Luxury Websites Become New Darling Of B2C Investment

In the wake of the rise of the concept of luxury goods in Hongkong stock market, luxury online shopping in China has also become the "popular fried chicken" in the e-commerce industry.

After the Jingdong mall and other comprehensive websites have set up luxury channel, they are old.

The excitement of the luxury market has also attracted the attention of investment funds.

According to the incomplete monitoring of China Electronic Commerce Research Center, nearly 10 Luxury discount B2C websites including Jiapin net, poly Shang net, Xiu Xiu net and Shang pin net have been invested in private equity fund with a total limit of more than 500 million yuan.

Among them, Shang pin was awarded the first round of investment by Lei Xing, a pioneer in 2009 and Internet Celebrities, and received the second round of joint venture capital investment by Sunway and its investment in the tens of millions of dollars. In 2009, he won the US $11 million investment in light speed business and IDG capital. The Jiaxin network, which was founded at the beginning of last year, has invested in the Taishan angel investment fund. After that, it won second rounds of investment from song wo capital and Jiapu capital, and the third round investment from the venture capital of Jinsha River.

Recently, vip.com announced a $50 million joint venture between Sequoia and DCM.

Feng Lin, an analyst with the China Electronic Commerce Research Center, said: "with the improvement of consumption concept and consumption ability, and the popularity of Chinese people for international brands, domestic and foreign wind investment gold also takes the opportunity to flow into the luxury sector."

In recent years, the buying habits of domestic users have been "evolving".

In 2011, known as the first year of luxury e-business, apart from the specialized B2C website, Internet outlets such as Yintai network, NetEase and other portals also set up luxury channel.

According to statistics, luxury sales in China already have a considerable mass base, and domestic luxury goods sales account for 25% of the world's total, which has surpassed the United States as the second largest luxury consumer in the world, and 60% are purchased at home instead of overseas.

According to the China business development report (2010-2011), as China's economy takes off, the demand for luxury goods in China is increasing. It is predicted that the strong momentum of sales growth in the next few years will continue. China will become the world's largest luxury market by 2015.

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It is understood that luxury brands are very strict in channel management, new products are sold and tail cargo handling is completely independent. New products will be converted into tail cargo trading after 3~4 months.

It should be noted that although the development of luxury online shopping is faster, the demand for funds for such websites is higher than that of ordinary ones.

At present, most modes of luxury websites in China are relatively single, and the competition pressure between websites is very large.

Within a short period of time, whoever can take the largest number of users will occupy the market heights.