How to deal with the delicate situation of luxury goods

Four countermeasures against foreign enemies entering China

1. Rapid "amnesty" was acquired

2. Expand Agent Fashion Brand

3. Lower the value of the public brand

4. Transition to do luxury navigation

China's luxury electricity dealers are in a delicate situation. Reporter recently learned that, in the experience of a number of luxury electric dealers, brand unauthorized, loss, and other consecutive bad, the domestic online luxury industry again encounter rivals, including the old British power network net-a-porter, such as the major overseas luxury goods to kill the electric dealers. Analysis points out that the luxury goods dealers will become after group buying, another from the hot fall into the winter of the industry, in order to quickly reverse the industry to see the decline of the trend, the luxury sites have to adjust the operating model to find a way out.

Internal：

Embarrassed by money and unauthorized

It is no secret that luxury electric dealers are short of money and lack of supply.

China Business Intelligence network data show that from 2010 to 2011 has disclosed 21 luxury website financing Total amount is only 529 million U.S. dollars. In this respect, investment agency Personage pointed out, "the whole industry financing scale and two years loss of 115 million dollars of quota view, financing speed is far behind the burning money speed".

The prospectus, which actually covers the halo of China's first IPO luxury discount website, is not optimistic. From 2009 to 2011, the net losses were 1.38 million, 8.37 million and 107 million dollars respectively, "only the goods will be the current luxury electric business industry capital situation in miniature", analysts said.

In addition to the financial vulnerability, luxury brands do not give China's power to authorize the electric business is also a key factor in the development of the industry. Chen Shizhong, President of Net-a-porter Group China, a veteran British power trader, has expressed doubts about the purchasing channels of Chinese peers, he said: "We only sell products licensed to the brand, but China's luxury electronics dealers or from foreign brand stores or outlets to sweep goods, or from China's distribution rights of foreign distributors wholesale, or bribery brand inside the ghost sell goods and so on, is not aboveboard and brand sign authorize the contract. ”

At the same time, Kun, CEO of the World Luxury Goods Association China Representative Office, said, "There are currently few luxury sales companies to authorize E-commerce channels," This is the recent Swarovski denounced Jingdong mall sales of its products. Although Jingdong Mall CEO Liu has said, "We will bypass distributors, and luxury brands directly talk about licensing." However, the Show network CEO Guiven Frankly, "the first line of international brand licensing generally talk about, at least three years."

For the failure of China's electricity dealers, e-commerce expert Li Daishan said that the unauthorized cause of China's luxury goods suppliers extremely unstable, which makes the domestic electric dealers to use overseas procurement mode to maintain supply, this not only requires a large amount of liquidity, in the supply of true and false is also a worry.

Aggression：

Four big overseas peers to absorb gold

If the overseas giants in the authority of the advantages of defensive strategy, then its aggressive invasion of China will be more testing the Chinese luxury electric industry competitiveness.

The British luxury website Net-a-porter will soon be landed in China, the reporter learned recently. It is understood that this website, which was founded in 2000, will enter the domestic market in the name of theoutnet.cn through the acquisition of the domestic electric dealer website regulars. The site maintained a 56% pre-tax profit growth even during the financial crisis.

In fact, Net-a-porter is not the first foreign luxury website to target the Chinese market. As early as July 2010, an Italian fashion website called Rafael Online (Raffaello-network) entered China via the Alipay curve, which uses the Chinese homepage to label product prices in renminbi, and users can pay with Alipay. Like Rafael Online, the overseas luxury sites that launch Chinese pages include Amazon's shopbop.com.

In addition to the above two, the Italian luxury electric business Yoox Group also showed strong interest in the Chinese market. It is reported that the group as of June 15 last year, the total market value amounted to 1.188 billion U.S. dollars. Its online boutique, TheCorner.com, landed in China last September and currently has five sites in China's official website, including emporioarmani.cn and thecorner.com. Yoox Group CEO Federico Marchetti said, "In the future we will gradually launch in China more official network flagship store."

Industry insiders said that the four major luxury goods from the electric giants to China from the side to prove the potential of the Chinese market. According to the CLSA report, Louis Vuitton's largest customer base in China, 18% of Gucci Group's customers are Chinese. People familiar with the matter told reporters, "luxury brands do not authorize China's electricity dealers, or because of the frequent fake problem, the brand is afraid of their own brand hit in the hands of China's electric dealers."

In order not to let the Chinese market passed, international big-name also joined the online competition, it is understood that Louis Vuitton, Gucci and Cartier brands have opened the official website in China. Data show that as of the end of 2011, China's luxury net shopping market size of 10.7 billion yuan, growth rate of 67.2%, and to 2013 China's luxury shopping market will reach 23.76 billion yuan.

Engaged：

Amnesty prostitution or resistance?

In the face of overseas rivals to attack, the first "disarm" may be the predecessor has the agent gene of the electricity quotient, the regulars network is an example. It is understood that its choice is "amnesty" and Net-a-porter cooperation operation. The reporter learned from people familiar with the matter, the site is the Hong Kong IT group online channels, and IT group is the use of Agent fashion brand operating mode.

The industry has general reservations about the choice of Chinese electric dealers to sell their overseas counterparts. Walk Show Network strategy director Yang Xiaoying, "overseas and domestic differentiated operation model will not be conducive to the acquisition of the site development, this point from Groupon and Tencent cooperation of the status quo is not difficult to see."

and the regular network of the bow of different, still goods network hope to use the brand agent to kill a way out. According to the product network related personage discloses, at present it is from the original buys the hand mode to the proxy mode. "We have received nearly 10 brands from the United States, Italy, France and other countries, this week will be online some products, these brands in China only a few physical stores, and some have not even been introduced to China." said the person.

She also told reporters that the line of products will be sold at a positive price, the average at the millennium level. The future will be a product network agent fashion brand and procurement outlet model development, the current customer unit price of 2500 yuan, still product network will continue to take the high-end route, but in the brand choice will be a breakthrough.

Analysts said that the agent brand in the price does not exist, this is not in line with the price-sensitive characteristics of Chinese consumers, coupled with overseas fashion brands in China is not high, how many people are not familiar with the thousand-level brand to pay?

Guiven agreed, saying, "There is no future for Chinese luxury electric dealers to sell luxury goods." But his strategy is not the same as the product network, walking Show Network choice and luxury complementary is the public brand.

According to Yang Xiaoying revealed that the current show network of customers at 500-600 Yuan, the platform has a total of 2000 brands, one of the first-line luxury brands accounted for 25% in the last year, 1 billion yuan in sales of luxury goods accounted for only 15%. Yang Xiaoying said, "We found that the purchase of luxury goods is very low repeat rate, customers may buy a luxury, more is to buy the public brand, such a brand complementary is reasonable, I think the overseas luxury electric power supplier's entry does not pose a threat to us."

In fact, in addition to adjusting the operating model to continue to fighting in the luxury electric business sector, websites can also consider changing the way companies operate. Industry insiders suggested that luxury electric companies can completely alternative to do luxury navigation, by virtue of the luxury and Chinese market understanding, the site can try to do navigation search.

Although this transformation can make the luxury site out of the source of trouble, become a "light" internet companies. But Li Daishan to disagree, he said, 360 has set up a luxury navigation station, the luxury electric dealers are difficult to replicate 360 navigation in the flow of advantage, the risk is greater. Commercial newspaper reporter Wei/wen fan/photo