Luxury Electric Business Head Hanging "Double-Edged Sword" Venture Capital Touted

In recent years, luxury E-business has been developing rapidly. According to relevant data, China in the first quarter of 2011

With the rapid development of the national economy,

2011 was seen as the "first year of China" for luxury e-business. The rise and development speed of luxury e-business is amazing.

"The rapid development of luxury e-business is mainly due to the rapid development of the scale of the domestic luxury market, the trend of younger consumption and the growing maturity of e-commerce in China, which have brought huge room for development of luxury e-business."

Li Xuerong, senior researcher of CIC consultant, said in an interview with reporters.

It is also the great potential of luxury electric providers. The luxury electric business market is generally optimistic, and has become a hot pursuit of VCs.

Mo Daiqing, a Research Institute of the China Electronic Commerce Research Center, believes that a large number of venture capital funds have been brought into the luxury electric business, enabling them to have enough capital to develop and improve their valuation.

However, the massive entry of venture capital can create a double-edged sword to the luxury electric business market, and it also brings disadvantages to its development while promoting the development of luxury electric business.

"In fact, the introduction of VC brings benefits to luxury electric providers, but it also brings some disadvantages."

Mo Daiqing said that the luxury electric business is also developing rapidly in the past two years. It is still in the initial stage of development. A large number of VC entering the luxury electric business market will force the pace of the enterprise to move forward rapidly, resulting in the instability of the foundation and the feeling of "spoil the growth".

This is not conducive to the healthy and sustainable development of luxury goods providers. Any enterprise needs to be steady and steady.

Li Xuerong also said that the rapid development of luxury network may have a certain impact and impact on the brand positioning of luxury goods, and the increase of counterfeit products will also disturb the whole market.

In fact, there are still many deficiencies and defects in the early development of luxury brand e-commerce market.

From the perspective of consumers, consumers are not very satisfied with buying luxury goods through Internet channels because consumers are not confident in online shopping.

And at present, the identification agencies of luxury goods are missing. After the luxury online shopping, if consumers have doubts about products, they need help from the relevant identification bodies.

From a businessman's point of view, the supply of luxury goods is not stable enough, and the after-sale service system is not perfect.

From the relevant policy level, luxury goods are facing the policy risks of brand licensing and China's luxury goods regulation policy.

For the current situation of the luxury electric business market in China, Mo Daiqing said that at present, luxury electric providers should be sober minded, and should not blindly keep their horses in the field. Instead, they should cultivate their products and services well.

Mo Daiqing suggested that the sale of some well-known international brands can form long-term cooperation with authorized brand stores abroad, while other two or three line brands can also sign direct agency agreements with foreign Brand Company, so as to ensure the quality and quantity of goods.

In this regard, Li Xue Rong also suggested that in the future, the healthy development of luxury electric business market needs to strive for two directions: first, develop the source of luxury goods and ensure the quality of luxury products; two, optimize pre sale and after-sales service, and reduce consumer concerns.