What fatal shortcomings have led to the end of e-commerce?

　　The development of e-commerce has undoubtedly been rapid in recent years, and more and more people are devoted to e-commerce, and there are many people who are optimistic about the development prospects of e-commerce a few years ago and have taken action. After the ups and downs of e-commerce in recent years, most e-commerce websites have faced survival crises and have to end up miserably. Today is not to crack down on the enthusiasm of friends who want to develop e-commerce, but to summarize some of the business and lessons in the development of e-commerce through some failed e-commerce websites, so that e-commerce survivors and latecomers can get some thoughts from it.

　　1. Fund chain break: Weimian, Houmater, Pinju.com

　　As the competition in the e-commerce industry continues to intensify, if you want to do a good job in e-commerce, you must continue to increase your investment in e-commerce, which has made the e-commerce industry a fast-burning industry. Except for companies with strong financial strength such as Alibaba, Tencent, and Suning, most e-commerce start-ups are developing with the help of VC or angel investors. Blind pursuit of land grabbing, expanding scale, and unreasonable market placement strategies have accelerated the end of these e-commerce projects.

　　Taking Weimian as an example, this company was founded in November 2010 and uses socks as the entry point and is positioned as a "fitting clothing brand created for people who pursue high-quality life". After less than two years of development, it finally ended its e-commerce journey early with the official statement of "a system failure in the warehouse."

　　Although Weimian claimed in its official statement that the warehouse system was malfunctioning and all products were removed from the shelves and users could not do any shopping, it was obvious that this statement was a little pale and unconvincing. Sources revealed that the reason why Weimian products were removed from the shelves was actually sealed by law enforcement agencies for owing a large amount of payment for suppliers.

　　2. The conflict between investors and founding teams intensifies: 24 Coupon, Tuanbao.com

　　If e-commerce is to develop well, it is not possible to rely solely on oneself to fight alone, and the joining of investors gives entrepreneurial e-commerce enough confidence. But the problems often arise here. When you fight alone, the development direction and future plans are ultimately determined by yourself. As investors join, because both parties have their own plans, problems continue to increase, and over time, conflicts between the two parties continue to intensify. Therefore, the changes in controlling rights, the entry of new investors, and the choice of business strategies may become the fuses that detonate the bombs between the two parties.

　　Taking 24 coupons as an example, this group buying website, which once entered the top five in China, has raised a total of more than 50 million US dollars in less than three years of its establishment. It is such a startup website that is generally favored by the capital market, but it failed to achieve good results in the end.

　　In mid-October 2012, 24 Coupon issued a statement saying that the old shareholder illegally transferred US$2.4 million from the company's account to a third-party account, disagreed with the team's incentive clause, resulting in the inability to enter the new investment, and a creditor suddenly applied to the court for compulsory compensation, and the business was seriously affected. The team decided to suspend operations from October 20, and resume operations after shareholders resolve incentive and funding issues.

　　Looking back at the whole story, the 24-treasury investor and the founding team pointed out that each other had 24-treasury empty. Du Yinan, CEO of 24-treasury, cleaned up the staff stationed by the investor at 24-treasury, and the investor representative announced that he would stop injecting capital into 24-treasury and proposed to reduce the equity of the founder and management team from 40% to 3%.

　　It is not difficult to see in this tug-of-war between investors and the founding team that the investors' demand for a reduction in the holding ratio of the management team is the direct reason for angering the founder of 24 bonds Du Yinan. In such a situation, the indefinite cessation of operations seems to be just a delaying strategy of 24 coupons.

　　According to the latest news, Malaysia Chenggong Group, the investor of 24 bonds, has contacted Wangluotianxia (the merger company of F group and Gaopeng.com), and intends to sell 24 bonds to Wangluotianxia. This news was also confirmed by Lin Ning, CEO of Netluo Tianxia, ​​but it is still unclear whether the acquisition will be reached in the end.

　　3. A foreigner, not adapting to the environment: Leku Tian

　　Local e-commerce companies have made the domestic e-commerce industry competitive in full swing, and some foreign "outsiders" are also optimistic about the "scenery" here and try to come here to gain a place, but things often go against their expectations. Similar failure cases have been mentioned. From eBay to Myspace, to Google, the world's famous Internet giant, all attempted to grab a small piece of the rich cake of China's Internet, but in the end they had to return to their base camp in a shameless way.

　　Taking Lekutian as an example, in early 2010, Japan's Lotte Group and Baidu jointly invested US$50 million to establish the B2C e-commerce website Lekutian, which was officially launched in October of the same year.

　　Although Baidu holds 49% of the shares in Lekutian, introducing huge resources and traffic to Lekutian, according to public information, in the entire Lekutian team, except for CMO Zhang Hao, who is a senior executive appointed by Baidu, the rest are all Japanese who do not understand China's national conditions and consumers, resulting in restrictions on localization.

　　In addition, after entering China, Lekutian was too stubborn and attempted to simply apply foreign e-commerce models to domestic e-commerce websites to achieve success. In addition, domestic e-commerce websites are in a period of land grabbing, and the overwhelming price wars launched by domestic e-commerce websites led by Taobao and JD.com have also made Lekutian, which has just entered the Chinese market, unable to resist. Finally, in April 2012, Lotte Group announced that after careful consideration by the management team, Lekte Mall will be closed from 0:00 on April 27. Lekte also ended its Internet journey in China in just one and a half years of light and shadow.

　　From the above three aspects, it is not enough to operate an e-commerce website well, but it is still not enough to have funds alone. The important thing is to plan the later operation and manage the operation team. This is just a personal opinion, and of course there are many factors that affect the operation of this e-commerce website. Although it is difficult to do a good job in e-commerce website operation, hasn’t it also developed little by little when looking back at JD.com and Taobao?

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