Investor Beware: Lightinthebox Isn't What You Think


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Investor Beware: Lightinthebox Isn't What You Think

  1. 1. 3 Crucial Factors For Lightinthebox Investors
  2. 2. Different Companies, Different Products • Dangdang sells merchandise and electronic media on line. • In 2013, 67% of revenues came from electronic media, with merchandise making up the remaining 33%. • VIPShop sells brand-name products using a “flash sale” model. • Every day at 10 AM Beijing time, flash sales
  3. 3. Lightinthebox Lightinthebox, on the other hand, focuses on two broad categories: Apparel brought in 29% of revenue in 2013. Electronics and other general merchandise accounted for the other 71%
  4. 4. Where Business Gets Done Dangdang and VIPShop cater almost exclusively to the Chinese consumer. • In 2013, 100% of Dangdang’s revenue came from China. • The same can be said for VIPShop.
  5. 5. Lightinthebox Lightinthebox, while headquartered in China, counts overseas customers as the primary source of income. In 2013: Europe accounted for 62% of all revenue. North American clocked in with 19% of revenue. South America provided 9% of revenue. All other countries came in with 10% of revenue.
  6. 6. But the most important difference between Lightinthebox and the others: It’s growth is slowing down in a major way.
  7. 7. Dangdang Revenue Growth
  8. 8. VIPShop Revenue Growth
  9. 9. When Lightinthebox Filed Its Prospectus, Things Looked Rosy
  10. 10. Since Then, Heady Growth has Disappeared
  11. 11. Before You Invest in Lightinthebox 1. Remember that the company’s business model is fundamentally different than Dangdang and VIPShop. 2. Almost all of its customers reside outside China. 3. Revenue growth has come to a standstill, with only a 27% jump while operating expenses have increased 47%.
  12. 12. Better Ways to Profit From China • We quickly forget that many American companies have a strong presence in China. • Apple is one of those companies. • Click on our special free report below to find out what Apple’s next product will be: Leaked: Apple’s Next Smart Device