The Cost Of Luxury Investment Is 8 Times The Cost Of Investment.

Xu Bin, who specializes in investing, has recently learned a lot about luxury.

Xu Bin and his team have a little bit of smell.

Just like wolves keep a close watch on fat, investors have long enjoyed it.

In February 18th, Jiapin network, which was only launched at the end of 2009, announced that it had won the third round of tens of millions of dollars in financing.

It was like a whistle, and the wind makers quickened their pace.

As a result, some coffee shops and restaurants in the capital are performing a similar drama every day. Venture capital is a CEO to the luxury website.

In view of the increasingly mature online sales discount mode of luxury goods in Europe and America, they are thinking about the beautiful "money road".

The main character on the other side of the negotiating table, the entrepreneurs of luxury electric business are in a complex mood, each with their own thoughts.

For example, Jiapin network CEO Yang Peifeng was advised to consider making a big cash pfer, while Fifth Avenue luxury goods network CEO Sun Yafei is considering that it needs a lot of money to promote.

After screening, Xu Bin decided to meet Sun Yafei.

After 3 hours of communication, the two sides did not immediately reach a cooperation intention.

Sun Yafei, who returned to his office, received an email from a well-known fund in China. He said he was "interested in further cooperation".

On Sun Yafei's itinerary, he wrote two or three days later to lunch with a general manager of a well-known venture capital.

Since the only 8 minute report in the NPC, nearly a hundred investors have come to contact Sun Yafei.

Wait and see

Xu Bin is still in the wait-and-see stage because he is worried about the issue of brand authorization, which is also a common concern of all venture capitalists interested in luxury stores.

After extensive research and gradual focus, Xu Bin did not form the final conclusion. His initial judgement is that both luxury and high-end consumer goods have their own fixed channels. Whether department stores and franchised stores have room for online sales depends entirely on brand awareness of this special channel.

So far, according to the existing research data, branding is still very conservative for this channel, and still emphasizes the rarity of products.

After finding out the way, Xu Bin found that there are great differences in the supply channels of luxury websites in China. Some are buying stocks from dealers authorized by European and American brands, some have obtained the network proxy of non mainstream brands, some of them are equivalent to overseas purchasing agents, and some are also partly second-hand luxury goods and fake goods.

To distinguish these differences is very important for venture capitalists who are eager to invest.

Because the domestic luxury sales website is too small, most of which were founded in 2009, and Xu Bin has limited access to these websites, which can only be combined with media coverage, on-site inspection and company communication.

But Xu Bin's investment philosophy is that in the environment of consumption upgrading, luxury is an excellent direction, plus e-commerce itself is in a hot stage, and the investment platform is unrealistic, because Taobao is not fighting, but in the vertical category, diamonds are popular in the early two years. Now the first thing is clothing and luxury goods, and the high threshold for luxury goods is not easy to generate competitors.

This has something to do with the retail rules under the line.

Sun Yafei, who had spoken with Xu Bin deeply, was also watching cautiously.

Sun Yafei's history of contact with venture capital is very interesting.

Because the company belongs to Zhongguancun (8.94,0.29,3.35%) student Pioneer Park, Sun Yafei was invited to make a 8 minute report at a conference held by the people's Congress. After coming down to the stage, he received forty or fifty card cards of venture capital, many of whom were famous investors, and Sun Yafei was ignorant.

Before long, there were more and more venture capitalists who met each other through various channels, and then some of them directly brought cooperation intentions.

At first, Sun Yafei was very proud of himself. His own business didn't take long to get so many people's favor.

But after a round of discussions with VC, she was disappointed. She found that they did not understand the industry at all. They were almost full of unrealistic fantasies.

At that time, similar websites in the US and France quickly became red, and had achieved the scale of 2-3 billion dollars a year.

Some VCs not only have high expectations, but also add gambling agreements to additional conditions.

Sun Yafei reluctantly, "they neglected the luxury culture in 2000 only in China, and in Europe and the United States has been deeply rooted."

By the second half of 2010, Jiapin net and Shang pin net announced that they had got a new round of investment, and the number of VCs was more frequent.

After the Spring Festival of 2011, there were 5 talks with Sun Yafei, including strategic investors, which had initially reached about two or three cooperation intentions. Sun Yafei needed a lot of money to promote.

Regrettably, some venture capitalists who missed the earliest opportunity, Sun Yafei said, would have to pay at least 8 times the amount of money they want to get from the same shares of luxury websites as compared with 2009.

Lay hands on

The earliest known investor in this field is Lei Jun.

In October 2010, it was only 3 months before the Shang Shang network was formally launched. Under the circumstances of no achievement, Lei Jun's old angel investor took immediate action.

Thanks to Lei Jun's position and influence in the investment circles, venture capitalists agreed on the project he picked. Therefore, he continued to win the investment of the VC institution of Si Disney, the investment of Si Wei and the investment of tens of millions of dollars.

After 4 months, the number of members reached 200 thousand.

However, the supply channel of Shang pin network is still not fully guaranteed, and it needs to rely on a group of buyers who are keen on fashion sense abroad.

Zhao Shicheng, CEO, said that it will use the 3 million of overseas VC institutions to complete the first round of advertising coverage, mainly in the major portals and its vertical channels and fashion magazines. In the upstream purchase channel, the website also plans to increase more than 50 professional buyers.

Compared with other websites, Jiapin has been financing three times.

The first round was invested in Taishan angel in 2009 by 500 thousand yuan, and the second round investment in June 2010 was the capital investment of You Song Wo capital.

The third round of financing for Jiapin network in January this year was led by Jinsha River venture capital, Taishan Angel venture capital, song wo capital and a consortium of Hongkong.

In November 12, 2010, vip.com was invested by DCM and Sequoia Capital for 20 million US dollars.

DCM partner Tom Blaisdel said he looked at the rapidly developing 120 million middle class market in China.

Japan's main shopping website, "glamour benefit", also landed in China's online shopping market in 2010 after getting $13 million in financing.

Deng Feng, general manager of Aurora Borealis, has been watching the luxury B2C, but he is very cautious.

In January 13, 2011, the aurora borealis led the nine main products of the high-end men's clothing, the Sequoia China investment company, and Yi Kai capital as the exclusive financial advisers. This is also the first new year's edition of CEO Wang Ran, Yi Kai capital.

Whether it is glamour, Jiapin, Shang pin, or Fifth Avenue luxury goods network, it is emulating the business mode of Gilt and Vente-privee in France, that is, the famous brand discount + time limit purchase + genuine insurance.

With this model, Vente-privee has made an annual turnover of 8 billion yuan in the market of France's 60 million population.

According to McKinsey, there will be about 4000000 households in China in 2015.

The cake is so large that the natural wind comes naturally.

The danger is that as the online shopping industry matures, on the one hand, it will push the traditional department stores to relax the procurement policy. On the other hand, orter will blossom everywhere in China.