Local luxury electric dealers face the transition: Capital is locked in deep

Capital cut-off, layoffs, closures, CEO was kicked out ... For two years, this scene has been on the show in the luxury electric business.

Since 2009, under the capital Chase, the emergence of luxury goods, pan-luxury electricity business boom. However, the former scenery of luxury electric dealers eventually encounter the pattern dilemma and the capital cold double attack. At present, these enterprises have been transformed: Go Show network is moving towards the "popular fashion" direction, still goods network played "positive price authorization" high-end fashion concept, and Jiapin online has changed its own to call himself a fashion famous electric dealer ... What caused the luxury electric dealer to tear off the "luxury" label?

Pattern dilemma

Big brands do not authorize, more than 90% of luxury brands in China will not authorize any electric dealers to sell their goods.

October 2012, once very eye-catching library, the final choice closed. In fact, since the second half of 2011, luxury electric dealers have shown a weakening trend. Walk Xiu Net, jiapin net, Shang net all so successively outgoing layoff news. December 2011, Luxury website "Call ha Net" founder was swept out of the door; December 31, 2011, NetEase's "NetEase still goods" declared closed.

Industry insiders said that the luxury electric business in a big potential small market situation. According to the 2011 China Luxury Network Shopping industry research report, the 2015 China luxury goods online transactions will reach 37.24 billion yuan. From the scale of luxury online shopping transactions to the scale of domestic luxury transactions, the penetration rate was 4.37% in 2011.

One side is the potential of the market, while the luxury electric business is struggling, where is the problem?

Walking Show net former vice president, is now Shenzhen Electric Shock E-commerce Co., Ltd. founder Shangxiang said, has been the luxury electronics dealers are not optimistic, the reason is that the current luxury electric dealers real external environment and conditions are immature, the user's consumption habits is still online procurement of low-cost products. Big brands do not authorize, more than 90% of luxury brands in China will not authorize any electric dealers to sell their goods.

Without the support of manufacturers, supply can not be guaranteed, without authorization, once bigger and will face the risk of the accused. The main source of luxury goods suppliers is through the dealers or their own overseas purchase of goods. Although gross margin is relatively high, but not continuous business, but a one-time trade. So at present, the market environment, the legal system environmental conditions do not have the development of luxury goods business environment.

Jiapin Network CEO Yang Peifeng told the China Business newspaper (blog, Weibo) "reporter, the current sales of high-value goods, the key is the source, because of foreign brands with more than hundreds of years of history, they will not easily choose an electric dealer in China as a partner, they are worried about how to protect their brand image." At present, most of the top brands sold in China are only sold from distributors, while Chinese luxury electric dealers must rely on high-end physical department stores to develop rapidly.

Supply predicament and market environment directly affect the feasibility of the model. Dong Shihao, managing director of Qiming Ventures, said that the model of luxury goods is not going to work in China, because it is too high-end for real rich people to move to the line. From the user's point of view, the two categories of people to buy luxury goods: one is their own consumption and pay attention to the shopping experience of the people; The number of users is not large, luxury electric dealers difficult to come out.

Transition "Fashion"

Europe and the United States two or three line brand is difficult to have a market, they are not high visibility, there is no sales.

Can international line brand authorization drive luxury goods online shopping?

If all is priced, the big question for consumers is, if the price of luxury goods is the same as that of a physical store, why should consumers buy these luxuries from the Internet? Its own offline full experience is also an important part of luxury consumption.

In this regard, e-commerce analyst Li Chengdong that: "Luxury electric dealers can sell, but the current mainstream user demand or hope to discount, the positive price is difficult to attract users, because users have been accustomed to the price of electricity dealers war." ”

In the domestic market environment is not mature, the luxury goods dealers began to rip off the "luxury" label, posted "fashion" logo, will be the consumer audience as the middle and high income people. such as walking the network from last year's "global brand flagship store" to the "popular fashion brand", only the goods will be a short period of luxury positioning, and then to the two or three line brand extension, still goods network played "focus on European and American designers and contemporary brands of the international high-end fashion products website" banner.

At the same time, Jiapin, gifted, Shang and other finished luxury goods dealers have gone abroad to seek Europe or North America's two or three-line brand, in order to be able to train a number of fashion-oriented quality of the price and not sensitive high-end fashion users.

Recently, still goods network announced 80 European and American modern brand authorization, will be the price of new quarterly sales. Shang Network CEO Zhoshi said, "Brand authorization is the biggest obstacle to the development of luxury electric business website, authorization and positive price is the outlet of luxury website." ”

For luxury electronics, the introduction of the two or three-line brand of the seasonal products are facing a problem that is the positive price, the current product high-end fashion products customer price of about 2000 yuan.

But in China, the majority of consumers keen on online shopping for fashion products are 18~35岁 young people. They are very concerned about the price, hoping to buy cheaper goods. If online stores do not offer discounts as a means of promotion, this consumer group will not be able to form a real attraction.

Shangxiang said that the transformation of the European and American two or three-line brand is difficult to have a market, they are not high visibility, there is no sales, so the market is also difficult to do.

Capital is in deep hold-up

Zie Jie

Although the luxury electric business in 2010 has been a capital hot pet, but after a lapse of more than a year, again talk about luxury goods, VC has been difficult to raise interest.

However, capital has been deeply stuck in the industry. At present, the Jiapin network has received 4 rounds of financing, its investors have Jinsha River Ventures, Taishan Angel Start-up fund, Pine Wo Capital and a Hong Kong consortium, still goods network for a total of 3 rounds of financing, from 2010 to 2012, the total financing of more than 70 million U.S. dollars, investors including angel investors Lei, become investment, Wei Investment and Morning Hing venture, excellent network access to 2 rounds of financing, investors include the global media giants advance group, IDG Capital, the United States speed of light entrepreneurship, Huawei International, set rich Asia.

The concentration of such a concentrated capital on whether or not a small area of the business of the public can be completely out of the way, and now see the situation is not optimistic, which makes the capital of this area is particularly cautious.

Dong Shihao said that Qiming has not invested in luxury goods, because it is not optimistic. The market is not big enough, and too many people are competing. Now investors are no longer looking at this area, Jiapin network this year to get Macy's is strategic investment, Macy's more to test the Chinese market. The strategic venture to take Macy's has proved that Chinese investors are no longer bullish on the industry, and that the chances of dying out are large.

Zhoshi told the "China Business newspaper" reporter, the capital market for the electrical business model of identity change, is in the panic stage, no longer pursuing short-term benefits, but test long-distance, pragmatic, basic skills, there will be a number of electrical quotient but this winter.

Cool NET former CEO Hou Yujian revealed that the luxury electric dealers have turned to fashion low-end market, in addition to the issue of licensing can not solve, capital squeeze is also an important reason. Luxury items such as the characteristics of most of the varieties are many, lots, small quantity, high price; single product sales will not be particularly large, there will not be a lot of inventory, because once the sale is not smooth, the warehouse will cause a large backlog of products, the capital occupancy will be very serious.

Industry insiders said that the conversion rate of luxury electricity users far lower than ordinary consumers, the current so-called pan-luxury electric dealers, not one in the scale and profitability to achieve a satisfactory degree, but through the winter, they will inevitably face a shortage of capital situation.

Kui, a partner of Sequoia Capital China Foundation, bluntly, the early start of the market for luxury goods to transform the public power companies have been listed, in the big environment and the timing is difficult to get the money, so the subsequent followers will live more difficult.