3 Crucial Factors For Lightinthebox Investors

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.

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.

2. Where Business Gets Done

Both Dangdang and Vipshop conduct “substantially all” of their business with Chinese consumers.

All About China

2. Where Business Gets DoneWhile headquartered in China, Lightinthebox does its business with global customers.– Europe accounted for 62% of all revenue.– North America clocked in with 19% of revenue.– South America provided 9% of revenue.– All other countries came in with 10% of revenue.

3. Business Momentum

But the most important difference between Lightinthebox and the others:

Its growth is slowing down in a major way.

3. Business Momentum

Dangdang’s Revenue Growth

3. Business Momentum

VIPShop’s Revenue Growth

3. Business Momentum

Lightinthebox looked good in its prospectus…

3. Business Momentum

But revenue growth has cooled considerably.

Before Investing in Lightinthebox…

You need to carefully consider three things:

1. Remember that the company’s business model is fundamentally different than Dangdang’s and Vipshop’s.

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.

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 Apple’s next product

might be.