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It was observed that at the beginning of this month, a notice letter about the cross-border big -name Bangu Technology's " implementation of a single-day-off work system " was circulated online. The content of the notice showed that from September 13, the company would cancel the two-day-off work system and implement a single-day-off work system. ▲ The picture comes from the Internet It is reported that Banggood Technology laid off 30% of its employees in April this year due to poor business performance . Recently, there have been constant rumors about Banggood on the Internet. Some people have revealed that it has delayed the payment of performance bonuses and suspended some employee benefits. At the end of August, there was also news in the cross-border circle that the company was suspected of laying off employees again.
As negative news about the company spread more and more widely, there was even a rumor that Banggood Technology was filing for bankruptcy , shocking many sellers. Is the "Whampoa Military Academy" of the cross-border e-commerce industry actually facing bankruptcy? In response to rumors and doubts, Banggood Technology responded. The company is operating normally, but business transformation is facing difficulties It is learned that on September 9, Banggood Technology released a statement on its official website and WeChat public account, stating that the company and its affiliated companies are currently operating normally, and information such as "filing for bankruptcy" are false rumors ; the company has notarized and collected evidence of the infringing content, and will initiate legal proceedings against the infringing entity if necessary.
▲ The picture comes from Banggood Technology’s official website In addition, Banggood Technology CEO Zou Xin also stated that the so-called bankruptcy rumors were untrue, but Banggood was indeed under great operational pressure this year. As cross-border e-commerce enters the era of brand expansion, the distribution model that Banggood once relied on for survival gradually faded out of the stage. At the end of last year, Banggood began to transform from a trade-based e-commerce to a product-based e-commerce , focusing on the strategy of high-quality products + fine distribution, and actively reducing SKUs. However, business transformation does not happen overnight and will inevitably affect overall revenue in the short term. In addition, the Russia-Ukraine conflict has affected the supply chain since the beginning of this year, inflation in Europe and the United States is severe, and people's purchasing power has declined. As a result, Bangalore's performance in the first half of the year was less than ideal. It is estimated that Banggood's revenue in the first half of 2022 will be 2.5-3 billion, a year-on-year decrease of nearly 40% . Because of the increasing operating pressure, Banggood Technology chose to make changes in personnel structure, performance appraisal and working hours system, with the aim of accelerating the company's business transformation and catching up with the possible economic recovery next year . In fact, there are many large-scale distribution companies like Banggood Technology that have encountered difficulties in the face of market changes, and there are also many successful cases of breaking through adversity. With the revenue of big sellers declining, can the distribution model still be maintained? Youkeshu, a veteran cross-border e-commerce company famous for its distribution model, has also been reported to have declining performance and layoffs and salary cuts after a wave of self-banning. According to the 2022 semi-annual report of Tianze Information, the parent company of Youkeshu, the company sold 158,000 SKUs and 9.2 million SKUs in the reporting period . The categories include 3C electronic products, daily necessities, household goods and building materials, sporting goods and toys, model aircraft accessories and auto and motorcycle accessories, clothing, shoes and bags, etc. It is an absolute super-diffusion and hot-selling product. It is reported that during the reporting period, Tianze Information achieved revenue of 423 million yuan , a decrease of 64.05% compared with the same period last year ; the net profit attributable to shareholders of the listed company in the first half of the year was -83 million yuan, and it is still in a loss-making state. In this case, layoffs are inevitable. From the number of changes in R&D personnel disclosed in Tianze Information's 2021 annual report, it can be inferred that Youkeshu may lay off more than 1,800 people in 2021. And since the beginning of this year, there have been continuous online rumors that the number of its employees has been reduced from 6,000 at its peak to about 1,000 . ▲ The picture comes from Juchao Information Network Although the distribution model is generally outdated, some sellers have successfully broken through. Yibai Network, which was also hit hard in the account closure wave, is a typical example. According to the 2022 semi-annual report of Huakai Yibai, the parent company of Yibai Network, the company achieved operating income of 1.967 billion yuan from January to June, a year-on-year increase of 2453.75%; the net profit attributable to shareholders of listed companies was 83 million yuan, a year-on-year increase of 478.02%, successfully turning losses into profits . It is reported that the reason why Yibai Network can still achieve excellent performance in the distribution model in 2022 is mainly due to the following factors: 1. Starting from 2022, the industry's destocking cycle is about to end and the company's performance will pick up; coupled with the decline in shipping prices, the company's gross profit margin will further improve. 2. Independently develop information systems , improve the level of intelligent operations , and realize multiple functions such as intelligent publication, intelligent pricing, intelligent advertising, and intelligent stocking. 3. Avoid red ocean market categories such as clothing and consumer electronics, and continue to delve into blue ocean categories such as home gardening, health and beauty, auto and motorcycle accessories, industrial and commercial supplies, etc. 4. Adhere to pan-category, multi-platform and multi-market operations, and develop domestic warehouses and FBA overseas warehouse shipments in a balanced manner, effectively dispersing operating risks. In conclusion : Although brand building is the mainstream trend of cross-border e-commerce, the distribution model still has a place. However, unlike in the past, the current distribution model also requires R&D investment, that is, IT operation system. This method can effectively avoid the high cost caused by "bloated staff" and realize automated operation.
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