LITB
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1) Lightinthebox obtains most of its revenue from apparel (29%) and electronics/general merchandise (71%), whereas competitors focus on flash sales and media/products. 2) While headquartered in China, Lightinthebox conducts most business globally rather than domestically in China. Europe accounts for 62% of revenue. 3) In contrast to growing revenues of competitors, Lightinthebox's revenue growth has stalled at 27% while expenses rose 47%, suggesting slowing business momentum.
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LITB
- 1. 3 Crucial Factors For Lightinthebox Investors
- 2. 1) Different Companies, Different Products VIPShop focuses exclusively on daily flash sales of 30% to 70% off name- brand products. Dangdang gets 67% of revenue from electronic media, the rest from merchandise
- 3. 1) Different Companies, Different Products Lightinthebox obtained 29% of its revenue from apparel sales in 2013. The other 71% came from electronics and other general merchandise
- 4. 2) Where Business Gets Done Both Dangdang and VIPShop conduct substantially all of their business with Chinese consumers. All About China
- 5. 2) Where Business Gets Done While headquartered in China, Lightinthebox does its business with global customers. 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. 3) Business Momentum But the most important difference between Lightinthebox and the others: Its growth is slowing down in a major way.
- 7. 3) Business Momentum Dangdangs Revenue Growth
- 8. 3) Business Momentum VIPShops Revenue Growth
- 9. 3) Business Momentum Lightinthebox Looked Good in Its Prospectus
- 10. 3) Business Momentum But Revenue Growth Has Cooled Considerably
- 11. Before Investing in Lightinthebox You need to carefully consider three things: 1. Remember that the companys 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% over the past 12 months.
- 12. There are better ways to profit from China. We quickly forget that American companies have a strong presence in China. Apple is one of those companies. Click on our special free report to find out what Apples next product might be.