Zhoshi: The circle of the fashion circle outside the fashion electric dealer has entered the spring

The bright prospect of E-commerce in China has led other entrepreneurs to embark on a journey to the fashion world. The Boston Consulting Group (Boston Consulting) predicts the size of China's e-commerce market will grow from $74 billion trillion in 2010 to $370 billion in 2015. The commanding heights of this market are controlled by Alibaba, Jingdong Mall and several other comprehensive websites with abundant funds, but the specialized websites still have great development space, they can provide products and service for the consumers who want to find the substitutes. Fashion is China's largest e-commerce category.

International fashion retailers are pouring into China to set up virtual stores to compete with smaller, still-product networks and large, local companies. Only products will be listed on the Nasdaq, with limited-use buying mode to promote the medium-priced fashion. New entrants include high-end department store Niman Margo in the United States (Neiman Marcus), Net-a-porter and yoox.com in the UK, and an Italian company specializing in end-quarter sales. Last year, Niman Margo, headquartered in Dallas, agreed to invest $29.4 million in the charismatic Hong Kong Holdings Limited (Glamour Sales Holdings). Glamour has snapped up websites in Japan and China. Net-a-porter has also taken a similar approach, with 10 million of dollars to buy a regulars network (shouke.com) and to start the Chinese business.

For young people who care about prices, China's Van Gogh (a private company, like a Uniqlo), is a model for selling simple costumes in the style of the Japanese chain Uniqlo and the Swedish h&m company. The company's revenue in 2011 was close to $1 billion, a spokesman for the customer said. Its brand is well known for its celebrity spokesmen such as the racer and prolific blogger, Han. Since its inception in 2007, Softbank has received 430 million dollars in financing from IDG, SoftBank and qiming pitcher. The company had planned to go public in the U.S. in 2011, but its listing was shelved as investors calmed down on China's e-commerce valuations. In 2012, only two Chinese IT companies were successful in the U.S. listing, and only one of them, whose share price fell sharply at the beginning of the listing, was seen as a complete failure, but since then the share price has multiplied.

In China, the luxury market has been booming, and new rich classes seeking fashion and status have exploded the market. Although growth slowed to 15% last year, CLSA expects China's luxury spending to jump 20% in 2013. Only a small part of it has entered the pockets of online retailers, partly because of concerns about counterfeiting on Chinese websites. "Another reason is that shopping for luxuries is part of the fun," said Aaron Fischer, head of Asian consumer research at CLSA in Hong Kong, Ailenfescher. "People still want to get the brand experience in the luxury goods store. They value it. "he said.

However, luxury brands that take physical store strategies in China will miss those who don't live in big cities. Shang CEO Zhoshi says many of the company's big customers live in smaller, inland cities where there are few luxury shops. In these so-called two or three-line cities, residents ' incomes are growing fast, surpassing the speed of the upscale retail stores and running alongside Beijing and Shanghai. "Without extensive distribution channels, it is difficult to access these cities. Zhoshi, who raised 60 million of billions of dollars for the commodities network, said. He said sales were only 30 million dollars, but he chose to protect margins.

Online shopping provides a platform for fashion brands to enter China without the cost and risk of setting up physical stores. Even the money-rich fashion brands have struggled to seize territory in the bubble-filled Chinese property market. "All the good places are occupied by big companies. "Fashion magazine Vogue," China edition of editorial Zhang Yu said. The magazine has reached a partnership to promote local designers on Yoox.com's China website.

Some fashion suppliers have adopted a two-pronged approach. By the real estate industry billionaire Woo is all, Carver Lane Crawford, the famous Hong Kong department store in charge of his daughter Wu Zongne, has not only opened two stores in Beijing, but also operates a popular Chinese website, providing service on the day in big cities and offering free style consulting services by telephone.

Hong Kong has benefited from the appetite for luxury goods in mainland China. China imposes heavy taxes on luxury goods. The Boston Consulting Group estimates that 58% of Chinese spending on luxury goods and services is overseas. Foreign prices are 40% lower than those in China. This creates an arbitrage opportunity that every business wants to exploit.

ebay, the US E-commerce giant, reached a partnership with online stores last November to promote fashionable new products on ebay's 3,800 top sellers. The advantage for Chinese buyers is that the goods are mailed to warehouses in Dallas and shipped to China in bulk, saving postage and delivering a 10-14-day delivery date. Steve Milton, a spokeswoman for ebay, said Steven Milton will deal with shipping and return matters. "We offer more options and more favorable prices." We can occupy a large share of the import buying market. "he said.

The Shang network uses different tricks. It sells 80 international designer brands of IS fashion, some are only sold in China, a single item average price of 322 U.S. dollars, and for the mass market, the average commodity prices for goods is only 25 U.S. dollars. Shang also has a wholesale website that sells some of the goods at a discount, but is reluctant to take the kind of discounted-drive model that yoox.com and Net-a-porter pioneered.

Revenue is not high, the past two years for 30 million of dollars. The Shang network has not yet been profitable, but Zhoshi is expected to achieve break-even this year. He said that the product network does have 40% gross profit margin, far above 26% of the Amazon gross profit margin. Zhoshi points out that his belief in customer service comes from Jeff Bezos, the founder of Amazon, Bezos. "E-commerce is about service and quality. If we (just) price competition, we can not build a long-term business. "he said.

His first start-up in 2005 was a credit card payment system that served three of China's largest banks, including his former employer, CCB (601939). The company, which also sells electronics and luxury accessories to Platinum card holders, has gained valuable insights into how wealthy Chinese can shop online and how to build secure payment systems, Zhoshi. Ying-day operation independent of the product network, last year, the revenue of 160 million U.S. dollars.

Zhoshi said the success of his first company, which he created with his savings, paved the way for the still-commodities network in 2010. "If you don't have credibility, you can't sell things online," he said. "he said. Shang's biggest client lives in a small city in Sichuan province and spends thousands of of dollars a month buying new clothes. All order items are dispatched by DHL, delivery period of two days, the implementation of free return.

Zhoshi said he does not intend to list the commodities net (he is the largest shareholder) in the next two years. He argues that Chinese start-ups may struggle to raise capital in 2013 because of the few examples of successful venture-capital withdrawals, but insists he has not faced financing difficulties. "We are very sure. "he said.

And all customers have been criticized for the delay in delivery and the slow sale of goods. The CEO said, "Van Gogh has sent all available staff to the warehouse to clear a mountain of orders." The incident affected nearly 500,000 customers. Aging has apologized for late delivery.

He also said his goal was to increase corporate revenues by 50% in 2013, similar to last year. However, China's news media reported that the company made massive layoffs to reduce costs, as its growth rate fell to 30% in the third quarter of last year (a company spokeswoman declined to comment on layoffs and 2012 revenue).

In a recent article in Forbes Chinese magazine, Old said the company canceled its listing plan in 2011, which is better. "If we continue to carry out the listing plan, then in the current capital market, this is no good for any customer goods, I will be more ridiculed." I thought a lot before making every decision. "

He added that total losses were not yet close to the funds he had raised. "Now I think, as long as there is a healthy development of customer-prudential products, not listed on the relationship." "