Fashion Show Sells Fashion: Relying On Buyer Team And New Product Strategy To Solve The Bottleneck

Relying on buyer teams and new products strategy The network solved online. Luxury goods The biggest bottleneck in the industry is supply.

In 2009, Luo Qiliang, a 37 year old Hongkong native, received a call from a headhunter. He was invited to join a Shenzhen luxury online sales website, a full-time online buyer. Luo Qiliang was Macao's new New Yaohan. Women's wear And cosmetics department heads. He has nearly 20 years of experience in retail industry, and has been responsible for management and procurement in Polo Ralph Lauren and Gucci brands.

"I am very interested in e-commerce, and I find it very challenging, so I joined the show." Luo Qiliang said to the first financial weekly. Luo Qiliang is currently the head of the Hongkong buyer of Xiu Xiu net, mainly negotiating with international brands in Hongkong, including a small number of Chinese brands.

Now we have become one of the largest online luxury sales websites in China. According to the data provided by Ji Wenhong, founder of the show network, in 2010, the network had achieved a revenue of more than 200 million yuan, compared with 40 million in 2009.

The rapid growth of the network has benefited from the explosive growth of China's luxury market in recent years. McKinsey's March rising China luxury market report shows that in 2010, the domestic luxury goods market reached 80 billion yuan, and the scale of 2015 will reach 180 billion, which will account for more than 20% of the global luxury market, and surpass Japan as the world's largest luxury market.

Ji Wenhong said that at present, there are more than 2000 online sales outlets, including over 120 top luxury brands in the world, 15% of total sales, and two or three more fashionable brands.

After graduating from the University of foreign trade and economics in 1992, Ji Wen Hong came to Shenzhen to do international trade, mainly in the import and export of clothing and shoes. At that time, he often dealt with fashionable sports brands like Reebok and Columbia. With the expansion of business, he began to take part in the design, OEM, brand management and pricing system of these brands. And his overseas business trip has also enabled him to observe the circulation of international brands in a broader perspective.

He found that many of the world's brands were mostly made in China, but because of the difference in department store formats, overseas department stores own these goods. Chinese department stores only rent out counters to brands and Chinese circulation costs are high, and their prices are cheaper than those in China. In Italy, he saw a Gucci bag totaling about 1000 euros, and returned to the country to find that the same type of bag sold for 1300 euros.

At the same time, he also saw some two or three lines of international brands also want to enter the Chinese market, but suffer from no convenient channels. "An Irish crystal dealer has found that I want to enter the Chinese market. Their brand names in China may not be as good as SWAROVSKI, but they are also well-known in Europe." Ji Wenhong believes that it is necessary to optimize our resources. E-commerce is the best entry point.

Ji Wenhong decided to make a website selling high-end luxury goods. In the US, similar e-commerce websites have been in operation for 10 years. In 2009, Neiman Marcus department store official website, Macy 's department store official website, these fashionable consumer goods website sales ranked the top 20 in the B2C field.

At first, he had thought about making a vertical website. This idea was quickly negated, because it would be plunged into price competition, and two was unable to meet the cross demand in the process of consumer purchase. In 2008, the products were mainly clothing and sold cosmetics, bags and shoes, and the proportion of clothing was about 30%.

Similar to all e-commerce websites, the selling secret of luxury websites is still the price, which is mainly based on off season discount in foreign countries, supplemented by customized brand and famous designer's special price. In the domestic market, the discount is mainly for the season, and the difference discount of overseas purchasing new products is subsidiary.

It was also a season discount route at the beginning. However, shortly afterwards, Wen Hong found that although the price of the discount was attractive, it often broke down, causing customer churn. To increase customer viscosity, the proportion of new products must be increased.

Now, the proportion of new products in the show is over 60%, the discount ranges from 30 percent off to 5% off, and the discount for off season goods may be as low as 80 percent off.

"The reason for this discount is bulk purchase and joint operation." Ji Wenhong said that now 30% of luxury products on the show network are co operating with brands.

Luxury online sales sites mostly use virtual inventory and sell them to consumers in a limited time rush. This also leads to a longer reception period or sometimes a shortage.

The network is dominated by buyout. According to data provided by Ji Wenhong, 70% of the products in the company are buyout operations. He therefore regards only the Yintai network, which is also dominated by buyout, as a direct competitor.

Yintai CEO Liao Bin told the first financial weekly that the key to the competition of luxury websites lies in the abundance of goods. In fact, Xiu Xiu network has been working hard on this point. Ji Wen Hong did not want to walk away because he was out of stock and lost customers. He hoped that the show would attract consumers through the quality of the product itself.

From the beginning, he took the buyer as one of his core competitiveness. A buyer is a very professional profession with a small number of employees. Generally speaking, having 10 years of experience in retail industry may become a good buyer.

Now, there are nearly 20 buyers like Luo Qiliang in New York, Paris, Hongkong, Tokyo and other ten cities. Most of these buyers are full-time staff, while a few are part time fashion designers and designers. Their task is to grasp the trend of the overseas trend at any time, discover the new designer brand, and combine the corresponding products according to the needs of Chinese consumers. The company will also keep the sales information back to the buyers so that they can organize their purchases with emphasis. As a matter of fact, these buyers have further expanded the supply channel of the network and also assumed a certain role of public relations.

"Getting brands to accept e-commerce is not easy at the beginning. Some brands that have never tried online sales are always worried about how they should sell on the website." Luo Qiliang said. The net income of the buyers is commission income, which is directly linked to sales volume. This mode not only reduces the cost of manpower, but also improves the enthusiasm of buyers to choose good products. At present, Hongkong's goods account for 20% of the overseas supply.

For purchase channels, most of them are three fixed sources. One is the brand business itself, the other is a brand authorized dealer, and the other one is a large department store. Among them, the dealer's source of goods accounted for about 40%, and the other two channels were equal. "In fact, each luxury website has different sources of structure, and different websites have different unique resources." Ji Wenhong said the advantage of the company is its international brand dealer relationship accumulated in international trade.

But in the face of some consumers' doubts about genuine and fake products, the customer service staff of the show not only explains the three channels of purchase, but also emphasizes that all goods are regular foreign trade channels, and there is no more direct way for consumers to distinguish.

"Some people do not speak their lips, they may think that our things are true or false. We really care about these people and how they can get their trust." Ji Wenhong said.

In order to establish credibility, Ji Wen Hong tried to avoid minefields. For example, some domestic foundry manufacturers directly found him to talk about cooperation, but they were rejected by him. "In fact, it is clear that the cost of domestic channel purchase is the lowest, but I want to solve this problem in the future by formal negotiation." Ji Wenhong said.

For this stage, he can do well in every link. In the last Express link, before the establishment of the show, Ji Wen Hong spent the time comparing the top express companies in China, and finally decided to choose FedEx. He found that the federal complaint rate was very low, but it would be more expensive. For those who spend more than 250 yuan on the package, the choice of the Federation means that each package costs more than 2 yuan to 3 yuan. "But FedEx's services are more secure and match our brand and customer positioning." Ji Wenhong said.

As sales increase, buyout networks, which are mainly buy-out businesses, are facing more and more serious pressure from capital chain, because overseas purchases are in advance of orders and no accounts. Once funds are under pressure, the supply of goods will not be guaranteed. In March 2011, Kai Peng Hua Ying's $20 million financing gave Ji Wen Hong a sigh of relief.

For a B2C company, especially B2C, which has international trade, supply chain management is a difficult problem. Although according to Ji Wen Hong, Messi has formed a professional global supply chain management system with Macy, s and other world-renowned department stores and suppliers, but this is far from enough. The next step is to build some standardized warehouses overseas.

But the most important thing is commodities. We decided to focus on the field of clothing at the very beginning, because the segmentation market could not be standardized so that it could bring distinctive differentiation value. At the beginning of the show, the proportion of overseas brands accounted for more than half of the product types. Later, Ji Wen Hong found that too many strange brands were not accepted by domestic consumers at the same time, and gradually increased the proportion of domestic brands. But the proportion of real luxury goods remained unchanged. Ji Wenhong considered that luxury goods belonged to a small group of people.

In fact, the network has been weakening its luxury shopping label. According to the plan, the ideal proportion of the product type should be 15% luxury goods, 25% overseas famous brands and 60% domestic famous brands.

"In the future, the network will provide more regional brands, or two or three line international brands, or some brand with designer style, so as to meet the diverse needs of the wider population. The most accurate description of the show should be the boutique shopping website. Ji Wenhong said.

How to shop on luxury websites

01 learn to grasp the point of time. Generally speaking, the longer the season is, the larger the discount, but the faster the sale is.

02, we must open the box to see the product, then touch it personally, and inspect the products according to a variety of online identification of fake Tips.

03 Ji Wen Hong's own experience of identifying counterfeit goods is that if all the codes and colors of a commodity are available, it must be a fake produced in China, and the quality and code color returned from abroad are not as good as that of China. If you find that a commodity's code color is very suitable for China, it must be a fake produced in China.