B2C Website For Luxury Goods This Year, Industry Financing Has Broken $400 Million.

From the repeated frustrations of China's technology stocks to the proliferation of the Internet bubble, the road to e-commerce is no longer smooth.

However,

Counting the domestic luxury goods industry B2C website, the total amount of financing has exceeded 400 million US dollars.

Everyone has a heart that yearns for luxury.

After understanding the purchasing proportion of all kinds of commodities in the show network, this conclusion is clearer.

"We find that Chinese consumers have a higher degree of acceptance of entry-level luxury goods, and the proportion of our purchases will also be greater."

Chen Yijia, vice president of Xiu Xiu net, told the new financial reporter, "for example, it is also Chanel, its scarf and wallet may sell better because its unit price is relatively low, just like Chanel 2.55 package."

Every growing luxury market can not avoid a period of conspicuous consumption, and China is at this stage.

At present, as a developing country, China has surpassed the United States and has become the second largest luxury buyer in the world after Japan.

For most non rich ordinary consumers, though it is hard to spend money on a family car to buy a vest, eating a month's instant noodles in exchange for a LV wallet or Gucci sunglasses can still be accepted, which is also a conspicuous consumption.

This is also evident in another vip.com, which sells luxury B2C website.

Vip.com CEO Hong Xiaobo told the new financial reporter: "as far as product category is concerned, the best selling products are bags, wallet, sunglasses and other accessories.

These things have no size, and members can choose products according to their own preferences.

On the other hand, the public is generally more aware of luxury bags, and is willing to invest in these accessories to improve personal taste.

This growing mentality makes the B2C website for luxury goods not cold in the late autumn.

The report of the World Luxury Association believes that the time for China to replace Japan as the largest consumer market for luxury goods may be substantially ahead of 2012 due to Japan's earthquake and other factors.

However, the sale of luxury goods B2C

Therefore, few B2C websites selling luxury goods dare to position their own products in high places.

Otherwise, there will be one of the simplest questions - who will buy it?

"Xiu Xiu network has never said that he is a luxury website, can only be said to be high-end fashion department stores."

Chen Yijia said, "similar to Beijing Xingguang heaven and earth, selling luxury goods on the first floor, selling the second tier brands on the first floor and selling the domestic brands on the third floor and four floors on the two floor, which is our positioning and division."

Luxury goods are less frequent than repeat purchases. For example, a person may buy two Prada packages a year, but he will buy four pairs of Lining's sneakers.

Therefore, Chen Yijia said: "we can not just do luxury goods, it is very small, it is difficult to expand the scale, only to join the middle end brand that we will buy everyday, can we ensure the sales volume of the website."

Therefore, if you browse through the show network, you will find that luxury goods are classified into one category, and there are many middle end brands on the website.

A more exaggerated example is that a customer bought a 39 yuan package and subtracted 15 yuan coupons and free shipping, which cost 24 yuan, and a new bag arrived.

Of course, this is probably the cheapest and most special item on the website.

Light luxury

In fact, the concept of luxury is very broad.

But when it comes to luxuries, people are more accustomed to understanding several representative luxury brands, such as LV.

"There are also differences between these brands. There are entry-level ones.

As a result, luxury goods websites choose to be an entry level luxury and ordinary high-end luxury goods, also known as light luxury goods.

For those mature luxury buyers who have gone to Europe for Shopping and have great purchasing power, the B2C website is obviously not their dish.

Correspondingly, websites selling luxury goods will not be dedicated to tailor them.

Take vip.com as an example, "the luxury goods we sell nowadays are mainly based on light luxury goods, and choose the popular and well-known brands according to the habits of the Chinese people. The classic style is also the main style, so that there is no need to worry too much about the acceptability of the buyers and the problem of breaking away from the fashion trend."

Hong Xiaobo said.

However, in the early days of 2008, the original brands of vip.com were all discounted luxury goods. After more than two years of exploration, Hong Xiaobo found that pure luxury websites were not workable. As Chen Yijia and Li Guoqing analyzed in the foregoing, they decided to sell the luxury goods together with the general merchandise.

Now Hong Xiaobo not only completely abandoned the pure luxury mode, but even thought that vip.com needs to further strengthen its brand category.

"Although we have high public awareness brands, we tend to be more mature.

At present, there are still fewer luxury brands that fit the young people, which requires us to make strategic decisions after examining the whole domestic market and European fashion.

He said.

At present, the proportion of vip.com luxury and popular brands is about 8:2.

Hong Xiaobo introduced that the most ideal proportion will be 4 luxury goods and 6 Volkswagen brands.

In the show, the proportion is: luxury goods are about 3, domestic brands are about 4, and 3 are foreign brands.

Among them, the brand "foreign second line brand and designer brand" is also one of the sales tips of the exhibition network.

"We agree with Huaping investment group, which invested 100 million US dollars in August this year, to make high-end high-end department stores instead of pure luxuries.

Therefore, we have reached a consensus that in the future we will bring a second tier brand and designer brand from abroad to China.

Chen Yijia said.

This is a very meaningful plan.

Obviously, domestic luxury goods.

For example, YSL design director Stefano Pilati's own brand "VERYTA", such as Paris Hilton's personal brand, as well as Gisele Bundchen's personal brand.

Chen Yijia said: "there will be more and more personalized choices for China's increasingly sophisticated fashion consumers in the future."

Logistics test

Because the commodity is special, the website that sells luxury goods is also faced with the topic that the electricity supplier never leave the mouth -- user experience.

Today, with the surge of e-commerce, the goal of user experience for all websites is to achieve perfection. However, this goal is far from being achieved by a single hot blood. Strong financial support is the foundation of all things.

For example, the construction of logistics.

Whoever has no money will lose half or even more in user experience. "

A business insider said.

According to Hong Xiaobo, vip.com launched its own capital of 30 million, two rounds of financing were 20 million US dollars, 50 million U.S. dollars, the initial stage is the funds for team building, IT technology input, warehousing construction, commodity procurement.

After two rounds of financing, funds are mainly used for system upgrading, warehousing and logistics investment.

Labor costs, warehousing costs and the rise in oil prices make the logistics industry booming. This has also become one of the important reasons for boosting e-commerce self logistics.

In Foshan, Guangdong, vip.com has a warehouse of 30 thousand square meters (the warehouse is known as "the first warehouse of e-commerce in Southern China" in the industry). In August this year, the 24 thousand square meter East China logistics center built by vip.com has also been put into use.

But such a scale obviously can not satisfy the development of the website.

This month, a new 24000 square meter Southwest Logistics Center will be put into use in Chengdu. Next month, the 24000 square meter warehouse in North China logistics center will also be put into use.

That is to say, by the end of 2011, vip.com's website had reached 100 thousand square meters of storage space.

In addition, northeast logistics center and central China logistics center in Shenyang and Wuhan are also under construction, and are expected to be put into operation in the first half of 2012.

Similar to vip.com, "a considerable part of the new $100 million financing of the show is spent on warehousing and logistics, including our own capital, and there are lots of investments to make."

Chen Yijia said.

Chen Yijia did not disclose the specific input figures for warehousing and logistics, but she said: "this is a very big investment, and it takes a longer process to recover."

Because of huge investment, warehousing and logistics has always been the pain of all e-commerce websites.

At the beginning of its establishment, part of the warehouse was partly rented, partly built on its own, and logistics was entrusted to the third party logistics company. Due to the high value of luxuries, the company has always chosen FedEx for its logistics.

After April of this year, we choose to use FedEx to carry all luxury goods and logistics, and other commodities choose domestic tier echelon logistics companies, such as Shun Feng Logistics.

Including the show network and vip.com, their next stage goal is to achieve their own distribution.

"This can fundamentally guarantee the real time of goods.

Capital darling

These websites that sell luxury goods seem to have magic power to make the capital market look different.

In the context of the growing Internet bubble and the repeated setbacks of China's technology stocks, insiders predict that as the most frantic industry in the past two years, e-commerce will encounter unprecedented fierce competition.

Obviously, websites that sell luxury goods can't be counted.

This year, Jiapin net, diamond bird, poly net, Milan net, vip.com, Xiu Xiu net and other websites have been successively financed.

Roughly calculated, the total amount of financing for the luxury goods industry has exceeded 400 million dollars this year.

Among them, the number of 100 million dollars in the show network is the top. This financing is the largest B round financing in the history of Chinese electricity supplier industry.

In March, the US fashion online retailer Gilt Groupe, known as one of the top 10 emerging companies in the United States in 2011, completed a $138 million financing, but the company has already valued more than $1 billion.

It can be seen that this vertical website is still attractive to the venture.

"The financing process is going well."

Chen Yijia said, "at the beginning, many VC and PE came to us, so they kept in touch with them.

The two founders of the network are familiar with the investment field, and are good friends with many investors, so we are more active.

At that time, it was determined that the criteria selected must be world-class, and would be better in reputation and reputation.

Fang Huaping investment group of B is the most famous private equity fund in the United States. It invested in Neiman Marcus, a famous high-end chain store in the US.

However, the investment fashion e-commerce website is the first time in the world for Hua Ping.

For some investors, it is a unique website that values some of the luxury goods websites.

There are four modes in the e-commerce industry: department store mode, private brand mode, group buying mode, and panic buying mode.

Vip.com is "brand discount + limited time rush."

At 10 a.m. every morning, the website releases 12-17 discounted brand products, each brand on line for 5 days.

The Sequoia and DCM of vip.com's $70 million joint venture show that the development prospects of the panic buying model are on the rise. The turnover of Gilt, like the US, was $800 million last year, and the turnover of French VP last year was 1 billion 100 million euros. China's population base is bigger and can create more value.

In addition to the investment in warehousing and logistics, another major input is the introduction of talents.

At present, the purchasing team of the show network is 200 in China and 30 overseas.

"We plan to expand our talent overseas, and the number of buyers in Europe and North America will reach more than 100," said CEO, Ji Wen Hong.

Chen Yijia said: "overseas investment is huge, because foreign buyers, commodity managers pay will be very high, and need to be in line with international standards.

About 30% of our products come from foreign fashion department stores and high-end department stores, and about 30% are luxury brand dealers, and 30% are purchased directly from brand dealers.