Market demand is no problem, that is the business model out of the question?

Each press by Tao Li from Shanghai

The success of the domestic e-commerce platform listing in the United States has really stimulated morale. From a numerical perspective, the growth rate of more than 30% of the luxury e-commerce industry is not pessimistic. There seems to be a huge space for the development of the overall luxury sales market. However, luxury goods e-commerce such as Privileged Network appeared this year, the closure of the collapse, leaving the industry had to calm down thinking - market demand is no problem, that is the business model out of the question?

The deadly source of supply has been mentioned at an unprecedented level, not the formal authorization of luxury brands, luxury goods providers how to find the survival of the way between consumers and brands?

Sample 1

Out

The death of the luxury network refute the luxury goods supplier deadly embarrassed sources

Network fell down, no longer get up.

The luxury e-commerce website, set up less than three years ago, took a million-dollar investment from SIFE Asia in a month and even pulled China Merchants Bank as its platform. However, the website was completely closed by the end of May this year .

On May 27, Ren Kefei, CEO of Zenith Network, stated in his Weibo that the general manager and shareholder status of Shanghai Huaer Shengshi E-Commerce Co., Ltd. was all transferred out in October 2013. VIP Privilege Network Also for management operations, after all the operating conditions, I do not know.

"Daily Economic News" reporter found through the record information network domain names are now unable to visit, the official Weibo since September 24, 2012 will not be updated.

As Yen Fu, former Asia Pacific investment partner, said: "Getting an investment that only proves you are approved by an investor does not mean that it has been recognized by the market, nor does it mean you have succeeded."

In fact, the collapse of the Privileged Network is not the case. In the past two years, most of the websites of luxury merchants have a lot of destiny. They have already either failed or they chose painful transformation.

Banks behind the helpless station team

In early November 2007, Alibaba B2B business successfully listed on H shares, setting off a domestic e-commerce startup fever. In this boom, the luxury goods industry in 2008 with its high customer base and the purchasing power of target customers, has stimulated the birth of China's luxury e-commerce model.

In 2010, with the grandiose fermentation of the entire e-commerce business, the luxury e-commerce business has also sprung up and the capital has also been aggressively touted.

One of them is Net. August 2011, enjoy the online line, providing luxury goods, fashion tide, beauty and skin care online shopping services. Only a month later, Saifu Asia Fund to its "haste" injection of tens of millions of dollars.

As a luxury e-commerce company, the primary problem Faced Net is access to consumer confidence in their products, or to seize the market is passive water.

Based on this, the founder Ren Kefei's strategy is to pull the bank station team, which leveraging the power to create their own trust. In accordance with the previous NetEase market strategy, from the project initially with banks, telecommunications and other companies to cooperate, or even use FedEx delivery of goods. This bundled marketing model, initially indeed enjoyed the growth of the network has made a contribution, according to public reports, enjoy the online line 4 months time to complete some of the same year site sales.

However, this model behind the bundles, but there are also helplessness.

An electricity business insider told the "Daily Economic News" reporter revealed that businesses really get very little from the bank sales. To put it plainly, the bank has no user viscosity in this channel, and there is no advantage in terms of product and price. In particular, consumers of luxury goods rarely shop in the bank mall because they have too many channels to choose from. "

Soon, Privilege Network encountered a common problem faced by the vertical electricity supplier - traffic pressure.

The aforementioned e-commerce insiders said that for the past four years, the rapid growth of domestic e-commerce business over the past four years, the cost of acquiring users of the website has also soared. Even a leading e-commerce company such as Lynx, access to a new user costs more than 100 yuan, not to mention other sites that do not have any traffic sources, "Privileged Network wants to easily gather a number of high-end users from the platform online shopping users , Requires strict operation and long-term accumulation, can not achieve the effect overnight. "

Supply chain model to be tested

Traffic dilemma is not the biggest problem with respect to the network, is not the most important reason for its fall.

The industry generally believes that the biggest embarrassment of luxury goods industry is the source of goods out of the question - from the brand business can not get the brand license or based on the scarcity of luxury goods can not get enough volume. Can not get the formal authorization, can only be filled with fakes, resulting in consumer and brand chase-chased complaints; even get authorization, but can not get enough volume from the brand, consumers can not meet the purchase volume The demand.

Due to supply constraints, luxury e-commerce generally through the brand channels of agents or through the purchase of buyers purchase mode to obtain supply. As a result, the purchase cost of luxury e-commerce channels is basically at the same level as that of traditional channels. Coupled with the cost of selling e-mails to advertisers, the cost of doing business with consumers is not superior to the cost of traditional offline channels.

Similar luxury e-commerce cost chain, contrary to the general structure of the e-commerce model, it can not reflect the advantages of e-commerce.

Lee Temple, Temple University network CEO in an interview with the "Daily Economic News" interview, explained that "the luxury goods business sells the product pricing rules, for the price of luxury brands only about 15% cheaper than the domestic, after all, we The profit margins are not so big, and too low prices can also cause consumer mistrust. "

Although many luxury e-commerce practitioners interviewed by reporters seem that the sales price of luxury goods is not the only factor and the more is the provision of services, Hao Zhiwei, a senior e-commerce observer, has pointed out sharply that the supply chain and the price Can not do the advantage, just an isolated site, simply can not provide more services, "Pure luxury e-commerce site with the line under the LV store LV compared to what you say it can provide a unique service what is it then?"

Therefore, he believes that the user's spending habits and product characteristics, determines the luxury goods industry in China's vigorous development is difficult to continue to the electricity supplier industry.

Elimination period facing transformation

"Daily Economic News" reporter learned that, after experiencing the blooming two years ago, there have been a large number of luxury goods business has been exposed to business problems, including access to multiple rounds of financing the share network, the flagship network Ha network and so on.

According to public reports, there are reveler employees revealed that, compared with the slow growth of orders, the quality complaints about the company hurt the head, at first still only a few fragmented, and later is a large-scale concentrated outbreak, and complaints Most is the supply problem.

In addition, complaints more difficult than the consumer complaints from brand owners. Enjoy online almost cover the front line of luxury goods, fashion big names, such as Burberry, LV, Estee Lauder, etc., and these brands are not authorized to enjoy network.

Cao Lei, director of the China E-commerce Research Center, told the Daily Economic News reporter that supply issues, the proliferation of counterfeit goods, lack of shopping experience, and price constraints are all pressures on luxury goods providers Dashan, "especially the source of unknown origin, but said all the luxury e-commerce site flawed, and may even stop there."

Cao Lei believes that most of the luxury goods website, supply and consumer experience are contradictory. Without the license of the brand, enjoy the network can not get the product is not justified, there is no endorsement by partners, it is difficult to obtain consumer trust.

Compared with the winter suffered by luxury goods providers, the electricity supplier industry has boomed for years in the past two years ushered in the spring. Jingdong Mall, the only product will be (195.53, -3.44, -1.73%), the United States and excellent products (27.09, -1.05, -3.73%) and other sites listed in the United States has access to The recognition of the capital market. However, luxury e-commerce is still in the test of the market and continues to tug of war between "high-end" positioning and "reeling" Internet users.

In the interview with many industry insiders view, the luxury e-commerce is a false proposition, while eruption is constantly erupting the demand for online shopping, while the luxury online shopping in the event of cold. Exclusive network is not the first site to fall, it will not be the last one. "More and more sites are at the crossroads of transition."

Sample 2

Transformation

Put down the "luxury" catwalk walk walker

Enjoy the network has not yet reached the transformation of the road has fallen. "Compared to the transition, it is a lot harder to obtain the license of the brand owner." Cao Lei believes that the exclusive network and the big brand bargaining chips are not likely to be small in the electricity business is unlikely, Moreover, the requirements of international brands to partners Extremely demanding.

Some previously flagship luxury e-commerce website, had to transition from a single vertical luxury e-commerce, to the full range of platform orientation, catwalk network is one of them.

Catwalk network transformation platform provider

Network is still earlier than the establishment of the network to run the show, the earliest is also targeting the luxury e-commerce route. In August 2011, the company set a record of 100 million U.S. dollars in B-round financing at that time.

However, similar to the Privilege Network, the supply problem is still the biggest problem catwalks network. In 2012, the issue of fake catwalk network began to be mass media disclosure.

It is reported that a customer from catwalk cat Lynx flagship store to buy a Gucci products, found quality problems call catwalk network, was dragged untreated. The customer then complained to the business sector, this product was sent to Gucci company identification. Gucci company quickly claimed that this is not the company's products.

This incident led directly to catwalk Lynx flagship store eventually closed down.

After the luxury e-commerce shuffling, catwalks network began to change strategy, will focus on adjusting to the full category Mall mode, luxury goods as only one of the independent category.

A former catwalks executives said that the development of catwalks has undergone several important transitions. The fuzzy strategy once let the catwalks fall to the abyss. While the luxury goods e-commerce providers have an attractive side, they can not support the whole company Operate.

Through the development of the platform in the past two years, Catwalks Network barely supported it. Its positioning is no longer a luxury product, but a mid-to-high-end female commodity platform that mainly sells overseas brands.

Up to now, the catwalk network includes eBay, South Korea's largest integrated online shopping platform Gmarket, the United States KarmaLoop tide providers, including three platforms, about 50 licensed brands or platforms.

"Upstream supply chain, we no longer have those problems of the original luxury positioning." Catwalks CEO Ji Wenhong said in an interview with the media, its upstream and overseas brands to cooperate in the agreement time is generally three years. At present, the catwalks can still be sourced at low cost. After docking with overseas brands or platforms, all updates are synchronized.

In his view, Cathay Web is equivalent to a service solution provider for overseas brands or platforms, responsible for everything including shipping, returns, customer service, opening up new user markets and more.

Have to say, catwalks in Tmall, Jingdong, the only product and other domestic e-commerce platform have set foot in the luxury market, for themselves to find a unique way of life. Meanwhile, the transformation also means a lot of money invested and the demand for mass users, which makes catwalks are still facing challenges from Lynx and Vipshop.

Large platforms snatch two or three line market

This reporter has learned that Lynx is breaking its fashion strategy, tactically continue to introduce the international first-line, fashion tide brand settled.

April 23, the international big-name Burberry settled in Lynx, then the British fashion brand ASOS to join, a month later Estee Lauder announced the cooperation with Lynx and confirmed Lynx for its sole authorized sales of genuine third-party e-commerce platform.

Data show that five days Estee Lauder Lynx flagship store sales of nearly 700 million, the first day of sales was 300 million, the equivalent of a single month sales of the brand counters. Burberry opened 18 days, selling 132 products, the average unit price of more than 5,000 yuan for the brand, this figure is not low.

Estee Lauder general manager of China Wu Chun-yi in an interview with the "Daily Economic News" reporter admitted that e-commerce is an increasingly growing channel, favored by young Chinese women, "With the e-commerce channels, can expand sales coverage, because China is currently There are many remote areas can not buy real Estee Lauder products. "

Digitally, sales of luxury goods retailers in China are still growing. According to data provided by China International Electronic Commerce Research Center, the scale of transactions of luxury e-commerce in 2013 was 20.82 billion yuan, up 34.8% over the same period of previous year; in 2014, it is estimated to reach 27.43 billion yuan. At the same time, at present, the online sales of luxury goods in China account for only 3% of the overall sales of luxury goods, less than 1/4 of the developed countries, and still have huge potential.

Currently, Alibaba has just signed a memorandum with the French government. It is foreseeable that more French brands will collectively enter Lynx in the future.

Cao Lei believes that the luxury big-name layout strategy in China began to change from a defensive first-tier cities, began to expand 234 cities, e-commerce channels is undoubtedly reach these consumer groups the most effective and convenient way.

For catwalks, Lynx who, the problem is not the market capacity, but rather whether to find a suitable business model, only with a complete and clear supply and demand chain in order to make the luxury goods business to go further.

Sample 3

Pathfinder

Online + Offline: O2O Differentiated Competition for Luxury E-commerce Platforms

"Temple library network currently has only 300 people, we have started profitable." At the end of June, temple library network CEO Lee daily school to accept "Daily News" reporter exclusive interview disclosed.

Lee daily admitted frankly that "supply chain" and "trust" are two big mountains in front of the luxury e-commerce practitioners. Only by crossing the past can they survive. However, most entrepreneurs can embark on the path of "burn money" without considering how to solve these two core problems. The result is predictable. Temple Library network can become the "left" down that one is still an unknown.

Luxury identification crack trust problems?

Temple Library was established in 2008, its business includes luxury online sales, offline physical clubs, secondary circulation of idle luxury, luxury identification, conservation and so on.

In Lee's heart, Temple Library positioning is a "platform for high-end crowd service." "We can sell around the user everything they need, not just luxury.

We are not the sale of goods sales agents, but the service platform. It is reported that the current Temple of the goods sold online supply is divided into three categories, one brand of products authorized to sell, the second is the products provided by the agents, the third is the direct sale of overseas businesses products. However, Lee was not willing to publish their school List of authorized brands.

At the same time, Temple Bank has set up five high-end physical library clubs in Beijing, Shanghai, Chengdu, Hong Kong and Tokyo to consign second-hand luxury goods and receive a sales commission of 10% to 15%.

It is reported that LV and many other brands have never been authorized in the country to any e-commerce platform, how to solve the problem of authenticity of the supply? Lee explained that the University of Temple Library online sale of such products from some suppliers or consumer products consigned consignment. To this end, temple library network set up a special identification center, there are more than 40 qualified professional appraisers, all products identified by the identification staff will be authentic after the delivery to consumers. At the same time, Temple Library has also established a special luxury goods factory service.

Second-hand brand-name trading platform Milan Station, an insider in an interview with the "Daily Economic News" reporter also revealed that the identification and after-sales service is almost second-hand luxury goods business a threshold.

In fact, it is difficult for the luxury appraisal industry to have a unified consensus. Senior e-commerce observers Hao Zhiwei told the "Daily Economic News" reporter revealed that the identification of second-hand luxury goods is more of a saying, it is difficult to have a uniform standard, "second-hand car trading has a uniform standard, such as purchase time, mileage, maintenance records, etc. , But it is hard to say whether it is luxury or not to judge its value from the time of use or the newness.

At the same time, he said frankly: "The model of simply copying the luxury goods stores online will certainly not work and must be supported by offline services."

Coincidentally, Milan station also came online from the line, its e-commerce platform has also been low-key operation for two years, but its website last year's sales of less than 20 million yuan.

Test the water differentiation competition

In 2012, as a watershed in e-commerce, the general e-commerce platform has gradually woken up from the capital fever in 2011 and turned to seek profits. Luxury e-commerce has also begun to give up the copy mode, seeking differentiated competition.

Reporter noticed a detail, in the temple library online, "brand" column and "overseas direct mail" column there is a duplication of goods. Among them, the "brand" of goods from suppliers and second-hand consignment, "overseas direct mail" is from the direct supplier of overseas businesses.

As to whether there is any internal competition between the two, Li explained: "There will be no competition. Brand goods are more domestic stock and can be delivered quickly. Direct overseas mail takes 10 days or more or even longer."

However, in the interview with most industry insiders and users of view, in addition to fake is flawed, the price is too high to allow them to stay away from the important reasons.

The Daily Economic News reporter found that buying a BOTTEGAVENETA long wallet at Bicesteroutlet in London, England costs about 3,500 yuan, but at Intime, Milan Mall and other sites are priced at more than 6,000 yuan.

A domestic survey conducted by a foreign information agency shows that the per-capita cost of a single online shopping luxury item is 1397 yuan, showing that the purchasing power of Chinese luxury electronic commerce customers is very conservative compared with that of the offline one.

However, Li Ji-school does not seem to worry about this, "not just the luxury price discount can open this market, we can not rely on the price to win.In addition, we are targeting some of the more access to luxury goods or do not care about Price. "Therefore, Temple Library network did not take the traditional purchasing, buying and buying mode.

In addition, he also revealed that ordinary users in fact, will not continue to buy luxury goods, which led to the high price of luxury goods website, an average of about 5,000 yuan alone. At the same time, the cost of getting new users every time is high. "While the traditional luxury offline market looks very hot, it's actually very hard for us to grow several times a year like other e-commerce sites."

Luxury electricity supplier opponent and more

For the future development of the biggest challenges, Lee believes still believe that the supply chain control.

According to him, the sales of Temple Libraries in 2013 is about 1 billion yuan. Compared with trillion luxury consumer market, this figure is minimal. At present, 85% of Temple's revenue comes from commissions that come from working directly with distributors and brands.

Temple Bank Network 020 trial can bring more direct revenue there is no clear measure, but it is certain that the cost of online and offline are increasing.

The aforementioned Milan station insiders believe that the luxury e-commerce platform, the biggest difficulty is that the cost is not so cheap outside imagination, and showing the trend of rising year by year, "we all know, BAT Big Three occupy 80% of the Internet traffic The source, which is not good news for e-commerce sites. "

In addition, he also admitted that as China's opening up higher and higher, consumers access to luxury channels more than physical stores, they can understand the product information and prices through the global Internet. At the same time, more and more people go abroad, overseas markets are an important position for Chinese people to consume luxury goods. "All of these make us more competitive competition, so a simple offline store or a separate online site are not enough to support the development of a luxury platform."