Luxury In Online Shopping

"80% of Hermes in online purchasing is counterfeit products."

In late June, Patrick, Thomas CEO of Hermes, threw this sentence in an interview with foreign media.

The website gave a slap in the face.

In fact,

Before CEO, a number of luxury goods companies launched an attack on e-commerce websites in China.

At the end of 2011, Dangdang was exposed to the sale of the "pseudonym table" of the "Tissot" brand.

Later, Tissot indicated that it did not provide any guarantee for the sale of Tissot products in online shopping channels.

In March this year, SWAROVSKI announced that "in China, there is no authorization for Jingdong mall and Amazon to sell SWAROVSKI products.

At the same time, there are no products authorized to sell SWAROVSKI products in any area in China.

Since then, LV, Gucci, Prada and other luxury brands have also indicated that they have not authorized the sale of e-commerce channels.

In addition to the costumes, the international famous brand cosmetics business website also came out of the "fake" suspicion.

In mid June, news came out that 90% of the products of the poly America were fake.

In July 13th, jumei.com CEO Chen Ou denied this in an interview with our reporter. "Jumei.com has no fake products.

At present, L'OREAL and silk River have set up an official flagship store in the United States. How can these domestic brands come to the United States if they sell fake products?

Luxury business website is hard to argue.

30 percent off the following fake goods are in the majority.

"Top fashion luxury items are sold as low as 90 percent off" and "fashion makeup items sell to 90 percent off".

These attractive advertisements are always tempting users who like luxury goods.

China is becoming a new luxury consumer country, and luxury electric business has also become a hot business.

Professional luxury websites include excellent people, Jiapin, Fifth Avenue, hoha network, walking show, etc. famous brand discount stores such as vip.com and Ju Shang are specialised in the monastery of second-hand brand trading. They are engaged in cosmetics collecting beauty, music bees, and honor. Large portals and professional B2C also set up luxury channel, such as Jingdong has 360top.com, NetEase has products.

According to incomplete statistics, there are no fewer than 30 websites with different modes in China.

This does not include Taobao's global purchase of those C2C ant ants.

According to data from Taobao, Taobao has grown at a rate of 100% per year, and this year it can exceed 20 billion yuan. It has become the main channel for Chinese mainland consumers to buy online luxury products.

Fake complaints are a big criticism of luxury websites, and how to tell the truth from the fake can make ordinary users helpless.

Recently, Le bee network released a white paper on cosmetics business, which led to intense clashes between the company and its rivals in the United States.

According to the report, 30 percent off of the price of the counters is about the lower limit of the genuine price of cosmetics.

And the products of the United States tend to be as low as half off or even seventy percent off.

A person who worked in the cosmetics electricity supplier industry revealed to reporters: Generally speaking, if the price of cosmetics is 70%~80% of the domestic counter price, it is generally genuine; if the price is 50 percent off ~7 of the positive price, it may be genuine goods and fake goods.

Less than 50 percent off of the goods are basically fakes, and the goods sold below 70 percent off can not be genuine.

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Chen Mei, founder of poly America, explained: "the volume of domestic cosmetics in the United States is large, and the discount is the lowest in the industry.

Generally, the discount from the first class agents is about 30 percent off, and the discount rate of online cosmetics brands is higher, generally about 50 percent off.

Compared with cosmetics, the "lower limit" of international big bags is more diverse.

In the three direct global stores, such as Hermes, LV and Channel, goods are generally not discounted.

Not only that, these big names often engage in hunger marketing, such as the IT package of Hermes not only does not offer a discount, but also needs queuing for a year to buy it.

"Clothing and clothing need to be discounted quickly for different seasons. Bags can be sold all the year round, so there is little chance of discount in those days.

It usually takes 1 years before it is offered for sale.

A person who has invested in Internet in the US told reporters that the "over season" bags sold in foreign Outlets often have flaws such as scratches, lines and other defects, with a discount of around 60 percent off.

In addition, the lower price Coach will specialize in the production of some products sold in outlet, the discount can not be as low as 70 percent off ~4 discount, but the "new" 20 percent off ~9 discount sale, or even no discount.

Lei Zhonghui, a capital partner who once participated in the luxury website investment, told reporters that for new luxury goods, especially the top brands of famous brands and watches, the price of e-commerce channels is more than 20 percent off of the line, so the probability of genuine goods is higher; if the discount rate is less than 30 percent off, it is either fake or defective "over season" goods, and if it is below 50 percent off, the probability of counterfeit goods is relatively high.

According to the reporter, experienced electricity supplier luxury electric providers tend to look after others.

"The receiving address is different, the probability of receiving fake goods is also different."

The cosmetics business insider told reporters that the probability of getting fake goods in the two or three tier cities is higher than that in the first tier cities. The probability of receiving fake goods in the suburbs is higher than that in the urban areas, and the probability that the residential addresses receive fake goods is higher than the office addresses.

The probability that the high-end crowd will receive fake is also lower than that of the low end crowd.

Such an approach can be "fish in the eye" and look for the best in risk and interest.

Because the e-commerce website sells fake products to the "weaker" users, these people have relatively little say in the online shopping market.

Limited scale of water user mode

The regular source of luxury online shopping in China comes from the following channels: Outlets discount stores in various countries, brand retail stores, purchasing agents from domestic and foreign brands, and directly purchasing goods from brand dealers.

"60% of all luxury goods websites in China are imported goods from domestic trading companies."

Senior Business Analyst Li Chengdong told reporters.

According to the tax value list of imported goods in People's Republic of China, the rates of cosmetics such as eye cream, mascara, cream, lotion and so on are 50%, the duty rate of high-end watches with a price of more than 10 thousand yuan is 30%, and the tax rate of luggage and luxury goods is 30%.

This leads directly to the very wide spread of luxury goods at home and abroad.

According to a person who is investing in Internet in the US, the price of cosmetics is generally 25% off of the domestic price.

The foreign selling price of large bags is generally around 30 percent off of the domestic level.

some

The price difference is quite big, for example, Coach's package can be several times worse at home and abroad, the United States sells for about 200 dollars, and the domestic price is 3000 yuan ~4000 yuan.

In the face of huge profits, the online purchasing agency, which takes a certain legal risk, has come into being.

A large number of buyers bought luxury goods overseas, and then pported to Hongkong by the global phipment company through small packets. The water passengers took from Hongkong to Shenzhen and sent to the whole country again.

In the whole process, we can use "less logistics fees" and "purchasing fees" to "escape" high tariffs.

"No matter from outlet stores, many products that come back from online shopping are basically not subject to customs duties. If a large number of individual buyers buy and sell, they may be faced with the need to pay high value-added tax, and the state regulations are 17%.

If the tax is paid in full, the profit margin will be limited. "

Lei Zhonghui said.

But the way of water ants such ants are often incomplete and unstable.

As a result, some electricity providers often buy new products from offline retail channels and luxury second-hand replacement platforms to replenish their supply.

"The top luxury goods from domestic agent channels are not for sale, but more in order to get some new and unique products, hanging on the Internet, attracting users, pulling the sales of other products."

Lei Zhonghui pointed out.

Under the double drive of profit and scale, many electric providers use "true and false mixed with selling" way to "fish in the clouds".

Some of the counterfeit goods that have been repeatedly banned are imported into China from abroad, while others are domestic famous brands.

According to the information reported by the media, many manufacturers have strong ability to coordinate their resources in the industry chain, from bags and fabrics to accessories. The quality and feel of bags are exactly the same as those of genuine products, but there are some differences in workmanship.

Those with slightly poorer resources can purchase fabrics even if they can not purchase accessories.

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Moreover, many luxury brands have foundries in China, and these factories will also emit some "defective" tail goods, just like the "tail cargo" of foreign brand clothing.

As long as the defect is not obvious, the average consumer can not see it.

And the "ex factory price" of the tail cargo is sometimes even lower than that of the imitation, which is very popular in the electricity supplier.

"The profits of high imitation goods are as high as dozens of times."

According to a person who runs a luxury electric business, these high imitation goods are highly skilled, and the high imitation goods of GUCCI and LV are sold at a price of 1000 yuan.

A genuine price of 30 thousand ~5 million Hermes bag, its high imitation goods price less than 3000 yuan, if bulk orders, you can also discount.

The counterfeit techniques of cosmetics are more varied.

A person who had bought cosmetics group told reporters that after getting the original cosmetics, many business enterprises often use 1:5, or even dilute the ratio of 1:10, and mix the genuine cosmetic solution into the fake cosmetic liquid.

At present, the technology of counterfeiting is mature. Basically, it does not need to pour the original liquid into the fake liquid (paste), but directly imitate the genuine liquid (paste) which smells similar to the genuine product.

In addition to fraud, the cosmetics business people also hit the edge ball.

According to a wholesaler who represents Japanese cosmetics in China, there are four kinds of cosmetics from the same Japanese brand: Japan, Taiwan, Hongkong and Mainland China.

This is the authorization of cosmetics brand, brand licensing is true, but the concentration of raw fluid is different, the price is also different.

"The Chinese characters are all made in Taiwan and Hong Kong, and the goods are at least 10%~15% cheaper than the original ones in the United States."

"In general, the local price in Japan is 50% of China," he told reporters.

Products produced in mainland China are lower than those produced in China's Taiwan and Hongkong, but lower than those produced in Japan.

"Because the public knows only brands, many electricity suppliers sell cosmetics made in mainland China, and users often think they are imported from Japan."

In general, when the same brand is produced in different countries or regions, there is only a slight difference between packages, which is not easy to find by ordinary consumers.

For example, those that use paper packaging are often produced in mainland China or Hongkong, China.

Japanese enterprises pay more attention to environmental protection. The cosmetics made in Japan are basically plastic packaging.

Branding wait and see

The rule of luxury industry is "brand is better than channel", whether it is luggage, cosmetics or crystal ornaments, without exception.

According to the reporter, luxury goods generally adopt two channel modes: direct camp and supplier.

The three companies of Hermes, LV and Channel have adopted a direct mode in the world to implement a strict brand control system.

Other luxury goods, as well as Dior, Estee Lauder and other cosmetic brands are self run and multi tier supplier mode.

At present, Hermes has a total of 21 stores in China, and LV has more than 40 stores.

Hermes China official told reporters that Hermes China did not intend to enter the electricity supplier industry.

LV China related people also said that at present, the president of LV China is changing, and there is no further plan for network sales.

"At present, luxury brands abroad are a wait-and-see attitude towards online shopping."

A luxury electric business executive told reporters that although the brand is not likely to do business by itself, but in China, luxury electric business will inevitably produce a blow to the price system under the line, otherwise, the business of e-commerce can not be done.

A profound fact is that at the end of last year, Coach opened flagship store in Tmall.

Because online and offline prices are the same, business is gloomy.

In February of this year, Coach closed the store quietly.

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"For luxury goods companies, no matter direct or supplier mode, because the brand influence is great, there is no need to worry about sales.

And online purchasing, B2C electric business has hit its offline channels. "

Li Chengdong believes that "Hermes will suppress Internet Purchasing and B2C, in order to avoid the impact of its offline channels."

At present, luxury websites in China are struggling to survive.

"In terms of manpower and operating costs, luxury goods are basically not profitable."

Xu Xiu, a public relations company, admitted that only 30% of its revenue was from luxury goods, 40% of its revenue was Korean clothing, and the remaining 30% came from the international fashion brand of the middle end.

She told reporters that the positioning of "Xiu Xiu net" is no longer a luxury product, but a high-end female commodity platform. Luxury is just a marketing tool to attract customers.

Previously, CEO, Chen Xiao, had made a judgement in the media interview that the luxury shopping website had an important criterion that the guest price should exceed 2000 yuan.

If we judge by this standard, the domestic e-commerce websites with the title of "luxury" are also "unworthy of the name".

At present, the price of the passenger network is 600 yuan, while the price of vip.com's passenger is only 100 yuan, which is equal to that of Jingdong and Taobao.

You know, besides the first-rate luxury brand, you have reached the purchasing intention with the second line luxury brand, you can go directly to some brands ShowRoom.

"Luxury electric providers need to wait longer to get scale development."

Jia Penglei, editor in chief of the billion power network, told reporters that the licensing of international brands that drive sales and branding is not easy to get. Some European and American second-line brands are not well known to domestic consumers, and it takes time to boost sales.

Similarly, the cosmetics business is also changing to survive.

The price of international brand cosmetics starts to become pparent and profits are thinner, and the profit margins of private brands are bigger.

Chen Ou told reporters, "at present, the domestic cosmetics brand sales revenue has exceeded 50%, those international brands are more used to attract users."

And happy bee net created independent cosmetics brand for mature women - Jing Jia.

CEO Wang Licheng also said that its own brand is an important product of Le bee network.

"The profit of private brand is relatively high, and it can also avoid the phenomenon of supply."

Li Chengdong believes that the promotion of its own brand of cosmetics is a "wash the white" road, but "young women recognized cosmetics are still international brands, cosmetics create their own brand is more difficult than clothing."