12
3 Crucial Factors For Lightinthebox Investors

Litb beginner

Embed Size (px)

DESCRIPTION

 

Citation preview

Page 1: Litb beginner

3 Crucial Factors For Lightinthebox Investors

Page 2: Litb beginner

Different Companies, Different Products• Dangdang sells

merchandise and electronic media on line.• Electronic Media=67% of

revenue• Merchandise=33% of

revenue

• VIPShop sells brand-name products using a “flash sales.”• Every day at 10 AM

Beijing time, flash sales are posted at 30%-70% off.

Page 3: Litb beginner

Lightinthebox

Lightinthebox, on the other hand, focuses on two broad categories:

Apparel brought in 29% of revenue in 2013.

Electronics and other general merchandise accounted for the other 71%

Page 4: Litb beginner

Where Business Gets DoneDangdang and VIPShop cater almost exclusively to the Chinese consumer.• In 2013, 100% of

Dangdang’s revenue came from China.

• The same can be said for VIPShop.

Page 5: Litb beginner

Lightinthebox

Lightinthebox, while headquartered in China, counts overseas customers as the primary source of income. In 2013:

Europe accounted for 62% of all revenue.

North American clocked in with 19% of revenue.

South America provided 9% of revenue.

All other countries came in with 10% of revenue.

Page 6: Litb beginner

But the most important difference between Lightinthebox and the others:

It’s growth is slowing down in a major way.

Page 7: Litb beginner

Dangdang Revenue Growth

Page 8: Litb beginner

VIPShop Revenue Growth

Page 9: Litb beginner

Lightinthebox’s Prospectus Looked Rosy

Page 10: Litb beginner

Since Then, Heady Growth has Disappeared

Page 11: Litb beginner

Before You Invest in Lightinthebox

1. Remember that the company’s business model is fundamentally different than Dangdang and VIPShop.

2. Almost all of its customers reside outside China.

3. Revenue growth has come to a standstill, with only a 27% jump while operating expenses have increased 47%.

Page 12: Litb beginner

Better Ways to Profit From China

• We quickly forget that many American companies have a strong presence in China. • Apple is one of those companies.

• Click on our special free report below to find out what Apple’s next product will be:

Leaked: Apple’s Next Smart Device