This article has been authorized Capital winter, a frequently mentioned term in the e-commerce circle this year, is also a dilemma many entrepreneurs have to face: when the strategy of burning money meets the capital winter, there is no way out... Ebrun Power Network has compiled a list of some e-commerce companies that fell in the first half of 2016, along with their experience summaries, for entrepreneurs' reference. Meiwei Qiqi Attention: ★★★★★★★ Keywords: Fresh e-commerce "Death" time: April 7, management announced suspension of operations Model: Originally named Zhengda Tiandi, a fresh e-commerce serving Shanghai, Jiangsu, and Zhejiang. Product lines cover 9 categories including seasonal fruits, eggs, meat, poultry, seafood, dairy products, snacks, convenient vegetarian food, healthy vegetables, grain and oil, and beverages, totaling over 2,000 products. To achieve 1-hour delivery for all products, Meiwei Qiqi built many self-operated delivery points in Shanghai. Financing records: In May 2014, Amazon China invested $20 million, which was also Amazon China's first investment in mainland China since its establishment. Reflection: After financing, Meiwei Qiqi failed to stabilize the team, core members gradually left, and user experience began to decline. The huge investment in logistics and delivery was also a major reason for its financial problems. Shenqi Baihuo Attention: ★★★★★★ Keywords: Post-90s entrepreneurship, ACG "Death" time: July 22, stopped selling. Model: Positioned as the first domestic personalized e-commerce platform for post-95s youth, providing high-quality and high-end products based on interest tags and recommendation algorithms. The product selection focuses on snacks, accessories, school bags, stationery, ACG peripheral products, etc. favored by post-95s. Reflection: Shenqi Baihuo CEO Wang Kaixin reflected on his experience in the article "In the Year Since Shenqi Baihuo Was Founded, I Have Experienced Almost All the Pitfalls of Entrepreneurship": After the A-round financing, he began blind expansion, significantly increasing staff, heavily using headhunters to recruit so-called industry "big shots" and top technical talents, blindly believing in backgrounds from big companies and so-called professional talents and experience, blindly formulating strategies, and when lacking supply chain experience, getting involved in the supply chain and introducing a large number of suppliers. Financing records: In 2015, it received 2.3 million yuan angel investment from Zhu Bo, investor of Shenzhen Innovation Valley. On January 26, 2016, "Shenqi Baihuo" announced it received 20 million yuan in A-round financing, led by Matrix Partners China, with ZhenFund and Innovation Valley following. Mitao.com Attention: ★★★★★★ Keywords: Cross-border e-commerce "Death" time: January, official Weibo and WeChat stopped updating, and some company employees' social media circles showed messages like "Goodbye Mitao". Model: Formerly CN Haitao, launched in March 2014, focusing on a light model of one-stop overseas purchasing agency; in July 2014, Mitao announced it would cut into the upstream supply chain, launching limited-time flash sales, transforming from a light one-stop shopping to a B2C self-operated overseas purchasing e-commerce; in September 2015, Mitao subdivided the traditional B2C, focusing on country-specific, specializing in Korean products, and proposed the concept of Korean duty-free shops. Financing records: In July 2014, Mitao received a $10 million A-round financing from Matrix Partners China. In November of the same year, Mitao received a $30 million B-round financing led by Vertex Ventures, with Morningstar Capital, Jinglin Investment, and Matrix Partners China following. Reflection: The threshold for cross-border e-commerce is getting higher, and pure money-burning and price wars will be difficult to sustain. Dashi Zhiwei Attention: ★★★★★ Keywords: Catering O2O "Death" time: April 29, Dashi Zhiwei's WeChat public account released a farewell letter announcing its closure. Model: Officially launched in May 2015, it was a food delivery platform for high-end users. By the time it closed, Dashi Zhiwei had established 24 crowdsourced delivery stations in Beijing and had an 800-square-meter central kitchen. Financing records: In August 2015, it received several million yuan in angel financing. Reflection: The current O2O seems not to be light entrepreneurship anymore, but increasingly heavy, and the difficulty of entrepreneurial success is also increasing. Founder and CEO Fan Xinhong said in the farewell letter that due to the expiration of the central kitchen lease, failure to secure new round of financing, and unfavorable conditions in finding new processing partners, Dashi Zhiwei eventually ran out of funds and could not continue, ultimately unable to escape the fate of bankruptcy. Bopai Yangche Attention: ★★★★★ Keywords: Automotive e-commerce "Death" time: April 5, Bopai Yangche's WeChat public account published an article titled "We've Known Each Other for So Long, Saying Goodbye for the First Time", announcing the dissolution. Model: Founded in April 2014, it attempted to enter the market through door-to-door maintenance as a cut-in point, gradually diverting user traffic to higher value-added service projects and the entire aftermarket, thereby obtaining higher cash flow and self-sustaining ability. Financing records: In April 2014, Ji Wei, a senior executive at BAIC, officially launched the car maintenance O2O platform (then named Yijieka), and in July of the same year received a tens of millions yuan A-round financing from Innovation Works; at the end of March 2015, Bopai again received $18 million in B-round financing from JD.com and Yiche. Reflection: The pace was too fast. After obtaining financing, it began an almost crazy expansion campaign, opening 20 cities overnight. Pinyi Lighting Attention: ★★★★★ Keywords: Lighting e-commerce "Death" time: July. LED lighting e-commerce Foshan Pinyi Lighting Co., Ltd. was exposed to be sued in court for owing suppliers tens of millions of yuan in货款, and the company and its executives' property were judicially frozen. Pinyi Lighting's executive director Liang Ronghua publicly responded that Pinyi Lighting chose to close the store on its own, and the company's capital chain has serious problems, preparing to apply for bankruptcy liquidation. Model: Pinyi Lighting was established under the background of the national "Eleventh Five-Year Plan" in 2006 vigorously promoting the semiconductor lighting project. It is a well-known brand in the domestic LED lighting industry, committed to LED home lighting, LED commercial lighting, and LED outdoor landscape lighting. Annual sales were 10 million in 2013, 60 million in 2014, and over 100 million in 2015, and on Double 11 in 2015, sales reached 12.17 million, becoming a dark horse in the lighting industry e-commerce. Financing records: No relevant information available. Reflection: The operating cost of e-commerce is too high, and low profits lead to a break in the capital chain. According to National Business Daily, Liang Ronghua responded to Pinyi Lighting's store closure, saying, "How many lighting and lantern淘品牌 on Tmall can actually make money? I believe it won't reach 5%. (LED e-commerce) 'closure wave' will continue to unfold, and ultimately both online and offline will be harmed." In this regard, he calculated an account: "Labor 11%, Tmall deduction 5.5%, promotion cost 15%, express delivery 12%, after-sales 2%, financial cost 2%, utilities and rent 2%. If there is no gross margin above 50% when selling on the platform, e-commerce cannot sustain operations at all." Zuixiandao Attention: ★★★★ Keywords: Crowdsourced delivery "Death" time: February 4, Zuixiandao founder Lu Gang sent an internal email announcing the termination of the project. Model: An O2O platform based on location services providing same-city short-distance express delivery services, established in October 2014, affiliated with Hunan Zuixiandao Network Technology Co., Ltd. The company has a registered capital of 10 million RMB, and the legal representative is Zuixiandao founder and CEO Lu Gang. In 2014, it began trial operations in Shanghai, and business expanded to more than ten cities including Beijing, Shenzhen, and Hangzhou, with partner brands including Subway and Huang Taiji; in January 2016, it quietly transformed and launched the e-commerce platform Zuixiandao Mall, providing "cold chain storage" and "fresh food home delivery" services through a combination of crowdsourced logistics and crowdsourced warehousing. Financing records: A-round financing failed. Reflection: Zuixiandao founder Lu Gang told Ebrun Power Network that the main reason for the capital chain break was the failure of A-round financing, and the company had no cash in its accounts. Internal employees said that the transformation to "Zuixiandao Mall" failed, and the company still followed the "old routine" in business and model, without much innovation. Tao Zai Lushang Attention: ★★★★ Keywords: Online travel "Death" time: June 23. "Tao Zai Lushang" (Shanghai Quewo Information Technology Co., Ltd.) issued an announcement that it would officially stop operations from that day, and all employees were forced to leave. Model: "Tao Zai Lushang" was established in 2011, an App selling local travel and surrounding travel products, covering flight+hotel packages, hotels and inns, attraction tickets, and other travel products. Financing records: In August 2011, it received a million RMB angel investment; in July 2012, it received a $1.5 million A-round financing from Redpoint; in April 2013, it received a $3 million A+ round from Alibaba Capital; in September 2014, it received a tens of millions USD B-round financing led by New Horizon Capital. In April 2016, it was rumored online that "Tao Zai Lushang" failed to secure C-round financing. Reflection: Too much force! Excessive subsidies may be the main reason for the capital chain break. -END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brand | 016 Distributor B2B transformation | [Long press QR code to follow]