Real foreign luxury, there is no license to sell online

Source: Internet
Author: User
Keywords Electric business luxury goods China others China fail
Tags .net abstract business business is business model classic closed consumer

Abstract: Others greedy I fear, Buffett's classic investment quotes in the luxury electric business is suitable. When luxury electric dealers are sought after by investors, there are investment institutions that insist that they do not do luxury goods. The past, when hundred

Others greedy I fear, Buffett's classic investment in the luxury electric business is suitable. When the luxury electric dealers are in hot pursuit of the investors, there are investment institutions insist on not optimistic, said "the electric business can not do luxury." Changes in the past, the various kinds of "goods" by the name of the luxury electricity dealers have now or closed, or transformation. At the end of May, the VIP privilege NET, which was just closed, added the latest footnote to this conclusion.

As one expert has analyzed, real foreign luxury goods do not have the authorization to sell online.

China dares to call itself a luxury goods electric dealer, no matter is the purchase, foreign buying hands to buy the way, and the so-called joint merchants, most of them are also cooperation with agents, can not guarantee sourcing. This is absolutely contradictory, "on the one hand, consumers do not buy products, on the other hand, also afraid of consumers buy too much, for goods." How can this business model of a luxury electric dealer be successful? "The expert said.

The electricity trader meets the cold

At the end of May, the electric Business Circle was hailed as the fastest in the history of the company to get rich investment in the Web page has been unable to open. "China Business daily" reporter June 3 and June 12 two times to enter the exclusive web site, its page has been pointed to a domain name registration body.

For the closure of the Prestige NET, e-commerce marketing experts think, "4 years ago when the luxury electric business in China to develop the most fire, but also the situation is greater than the content, because it can not guarantee the source of this mishap has not been resolved, closure is only a matter of time sooner or later." Privilege network because of cooperation with banks, telecommunications and other institutions to solve the problem of trust and focus on high-end customers, and thus die later. "While the Ching of the Eagle Capital in 2010, the hottest luxury electric dealers said that insist on not to invest in luxury goods, he believes that the electricity business can not do luxury goods." The main reasons are two, one is not a cost advantage, this point with the electrical business enterprises have not obtained brand licensing and can not guarantee the supply-related. For example, if the total cost of a luxury electric dealer is half that of a traditional retailer, even the price is competitive. But the problem is that luxury goods traders are very tightly controlled by the channel operators, therefore, in the source of the issue of the agency, China's luxury goods dealers and traditional luxury goods retailers do not have the cost advantage, so can only lower management costs, sales costs, financial costs, but at that time the electricity dealers rely on venture capital "burning money to hit advertising" caused by expensive situation, Luxury goods dealers do not have the total cost of leading advantage. Second, the user experience is not good. Consumers prefer to decorate a magnificent traditional storefront, aristocratic cultural atmosphere, and service staff courteous and dignified feeling, that is, luxury buy is not only a product, but a psychological satisfaction, a noble, scarce, personality and other spiritual needs. From this point of view, "luxury goods electric dealer" These five words are contradictory, want to change consumer psychology and behavior is very difficult. Therefore, in reality, many luxury goods dealers are not actually selling luxury goods, but the use of the effects of luxury goods window advertising effect of selling some light luxury products, Europe and America second-line brand and designer brand.

However, figures show that sales figures for China's luxury goods dealers are still growing. According to the China International e-Commerce Research Center, 2010 China Luxury Goods Network trading Scale (Consumer-to-consumer part and the total) amounted to 6.37 billion yuan, 2011 rapid growth, reached 10.88 billion yuan, an increase of 70.8%, the 2012 development trend slowed down, 2013 transaction size grew 34.8% to 20.82 billion yuan. It is expected that the year 2014 will reach 27.43 billion yuan. And from the electric dealer sales industry accounted for, China's luxury goods dealers also seem to have room for development. Data show that China's luxury online sales accounted for only 3% of the overall sales of luxury goods, while in the United States, this figure is 12%.

But next, the luxury electric business is facing the question of which direction to go. At present, the market still exists in the luxury goods dealers, only products will be transformed to sell the site, has been listed in the United States; go to show Network transformation Fashion department stores, get the authority of Ferragamo; from the website activity, Taobao founder Sun Tong Yu founder of the network is still in normal operation; V Avenue continues to operate through buyout , while the Temple Library, which specializes in second-hand luxury goods business, has fallen out of business, but according to journalists, it is also in normal operation. And most of the other electric operators are not doing well.

Pattern dilemma

One side is that China's luxury goods industry expanded year after year, while the luxury electric companies have fallen, which from another side, proved that the collapse of luxury electricity dealers is not a market capacity problem, but the business model problem. According to media reports, China's luxury electric business is due to the gilt of the U.S. luxury goods dealers website imitation. Early gilt to "membership System + Discount + luxury brand Management" model success, but it is understood that the growth of the site has its special historical background. Gilt was founded at the beginning of the financial crisis, luxury goods manufacturers squeeze a large number of inventory, help manufacturers clear inventory and solve the problem of sourcing is the key factor in gilt success. But after this historic stage, the site's business is already slipping.

And China's luxury website has not solved the sourcing problem throughout. Chinese consumers have a demand for luxury goods, but there is a question mark over purchasing power and loyalty. A survey of more than 10,000 online shoppers surveyed by KPMG in China showed that respondents spent 1397 yuan on the last time they bought luxury goods, and one-sixth per cent of those surveyed spent more than 2000 yuan on online purchases. From this survey, we can see that the purchasing power of China's luxury consumers is not as high as the enterprise thought, still expect to buy luxury goods with super high price ratio, and the user loyalty cannot be guaranteed, it is very easy to lose.

Consumer purchase mentality of different, also affect the business thinking. This point from the operating ups and downs of the network can also be seen. Jiapin Network is the earlier flagship luxury discount concept of the business platform, the end of 2009 officially on the line since the introduction of several capital side of the multiple rounds of investment, but still unable to get on track. 2011, when the net introduced IBM investment, the reporter interviewed the then CEO Yang Pei. At that time, he described the business model of Jiapin network, through the online platform, to provide a rich, highly valued luxury goods, through more competitive prices to meet the domestic booming luxury consumption demand. This is in fact the situation of the special sale during the limited time, in order to expand the customer base, the network also combined with major banks, for its credit card customers to provide discount luxury stores. However, the problem is that the limited-timed special selling mode to achieve business expectations and profitability objectives, it must meet three basic prerequisites: a relatively rich product mix, relatively sufficient and stable supply, the price of comparative advantage, and Jiapin network can not achieve these three conditions.

Luxury brands to create a dream of the brand experience and the promotion of lifestyle is the realm of popular consumers, but the operation of luxury goods business is to break the dream, nature is not flattering: luxury brands do not buy, not authorized, consumers "mercenary", lack of loyalty. Yang Pei also resigned in 2012 after 9 months of introducing Macy's $15 million trillion investment.

From the overall market environment, the current government's ongoing in-depth anti-corruption, has led to a sharp decline in luxury sales in Hong Kong, brands slowed the pace of leasing new stores, luxury sales in the domestic market is also lower than the previous two years. Under this trend, the living environment of luxury electric dealers must be more difficult, and the Prestige net supported by each bank has not survived this cold winter is not surprising.

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