Get Together Online Battleground &Nbsp; Luxury Online Retailers Are Still Profitable.

　　 Luxury goods Boom from entity to online, from brand To the electricity providers have made moves. Despite a large number of local luxury goods online Retailer It has gained the favor of capital, but its real profit model is still groping.

In June 19, 2011, the Luxury Retailing website Xiu Xiu net held a "million dollar price award, promising national luxury price" campaign. It announced that it would adhere to the "national minimum price sale" strategy, and it would not make profits in 5 years, and invited the public to monitor its luxury price. This has set off a new competitive climax for luxury goods suppliers in China. While competing for luxury products such as Shangpin, Jiapin, vip.com, Xiu Xiu, Fifth Avenue and other luxury retail websites, the "big crocodile" such as Jingdong mall, fan and so on are also testing water luxury goods, so that the Chinese luxury market full of international brands can let these network distributors share fruits, and who can laugh last?

Get together online battlefields

According to the 2010 China luxury report released by Bain consulting, luxury brands took 68 billion 400 million yuan from the Chinese pocket in 2010, and 43% of Chinese consumers began to try to buy luxury goods through various Internet channels. In November 2010, Armani group (Armani)'s brand Emporio Armani was formally launched on China's online sales website. This is the fourth stop of brand e-commerce after the US, European and Japanese markets, and has become the first luxury brand to launch online business in the Chinese market.

Armani's online shopping mall is the largest luxury online sales group Yoox in China. With the help of many brands to operate its official flagship store, Yoox will also launch multi brand online boutique thecorner.com in the second half of 2011. Prior to that, Raffaello network, a luxury sales website in Italy, joined Alipay to take the lead in extending its e-business position to China. The sales brands include Gucci, Prada, Fendi, Dolce & Gabbana and Tod s, etc. consumers can choose products suitable for their taste from 40 designers and 15000 styles, enjoying an average price of less than 40% of the retail stores. Rafael,

While overseas forces are rushing to the beach, the local luxury goods retail channel has long been a popular battle. Since 2011, only the total amount of financing collected by poly net, Milan net and Xiu Xiu net has reached 40 million US dollars. Among them, the network of Kai Penghua has gained 20 million dollars from Milan, and 10 million yuan from Sequoia China. The investment of IDG capital and Qing science group has invested 10 million US dollars. Jiapin network, which has the advantage of international supply chain, has won the third round of investment from Jinsha River venture capital. According to statistics, the total amount of private equity funds, including Jiapin net, poly Shang net, Xiu Xiu net and Shang pin net, has been more than 500 million yuan (see photo).

However, Ma Xiaohui, the vice president of Xiu Xiu net, once said that the luxury website is now expanding its market. It is about scale, efficiency and word-of-mouth. It will cost no money in the next one or two years. It is for this reason that many Luxury Retailing websites are showing their ability to explore the feasible way in China.

SNS drives e-commerce?

Following the cooperation of overseas luxury discount website gilt and Facebook, many local luxury online retailers have launched the idea of SNS. Through joint efforts with social networking sites, luxury retail websites can not only increase visitor resources, but also improve the entertainment of shopping, and then enhance customer stickiness.

In the 6-8 month of 2010, Jiapin net invited users to join Jiapin net from all these communities through the mode of user invitation and deep cooperation with the mainstream SNS community such as Renren, Kaixin et al. Jiapin network chief operating officer Dong Ce said at that time, the average gross profit margin of the luxury time limited panic buying could reach over 35%, and the sales per group sold to the community was controlled below 10% of the sales volume, while the monthly conversion rate of the members who passed the Kaixin net and Renren net to Jiapin net was 2-3%, which was higher than the monthly average conversion rate of the general e-commerce website 2-5 per thousand.

Unlike the cooperation with the community network, uh is born with its own SNS function. Its main product is the luxury online shopping mode of "teaching and purchasing". It combines e-commerce and social networking sites (SNS) together, combining commodity purchase, log, life sharing, knowledge presentation and other contents, covering luxury, fashion, venues, events and other contents, and gives flash the visual effect to give people a sense of the moment. This mode is known as "the shell of Kaixin net, the core of Taobao mall", that is, "social networking e-commerce", which is quite a bit of the upgraded version of net-a-porter. This Luxury Retailing website's "originator" role was initially identified by its founder as "a fashion magazine that can be bought with a click of a mouse" (see the March 2009 fashion website, the mode is king). According to the different behaviors of users, excellent network will increase its "gene value". With the change of this score, users will also enjoy the corresponding concessions, such as special discount or specific commodity exchange, etc. in addition, the "gene value" can also be used to participate in the auction of commodities.

Although e-commerce and social networking sites have obvious advantages, the overall income of online shoppers in China is not high enough. Whether community e-commerce can cover effective people, how to choose suitable social networking sites and how to cooperate, and how to improve conversion rate are the problems that luxury retail websites need to solve. Whether the mode of SNS driven e-commerce is fully accepted by local luxury consumers still needs time to test.

The system of inviting members to build closed communities has been unpopular. Some of the websites initially used this way have turned to him. The first home page of the luxury private sale website, which is strictly enforced by the member invitation system, is replaced by an open member instead of a member. It not only lists the most popular brands and products that are being sold this week, but also rolls out the latest mobile phone numbers of some customers. In order to improve the registration enthusiasm, it also indicates that "registration is 50 yuan voucher", which is quite different from the previous "strict membership invitation system". Besides the Internet, Jiapin net, which used this mode before, has already abandoned it. Insiders say that traffic is very important to the website. Strict membership invitation system will blow up popularity, which is unwise for the website.

Supply chain survival

Compared with the bottleneck of the previous luxury discount website, the supply chain plays a decisive role in the survival and survival of local luxury online retailing. At present, luxury online retailers usually purchase products through overseas teams directly or from the one-time buyout and consignment of dealers, with an average of about 60% of each website being over season merchandise. Constrained by channels, their bargaining power is also limited and the cost is hard to reduce. To this end, President Ji Wen Hong, President of the show network, said that the most important thing for luxury online retailers is the scalability of the supply chain.

In order to ensure the stability of the supply chain, we have established brand name licensing, brand first class distributors and large department stores, which are the three sources of overseas commodity channels. Fifth Avenue mainly relies on its founder Sun Yafei's expanding channels of connections in foreign countries. Nearly 200 brands are directly supplied by European and American brand sellers and suppliers, and the foreign non seasonal products are sold in large quantities with large purchases. Vip.com's source of goods depends on buyers, and two depends on distributors. Although new products are also sold in the new season, there are more goods in the coming season. Ju Shang net has gained the first-hand foreign brand agency through the experience of the founding team before being a famous brand OEM in foreign countries.

Jiapin net relies on big trees to enjoy the cool. Because the founder of buyyip.com, the largest franchised seller in Europe, is also an investor in Jiapin network. Jiapin can directly get goods from European brands through buyyip.com's powerful brand resources. At present, 50% of the brands in Jiapin net are directly cooperating with manufacturers, including CK, Gucci, Prada, etc., and the other 50% are cooperation with brand agents. Relying on the resources of buyyip.com, Jiapin net can use the purchase mode of reserved goods for overseas luxury discount websites, and submit orders and goods to suppliers after the end of the snap buying activities, so as to save channel costs.

Luxury with "personality"

In addition to working hard in the supply chain, another way to solve the supply problem is to enrich the product line, with the appropriate designer brand as an effective complement to the luxury brand. In this regard, Ji Wen Hong said that at the beginning of the show, luxury products were also the main products. However, he now does not value websites that only make luxuries, because making luxury goods alone will make the traffic and conversion rate of the websites very low. In addition, the supply of luxury goods is complex, and brand dealers are strict in channel and price control, and whether there is a stable source of goods is also a problem. As a result, the luxury goods currently only account for 15% of the total category, while others are high-end fashion products at home and abroad, including some designer brands, of which 60% come from China and 40% from overseas. During the year, the proportion of overseas brands is increased to 60%.

Not only is the show network, in order to meet consumers' preferences and needs for different brands, more and more domestic luxury websites begin to introduce designer brands. Besides upgrading its cooperation with high-end luxury brands, Shang pin has also started introducing famous designer brands and upgrading its product structure. On the basis of the product structure based on luggage and clocks and watches, the proportion of jewelry accessories, clothing and cosmetic products has been increased. The number of activities has increased from 15 daily activities to 50 daily. The basic style of each brand is 200-300, including classic and new products.

After realizing the richness, how can we achieve the uniqueness of commodities? Local luxury online retailers also have their own brand ideas. Jiapin network president Yang Peifeng said that when the time comes, by introducing designer's work and launching its own brand, the key is to find a good entry point and grasp the rhythm. However, although the gross profit of its own brand is high, compared with the mature market in Europe and America, on the one hand, the acceptability of consumers needs further verification, and it is also faced with great difficulties in practical operation.