Originally posted by MMWA
Feel very sorry for anyone who bought in to the hype around this retail "re-seller"....
Their business model is fundamentally flawed and fails every check on the five forces model:
- high buyer power (i.e. buyers have plenty of options to go elsewhere)
- high supplier power (i.e. the suppliers have plenty of options to supply elsewhere)
- Low barriers to entry (i.e. anyone can set up a daigou shop - and plenty have)
- High number of substitute products (theres a daigou shop on every corner of every capital city)
- High levels of competition (see above - literally hundreds of other daigou shops)
Haven't read their latest report, but I am assuming they still haven't posted a profit and are likely still bleeding cash?
Good for you mate - you successfully passed your first year finance subject at university and are now able to quote the 5 forces model...I'd suggest reading the most recent announcement, twit.