Luxury Clothing Brand: The Advantage Of E-Commerce In China

With the development of e-commerce from the low end to the high-end, luxury e-business in China has sprung up like mushrooms. From Taobao's self-employed purchasing shop to professional e-commerce website, a large number of luxury electric providers such as Fifth Avenue, Jiapin and excellent public network have emerged. This year, poly net and walk show network got investment.

Some luxury businesses and dealers have also changed their wait-and-see attitude and begun to enter e-commerce. The electronic business platform has begun to focus on integrating luxury brands, and electric business people have also waded into the luxury platform. Even VC people have started to pack luxury brands by themselves. The overall market trend is driven by comprehensive forces.

Some people believe that Chinese Internet users do not yet have the ability to purchase too much power, and the environment of luxury e-business seems immature. In fact, not only expensive products such as diamonds and gold are sold very high online, but even Taobao can sell watches worth tens of thousands of dollars.

Luxury e-commerce is still aimed at small crowds. E-commerce has been developing steadily for nearly 6 years. The earliest batch of loyal student users and wage earners have now entered the society and become white-collar workers or even gold collar workers. Chinese Internet users in 2010, the per capita online shopping consumption reached 10 thousand yuan. They have very strong shopping habits, and the per capita consumption power of e-commerce increases. This is also why the growth of online shopping crowd is not obvious, but the market share growth is fast. Therefore, some people say that luxury websites really catch up with the best period of development.

Luxury electric business development bottleneck

The experts believe that the credibility has become a serious problem in the overall e-commerce market in China. In the field of luxury e-business, this problem will be more serious and obvious. To do a good job in e-commerce, the most important thing is to first solve the credibility of the platform itself.

He believes that "credibility is the first manifestation of the supply side, in fact, many luxury brands are totally excluded from e-commerce, and do not allow their products to be sold online. Because these brands are already in short supply online, there is no need to discount sales on the Internet, but will also affect their brand status. At the same time, many luxury brands are limited edition sales. If you want to buy more, you can't buy it, let alone discount sales online. "

"Secondly, in marketing promotion, most websites pursue traffic, membership registration and sales volume. But if we do not solve the problem of credibility, that is, authority. Even with huge traffic on the Internet, sales may not be optimistic. Because product prices are high after all, and they are traded on illusory network platforms. Therefore, if we want to form a steady sales growth, we must first solve the problem of credibility of the website. Besides logistics, China's logistics companies only pay 3 times the amount of goods lost or damaged. In the transportation process, if the logistics company lost a list of tens of thousands of yuan, shoppers would get dozens of yuan compensation at most. Therefore, many companies or individuals who deliver valuable goods prefer to choose foreign logistics companies. Chi Zhi Guo said.

Despite the rapid growth of luxury e-business in China, there is a phenomenon that many luxury brands are very cautious in cooperating with Chinese e-commerce providers. Li Wen, director of public relations at familiar customer network, said luxury brands worry about the impact of online price chaos, and the main worry is that luxury goods do not look like luxuries. Many electricity providers do not treat luxury goods as luxury goods, or do according to the idea of "cheap and large amount" of low-end goods made earlier. The luxury brand is not the case. Luxury brand image is everything.

In Europe and America, why luxury brands are willing to cooperate with e-commerce providers, Li Wen believes that European and American electricity providers can maintain a good brand image and provide high-end consumers with the same shopping experience as luxury stores. Many luxury electric providers have helped brands digest their inventory, while doing a lot of value-added services. Online sales have even led to offline store sales.

The most important thing of luxury e-business is image, shopping experience and after-sale service.

Where is the luxury website financing money burning?

The cost of marketing is a major share. After all, there are few influential advertising platforms in China. In addition, the source of goods will be the most burning part. It is not ruled out that luxury business operators will take the strategy of losing money in order to fight for members and the market.

The key point is that the market positioning and marketing strategy of the cooperative luxury brands should be considered. Unknown luxury brands, e-commerce platforms are relatively free in pricing. Well known luxury brands, such as the demand for e-commerce platform must be sold at a unified discount price, then there will be mixed gifts, logistics and services.

Huang chin, chief strategy officer of the show network, believes that China's luxury electric business is at a stage of "barbaric growth", and that young people are the future of luxury goods sales. He said that the company still maintains an annual sales growth rate of 25%, and this year's sales volume is expected to be 1 billion yuan. Next year it is expected to further increase to 2 billion ~30 billion yuan. Despite its impressive annual sales, the company has not yet made a profit. Huge cost investment makes the luxury electric business and many industries in the Internet still burn money, which needs to be driven by capital investment.

Zhou Ting, executive director of the luxury research center of the University of foreign trade and economics, told reporters: "the luxury market needs time to nurture and maximize the quality of services and products. However, driven by the interests of capital, venture capitalists pay attention to returns, and are bound to pursue the scale and quantity. This is not the development trend of luxury brands. The amount of luxury goods is so great that the competition of first-line brands leads to the increase of the cost of goods purchase, and the price of the electricity supplier has no advantage, so it begins to develop the two or three line brand, instead of selling luxury goods instead of luxury goods.

Advantages of luxury brands in China

Recently, Morgan Stanley related research shows that: in the next 3 years, China's electronic retail business will grow at an annual rate of 70%~75%, which is the fastest growing area of China's consumer goods industry. Many venture capital and private equity investment are looking for winners in China's e-commerce field.

What is particularly noteworthy is that in 2010, Taobao's transaction volume reached 400 billion yuan, accounting for 2%~3% of China's total retail sales; in early 2011, Jingdong mall completed 1 billion 500 million dollars in financing; Chinese traditional retailers, such as Gome and Suning, have also joined the army to expand e-commerce.

Wang Hao, CEO, thinks that although everyone is very optimistic about the luxury market in China, the development of brand in China is actually very difficult. There are more than 200 large and medium-sized cities in China, which require huge amounts of money to cover the whole country. Although there are some famous brands in the first tier cities, the relative rents and operating costs are very high. Many stores do not make money, while the two or three line cities have relatively low cost, but because of the lack of brand awareness, sales can not support independent stores. Individual brands choose the traditional agent mode, but soon found that the lack of experience in the operation of the two or three tier city operation team is likely to lead to loss of control or brand image. Then, at this time, the advantages of e-commerce platform are embodied. On the one hand, e-commerce can not only sell to the whole country, but also have unified commodity management and sales service, on the other hand, it can help the brand to do a good publicity work. Therefore, the major brands will eventually realize that e-commerce is the best channel for the development of luxury brands in China.

Epilogue

China's luxury goods providers should not rush to use hard ads to attract Internet users, otherwise there will be large traffic and small sales. Or we should use soft marketing tools to enhance the credibility of the website, and then improve trust, and finally improve the influence. When improving influence, it is the right time to start selling, which can be achieved through precision marketing and directional marketing.

Because the economic function of luxury goods is to stimulate the rigid demand of people's consumption, and directly promote the rapid and stable development of social economy. In the long run, luxury goods will not become the exclusive products of a small number of people, but will also distinguish the crowd according to the price of luxury goods. It is suggested that China's luxury electric providers can try to foster some state-owned luxury brands. China's state-owned luxury brands will become the mainstream of e-commerce in the future, because it can meet people's purchase needs more widely. Foreign luxury brands are still in the form of high-end, which meets the needs of small crowds.
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