The situation of luxury electric dealers is not optimistic: urgent seeking transformation

As of the first half of 2012, China's luxury network shopping market size up to 13.5 billion yuan, 2015 or up to 37.24 billion Yuan AI Millet editor's words/last issue of "into the Chinese rich" series of reports we found that Chinese consumers love overseas shopping for reasons other than price factors, The rich category and style is another major reason. 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. Marriage first-line big-name, enhance the trust of the electrical quotient from the current mode of cooperation, walking Xiu network in Ferragamo's brand is not to earn money, and may even paste 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 the Show Network CEO Guiven Introduction, and Ferragamo cooperation to negotiate for nearly a year, walk Xiu net sale of Ferragamo goods will comply with the brand price regulations, and stores to maintain consistent." "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, walk the network also need in the promotion, product display and other aspects with the brand to achieve consistent, Ferragamo brand page logo application, advertising, page design need to through FerragamoAudit to maintain the 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 that Ferragamo has been selling better than expected for half a month on the catwalk online, 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 electric business urgently seeks the transformation road at present, the domestic luxury electricity dealer is attempting from the past two years by the price "the limited time discount", "The discount exclusive" The luxury discount mode transformation, turns the management fashion product, establishes the differential 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 optimisticData, domestic luxury electricity dealers are not optimistic about the situation. 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, stillThe current positioning of the product network is authorized to operate the new fashion of the price. "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 electricity dealers are also testing the water custom 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 tide in the more share." Net-a-porter: Online Services to supplement online demand Zhu Yu 2012, local luxury electric dealers are experiencing the "winter" test. Domestic constantly burst of negative information, coupled with Yoox, glamour and other international luxury goods electric dealers encirclement and suppression, let this market looks unusually tragic this year. In Net-a-porter, Chen Shizhong, president of the Chinese region, to achieve differentiated competition, embodies the characteristics, is the luxury electric business breakthrough way. Net-a-porter is an international luxury group, one of the giant calendar group's network stores. 2000, the British Natalie Masnes raised funds to start the net-a-porter.com, at present, the website sold luxury brands including McQueen (Alexander McQueen), Christian Lubutan, the Pu qi (Emilio Pucci), Gucci ( Gucci), Choo (Jimmy Choo), Lang Wen (Lanvin), Miu (Miu Miu), Valentino (Valentino), etc. "To buy luxury goods online, consumers are more picky about service, so they have to do a good job." Chen Shizhong told the China Business newspaper. Wang Di, an international renowned luxury store manager, told reporters that there are more and more young luxury consumers in China. Wang Di has nearly 10 years of foreign luxury shopping experience, in foreign countries, is often a shopping guide to serve a customer, to explain the brand history, culture, to help customers choose the right size of goods. "However, such services in China can not be implemented, on the one hand, Chinese stores more consumers, one-on-one service personnel, on the other hand, some whenever, the consumers do not like this personal service, feeling ' uncomfortable '." "And this shopping mentality has also spawned a group of luxury brands of online consumers." Chen Shizhong told reporters that online and offline is complementary rather than antagonistic relationship, they found that online shopping for luxury consumers, in addition to convenience, but also want to get the real service relationship between people, rather than onlyOnly man-machine conversation. In this respect, net-a-porter the service focus from the line to the line. Consumers buy online, but there will be a unique luxury experience from the bottom of the list to the goods delivered home. In recent years, international luxury brands have been increasing in the domestic shop speed, and constantly to the two or three-line market sinking, but in the face of strong purchasing power, stores still appear inadequate. In addition, farewell to the brand to show off, to meet the heart of pleasure consumption trend is more and more obvious, "Consumers of different brands, whether it is suitable for their own new understanding and understanding." "Chen Shizhong said. In this respect, Net-a-porter's positioning is the fashion luxury department store. Chen Shizhong to reporters for an example, a fashion girl fancy Gucci sunglasses, burberry windbreaker, bally shoes, Miumiu handbag ... is the match appropriate? In the Web site, with the use of large film combinations, so that they have intuitive feeling. And this kind of multiple brand combination mode, is also offline any store, department store can not do, because each shopping guide will recommend their own products to consumers. This is the advantage and convenience of online shopping. "However, the biggest problem with online shopping is that consumers are not able to feel the texture of the product and understand the product characteristics," the short boards need to be supplemented by offline services. "Chen Shizhong said. The reporter learned that, when the consumer in the site after a single, the site's staff will be based on orders for consumers to choose products, playing a very beautiful packaging. Most online luxury shopping is responsible for delivering the delivery to a third party, and Net-a-porter's Courier is a "fashion consultant" who will be dressed in neat suits, with beautifully packaged goods knocking open consumers ' homes and bringing surprises to consumers. The delivery clerk's job is not simply to send the goods to the consumer for the completion of the online order, but let consumers try their products, sometimes they will bring a few more accessories, let consumers try how. They will guide consumers in accordance with their age and temperament and become their personal fashion advisers. Clothing, footwear and other categories, if not appropriate, can also be easily replacement. "Do understand the fashion of luxury electric dealers are not only on the site sold more than 600 luxury brands for pricing and market strategy of respect and understanding, but also to meet the different consumers of fashion requirements, provided by the line under the service can be a real fashion to show consumers." Chen Shizhong said. Luxury electricity dealers do not talk about price war Wealth quality research Institute Dean, this newspaper special commentator Zhou Ting October 2012, Walk Xiu Net obtains Ferragamo the official authorization, the news a immediately for the luxury electricity business industry injects the stimulant, the luxury big big big to the local luxury electric power business channel authorization limit appears to appear "untie" the sign. But the truth is not so rosy. In the 2012, the luxury electricity dealers continued to hear negative news: closures, layoffs, tight capital chains ... In just one year, luxury electric dealers like "roller coaster" like ups and downs. In the face of maturing new luxury consumers, local luxury electricityBusiness experienced the shuffle period, the market trend is roughly three directions: one is diverted, such as walking the market positioning from the "global brand flagship store" to "global fashion online department store", to convey to consumers that the show network sales not only luxury goods, as well as fashion products. But the situation is not easy after the change, the market on similar sites more professional, more competitive market. The second is the contraction of the structure, the interior of the slimming. In order to reduce costs and cope with market pressure, some luxury goods dealers began to lay off workers, such as jiapin nets, Shang nets. In fact, the cost of human resources in the luxury electric business operating costs accounted for the proportion is not high, layoffs can only alleviate the pain, but, the effect is not outstanding. The third is due to poor management directly stop operation, these more focus on the portal site luxury channels, such as Sina luxury goods, NetEase still goods. These three market trends directly show that the current local luxury goods dealers are looking for market breakthroughs, and actively explore the industry transformation. China's luxury electric industry through continuous fish, the stronger the strong, weak weaker, the market gradually show a "Matthew effect." However, research by the Institute of Wealth Quality Studies shows that nearly half of consumers are positive about online shopping, saying they are willing to try, and 10.3% of consumers are more trusting in buying luxury goods online. In contrast, 32.8% of consumers said they would not buy luxury goods online. Therefore, consumers who are willing to try should be the main direction of the efforts of luxury electric dealers, through the role of Word-of-mouth to drive or change the attitude will not buy consumers online. Young family, in particular, "generations" is the most active online shopping, this is because the group is familiar with the network, willing to accept new things, on the other hand, as the group's wealth strength continues to grow, cultivate them for the network to buy luxury goods loyal customers, will be conducive to the future growth of online shopping luxury consumption And the most not positive for online shopping luxury is 50 years old consumers. This is because the elderly consumers are rich in assets, relatively cautious and conservative, accustomed to traditional shopping methods, coupled with the network unfamiliar, worry about the authenticity of products is also understandable. Chinese luxury consumers generally believe that the first advantage of buying luxury goods through the Internet is to save time (24.7%), followed by cheap (20.4%) and door-to-door, which means that consumers choose online shopping, the convenience of time cost is far greater than the price discount, This means that the price war strategy of the electric dealer does not conform to the fundamental interests of the consumers. In addition, the survey shows that China's local luxury electric business development is faltering, the biggest difficulties and obstacles are supply instability, customer experience and after-sales service is missing. At present, international luxury brands are bullish on China's luxury goods market, not China's luxury goods dealers. Now the move is only in China "test water" electric dealer this channel, once the electricity market to nurture mature, luxury big names will likely abandon third-party electric dealers, themselves to build online sales channels. Of course, as one of the indispensable channels for luxury brands, electric dealers also need to find a combination of brands and electric dealers, which will take enough time notBroken exploration and accumulation, only in this way, brand authorization is conducive to promote the entire Chinese luxury goods industry in an orderly, healthy direction.