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    Secret! Luxury Brand E-Commerce Development Road

    2011/2/16 11:55:00 60

    Luxury Brand E-Commerce

    Preface


    In recent years, Electronic Commerce Gradually from the start to maturity, online online shopping products are also from the low end to high-end. stay online shopping After being accepted by the market and consumers, luxury online shopping is no doubt a popular domain. along with Internet Nowadays, with the rapid development of technology, luxury goods are becoming popular in e-commerce platform. Many luxury goods companies are rushing to the online luxury market. Luxury e-business is in full swing. Luxury online shopping is booming. Almost all luxury goods brands are keen to open up e-commerce market.


    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. In December of 09, glamour raised $13 million. Not long ago, vip.com gained DCM and Sequoia Capital 20 million US dollars in venture capital. In addition, luxury online shopping is gradually gaining popularity and winning consumers.


    case


    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. 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.


    In July 1, 2010, referring to the Gilt mode of the US website, the Shang pin network was formally launched on the basis of the "membership invitation system". Only 3 months later, it won the investment of famous investors, Lei Jun and Disney's VC institution Steamboat and Morningside.


    In November 2010, Armani (Armani) formally launched the first online consumer e-commerce website in China. It launched the CN domain name emporioarmani.cn as its official domain name. When the website was launched, luxury companies are increasingly turning to the Internet for growth. Armani has entered the Chinese market through e-commerce, proving that the luxury industry is seeking to expand its influence on the most rapidly growing Chinese high-end consumer. This is another luxury brand that has entered the field of e-commerce in China after GAP and camel.


    PPR, a luxury retail companies in France, has been committed to the development of e-commerce. Recently, the company has said that it will set up a special department to manage the e-commerce matters of the company, play a brand synergy, and provide e-commerce creative and technical support. PPR CEO Franois-Henri Pinaul said: "e-commerce is the strategic focus of PPR. We aim to enhance the goal of e-business and further speed up online sales. In the next few years, we plan to achieve online sales of 10% of GUCCI and Puma's total revenue.


    According to media reports, Jingdong mall chairman Liu Qiangdong recently revealed that the company plans to launch an independent luxury luxury vertical B2C website toplife.com., the world's largest luxury online sales group YOOX12 1 officially announced landing in China. It is reported that the online boutique thecorner.com, which hosts many famous fashion brands, will officially visit China in the second half of 2011.


    Analysis


    With the involvement of international luxury brand companies, the popularity of luxury online shopping in 2011 will also usher in competition. Although the discount of luxury online stores is somewhat attractive compared with offline stores, the location and quality of luxury goods determine the inevitable price range. The positioning and attitude of Chinese people to luxury goods has not yet reached the objective and rational people in European and American countries. It has completely copied the overseas luxury online store mode to China. It also needs the major brands to create a luxury e-business market with Chinese characteristics combined with the reality of China.


    There must be a market on the Internet, and Internet sales will also become increasingly popular. But some luxury brand managers also have hidden problems in their minds. We try to do business in a world that can't see each other. The object that we welcome here is not for a person or a guest. You can't smell the leather here. You can't touch or try merchandise before you buy it. Has online trading changed the industry rules? Just typing a luxury brand name in Google, you will find out how big the challenges the online luxury brand is facing now -- Shanzhai goods, low-end advertising, super low discounts, and so on. It takes many years for luxury brands to establish their own dynasty on the Internet, and we still have several light years away from this day.


    Bain, a world-famous strategy consulting firms, pointed out in its 2010 China luxury market research that the growth of the domestic luxury market began to accelerate from the second half of 2009. The annual total consumption of Chinese luxury goods reached 156 billion yuan. In the first half of 2010, market growth continued to maintain a strong momentum. The Internet is still an important marketing channel for luxury brands in the Chinese market.


    problem


    The most popular e-commerce is relying on "low price" to win, which seems to contradict itself with the luxury of taking the high-end route. Many websites that sell luxury goods are not only luxury goods, but also a large number of low-grade brands. The consumption of luxury goods is limited. The concept of online shopping luxury is not mature in Chinese market. Especially for newly established websites, it often tends to buy less, while some low and medium brands can largely promote the revenue of websites because of their wide audience, their own price, and their discounts.


    On the Internet, luxury brands should learn to control the environment they are faced with, so that they can make proper positioning in front of these new brands. For example, does a luxury brand allow any website to discount its products? Will it damage its image? Allow some wholesalers to sell shares on auction websites such as eBay, will it make their credibility discounted? It is precisely the fear of price confusion, the impact of existing sales channels, and the difficulty of achieving customer experience on the spot, so many luxury brands collectively "absent" online sales. However, with the continuous maturity of online consumption, we can try to sell online on the basis of ensuring channel interests and consumers' rights and interests and taking account of market development. But the first step is not necessarily the last laugh. The key is to see whether the brand value and experience of the customers are discounted. In April 20, 2010, when the luxury brand adopted new regulations on competition with wholesalers of goods and services, the European Commission indirectly recognized the special nature of luxury sales. The result of aggressive lobbying by some luxury brands is that these regulations authorize goods and service companies to distribute their products to retailers with physical stores, and consumers can touch and try products before buying them. Excessive demands on the two sellers should enable luxury brands to control sales of their products with the Internet.

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