Luxury Brands Start Shooting Behind The Electricity Supplier: Low Prices And Credibility Provoke Panic

Has always been confident and brilliant.

The protagonists of these stories differ from each other, but the internal mechanism of the crisis is actually the same: tear up China's luxury online shopping market, and the sources of supply are quite chaotic.

And "simple business and luxury two superimposed together, to the masses of the electricity supplier's business path to operate luxury goods, destined to fall into the" low price whirlpool, reputation crisis, "eventually forced themselves to a blind alley.

Zhou Ting, executive director of University of International Business and Economics luxury Research Center, said.

"Unauthorized" electricity providers "very hurt"

"In China, there is no

This is followed by "dangsoo table" publicly denounced Dangdang network, another luxury brand denied the electricity supplier sales channels, and LV, G U CCI, PRADA and other luxury brands have made similar statements.

According to incomplete statistics by reporters, the Jingdong mall sells SWAROVSKI products up to 7 web pages and nearly 364 products.

Jingdong mall chief told reporters in Nandu that "SWAROVSKI" and other luxury brand products sold by Jingdong mall are from regular channels. Suppliers and brand manufacturers have legitimate business qualifications, and complete procedures and regular commercial invoices are in line with the regular commodities stipulated by People's Republic of China laws.

In addition, the Jingdong mall and related suppliers will be fully responsible for the relevant after-sales service within the scope of the law. "

For the specific supply channels, Jingdong mall did not disclose.

This vague statement is obviously unconvincing.

Perhaps Jingdong mall is still not sure where the "legal boundaries" are, nor has it seen SWAROVSKI, L V, G U C C I, C oach, PRA D and other brand products from the website.

If not authorized by the brand, Jingdong mall and other electronic business platform.

Three major sources of confusion

According to data provided by Wang Ningyuan, a IT industry researcher at CIC, "at present, more than 80% of the luxury goods in the Chinese electricity supplier domain are not directly authorized by the manufacturer."

The online shopping channels of luxury goods are rather confusing, which is an open secret in the industry.

"There is a direct access to the part of the product line from the brand dealers, and there are also gray channels, overseas purchasing or" sweeping goods "from distributors, foundries, Oteri J and other channels. There are also black channels, directly from the buyers, Shenzhen, Dongguan and other places to enter the high imitation goods.

Zhou Ting, executive director of the luxury research center of University of International Business and Economics, told reporters in Nandu that the "honey" of luxury online shopping lies in the high price difference between luxury goods sold at home and abroad, which provides space for the stakeholders in the supply chain to hype.

In the first place, "overseas purchasing" adopts the way of "ants moving", and the supply of goods is extremely limited.

If you take the goods from the entity dealer's office and get the price above 30 percent off of the retail price, this price obviously does not have the advantage on the Internet, and it's not that money can get the goods.

Wan table network CEO Xiao Xiao said, in order to make the performance of the website to VC, the "low price" to buy "sales volume" will inevitably take the risk and rely on high imitation goods to pull low commodity prices.

Luxury online shopping

Entanglement of brand authorized network operators

Prior to that, Jingdong mall CEO Liu Qiangdong also told the media, "we will bypass distributors, and luxury brands to talk directly about licensing."

"But this is a long negotiation process. The authorization of the first line international brand is generally talked about, at least three years."

CEO, Ji Wen Hong, said.

More difficult is that LV, GUCCI and other international brands have repeatedly claimed that China has not authorized any website to sell its products.

The CLSA report shows that Louis Weedon's largest customer base is in China.

18% of GUCCI group's customers are Chinese, and Bvlgari group accounts for 14% of Chinese consumers.

In the face of such a rare opportunity, why should the international brand go to the fat of the mouth?

"Apart from the potential disruption of e-commerce sources, international brands may also want to swallow their cake and operate directly through the official website or flagship store.

In recent years, international brands have stepped up their pace in China and cut the Chinese dealers drastically. The logic is the same.

Zhou Ting analysis.

But because of all kinds of reasons, the wishful thinking of the big international players may be lost.

Not long ago, the first official online flagship store operated by the luxury brand Coach and Tmall, which only operated for two months, withdrew the suspension announcement.

Standard of brand authorization

The conclusion is obvious that luxury goods providers are luxury goods and electricity providers, and they can easily enter a blind alley with the mass trader's route to manage luxury goods.

Conversely, it is also a dead end to use the luxury business thinking to operate the electricity supplier.

"Nowadays, luxury brands must attract more loyal consumers through deeper understanding, and promote products in close, fast and one to one ways."

G regFurm an, founder and global chairman of the International Luxury Association, said the key is to find the right direction.

What he calls "right direction" refers to the right network distributors.

"For example, whether the website's customer experience is good, how the after-sales service is, what the brand on the website is, what the consumer group is and so on."

Zhou Ting said that this standard is quite different from the traditional B2C website's traffic introduction, picture layout and page design.

It is also the reason why some international brands prefer to authorize minority "Fifth Avenue" rather than the famous Jingdong mall.

However, it may be that brands have misunderstood Jingdong.

"In fact, what we emphasize is convenience."

Liu Qiangdong once told the media that convenience is reflected in the introduction of new products as soon as possible. "For example, new products that have just been listed for 10 days in Italy may soon be seen on 360TO P."

This is very localized.

But not necessarily accepted by consumers.

"We also spend a lot of energy on making C EO signature exquisite cards, which are attached to luxury goods and sent to consumers.

Unfortunately, they only care about whether the bags are authentic, new styles are not new, and cards are thrown away without a glance.

CEO, a well-known luxury goods website, told reporters in Nandu.

Subtle game

"China is a valuable market. Whether we can maximize the value depends on the value of the operator."

Zhou Ting said, China's luxury market has gone through 20 years spontaneously. Where is the market going after 2011? Who can keep going? Where is the excitement of the market? These problems are worth considering by all the luxury industry stakeholders.

For the time being, "most luxury goods sales providers use their own funds to buy, and then sell through independent pricing. Actually, it originated from the second hand luxury sale in Hongkong, and then extended to other brands.

But because the volume is small, it does not affect the sales and price of brand stores.

But China's domestic electricity supplier is developing rapidly, and the quantity of website purchases and consumer demand are very large. Online discount will disrupt the price system of commodity stores, so luxury brands generally do not cooperate with the third party network operators.

A luxury executive said.

Even if we try to cooperate, the electronic business platform should comply with the wishes of luxury brands, and provide value-added services such as "product manager personally delivering door-to-door" to comply with its requirements.

For such a "customer to bully shop" mode of cooperation, unauthorized Jingdong mall, will they compromise?