Mcglaughlin struggling in the quagmire of losses 100 million yuan to build warehousing rent

continued losses even face the risk of delisting of Mcglaughlin (MCOX.NASDAQ) have not been idle, following the change of American depositary shares to raise the stock price, Mcglaughlin yesterday announced the investment of 100 million yuan to build the Jiangsu Wujiang operations center was officially opened, marking the Mcglaughlin will turn to self storage from the rental storage mode, even Mcglaughlin intends to open up third warehousing revenue channels. But how to digest the high cost, when to get rid of the continuous loss of profit and become a problem facing Mcglaughlin.

Mcglaughlin, the current profit model is to rely on online shopping, mail order and physical stores sell clothing, but with the previous mail order and stores occupy half of performance is different, with the rise of the electricity supplier, the mail order and store business accounted for significantly less than normal, online shopping become the largest proportion of business. In the stores, because the rental cost, labor, utilities and other prices, but Mcglaughlin has been adhering to the same goods and line cable under the principle of low prices, leading to the store operating pressure is huge, some stores have been closed to stop.

however, contraction of the mail order and store business, but Mcglaughlin did not get much improvement in the online shopping business. The electricity supplier must be marketing, but because invested billions of yuan of marketing cost and the fierce competition in the market and other reasons, resulting in long-term loss of Mcglaughlin.

results show that Mcglaughlin’s loss in the first two quarters of last year was $3 million 900 thousand and $3 million 400 thousand. In the first quarter of this year, Mcglaughlin net revenues of $37 million 100 thousand, down 22.8% year on year; net loss of $4 million 200 thousand, an increase of 7.6%. The two quarter of this year, the Internet net operating income was $19 million 600 thousand compared to the same period last year, $32 million 700 thousand in revenue fell 40%; net revenues of $39 million, $58 million 700 thousand compared to the same period last year fell 33.6%; a net loss of $4 million 900 thousand, a loss of expansion. Sustained losses led to its share price fell, and even because of the price of the American Depositary Shares for 30 consecutive trading day closing price of less than $1, the NASDAQ (micro-blog) has warned the risk of delisting Mcglaughlin.

"Mcglaughlin’s profitability is very embarrassing, now, if the company to turn over, so the construction of storage, improve the system is necessary, but the short-term costs will increase, once Mcglaughlin returns without great improvement, and then into the next round of losses. However, if you do not invest in the construction system, in accordance with the status quo, Mcglaughlin is difficult to turn over. For them, how to digest the cost and change the strategy, to find a good profit model is the key. For example, in fact, the store can sell goods to high-end transformation, increase revenue." Cash financial analysts pointed out that low wave.

Mcglaughlin said, the reason why the money invested 100 million yuan construction operations center in Wujiang, is to change the rental model, because each of the Mcglaughlin warehouse rental cost is very high, if the use of the warehouse can save rental costs. Mcglaughlin, President of (micro-blog) further revealed that self storage can also become a new channel for the company’s profits – in transition to >

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