On the prosperity and death of fashion industry electric dealer: Timid brand Authorization

Electric dealers in the current Chinese market, the red level can be seen, and as early as 2010 years experts pointed out that the golden age of the development of China's electricity business has arrived.

Seeing him rise up Zhu Lou, seeing his building collapse

In May this year, Macys, an old-style department store tycoon, announced a 15 million dollar investment in China's electric-goods web site, and in March, another US luxury department store Neiman Marcus announced a $28 million investment in glamour; earlier this year, Net-a-porter, the UK's famous online luxury retailer, has acquired a regular network of Hong Kong's electricity companies, and has officially opened its China sub-station, which specializes in discounted fashion and luxury brands.

At this point, the electric business in the current Chinese market, the fiery red level can be seen. In fact, as early as 2010 years, experts pointed out that the golden age of the development of China's electricity business has arrived.

Sow wildly

Shopbop, the world's largest online shopping site, is also a low-key shopping site for its flagship fashion designer brand. At the same time, some discount luxury online shopping websites, such as Cool Net, the West fashion, only goods will, excellent network, etc. also springing up to open.

Before this, China's online shopping is basically in Taobao and Beijing-East online mall double foot separation of the situation, both sides through different sales model to occupy the market. But with Taobao's Day Cat mall's high-profile renaming, its sales model by Consumer-to-consumer on one side of the big gradually transformation to Consumer-to-consumer, the business is compatible, while Jingdong by focusing on home appliances and digital products sales become a full-service consumer online shopping platform. At the same time, the market also appeared more and more foreign retailers and various small and medium sized electric business website. Among them, the franchise of fashion and luxury of the electric business site is undoubtedly a widely watched branch.

In announcing the injection of the Camry network, Macys also plans to take the show network and the Camry network under the European and American network of its own brands, to test the water market in China. Global renowned multi-brand online sales partners Yoox Group and the luxury goods group PPR officially announced their intention to cooperate with PPR, including Bottega Veneta, Yves Saint Laurent, Alexander McQueen and Sergio Rossi and other luxury brands of E-commerce to conduct joint management approach, the final agreement will be reached in the next few months. The world's largest online shopping website, Amazon's flagship fashion designer brand shopping site Shopbop also low-key launch of the business to China. At the same time, some discount luxury online shopping websites, such as Cool Net, the West fashion, only goods will, excellent network, etc. also springing up to open.

However, the crazy sowing ushered in is not necessarily a bumper harvest. While the waves are still surging, some of the previous waves have been with jiangdong. This January, Shanda's collection network announced the closure, at this time from its test water luxury electric dealer is still less than one year; at the end of last year, the internet was positioned as a luxury discount on the sale of the website NetEase still goods, the network, such as Shang, and other customers, such as the high investment of some of the electricity business site also frequently spread layoffs and management flow and other news.

China electric Dealer in Cradle

Including shuttle, Swarovski, Louis Vuitton and other well-known brands, such as the Dangdang, Beijing-east and take the show network, said not to authorize any third party online shopping platform in China to sell their products.

Optimistic about the development of E-commerce industry insiders believe that the Chinese market is suitable for the development of online shopping all the favorable factors. More than 200 million of the middle class, more than 450 million internet users and more than 150 million Internet consumers are among the 1.3 billion people in China, and these figures maintain strong and sustained growth, according to a study by the Kearney consultancy. China will become the world's largest e-commerce market by 2015, when the number of Internet consumers will increase to 329 million, according to a Boston Consulting report. So, what is the reason for the still in the cradle of China's electric business start difficult?

The first is the imperfect logistics system. At this point, China's vast gathering can be said to be a double-edged sword. This 1.3 billion-population market has created an unpredictable development opportunity for many businesses and has made a strong logistics system a necessity. For most brands, especially luxury goods, its open online shopping platform is a major premise of human and lean logistics services, including accurate inquiries and management of arrival time, throughout the country's logistics network, excellent service attitude and convenient and efficient after-sales service management. These are precisely the current China's logistics industry is facing the biggest challenge. At present, the local logistics network is the largest in the downwind of the Courier and China Post EMS, but the research report on the investigation of Kearney pointed out that can not be customized for the brand tailor-made services and can not be accurate delivery is their Achilles heel. And such as UPS, FedEx and other hegemony of the world's largest electricity market in the United States, foreign logistics giants in China because of price and other reasons in the domestic business appears to have no advantage.

Another major impediment to the development of luxury goods dealers is the credit crunch of imported brands, especially luxury goods sales. China is an emerging market with all the attention of luxury goods. According to the McKinsey consultancy, China's luxury consumption will account for 20% of the total global consumption by 2015, to $27 billion trillion. At the end of last year, coach, in partnership with Taobao's cat, briefly tried the Chinese online shopping, and its international retail business chief said the brand would launch its own E-commerce business in the near future. Many brands are wary of E-commerce, though brands are itching for it. Since last year, including shuttle, Swarovski, Louis Vuitton and other well-known brands, such as the Dangdang, Beijing-east and the catwalk network, said that the Chinese authorities did not authorize any third party online shopping platform to sell their products.

Shy brand Licensing

Although these sites are aware that there is no clear direction for the future of brand-authorized sites, they are still unable to escape the dilemma of having or still selling smuggled or parallel imports.

The second-tier brand appears more open than the reserve of a first-line brand. Italy's famous women's brand M Missoni and ethically Cavalli, etc. also choose to authorize the product network and the western fashion for online sales. Unfortunately, although these sites have realised that there is no clear direction for the future of a brand-authorized website (whether it's from an international brand with a proxy or a fund company, even the possibility of a future listing or takeover, but they are still unable to get rid of the difficulties of selling smuggling or parallel imports. For them, to get the authorization of individual brands, the significance of marketing is greater than the meaning of profit.

WWW.THISLANE.COM is the only one in China to insist on the sale of all brand-authorized products shopping site. For the future planning of the site, the company's CEO Zhang Xuyu said: "Our current work is mainly in the laying of the fashion status of the site, the introduction of a number of fashionable and wear second-line brand." Global synchronization, brand licensing, and tailor-made features for China's trendy consumers make us stand out from many shopping sites. I believe that only by laying such a fashion base can we hold a ' fashion authority ' business card and more international brands to talk about follow-up cooperation. We want international brands to see a different Chinese e-commerce retailer. ”

It is reported that the current domestic luxury sales sites mainly for discounted merchandise. Apart from counterfeit goods and some brand-authorized products, many of the so-called authenticity of the website sold, its purchase channel mainly for foreign discount stores or distributors. Online sales eliminate the high cost of the physical store, and its purchase channels may avoid a part of the high tariffs, so that the product itself will have a certain price advantage, so its in order to attract consumers to give a tempting discount is no surprise. In the market generally believe that China's luxury sales far from saturation today, the brand may worry that the price advantage of these dealers will lead to the loss of its Chinese market business, and the uncontrolled Third-party sales platform may also affect the brand image.

But even so, the industry generally believe that e-commerce in China's development still has great prospects. Only, the formation of the brand effect in the retail industry is not overnight. Perhaps in this electric dealer's Red Sea, the luxury electricity merchant should pay more attention to is the specialized management and the sustainable Development business model.