What happened to the first generation of luxury electric dealers?

As carelessly entered the door of the luxury electric dealer, it was frequently asked: luxury electricity dealers are very difficult to do, before that a group of people are dying, what can you do? Because this question was asked too much, simply put their own ideas to organize down, to do a complete answer.

What is the first generation of luxury electricity dealers

I am referring to the first generation of luxury electricity dealers, is the 2008 after the economic crisis up the group, still with the web as the core of the electric business, including the network, call Ha, five avenue, treasures nets, Shang nets, Jiapin network, the only product will be almost 20~30 home bar.

In this middle, only the product will transform the main domestic brand tail goods great success, however, can not be considered luxury goods, the network has closed down, others are scattered around, such as the product network down the transformation of light luxury, to Topshop, excellent network to 2, 3 line of cities to open offline entity stores, compared to other Internet industries, Most of them are hard to live with. Let's take a look at the core business model of this generation of electric dealers "from overseas agents to buy low-cost, import to China, to do a website, put up to sell", the business model is essentially "low buying high selling", which is the same as traditional physical store business logic is the same, The difference is that the sale of the place from the physical shop to the site.

These traditional models of Internet power, in today's view, there are a series of problems can not be bypassed.

Question one: "Shelf" Sale method

This generation of electric business, almost without exception, with the standard Taobao Electric web design, will be a product release, I personally like to call this model "rack mode", I always feel that this scene more like a supermarket search, suitable for men and daily necessities, luxury goods, electric dealers do so, It violates the core scene of buying luxury for female users: desire-driven. What is the desire to drive, is "from the stars of You," a broadcast, we contend to buy the same money, is to visit the Chanel store, was displayed and the atmosphere deeply touched and the pocket, is Bo main choke small pepper on the micro-Bo on the map show. No desire to drive, just shelf display, the user's purchase conversion rate must be very low.

Luxury electric business, the real need to learn how to "stimulate the desire to buy", from the heart to impress users, just as users stroll in the beautiful store like, because like, so the order. Foreign more successful luxury electric dealers, such as gilt, through excellent visual design coupled with a very low price of the limited purchase, the success of stimulating the desire to buy, a luxury flash buyers model, such as fancy, through a very good editor of the recommended products, rendering the beautiful shopping wall, a key to buy. These successful luxury electric dealers, have done a little, is to stimulate the desire to buy.

Question two: Inventory

"Low buy high sell" business model means that need to purchase, need to first real money to pay to buy a pile of goods, and then rely on channels (the channel here is their own website) sold out. But the problem is that stocking means there is inventory, and having inventory means that it may not sell out. This model in the fashion retail industry has a corresponding model, called "Buy a Hand department store", such as Hong Kong even Carver, French Lafayette, the United States Neiman Marcus. The characteristics of the hand-buying system is entirely relying on the personal judgment of the buyer to purchase, if the purchase hand into the wrong, the company will inevitably be in the quarter of the remaining large inventory, Zhanya a large amount of funds, follow-up difficult to develop. Even if buying a hand into an unknown source of goods, it may directly drag down a company. The traditional buying hand department store inside, for example, under the group of LVMH, the DFS global duty-free shop, through years of buying hand precipitation accumulation, can be the quarter of discount Inventory Control in 15% or so, the best level, the industry average level of 20%~30%, and most of the luxury goods, due to buy the hands of the precipitation There is no such number.

Question three: credibility

The purchase channel is opaque, without direct authorization of the brand, plus China's objective integrity environment. These three prestige mountain, so far, has not seen which home can turn over, this question everybody knows, no longer tired to state. The user then chooses to vote with the foot, will the shopping place from the domestic substantial transfer abroad.

Question four: Price

The first revamping business, most can be the price of domestic stores about 85 percent, there is room. But unfortunately starting last year, with the transparency and openness of the national policy, the maturity of the transshipment logistics, the emergence of a large number of Amoy companies, as well as the impact of the free trade zone/warehouse model, many luxury transaction prices were pulled to 70 percent or even 65 percent at a draught, and the remaining price advantages ceased to exist.

Question five: Traffic

Because of the low consumption of luxury goods, buy 3~5 times a year, which makes it difficult for users to come to a website, or even forget their password and username. And the site itself has no other things let users "often come back to see", and the user's relationship is very weak. Lack of organic flow and allow users to stay behind the method caused by this group of electric dealers generally rely on the search engine to buy traffic, and then customer consumption to go. A few years ago, when the flow was still relatively cheap, but in the flow costs soaring today, almost to make ends meet, it is difficult to continue.

Question six: Missing mobile

This generation of electric dealers, all of the web started the Web, in the mobile end, the lack of effective products and inputs, mostly only as a supplement to the site, and in fact, the past three years, mobile traffic is the fastest increase in the 2014 U.S. "Black Friday" discount frenzy, the mobile end of shopping accounted for more than 30%. To miss a move is to miss the future.

Question Seven: Solo

I'm used to looking at a business model from a longer-term perspective, and as a business model of cross-border fashion and the internet, fashion dealers should no doubt follow the double rules of fashion and the Internet. In the fashion industry, the industry has a large number of players and division of labor: The designer is responsible for the design, brand responsible for production, the buyer is responsible for fine selection, the entity store is responsible for the experience, the blogger is responsible for the display, the user is responsible for the money to feed the front owners.

I have always felt that a good internet business model should be able to make tremendous efficiency improvements for the industry, so that the players in the industry in a new mode of coexistence and win-take, such as dropping a taxi, the public reviews did, and the traditional fashion, more just their own purchase of their own sales of the solo, lack of can let oneself go very far industry value.

The first generation of luxury goods dealers did not do well, does not mean that there is no opportunity, in fact, precisely so, I think the opportunity is unlimited. 2014 Chinese luxury goods consumption of 640 billion, the equivalent of buying 46% of the world's luxury goods, such a large market, how can luxury electric dealers have no chance?

However, what should the future luxury electric dealers do to solve the above 7 problems, I have organized a number of ideas:

First: About the mode of sale

The shelves of electricity to evolve into a desire to power dealers, completely abandon the traditional shelf mode, but through a reliable buy hand recommended stunning hot merchandise, with first-class blogger recommended, with the most beautiful vision of the merchandise like the magazine presented in front of users, so that users have to purchase the desire to finally come to a global parity, so that users in the heart to buy comfortable, Order accordingly. Luxury is called luxury, because buy also can, do not buy also can, whether the key to success lies in the ability to create a good experience consumption scene.

Second: About inventory

If you choose to do business, you have to do inventory, then find a way of finding enough consumer data to assist the traditional buying hand system, will be at the quarter of discount Inventory Control under 15%, how to go beyond the traditional entity department stores only play it. Of course, my own idea is simply to choose not to do inventory, in turn, I help global brands, buy hands shop, designers clean inventory. I started ofashion, just hoping to help an Italian shop to sell a pair of 35 yards of stock of red soled shoes to a second-tier city in Guizhou, China, which solves the inventory problem of overseas businesses and solves the "can't buy" problem for Chinese users.

Third and fourth: about credibility and price

The future of luxury electric dealers, what is more than designers, buy shop, brand direct sales more credibility protection? Ofashion is ready to do so, do shop overseas, designers Open Shop Direct, and the user face-to-face, from the root to solve the problem of sourcing credibility. Similarly, because of the flat channel, the elimination of all the middle of unnecessary No. 3456 channel, the price can be the most competitive.

V: About Flow

My advice is to let the electrical business also have the media, social and even tool properties, give users a reason to often come back to see. For example, let the choke pepper in the fan show at the same time, directly can buy a single, for example, our ofashion to provide users with the global price of luxury products, so that users can see a certain package of global prices, and compared to the end, you can find a reliable purchase of their own orders. Even, let the buyers and sellers make friends, such as buying hands and users, brands and users, so that the electrical business also become a platform for communication. As long as the media, community, tools, such as the three attributes of any one, has a high-quality source of traffic, and the user's loyalty is high, retention rate will be very high.

Sixth: Move First

This has nothing to say, who is doing so is the opportunity. This point, the start-up companies do not have the burden of web sites, but is taking advantage of

Seventh: Replacing the monologue with the thought of the common win

Who can help the brand build image, also can sell goods, who can help designers find accurate users, more money, who can help the physical store to pull more people, clean up more inventory, who can help bloggers earn money, who will have a future. We do fashion electric business, do not always think of the price is poor, the style is low still do not, the business model to win a real future.

Free to give a eighth: Users! user!

Precipitate user behavior, establish user relations, mining user data, in short, understand the user's everything. In the future, everything on the Internet is about the user, if a luxury electric business can not do and user depth of communication, understanding user preferences, the use of large data to make deep decision-making, it is difficult to succeed. For example, I was on the first day of the Ofashion product launch, the design of a function, that is, the user can collect any of her search official website of the latest single product, this feature has no promotion, there are tens of thousands of times a day of collection, the user through the "collection" of this action, expressed a very clear potential consumer signals, All I need to do is to get these needs sorted out and meet the requirements. For example, the most popular ofashion on the Cartier Love series ring, more than 3,000 real users to collect this single product, I can target the 3,000 users of this single product Cartier service and sales. Further, I will collect all the items, click, Search, browse all integrated, can form a enough to affect the luxury brand sales decision of the data report, such as what brand, what package, what color, what material, what price, or even which city better sell and so on, these will help to let buyers and sellers, Reach a deal.