Luxury encounters with electric dealers: the wall of flowering wall outside the Shanfeng investment institutions carefully layout

"We are not a pure luxury company, I think pure luxury companies have no future." "In the face of" financing China "reporters on high-end fashion products and luxury of the differences between the question, go to show Network co-founder, strategic executive Huang gave such a reply.

According to the China e-Commerce Research Center recently released the "2012 (China) E-commerce Market Data Monitoring Report" shows that China's luxury net shopping market size of 2010 6.4 billion yuan, 2011 market size of 10.7 billion yuan, growth rate of 67.2%. As of the first half of 2012, China's luxury net shopping market scale of up to 13.5 billion, an increase of 58%.

One side is the rapid expansion of the market scale, on the other side is the luxury goods to change the electricity business adjustment. Walk Xiu NET, excellent public network, only goods will, Jiapin net, Shang Net, these in recent years in different models into the field of luxury goods, have put the hope that the price is easier to accept and better cooperation in high-end fashion brands. "Consumer demand is diverse and only a handful of consumers buy luxuries." Therefore, we will not make the luxury of absolute, not only for the rich class, more is the dissemination of fashion ideas. Our product composition is more like a high-end department store, and the service target is the top 20% of the high income users. "Huang's stance can be said to be the collective voice of these electric dealers."

acclimatized turn

In the course of development, luxury brands have long been accustomed to maintaining a high-end image in small groups, by virtue of the reputation of the circle of Word-of-mouth, Qu Gao is not afraid and not, and the birth of large-scale, low-cost E-commerce is not like a hit ally. Yet the world of luxury brands seems to be no longer synonymous with the past, especially in China.

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

However, when the real plan to flood the Chinese market, foreign luxury brands to face is a younger and more personalized groups. The 2011 China Luxury Goods Market study, released earlier this year, showed that 55% of China's luxury consumers are between 25 and 34, while foreign luxury shoppers are mostly over 40, which is 15 years lower than the global average. Luxury brands naturally see a different value judgement and consumption habits of the younger generation than their older customers.

In fact, China's affluent class has emerged from the reform and opening-up, unlike traditional Western customers after generations of brand recognition, Chinese nouveau riche brand awareness of luxury even now is still in the exploration and accumulation. This is from the previous coach online Taobao attracted whether the luxury of the debate can be seen. Coupled with the fast pace of lifestyle and the rapid development of technology, compared to whether there is no waiter to help wear shoes these older generation of customers pay attention to the service details, convenient and timely to see the brand's latest style and collocation is the focus of the younger generation.

This is the Chinese market in front of many luxury brands: a large share, a relatively young consumer audience, brand awareness is still in the growth period. No luxury brands are willing to give up the Chinese market, and if they want to cover more than 200 large and medium-sized cities in China, they will inevitably need high rents and operating costs. Once the storefront to the market depths of the three or four-line city, the lack of control of the management line caused by the brand damage is difficult to avoid. So even the most powerful big names are wary. In order to broaden the channel of promotion, luxury brands have to adjust their ideas.

With the rapid development of smartphones and tablets, it has become more customary for young people to look at product information, participate in reviews, download Gucci, Velentino and other brands of app software. This coincides with Bain Capital's report, which shows that luxury consumers, who have a positive attitude towards online shopping, have reached 80%.

Some luxury brands have begun to test the water. Armani, LV, Gucci, etc. have opened their own online official flagship store in China, but the results are very little. Transactions that are implemented over the Web are almost insignificant in their overall sales. The reason for this is that China's online business environment may have accounted for a large factor. "We know the market better, they don't have the opportunity, they can't provide the ecosystem for the team, no wolf fighting." Of course there is something worth learning about in detail, but it is not competitive in general. "This Huang gives his own understanding.

Differentiation and Transformation Fashion products

Bright prospects, the favor of the wind, luxury electricity dealers after a great leap forward, with the second half of last year's capital market on the overall enthusiasm for e-commerce decline, began the first round of the shuffle. NetEase still goods network closed, call HA network closed, product Poly Network because of the break of the capital chain and stop operation, cool network CEO leaving, walk Show network was handed redundancy, Sina's Sina luxury channel operating poor also has been turned off ... At the same time, but there are also the trend of the electric dealers on the line under the linkage. Temple Network completed its new club in Chengdu, the first video group's V1 products have also been officially online. As for how to do the luxury business, the electricity business has been divided.

The cause of differentiation lies in the particularity of luxury goods. To the brand's own channels of strict control, for the international luxury brands have long been close to obsessive-compulsive disorder, so even at the fund to build operations team, choose with the international high-quality logistics companies to build their own operating efficiency is not high official website, also do not want to make them think "damaging image" to authorize the domestic electricity business site.

Most of the electric dealers who have difficulty in acquiring the brand license have taken the recruiting or buying the stock from the dealer as the response measure. And by relying on inventory as a source, from the initial to help the brand to digest inventory started, entrepreneurship only two years of revenue has amounted to 170 million U.S. dollars, successfully opened the field of luxury goods network retailer Gilt Group is an ideal model.