The Middle East "Taobao" collapsed and became inaccessible, suspected to be closed!

So surprised!

JollyChic, known as the Taobao of the Middle East, is inaccessible.

This is a celebrity cross-border e-commerce brand in Hangzhou.

Won financing from many well-known institutions.

Now I can't even open it, let alone place an order.

JollyChic is affiliated to Zhejiang Zhiyu.

It has always been known as the only e-commerce platform in the Middle East.

When the momentum was at its strongest, it suppressed a number of cross-border platforms.

JollyChic has established a series of account matrices by country and category.

The fan coverage is expected to exceed 1 million.

Once upon a time, he was the king and dominated the world.

Zhiyu has also become a star company in the Middle East e-commerce market.

In 2015, Fuanna, a listed company,

Spent 22.5 million to invest in Zhejiang Zhiyu,

At that time, it only held 4.9% of the shares.

Until 2016, a milestone was achieved.

Zhiyu announced that it had received hundreds of millions of dollars in Series C financing.

Led by Sequoia Capital Global Growth Fund,

Becoming a unicorn in the industry,

But behind the highlight moment,

However, in 2020, suppliers have successively exposed the situation of Zhiyu's arrears of payment for goods.

At that time, Zhiyu also came out to stabilize the morale of the troops.

The website is now inaccessible.

It immediately became a "dead station" .

Everyone is speculating whether it has really closed down.

Some enthusiastic netizens dug out the picture of their senior management changes.

I feel like it's a direct confirmation of the signs of running away.

In fact, the packing up has already begun as early as 2021.

All the top management changed.

In the same year, suppliers began to sue Zhiyu.

In fact, the most regrettable thing about the closure of JollyChic is the sellers.

Because it is difficult to do e-commerce in the Middle East market.

Issues such as religion, government relations, and consumer habits are difficult to resolve.

It is not easy to be the top brother.

Especially those sellers who have established themselves there,

Let's take a look at the reasons why JollyChic could no longer sustain its business.

First of all, it must be the epidemic problem.

The severe epidemic situation in the Middle East is still a big problem for freight.

The local lockdown completely eliminated the conditions for delivery.

This caused the entire platform's financial operations to

Then there is the issue of corporate decision-making.

Sprinting too fast, the foundation is not stable yet.

It began to expand rapidly.

It greatly increased the company's internal friction.

It is also very fatal to accelerate the consumption of funds.

Finally, it’s a problem of the platform itself.

JollyChic Original It's a consignment model.

The seller is just a supplier supplying goods to the platform.

It seems that the stability of the platform can be controlled.

You can control the accuracy of the goods without involution.

But what will follow is definitely the pressure of payment for goods and logistics funds.

Combined with the previous situation, a lot of costs and debts will be generated.

The final debt will only grow larger and larger.

So for this JollyChic,

Maybe there is really no way to get over this hurdle.

In fact, the Middle East market has always been a market with more sellers than products.

The only advantage is that it can be sold at a high price.

But there are also many unavoidable pitfalls.

Just like the cultural differences among the countries in the Middle East,

Sellers who really want to conquer the Middle East market,

You must think about it carefully.