Shang Network mass layoffs, luxury electricity dealers ' reputation worries

Source: Internet
Author: User
Keywords Luxury

Analysts believe that the online purchase of luxury goods channel has not formed a certain degree of influence and credibility, so there is no stable consumer groups

This reporter Li Bing

The downsizing of the luxury electricity dealers is growing. Recently, there have been news that the luxury products of the website still goods network in the Spring Festival before and after the mass layoffs.

This message by the industry as a product of NetEase, after the closure of the network, large luxury goods, another "doom".

Regret is, the reporter then call Shang Network CEO Zhoshi, the phone is not connected. But CIC consultant IT industry researcher Li Fangting in an interview with the Securities Daily, said: "Still product network layoffs or from two reasons, one is the company's decision adjustment caused by changes in staffing, on the other hand, because of the company's capital chain tightened personnel spending cuts." ”

Luxury electric Business shocks constantly

In the past two years, the luxury business has become a major investment hotspot in China's e-commerce industry. Iris statistics show that between January 2010 and July 2011 of 1.5, the total number of domestic E-commerce Web site financing 143 4.13 billion U.S. dollars, of which the luxury shopping site financing 16 a total of 240 million U.S. dollars, the amount of financing is third.

However, starting from the second half of last year, the luxury goods business met cold, last December, luxury website "Call ha Net" founder Lian was swept out of the door; this January, NetEase's "NetEase still goods" capital chain broke down, and during the Spring Festival, the extremely High-profile catwalk network and the high level of financing of the still goods network has been plunged into layoffs.

Analysis of the industry, the source of goods, authenticity, sustainability, is the biggest bottleneck in the development of luxury electric business, professional talent and the lack of management will also become luxury e-commerce future development problems.

In addition to this layoff, according to media reports, still goods network in the middle and lower levels of staff layoffs, the middle and above the mobility of cadres is also very large.

According to the data show that the goods online after the line has received three rounds of financing, of which the second and third, respectively, 10 million U.S. dollars and 50 million U.S. dollars.

CIC Consultant IT industry researcher Li Fangting to reporters: "In the early stage of the development of the electric business enterprise, most of its funds for marketing promotion links, at the same time to show their own competitive advantage, in the product price most of the" loss to make a yell "situation, therefore, its financing demand is more urgent. ”

Shang network positioning in the "member invited to sell the platform", and "the adoption of strict membership invitation system, to join the applicant in accordance with strict standards for screening."

Industry analysts who declined to be named said in an interview with the Securities daily that: "Strict membership invitation system" for the early development of the electric business enterprise is not realistic, this is because in the early stages of development due to the limited distinction between the electric business enterprises, market share is not high, customer stickiness Low, Therefore, to seize the market share has become the top priority of the major electric enterprises, and this will inevitably require large-scale customer flow as the basis, the member invited to set a higher threshold, will be part of the passenger interception, reduce the source. "At the same time, some analysts believe that the product network advocated by the" private and Noble type "in a long period of time can only be a pseudo proposition.

Luxury electricity dealers are still in the early stages of development

CIC Consultant IT industry researcher Li Fangting that: "At present the domestic luxury consumption mainly has the cultural factor, the personal dazzle Rich psychology, the personal hedonism doctrine three main characteristics, this causes our country luxury consumer group to have the price elasticity to be small, the market stability characteristic, along with the national geographical limit is fewer and less, Foreign brands to enter and obtain the degree of recognition of the people, coupled with foreign brands value the huge domestic consumption potential, began to increase marketing efforts to China, accelerated the domestic second-tier cities of China's distribution, and further promote the domestic luxury consumption. ”

Sales of luxury goods in China are expected to reach $27 billion trillion by 2015, surpassing Japan as the world's largest luxury market, with 20% per cent of global luxury sales coming from China, according to McKinsey research data. Therefore, in the eyes of luxury brands, the world's second-highest luxury consumption in the Chinese market has become one of their market center of gravity, and how to more effectively compete for high-end consumer groups in China has become the most important item in front of luxury goods.

Li Fangting that, "on the one hand, because of the unreasonable development structure, the early focus on marketing promotion, a large number of advertising marketing costs, and in the staff structure of more than 70% of the marketing staff, so in the capital chain problems, streamline become the major electric dealers to take the method, On the other hand, the domestic luxury electric business is still in the early development, through the Internet to buy luxury goods channel has not formed a certain degree of influence and credibility, so did not form a stable consumer groups. ”

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