Investors have been reaching out to luxury goods dealers

Absrtact: Professional investment Xu Bin recently obsessed learned about luxury marketing and looked for opportunities to learn from the industry, especially on online channels. Xu Bin is a well-known venture capital company in China. Xu Bin and his team have a late smell.

Professional investment Xu Bin recently obsessed learned about luxury marketing and looked for opportunities to learn from the industry, especially on online channels. Xu Bin is a well-known venture capital company in China.

Xu Bin and his team's sense of smell is already a step behind. Like wolves tightly pegged to fat, investors have long been in the taste of E-commerce after the same tentacles reached the luxury goods, market differentiation but higher profit margins.

On February 18, the online Jiapin network announced that it had received a third round of million-dollar funding at the end of 2009.

It was like a whistle, and the VCs quickened their pace.

As a result, some cafes and restaurants in the capital, staged a similar play every day, the wind cast on the luxury website soon after the CEO of a god Kan. Given that Europe and the United States have gradually matured online sales discount luxury models, they are imagining a good "money path."

On the other side of the negotiating table, the entrepreneurs of luxury goods dealers are in a complex mood, each with their own thoughts. For example, the net CEO Yang Pei was advised to consider bigger after the package is changed hands, and the five Avenue luxury network CEO Sun Yafi is to consider the need for a large sum of money to do promotion.

Xu Bin After screening, the decision and Sun Yafi see one side. After 3 hours of communication, the two sides did not immediately reach a cooperative intention. Back to the office of Sun Yafi, and received a letter from a well-known domestic fund, said the "intention to further cooperation." On Sun Yafi's itinerary, he also wrote a lunch with a well-known VC in two or three days. Since a 8-minute report at the National People's Congress, there have been nearly hundreds of investors coming in contact with Sun Yafi.

Wait

Xu Bin is still in the wait-and-see stage because of concerns about brand licensing, which is a common concern for all VCs interested in luxury shops.

After the general direction of research and focus slowly, Xu Bin did not form the final conclusion, his preliminary judgment is, whether it is luxury or high-end consumer goods, have their own fixed channels, department stores and stores, online sales can have space, it is entirely dependent on the brand to this particular channel of cognition. So far, according to the existing research data, the brand is still very conservative channel, or still emphasize the rarity of products.

Find the doorway, Xu Bin found that the domestic luxury website source of different sources of goods, some from the European and American brand authorized dealers in the hands of the purchase of inventory, some have gained the network agent of the Non-mainstream brand, some of the same nature as overseas purchasing, some also doped with some second-hand luxury goods and fakes. It is important for VCs who are in need of investment to be aware of these differences, and a careless one will yaba the money.

Because the domestic luxury sales site is too young, mostly founded in 2009, Xu Bin Study These sites are limited, mainly in combination with media reports, on-site visits, and company exchanges. But Xu Bin's investment philosophy is that, in the context of consumer upgrades, luxury is a very good direction, coupled with E-commerce itself is in a hot period, the platform class is not realistic, because the bucket but Taobao, and in the vertical category, early two years hot is the diamond, now is the first clothing, luxury goods, and the high threshold of luxury, It is not easy to produce competitors. This is in line with the retail laws of the same place.

and Xu Bin reasearchers after Sun Yafi, also in the cautious wait and see.

The contact history of Sun Yafi and VCs is very interesting. Because the company belongs to the Zhongguancun International students pioneering park, Sun Yafi has been invited to hold a meeting in the NPC held a 8-minute report, down the podium, unexpectedly received forty or fifty of the business card, including the famous investors, Sun Yafi a Meng. Not long after, through various means to meet the wind more and more, and then some directly brought the cooperation letter of intent.

Sun Yafi at first very proud, their own entrepreneurial only after how long to get so many people's favor. But after a round of engagement with the wind, she was disappointed, and she found that they did not understand the industry, almost all full of unrealistic fantasies. Because at this time the United States and France similar sites quickly jump red, has achieved a year 2.3 billion of dollars of scale, VCs generally think China can certainly. Some VCs not only expect too much, but also add a betting agreement to the attached conditions.

Sun Yafi helpless, "they ignored the luxury culture 2000 years before they started in China, and in Europe and the United States early already entrenched." ”

By the second half of 2010, Jiapin net Monk product network announced a new round of investment, the number of the wind to make appointments more frequent. After the Spring Festival in 2011, with Sun Yafi Reasearchers has 5, including strategic investors, has initially reached the intention of the cooperation of about two or three, Sun Yafi need a large amount of funds to do the promotion.

There are some VCs who missed the earliest chance. Unfortunately, Sun Yafi said that, compared with 2009, now want to get the same shares of luxury sites, the amount of investment to pay at least 8 times times.

Do

The first well-known investors in the field are Lei (Weibo). October 2010, from the Shang product network officially on the line only 3 months time, in any performance has not yet, lei this sophisticated angel investor is put into action. Thanks to Lei's position and influence in the investment world, VCs are unanimous in his choice of the project, so still product network and then won the Disney's VC machine Idea Wei Investment and morning Hing Venture to invest tens of millions of dollars level of investment.

Shang online 4 months later, according to its published data, the number of members reached 200,000. But still not fully guarantee the source of goods network, need to rely on the spread of a group of overseas to have a keen sense of fashion buying hands. Shang Net CEO Zhoshi said, will use the foreign VC institutions in the 3 million to complete the first round of seamless advertising coverage, mainly concentrated in the major portals and its vertical channels and fashion magazines, in the upstream purchase channels, the site also plans to increase more than 50 professional buying hands.

Compared with other sites, Jiapin Network has been financing the number of rounds. The first round of the 2009 to obtain Taishan Angel investment 500,000 yuan, the second round of investment in June 2010, is by the Pine wo Capital-led, Ka Fung Capital Joint investment. In January this year, the third round of the net financing, is from the Jinsha River Venture investment, Taishan Angel Venture Fund, Pine Wo Capital and a consortium of Hong Kong jointly invested.

November 12, 2010, the only products will be DCM and Sequoia Capital of 20 million U.S. dollars venture investment. DCM partner Tom Blesdel says he is eyeing China's rapidly growing 120 million middle class market.

Japan's main luxury shopping site "charm" also received 13 million U.S. dollars in the financing, in 2010, landed in China's online shopping market.

Harper, general manager of the Arctic Light venture, has been observing the luxury goods, but he has acted with extreme caution. January 13, 2011, the Northern Lights test water collar main high-end men's clothing of the nine-ecapital, Sequoia China with the investment, by Easy Kay Capital as an exclusive financial advisor, which is also the CEO of ran capital of the New Year first single.

Whether it is charm, jiapin network, Shang Net, or Fifth Avenue luxury net, are in the imitation of the United States gilt and French vente-privee business model, that is, brand discount + limited time to buy + authentic insurance. Using this model, Vente-privee in France, the 60 million-population market, has made an annual turnover equivalent to 8 billion yuan. China's affluent households will reach more than 4 million in 2015, according to McKinsey. The cake was so big that the wind poured in naturally.

The danger is that with the maturity of the online shopping industry, on the one hand, the traditional department stores will be forced to relax the procurement policy, on the other hand, outlets will be everywhere in China, the parties game, profit thinning.

(Economic observer)