Take the Show Network transformation: Let the buyer switch from purchasing to consignment negotiation

Source: Internet
Author: User
Keywords Luxury

Recently, the luxury web site closed a pile of cases: the network broke the wages of the door, NetEase's still goods closed, product poly network hang out "suspend the relevant business" announcement, even the coach Day Cat store also shut down ... This raises the question: is luxury goods really not suitable for e-commerce, luxury sites to step in the footsteps of the "buy" site?

"Two years ago, we realized that there is no future for luxury goods, on the one hand, the supply of luxury goods for most sites is very inadequate, on the other hand, users on the Internet to repeat the proportion of luxury goods is very low, so, early we began to transform." "Walking show net CEO Guiven told the China Business newspaper (blog, Weibo)" reporter, go to show net last year close to 1 billion yuan of sales, the luxury in fact only accounted for 15%, more or a large number of international fashion brand, customer unit price Five hundred or six hundred yuan average price is also consistent with the show network in high-end positioning. " In addition, the show network adhere to the overseas fashion buy hand model, also let it in the luxury electric business in the winter is expected to Deus.

Start-up: buying fashion as a core competency

With the interest in E-commerce, Roqiliang into the catwalk network, become a show for the catwalk "what is the fashion" of the group of people.

Guiven the first 10 years of his career in international trade, when he often traveled between the mainland and overseas to reach many overseas brands. "I see many overseas brands are very competitive, cost-effective, and very suitable for the Chinese market, unfortunately there is no channel to enter the Chinese market." I hope to build a bridge that will bring these international brands to China, and it is efficient to enter without the need for layers of distribution and agency. "Guiven said.

The rise of E-commerce, so that Guiven found his most efficient, the lowest cost channels. So, he decided to do an e-commerce website, specializing in the sale of internationally renowned fashion apparel and supplies. In order to quickly let the catwalk network to establish high-end corporate image of the website, so that consumers can quickly understand what the catwalk is a site, in the company's initial stage of development is the main luxury of positioning.

Engaged in international trade for many years Guiven know: Play "luxury website" concept is easy, but it is difficult to operate well. The biggest problem is sourcing, it is difficult to find a stable source of luxury goods. Most luxury discount sites in the country rely on some often go to foreign "part-time" to buy resources, supply extremely unstable, which is also a domestic luxury website operating instability, the root of the scale is difficult to form.

Catwalk network from the beginning will be "buy hands" as the company's important core strategy composition. Guiven said that the site was founded at the beginning, almost all the money and energy smashed in the network of the supply chain, one of the big, is in the world more than 10 countries and cities set up a fashion buying office.

In 2009, the 37-Year-old Hong Kong Roqiliang received a call from headhunters inviting him to join the catwalk as a full-time buyer. Roqiliang was the head of the new Yaohan women's and cosmetics department in Macau, who had nearly 20 years of experience in retail industry and was responsible for management and procurement at polo Ralph Lauren and Gucci brands. With the interest in E-commerce, Roqiliang into the catwalk network, become a show for the catwalk "what is the fashion" of the group of people.

On the catwalk, there are nearly 20 buyers like Roqiliang, who are located in 10 different cities in New York, Paris, Hong Kong, Tokyo and other countries. Different from other flagship commodity discounts on the luxury sites, walking show nets when the proportion of new products can reach more than 60%, which, the buyers are not. "It is precisely because the establishment of the early establishment of a more complete network of overseas buyers to ensure the quality of branded goods, but also to ensure the purchase quantity and arrival cycle, so that in the first time the world's fashion goods courier to the hands of China's consumers." Xianqing, senior vice president of the catwalk network.

Transition: Allowing buyers to switch from procurement to consignment negotiations

In the past, the show network mainly rely on the purchase of buyers, upfront need to spend more money on the purchase of goods, and now the proportion of consignment is rising.

Guiven has long realised that luxury sites only sell luxury goods are not the future, although the distribution of fashion around the world can bring a stable source for the site, but the procurement system to take the model, the site's investment is also relatively large, restricting the company's development speed. From 2011 onwards, the catwalk network vigorously push international fashion brands, compared to luxury goods, these European and American fashion brands, the price is more easily accepted. And around the expansion of international fashion brand development direction, transformation has become inevitable.

In the past, the show network mainly rely on the purchase of buyers, upfront need to spend more money on the purchase of goods, and now the proportion of consignment is rising. "In fact, the international brands to choose the power business partners are very cautious, they will be in cooperation before the detailed investigation and evaluation work, the warehouse environment, the team are more picky, and then together to develop the rules of the game." "Xianqing told reporters, take the show net customer price five hundred or six hundred yuan in high-end positioning and annual sales income of nearly 1 billion yuan scale, so that these overseas brands difficult to refuse.

Guiven told reporters that in the catwalk network scale is still not a stage, the use of procurement system is to avoid inventory and reduce operating costs, the number of goods and models have more stringent control; When you negotiate with the supplier on consignment, you can put all the products of the partners in the domestic warehouse or in the United States rented warehouse, Goods are much richer than they used to be. 2012 years ago 2 months, catwalk network on the new signing of the dozens of international fashion brands, the use of exclusive buyout way to cooperate with each other.

For example, in Japan, the top number of famous mail order brand image, its competitive brand is mainly h&m, Zara, such as the fast fashion brand. The representative of the image in understanding to walk show net of the situation, to walk Show network for a large number of visits, from warehouses, logistics to the team and the network to buy people have done a detailed investigation, and finally chose to go with the show network to cooperate.

Almost all the European and American brands to enter China are expected to raise prices, but the show network will be in the negotiations to avoid international brand inflated price. "We constantly tell each other, do not falsely high prices, to try to achieve small profits but quick turnover." Guiven told the reporter, the current walk show net daily visits amount to about 350,000 ~40 million, but the conversion rate is only about 1.8%, which means that consumers are very sensitive to price, so the types of goods and pricing are important to provide consumers with price competitive goods for luxury sites is also very important.

At the same time, the buying hand system is also undergoing a transformation. In the past, buying hands only focused on the latest trends in goods and information, more in the procurement of commodities, and now, the buyer more to the business negotiations and business cooperation, and local suppliers to negotiate consignment model. In this way the job content of the buyer has a greater change, from business negotiations, delivery replenishment, to brand management, customer communication needs to be personally responsible.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.