NET buys the high growth luxury electric business to seek "the second spring" urgently

Editor's remarks/previous issue of the "into the Chinese rich" series we found that the reason why Chinese consumers love overseas purchases is not only the price factor, but also the rich category and style. In addition, Chinese consumers keen to collect luxury limited money also diverted a part of the domestic buy luxury crowd. In this issue, we are turning to the increasingly hot luxury shopping network. Recently, with the rising and maturing of the internet shopping in China, the network buys the luxury to the consumer to provide the convenience, also lets some to the network cautious luxury brand to change. However, after a series of negative events such as the Wind investment divestment, the net purchase Hermès 80% series fakes, the Multiple home appliance merchant website and the big-name "Authorization Gate" dispute and so on, how should the luxury brand connect with the Chinese electric business and realize the appreciation of the brand value? Please see this report.

"As soon as I heard that the catwalk was authorized by Ferragamo, I logged on to their website." Said Ms. Sun, a fan of Italy's luxury brand, Ferragamo.

Recently, the catwalk network announced the formation of an online sales partnership with Ferragamo to sell its licensed products online in a positive price format. In the industry's view, this is the first time foreign luxury brand to make such authorization, not only can greatly strengthen the domestic luxury electric dealer's brand image, but also conducive to the promotion of consumer trust.

However, it is undeniable that after the fake doubts, after the exit of the wind, most of the luxury electric business site is undergoing a transformation of the transition winter. How does a luxury electric dealer improve its business model? How to grow in sync with luxury-brand demand? This is the key challenge before them.

To promote the trust of electric dealers

From the current mode of cooperation, catwalk network in Ferragamo's brand is not to earn money, and may even be affixed to the money. But new users, attracted by Ferragamo, are not necessarily buying Ferragamo, and he is likely to list another 70% to 80% of his fashion products.

Ms. Sun, who was eager to open the Web site with Ferragamo and the alliance, was disappointed that there were not too many bright spots in the product.

"I see the main classic, traditional style, and the usual store no difference." "Price is another reason why Ms Sun is disappointed," the price is the same as the store, the Internet can not be tried on, the service is not so good, it does not look very attractive. ”

According to show Network CEO Guiven introduced, and Ferragamo cooperation to negotiate nearly a year time, walk show net sales of Ferragamo will comply with the brand price regulations, and stores to maintain the same. "We will also use a number of ways such as membership points, gift gifts, etc." "Merchandise by the show network and Ferragamo Two together selected, take the show net advance knot payment, and assume warehousing, logistics and other follow-up matters."

In addition, show network also need in the promotion, product display and other aspects with the brand to achieve consistency, Ferragamo brand page logo application, advertising, page design need to pass Ferragamo's review to maintain its brand image. In this cooperation, Ferragamo occupies a greater initiative.

After a series of licensing battles such as Swarovski and Jingdong Mall, Cartier and Wal-Mart's No. 1th store, and Hermes CEO Patrick Thomas shelling "80% on the Internet in the name of Hermès selling goods are fakes" after the brand authorization has become the pain of luxury electric dealers.

Now including the catwalk network, Shang network, the luxury electric dealers are actively seeking brand licensing. In addition to Ferragamo, walking Show network also has been included BCBG, Anglo Apparel, Havaianas and other fashion brand authorization, Guiven told the author: "Brand Licensing is one of the development strategy, is also since last year to take the show network overseas investment and procurement team work focus." ”

Guiven introduced, Ferragamo on the catwalk online this half month, sales are better than expected, but he failed to disclose specific marketing data. However, the industry analysis, for luxury goods, the power provider, to obtain luxury licensing more is playing a "promotional card."

"From the current mode of cooperation, the catwalk network in Ferragamo's brand is not to make money, and may even paste money." But by gaining the authority of Ferragamo, it strengthens the brand image of authentic brands, enhances consumer trust, and new users who are attracted by Ferragamo are not necessarily buying Ferragamo, but are likely to order 70% to 80% of their fashionable products. "China Internet Network Information Center analyst Gao told the author.

It is understood that the current catwalk network of the average customer unit price of 700 yuan, luxury sales accounted for the total business of about 30%, taking into account the high cost of luxury storage, service requirements, capital consumption and so on, the actual luxury business profit accounted for less than 30%.

The luxury electricity dealer urgently seeks the transformation road

At present, the domestic luxury electric business is trying from the past two years by the price of the "time limit Discount", "Discount exclusive" luxury discount model transformation, to operate fashion products, the establishment of differentiated competition.

In fact, Ferragamo "net" has long been in Europe, the United States, South Korea, Mexico, Canada, and so on to build online shopping platform, before the show network, Ferragamo in the Chinese market also authorized the old Italian E-commerce brand Yoox its corner. Ferragamo in China, the insider introduction, and the domestic luxury electric business cooperation, mainly in the Chinese luxury shopping Network market strong prospects for development.

China's E-commerce Research Center recently released the "2012 (China) E-commerce Market Data Monitoring Report," The Chinese luxury shopping market scale from 2010 to 6.4 billion yuan to 2011 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 yuan, an increase of 58%. The 2015 China Luxury net purchase transaction scale or amounted to 37.24 billion yuan, the consultancy forecast.

However, in the face of this group of optimistic data, the situation of domestic luxury electricity buyers is not optimistic.

This year, Walk Xiu Net, shang Net, Jiapin net and so on a group of mainstream luxury goods website all encounter the redundancy rumor, the capital chain break and so on negative news. And before the network, NetEase still products, Sina Luxury products have been closed to the industry sounded the alarm. The only company to be listed as a luxury goods dealer, the only product will report two quarterly earnings, the two-quarter net loss of $5.8 million trillion.

Foreign mature fashion luxury sites have entered China, but also to the domestic electricity dealers brought new pressure.

This October, the famous fashion brand global official network retail partner Yoox Group in the mainland online business flagship website yoox.cn, Calendar Peak Group's network stores Net-a-porter also officially entered China in March. In addition, Burberry, Armani and other front-line brands in the Civil Service network has opened online purchase, coach also plans to be launched at the end of this year in the domestic launch of the electric business platform.

"The whole group of cooperation brand has more than 700, our responsibility is to the big designer, the essence of the minority designers to bring to the guests." "said Chen Shizhong, president of the Net-a-porter China region. These outsider have a wide range of brand base, mature operation mode, walking in the forefront of domestic luxury electricity dealers.

It is understood that from 2008 onwards, the domestic luxury electricity manufacturers springing up, take the show Network, the five avenue, Shang Nets, Jiapin network, only goods will, charm, such as a number of Web sites online.

From 2010 to 2011, under the impetus of capital, luxury electric business experienced a great Leap forward era. Statistics show that the product network has been Lei angel investors, become capital, think-Wei investment and morning Hing Venture investment, accumulated financing more than 70 million U.S. dollars, walking show net in September 2011 to get Warburg and Kay Peng Hua surplus of 100 million U.S. dollars investment, only the goods will, Jiapin network, excellent and so also have won the favor of VCs.

At the same time, however, the embarrassment of the domestic luxury electricity dealers has gradually been highlighted. On the one hand, lack of brand licensing, there is no sustained and stable supply, product homogeneity serious; On the other hand, luxury goods emphasize the private, special attributes and high price, and the Internet to open the platform, the characteristics of civilian conflict, luxury electric power business is weak.

At present, the luxury electric business after a round of restructuring and shuffling, the industry tends to rational, leading enterprises are also looking for including brand licensing, the transformation of the road, these changes are accompanied by changes in consumer attitudes and shopping habits change.

Guiven introduced to take the show network for many years operating luxury experience, many consumers of luxury consumption has tended to rational. "Their experience of luxury goods is not just a moment of purchase, but rather a focus on the suitability of the goods, their wear or use, and cultural identity." ”

In fact, the current domestic luxury electronics manufacturers have tried to from the past two years by the price of the "Limit Discount", "Discount exclusive" luxury discount model transformation, to operate fashion products, the establishment of differentiated competition.

To still product network for example, still product network CEO Zhoshi Introduction, still product network positioning is the operating authorization of the new fashion. "These new products are our buyers in advance to the major fashion week to see the show, from the latest style, design selected out, is a stylish product with personality." ”

To this end, the product network has established a fashion buying team. At present, still goods network has been included DVF, KENZO, Michael Kors, including more than 80 fashion brands, including Alice by Temperley, Tracy Reese and other brands for the current Chinese market, the only authorized brand. This gives the buyer the brand choice to provide a larger space. Zhoshi told the author: "From the data, 80% of the old customers have chosen to continue to buy our new products." ”

In addition to brand licensing, buying hands, domestic and foreign luxury goods manufacturers are also testing the water customized advisory system, limited discount, global purchase, second-hand trading and other models, with a view to the tens of billions of Chinese luxury goods online shopping in the more share.

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