Bright Future Road Of Rugged Luxury Electric Business

As group buying websites have invested hot cakes from all over the world to the present, they have been druped with capital. The "closed door" and "group run" emerge in an endless stream. The group buying electric business caught in the cold winter has not yet come to a sigh of relief.

This is actually an inevitable process in the development process of luxury websites. Many areas are generated by capital and depend on capital very much, but because the market is not mature, the whole industry is still in the adjustment stage.

Luxury websites cool

Like group buying, in recent years, the luxury B2C market has also become a major investment hotspot in the Chinese electricity supplier industry. The hot capital market has made the luxury website "not bad money".

Following NetEase's luxury online shopping platform announced that the closure of products, Huha network burst out of arrears of wages, after the resignation of staff, the poly network also announced that the chain can not continue to operate because of the chain of gold, about Shangpin net, Xiu Xiu network layoffs is also increasing public opinion, luxury brand Coach and Tmall (formerly Taobao mall) co operation of the first online store Coach official flagship store, after only two months after the operation, announced that it was closed recently.

For a while, the luxury website suddenly became cold, and the VC also turned to a wait-and-see attitude.

This phenomenon, Fifth Avenue CEO Sun Yafei believes that this is actually a luxury website development process inevitable process: "this area is a lot of capital generated by the birth of a strong dependence on capital, but because the market is not mature, the whole industry is still in the adjustment stage."

The reason for this situation is that the luxury goods themselves are scarce, and the market size of luxury goods can not be allowed to increase too fast. Two, luxury online shopping is facing a smaller scale of users.

Domestic luxury electric business has not been developed, and has great relationship with domestic consumption ability and consumption habits.

Compared with foreign luxury websites, fashion discount websites are popular in China.

China's luxury discount website is more like a "luxury luxury business". The reason lies in the fact that the development opportunities of luxury electric providers in China are not yet available, which has led to the fact that most of the websites that originally sold luxury goods began to extend some popular brands.

Most luxury electric providers, though they are big sellers, are in fact more of a two or three line fashion brand.

Throughout today's luxury shopping website, there are many international luxury brands, such as LV (Louis Weedon), Burberry (Burberry), Chanel (Chanel) and so on. But there are also second-line brands such as JuicyCouture (Orange) and MaxMara (Mara), as well as popular brands such as Adidas (Adidas) and Nike (Nike).

Real luxury goods account for more than 50% websites.

Luxury discount B2C websites abroad, such as GILT and RULALA in the US, have done well, but compared with the large number of mature luxury consumer groups that have been formed abroad, the habit of consuming luxury goods online by domestic consumers is far from being cultivated.

In addition, the domestic luxury website procurement channels are relatively simple, almost no one has been authorized by the brand recognition, lack of formal official channels are the weakness of luxury business.

Many domestic luxury websites are bought by foreign buyers.

Some websites hope to cooperate with some agents.

But cooperation is also rather unstable, mostly short-term.

Unstable sources of goods have become a major hidden danger in the luxury e-commerce market.

Luxury websites exist abroad

Compared with the situation that the luxury websites in China are cold in large areas, the fate of luxury discount websites abroad is another scene.

In November 2007, Kevin Ryan (KevinRyan) founded the luxury electric business website Gilt from the famous Silicon Valley companies DoubleClick. At the beginning of the line, it began to show its edge on the other side of the ocean.

Gilt has attracted a large number of users through the adoption of membership system, limited time rush, and so on. In the second years, it achieved an annual turnover of US $170 million.

The frenzy of Gilt immediately led the enthusiasm of domestic investors, entrepreneurs and third party research institutions.

Coupled with the 2008 domestic luxury market consumption fever.

Investors and entrepreneurs believe that this is the next nuggets.

Gilt and other foreign luxury electric business's early success is related to the specific environment of the specific period.

The rise of luxury discount websites abroad is due to the financial crisis that broke out in 2008, which resulted in the massive unsalable sales of luxury goods in the US and Europe. It was the massive backlog of luxury brands that brought opportunities to Gilt. The luxury discount platform helped many large brands to eliminate inventory quickly, thus expanding rapidly.

But this is also a "flash in the pan" in the special period of the financial crisis, rather than a coherent rule that can be tested by the market for a long time.

Once the financial crisis is over, Gilt's low price discounts destroy the price system of luxury brands, and it is hard to get more SKU to cope with the growth of its users.

Unlike the luxury websites in China, Gilt has begun to recruit designers and customize routes to ease users' excessive dependence on luxury goods.

In addition, Gilt has expanded the category to other needs of red wine, hotel tours and other core users.

The future looks beautiful.

Facing the current situation of luxury websites, the industry generally believes that China has become a luxury consumer country and will have great potential for luxury consumption in the future.

According to Bain statistics, China's luxury market in 2011 exceeded 100 billion yuan for the first time.

This increase makes many luxury brands increasingly pay attention to the Chinese market.

Although luxury consumption is only a small group of people, but when the business operators gradually become a trend of luxury goods, China's e-commerce channel has become a luxury enterprise must pay attention to the market.

At present, most of the world's leading luxury brands have entered China in succession.

On the other hand, although no one doubts the purchasing power of Chinese luxury consumer groups, the trend of Chinese luxury consumption abroad is hard to conceal.

Over the past year, from March 2010 to the end of March 2011, the total amount of luxury goods purchased by the Chinese people in the European market has increased to nearly US $50 billion. In the past few years, the effective consumption data of the luxury goods business areas in France, Italy and the United Kingdom show that over 6 of the buyers are Chinese.

"A kind of consumer goods beyond the scope of people's survival and development needs, unique, scarce, rare and so on" - this is the definition of luxury goods internationally.

Its characteristics require that people who are in touch with it must have a deep understanding of the connotation of luxury goods, and double increase their brand influence from product quality and shopping culture, while domestic luxury shopping websites, on the one hand, lack the consumption habits of domestic luxury goods online; on the other hand, the homogenization of products, the existence of legal risks and fake and shoddy products are also eating consumer confidence.

In order to compete for market share, these websites have been greatly discounted price war, such as selling cheap vegetables, like selling luxury goods, completely contrary to the definition of luxury goods.

After all, the Gucci in the wholesale market is no longer Gucci.

Luxury electric business is not a simple addition to luxury goods and electricity suppliers. Websites may still be looking for a meeting point between brand dealers and distributors, new products and inventory, high-end luxury goods and fashion names, and the development is still in the exploratory stage.