Luxury goods in the Chinese market is huge

Yesterday, I heard that the luxury e-commerce website Temple Library financing 100 million US dollars of news, really shocked me. At this time last year, I decided that this year, with the crackdown on cottages and infringement related activities will be launched, will die a large number of so-called luxury e-commerce website, but did not expect the luxury e-commerce in a few years the situation with my estimate just in contrast.

Public information shows that this round of financing by Li Ruigang founded and served as chairman of the Chinese cultural investment fund (CMC Capital Partners, CMC for short), IDG Capital, the French venture Ventech China, Mori Investment, Investment, can be described as multi-national joint international investment case.

Luxury goods in the Chinese market is huge

For the luxury goods industry, the past 2013 was a very memorable year. The significant reason is that in 2013, the Chinese luxury goods consumption will reach 102 billion U.S. dollars, accounting for nearly half of the global market, while at the same time China GDP accounted for only about 10% of the world, this is how a big irony ah! Chinese "trench conditions" led to my earlier mentioned so-called luxury e-commerce sites have been getting pro-Lai, some sites are good or bad have received huge financing, as the darling of the capital markets.

The huge spending once again verified the Chinese people's passion for the consumption of luxury goods in recent years, high-end brands in foreign countries can be seen everywhere in the figure, whether department stores, suburban shopping centers or urban brand discount stores, the Chinese once again Become the main force of luxury consumption.

Luxury "electric shock" is imperative

Electric shock luxury is a commonplace, and no one can see the future of online channels will become the main sales channels for luxury goods business. Luxury e-commerce, which started in 2008, has experienced rapid growth since the Great Leap Forward period in recent years. Speedway Institute in August this year, out of a domestic luxury goods business report, the report shows that in 2009 China's luxury online shopping market trading volume of 2.86 billion yuan, but in 2012 reached 17 billion yuan in 2013 growth Still very fast. At the same time, China's luxury online sales account for only less than 5% of its overall sales. This figure is undoubtedly one of the most promising proof of the concept of broad prospects.

In contrast, foreign luxury goods institutions are gradually paying attention to the huge potential market of Chinese luxury goods, and have set up online stores in China. In 2010, the Italian fashion goods website Raphael Online and Fubilis passed the Alipay Curve into China; in September the same year, well-known fashion brand YOOX, the official global online retailer, marched into China; Net- a-Porter also entered China in March 2012. In addition, Louis Vuitton, Gucci and Cartier brands have opened in China official website.

Several Problems Restricting the Development of Luxury Electricity Suppliers

Source: Despite the high demand for luxury goods in China, many foreign luxury brands have already entered China. However, they are very concerned about their own brand image and do not want their own brands to compete with the products of some low-cost sellers. As a result, Concept "produces a sense of blur. On the other hand, they do not want e-commerce channels to threaten their own pricing system.

This situation led to most of China's luxury goods sales sites are "illegal sales" and did not really get the brand side's authorization. Dangdang "Tissot storm", the United States is accused of 90% fake goods have caused fury uproar, Netease and Sina's luxury e-commerce channel is also closed.

② tax rate: buying luxury goods in China is more expensive than most countries, a large part of the reason is that China's tax rate is too high. For example, a domestic package to buy a 20,000 yuan, the United Kingdom may only 14,000 yuan, the remaining 6,000 yuan can buy round-trip tickets, and that consumers would rather run to buy the British?

The industry generally believes that the luxury goods spread from the high taxes and fees, so is it right? As long as tax cuts, Chinese tourists will not be crazy shopping overseas? But in China, whether tax reduction or not, luxury goods will still maintain high prices . According to China's current stage of development, or should encourage rational consumption, rather than by reducing taxes and fees, so that the domestic purchase of luxury goods blowing a storm.

③ Marketing: Marketing is a luxury e-commerce operation is a crucial part of the success or failure. And from last year, a lot of first-line luxury goods website decline or even collapse, a big reason is that marketing costs control problems, a lot of money spent on Internet marketing above, but did not get Expected results.

Luxury e-commerce settled in the platform or their own shop?

In 2011, average daily customer price was about 1,200 yuan in Tmall fur category, with a turnover of more than 260 million yuan in that year. With more and more businesses entering, the fur category has attracted the attention of Lynx platform and started to try to promote category growth. Promote value-added services rather than a substantial discount marketing strategy, so fur campaign received good results. With the improvement of the category specification and quality control standards, Lynx's confidence in the category of fur has been enhanced. Later, the turnover of Tmall's fur category is expected to approach 8 billion in 2012, but I did not find this data in 2013, but it is certainly more than 2 billion.

It can be seen from the above case, settled in the platform is a luxury e-commerce network marketing a good move. Platform settled, you can consider Lynx, Jingdong, Suning Tesco, Dangdang and other large-scale integrated e-commerce platform, these platforms have a huge luxury consumer groups, will first solve our "user source difficult" problem.

There are also some businesses that sell luxury goods by setting up their own independent websites. This approach was all the rage, but in the past two years, basic casualties have been mostly in frontline websites. I personally do not recommend operating a luxury e-commerce through an independent website, because not all luxury e-commerce sites can be as financing 100 million as the temple, most of the site unknowingly closed down.

Written in the last: The rise of Weibo and WeChat gave many new opportunities for luxury e-commerce. Once Chongqing Police cracked down on a group that sells fake luxury goods through WeChat. This case gave me a lot of inspiration and precisely reflects the new media's new opportunities for luxury e-commerce. Luxury e-commerce in China is not spring, but the summer, very, very hot summer!