3 Crucial Factors For Lightinthebox Investors

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 are posted at 30%-70% off.

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%

Where Business Gets DoneDangdang 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.

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.

But the most important difference between Lightinthebox and the others:

It’s growth is slowing down in a major way.

Dangdang Revenue Growth

VIPShop Revenue Growth

When Lightinthebox Filed Its Prospectus, Things

Looked Rosy

Since Then, Heady Growth has Disappeared

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%.

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:

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