The Rise Of High-End Apparel Custom Websites, Investment Companies Increase Investment In The Field Of E-Commerce

As more and more consumers turn to subdivision websites, far below

The purchase of high-end custom garments, NewEnterpriseAssociates, Vc firm and ACCelPartners are increasing investment in the field of e-commerce.

According to data from the National Association for risk investment,

Driven by the company, the US online retail industry has raised $328 million 700 thousand this year, more than double the total in 2011.

J.Hilburn, AmericanGiant and Bonobos, and other high-end clothing and start-up companies in the United States have also entered the e-commerce market, trying to get a slice of this potential market.

According to ForresterResearch, a market research firm, the size of the US e-commerce market will reach $327 billion in 2016, far exceeding the $202 billion in 2011.

The company delivers goods directly from the factory to the consumer, and saves the link in the supply chain, so that it can sell goods below the price of department stores, and the profit rate is higher than that of the online retail giant Amazon.

With this kind of business mode, they have gained the favor of consumers and Vc firm.

Harry Ville, an investment partner at HarryWeller, said that the reason why high-end clothing companies are popular with consumers and investors is partly because they provide consumers with experience that they can not get from traditional online retailers.

According to J.Hilburn co-founder and CEO Hill Davis, the company will take a series of measures to reduce operating expenses, such as eliminating costs associated with warehousing and store operations, and minimizing new product launch cycle.

He said that in most retailers, because of the supply chain link from factory to shop, a garment will eventually be listed at 3 times the J.Hilburn custom-made garment.

It is precisely because of this business mode, J.

The gross profit margin of Hilburn is as high as 54%, compared to the 22% gross profit margin of Amazon in 2011, and the gross profit margin of Messi's department in the last fiscal year was 40%.

This business model has also been invested in some traditional retail stores.

In April this year, Bonobos, a vertical retail website for men's clothing brand, raised $16 million 400 thousand in a round of financing, and NorDStrom, a high-end department store operator, took the lead in this round of financing.

Nordstrom's move is aimed at improving the network sales of the company's products.

In this regard, Vc firm NorwestVenturePartners partner Josh Goldman said that the small men's clothing custom website has been favored by Vc firm, "because consumers are very excited about the new shopping experience.

In the past, online shopping was search, such as Amazon's business model, and now it's curatorial.