Fashion Electric Business Insider: First of all to live to fight the price and fakes go together

Absrtact: Recently Poly-Mei excellent product CEO Chen Au because the United States law firm to Poly-Mei excellent products suspected of the sale of the collective lawsuit filed a long micro-blog confession, let fashion net buy fakes topic again waves. In the face of this much-maligned industry, one wonders why fakes abound.

Recently Poly United States excellent product CEO Chen Au because the United States law firm to gather the United States excellent products suspected of the sale of the collective lawsuit filed a long micro-blog confession, let fashion net buy "fake" topic again waves. In the face of this much-maligned industry, one wonders why fakes abound. Holding investors ' money is also being invested "tired". Beijing Business News reporter tells you about the industry behind the sale of fashion dealers.

We have to live and fight with fakes.

Since 2008, a large number of fashion electric dealers have sprung up. The investment industry has become a hot field for everyone to want a piece. So "hot money" constantly poured in, but Jiapin network, NetEase still goods, the Prestige network in the 1-3 years after the line is closed, the product is in the business of a short few months after the failure of a hurry to end.

In the "ferocious" industry competition, the first to live into a fashion electric business enterprise's primary goal, the Life-and-death "price war" has become the main theme of competition. Login to the domestic major fashion shopping platform is not difficult to find, "limited to buy", "the lowest", "Full xx send xx" slogan flooded with the screen.

Beijing Business Newspaper reporter Login to a well-known cosmetics shopping website, December 20, the Lauder skin care products are 40 percent promotions, snapping time remaining two days; the market price of 234 yuan in Australia's well-known skincare brand Glamourflage lip balm, hand cream, body milk combination is being promoted by 99 yuan, There are two days left for snapping. Yesterday, the reporter again log on to the website, promotional activities are still continuing. According to industry insiders, such promotional activities in the well-known cosmetics electric dealers all the year round, "the so-called limited-time snapping is just a gimmick, frankly, this price has been selling."

And breakthrough the bottom line, has been unable to guarantee the quality of the price accompanied by a succession of exposure to the fashion of the electric business platform selling fake scandals. According to the China General Administration of Industry and commerce on the "double 11" during the sale of promotional products, sampling results, in the sampling of 207 batches of samples, has confirmed that 8 batches of samples for counterfeit goods, accounting for the problem sample 36.4%. One day Cat 3, 1th stores 2, Lok Bee nets, suning easy to buy, Amazon one. Related brands include Adidas, Burberry, Lauder, etc.

It's all about money.

Five Avenue Luxury Network CEO Sun Yafi to Beijing News reporter disclosed that in the fashion electric business industry, a lot of electric business enterprises in order to successfully get the funds of investors and signed a "gambling agreement." Most investors will be divided into several rounds of funds to target enterprises, and the so-called "gambling", refers to the investors and the target enterprise agreement, only when the target company's performance reached a standard line, will be invested in the follow-up funds. Otherwise, the enterprise is faced with the risk of being withdrawn or unable to receive subsequent investment.

Financing, find the right investors, is the most entrepreneurial fashion enterprises in the start-up phase of the only choice. However, entrepreneurial enterprises like the newborn baby, set a variety of instability factors in a, in addition to a reliable team, all need "money" to do backing.

Prior to the launch of a short 3-month product network in the close of the eve of the closure, its founder Gebin to the media, suffering from financing difficulties, and said that it operated in the electric business for a short time, and do not want to close the site, closed the site is no way to.

So, getting "money" became a top priority. Even at risk, the nascent fashion electric dealer will sign the "betting agreement". When the new faces emerge endlessly, the price war becomes the fashion electricity business profession competition normal, one side is the opponents continue to break through the bottom line of "the lowest price", on the one hand, investors demand the scale of the pressure, in order to achieve sales target, to pretend true, fake and false goods mixed sell then become the fashion electric business people know the "rules of the game."

Investors have words to avoid the risk of normal operation

In this respect, Beijing newspaper reporter to the investment industry insiders understand that in the field of fashion, the reason for the "gambling agreement" frequently appears, to a large extent, investors in the risk aversion. "The field of fashion is not like other technical areas, there is a national standard or technical standards there, entrepreneurial companies are high uncertainty, so the investment in fashion electricity market share." I am not sure of the return on investment, the demand for market share, to ensure that sales performance is the most insurance investment. said the other.

The money is "hot", but it is a hot potato. "For investors, it is usually the operation of a portfolio, in a number of projects in a number of different proportions, the level of risk to form a group of investments, as long as one or two projects survived, and even listed, to obtain a doubling of the income for investors, this group of investment success." The industry said.

Therefore, the outside world only know the Sequoia capital investment only goods will, poly beautiful goods, beautiful said great success, but see more also take the investment but "dead" of the electric quotient. "Dead" electric dealers are regrettable, but for investors, it is only the capital game to ensure the "portfolio" of the small role of security.

Capital ruthless, the market only to recognize the input and output ratio, do not believe the weak people's tears.