The embarrassment of luxury electric dealers: where is the tide road of the collapse and merger?

Temple to borrow the shell Milan station listing again stir the luxury goods market. After a spate of online operations in 2010, luxury electric dealers went through a wave of closures and then into obscurity. In the context of the central policy that has led to a sharp decline in luxury consumption, the survival of luxury electric dealers has become increasingly difficult. There is a point of view, the luxury electric business is still in the training period, but many enterprises have accepted the investment will face the five-year exit period, the industry will open a new round of collapse and merger tide.

From singing to singing

Temple is interested in the acquisition of Milan station to achieve a backdoor listing, although both sides did not give a positive answer, but it is undeniable that the luxury electric dealers in the past four years from a capital chasing the hot land to the current mode of singing decline, and presented a polarization of the situation. Rumours of the demise of the luxury-goods electric-power network have just subsided.

In fact, in the past two years, the luxury electric business capital chain Broken, the rumors of failure, the HA network of wages and employees resigned, show the net layoffs, cool net CEO leaving, NetEase still goods close stop and so seems to be in the verification rumors. March this year, the company CEO Yang Pei formally resigned, the business model is also from the luxury electric business platform for the conversion of the enterprise to Macy's in China's online shopping platform. Jiapin Network since 2009 on the line has been five rounds of financing, its "fall" so that other luxury electric dealers fear.

Milan station issued four profit warnings from October 2012 to June 2013. As at the end of June this year, the Milan station lost HK $10.3 million, while earnings in the mainland fell by 25.9% to HK $32 million over a year earlier, with a profit of HK $400,000. The announcement was made last month that it was in contact with third party buyers.

Awkward incubation period

Mao Aijing, a consulting analyst at Analysys, believes that luxury electric dealers are still in the training stage. "At present, the mainstream of online shopping in the 25-35-year-old, luxury electric dealers from these consumer groups to tap the target consumers more difficult, and luxury goods quality and shopping experience, after the sale have certain requirements." ”

Five Avenue CEO Sun Asia also held the same point of view, "the luxury electronics dealers need a good market environment, the need for consumers to buy online luxury has a habit of the stage, and now the net shopping products mainly primary products." Sun Yafei that the luxury electric dealers are only just beginning, whether it is the development of market credit or consumer training is a long and gradual process, at least 35 years, it is not possible to advance by leaps and bounds. But investment is required to return the cycle, the time to withdraw generally in five years or so, long words ten years, which caused the luxury electricity dealers embarrassing situation.

Insiders said that the product network has been a lot of large investment, but soon burned, investors can not exit midway, can only continue to vote, but now still in a state of subsistence.

Transformation or merger

Sun Yafei that the model of the luxury electric dealer is not a problem, just need time, in the form of Word-of-mouth users in fact is very promising. "It's a long-distance run, not a sprint. "But there is no doubt that if capital is no longer bullish on luxury goods dealers, there will be a large number of luxury electricity dealers."

In addition to mergers and acquisitions, the transition is seen as a "conservative treatment" approach to luxury sites. In the eyes of the industry, a lot of luxury sites in the market after the cold, under the pressure of investors to start to discount the amount of money in exchange for survival opportunities, but the long-term discount on luxury goods faced with the problem of brand damage, one side to maintain and maintain their own ancestry and origin, the other party held high price banner to incite public enthusiasm Keep it away from luxuries.

In fact, many luxury goods dealers have been slowly changing from discounting. Catwalk network has been positioning the transformation of the "global fashion Genuine department stores" for the overseas high-end fashion brand of Chinese stores and services solutions. The only product will be "a special sale of the website", the beginning of the creation of high-end positioning has disappeared.