First-line brands do not see the transformation of luxury electric manufacturers

Trainee journalist Yiu

"Last year, we were able to keep about 30% of our gross margin, and now it's hard to rely on traditional luxuries to keep this level of profit, so we want to try the electricity market for wine," he said. "Luxury Street marketing manager Wang said, pointing to the office next door, which is nearly 200 square meters of office area, will become luxury street future wine Hall."

Luxury Street is a medium-sized luxury electric dealer in Liantang http://www.aliyun.com/zixun/aggregation/5738.html "> Internet Industrial Park, Luohu District, Shenzhen." In recent years, the concept of electric business continues to warm up, as one of the high-end market-oriented business model, in 2010 to 2011 experienced a round of the Great Leap Forward era. However, in the second half of 2011, began to mutation, call the network wages, walk show net layoffs, cool net CEO turnover, NetEase still goods close the shadow of the luxury electric business.

As a result, a group of luxury goods to start brewing transformation: Show Network is moving towards the "popular fashion" direction, still goods network is playing "positive price authorization" high-end fashion concept, and Jiapin network has changed its tune to call himself a fashion famous electric dealer.

In Wang Eyes, the industry encounters a cold spell, largely because of the supply problem. "To do luxury if not to do a first-line brand is not done, but to tell the truth, the first line of brand to do both risk and lack of continuity." She said without misgiving.

In fact, the first line of the brand not to see the situation, from the birth of the luxury electric dealers already exist. It is understood that more than 90% of luxury brands will not authorize any domestic electric dealers to sell their goods, and such as Hermès, LV, Cartier and other front-line brands of downstream sales channels are very strict control, basically do not allow the outflow of goods.

Wang cited an example: "We have bought a group of Cartier diamond Ring, but the Cartier learned, unexpectedly to our bid, the diamond ring repurchase." ”

In this context, some luxury goods dealers have to go through the "buy hands" to take the goods. The so-called buy hands, that is, the purchase of high-end brands abroad, and then transferred to the dealer to ship the person. The buyer also needs to earn a portion of the profits. In addition to the various taxes returned to the country, so that the profits of the electricity business is naturally small.

However, luxury streets are sourced from another source. Wang revealed that in the United States there are often luxury auctions, but these auctions are very high entry threshold, the general entrance fee of 2 million dollars. "One of our sources is to pick up the goods by auction." This has an obvious advantage, that is, to remove the middleman's profits, relatively large profit margins, but also conducive to maintaining the price advantage. ”

The source of luxury street benefits from its behind-the-scenes bosses. Wang, the boss of the early jewelry business started, already family emigrated to the United States, in the local luxury circle has a relatively stable network.

For luxury-goods dealers, the most lethal is that the supply chain is not in its hands. The chaos of supply channels plus the good and bad of the electrical business site, leading to the sale of luxury goods online, the authenticity and quality of goods can not be guaranteed, can not be trusted by consumers, which has further exacerbated the brand, especially the first line of the brand "discrimination."

As a result, some well-known luxury electric companies have been brewing a transformation, like luxury street, such as wine and other new products, but also looking for Europe or North America's two or three-line brand to play "popular fashion". However, the European and American two or three line brand awareness is not high, the price is not low, in the short term it is difficult to form sales.