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    Online Shopping Luxury Is The Next Nugget Point Of E-Commerce?

    2010/11/27 14:04:00 80

    Online Shopping E-Commerce Clothing




    You may spend tens of yuan on a book that you admire, spend hundreds of yuan to buy a beautiful dress, even spend thousands of yuan to buy a practical computer, but if you tell you, you can buy some luxuries such as Prada and Dior on the Internet at the price of 1~7 discount. brand Are you willing?


    However, it is becoming more and more fashionable. Electronic Commerce It depends on the "low price" killer, which is born with the high-end line. Luxury goods There seems to be no intersection. But according to the data released by American Express Co, although the recession affected the sales of luxury goods, while online sales were higher, the sales of luxury goods sold online in 2009 only increased by 87% compared with the same period in 2008.


    For Chinese consumers, it is important to note that as of December 2009, China has become the second largest luxury consumer in the world after Japan. Along with the soaring consumption of luxury goods in China, Fifth Avenue, vip.com, glamour, Jiapin, poly net and hoha network... These luxury discounts e-commerce websites, which are only two years old, have sprang up.


    Will this be the next nugget point for e-commerce?


    The rise of new business models


    In view of the business rule of clothing industry, any brand will generate inventory, and luxury goods are no exception. And the way in which each brand deals with inventory is through outlet retail or moving directly to the Internet.


    At present, the US online retailer Gilt Groupe, the e-commerce website that has been operating for only two years, has reached US $170 million. It has opened up a channel to reduce inventory for brands, and has become a teaching template for Chinese entrepreneurs.


    In fact, the French shopping website "Vente-Privee", set up before Gilt, has already set a precedent. This shopping website, founded in 2001, aims to solve the remaining stock of luxury brands as a business mode. It has gathered many international brands. It has adopted the mode of time sale, selling 3~4 brands at the same time every day, continuing 2~3 days, plus 5~7 discount, so that luxury goods become a lot of people at once, and spike is everywhere.


    "Some consumers in China are not sensitive to whether the product is new for the season, so it is critical to seize the consumer mentality that requires brands but has limited financial resources." "The entry from e-commerce is a good entry point," President Niu Li told reporters.


    Venture capital is often sensitive and unwilling to give up any chance of nuggets. Although the domestic luxury discount website has only started two years ago, many investment cases have surfaced.


    Last December, glamour raised $13 million. At the beginning of this year, Jiapin net was holding the Taishan angel investment fund. After a few months, it got the second round investment from song wo capital and jiapong capital. Not long ago, vip.com received DCM and Sequoia Capital of 20 million US dollars in venture capital.


    Products and channels into enterprise life and death line


    Reporters noted that the operation mode of these websites is basically the same. Registered members, time limit snapping and pledged commitments are three essential elements of the website.


    But in the whole supply chain system, how to widen the channel and keep stable and reliable products become the core resources of the website. Fang Yingzhi, an analyst with the China Electronic Commerce Research Center, told reporters that the main ways of cooperation between the two sides are divided into the form of obtaining the brand agency right and buying the goods directly through the distributor.


    Mr. Li, who is in the industry, admitted to reporters that the way of packaging and buyout has great pressure on the sales of enterprises, and there are certain requirements for capital investment in the early stage. "The choice of cooperation is more often than not in the hands of the other party." He said, "brand dealers have strong control over commodity channels."


    In addition, the right to obtain agency is only a successful stage cooperation, and brand business also requires the image of subsequent products. Mr. Li said that although they had found a professional model and had a special photo studio to shoot photos of online products, the photos after being photographed could still be put on the Internet through the selection of brands. In addition, although most of the goods are in season, there are certain rules and thresholds for the lowest discount on the Internet. "These are all written into the terms of cooperation, and we have to obey them." He said.


    In Fang Yingzhi's view, one of the important reasons for sustained popularity of websites is the richness of goods and the rate of renewal. Under the pressure of strong brands, many enterprises also buy goods from other channels, such as hiring overseas buyers to buy bulk goods abroad.


    However, the newly issued regulations on adjusting the management measures of personal postal articles entering and leaving the country has increased the threshold of tariffs, and some big brands have also built up "hedges" for commodity sales. For example, COACH clearly stipulates that a customer can not purchase more than 3 pieces of the same commodity, and no more than 10 different commodities can be purchased. These changes of external factors undoubtedly increase the cost of enterprises.


    Zhang Chunhui, director of capital investment in song wo, told reporters that the huge consumption volume and consumption demand of luxury goods is the biggest selling point of the industry. "The richness of the supply chain resources of any e-commerce website is the core competitiveness." He said, "excessive dependence on a single or a few partners will be fatal."


    At present, the industry has different strategies. For example, Jiapin net is backed by Buyvip, Europe's largest sale network, which has established a stable business relationship with many luxury goods suppliers in Europe and America. Fifth Avenue relies mainly on the channels of personal connections accumulated by its founder, Sun Yafei, who has worked abroad. {page_break}


     

    Hard to match consumption experience


    Now, 1 out of every 10 Americans buy luxury goods online, and the 60 year old woman will buy a pair of Prada pants online. But the pattern of luxury B2C in China still needs time. One


    Although the rising domestic middle class consumer group is the main group that these e-commerce websites aim at. But not everyone is willing to take all of them. As a luxury enthusiast, Guo believes that the real luxury consumers prefer to spend in the physical shops, and enjoy the luxury of exclusive VIP services through real touch and trial.


    Miss sun, who once had a luxury shopping experience on the Internet, had a very unhappy consumption experience. "Last time I bought a scarf of Burberry on the Internet, but after the express delivery, the outer package has been damaged, so I feel the quality of the goods is much worse." Miss Sun said angrily, "although every online shopping company guarantees that the goods are genuine, there is a claim for insurance claims of one to ten, but the user experience is much worse than the line."


    "These websites do not have too much capital to build their own logistics distribution system in the initial stage, so they mostly use outsourcing methods," Fang Yingzhi said. "But the development of the express industry is not good enough, most of them can not establish express service matching with the commodity value, and it is easy to lose the trust of the target customers to the website."


    In addition, reporters also browse the website, found that many websites advertised for luxury goods, display is not all luxury, but also includes a large number of low-grade brands. "The luxury consumer is limited, the concept of online shopping luxury is not mature in the Chinese market, especially for the newly established website, it often tends to buy less, while some low-end brands are more accessible because of the wide audience and their own price, plus discount, which can also promote the website's revenue." One insider, who declined to be named, admitted.


    Fang Yingzhi pointed out that consumers' acceptance of luxury discount websites is relatively low. Although the discount is somewhat attractive compared with offline stores, the location and quality of luxury goods determine the inevitable price range. "This model has proved to be successful in Europe and the United States, but successful replication in the domestic market is in line with the experience of the domestic consumer groups, and it is the key to correctly understand the psychology of consumers and do a good job of user experience." She said.

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