerce story of Siku has become more and more difficult to tell.
On the first day of listing, Siku was never bought by the capital market. According to public data, Siku IPO issued 8.5 million American Depository shares (ads) at a price of $13 per share. On the first day of listing, Siku opened at US $12.1 per share, down 23.08%, and finally closed at US $10 per share.
Since then, qudian has tried to develop its luxury e-commerce “wanlimu” with Siku. On June 3, 2020, qudian and Siku announced that qudian could subscribe for up to 10204082 newly issued class a common shares of Siku at a price of as much as US $100 million, equivalent to US $9.8 per share. After the completion of the transaction, qudian held about 28.9% of the shares of Siku, becoming the largest shareholder.
Now, with the privatization of the temple library, qudian has lost more than half.