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    The Temptation And Challenge Of The Development Of Luxury Electric Business In China

    2012/10/22 11:10:00 29

    Luxury GoodsE-CommerceFerragamo

     

    The electricity supplier is hard, and the luxury business is particularly difficult. The source of goods is one of the problems that plagued the electricity supplier.


    October 11th, from

    Italy

    The Salvatore Ferragamo, a global luxury brand, has worked with Xiu Xiu network to formally authorize the latter to build online official authorized stores.

    This is the first time that the world's leading luxury brands have authorized China's e-commerce platform as an online sales partner.


    Zhao Zhongxiu, the vice president of University of International Business and Economics and chief consultant of the luxury Research Center, commented: "this is an important cooperation between luxury goods and e-commerce in the future.


    In the past, China's luxury electric business has been plagued by shortages, and can only buy some ways to meet users' needs.

    "The successful conclusion of this cooperation has explored a new path for the development of China's luxury electric business."

    Ji Wenhong CEO said.


    In 2010, the capital market was fueled by the emergence of a number of ecommerce providers with luxury concepts in the field of luxury goods business in China, including walking network, Jiapin, vip.com and Shang pin.


    Immediately encountered bottlenecks.

    On the one hand, these luxury electric providers can not get a truly valuable source of goods. On the other hand, luxury brands emphasize elite culture and unique scarcity, which are essentially different from the traditional e-commerce's popularity, freedom, openness and equality.


    Since the beginning of this year, with the cold trend of e-commerce industry, luxury electric business has almost fallen into freezing point.

    Survival is a difficult problem for luxury electric providers.


    Former Burberry senior vice president of China, now Karl Largerfeld Greater China CEO

    CAI

    Yi said: "electricity providers are increasingly becoming an indispensable channel for luxury brands worldwide. The key issue is how to really find the combination of luxury brands and e-commerce."


    Cai Yi said: "luxury brands need to be precipitated for decades and hundreds of years. Luxury providers need enough time and patience to nurture them."


    Ferragamo touches the net


    The "authorized" cooperation between Xiu Xiu net and Ferragamo may explore a new way for the development of luxury electric business.


    "The cooperation between Xiu Xiu net and Ferragamo has been discussed for a long time."

    Ji Wenhong said in an interview, "the focus of the discussion is whether we can make full price products online, and whether we can set up a benchmarking cooperation sample through cooperation in packaging, warehousing, distribution and other aspects."


    In the past, the supply of goods has always been an important factor restricting the development of luxury electric business.

    To solve this problem fundamentally, we try to build a deeper cooperation with luxury brands in addition to purchasing agents.


    "After repeated deliberation, we finally decided to sell the premium products at the Ferragamo official store in the show."

    Ji Wenhong said, "this may also be a very good business attempt."


    Ji Wenhong said: "from the rapid development trend of the global fashion business, we can see that low price is not the only requirement of consumers for online shopping. The demand for fashion consumers and luxury consumers is increasingly diversified. Online shopping can break through many limitations and provide better services.

    Luxury brands have recognized this overseas and actively push forward with the electricity supplier. "


    {page_break}


     


    It is reported that after the cooperation was reached, the product team of the Xiu Xiu net went to the headquarters of Italy Ferragamo group to complete the first batch of on-line products ordering.

    The orders are classic and 2012 autumn and winter, including

    Shoe shoe

    Bags, accessories, scarves and neckties and other categories.


    In the future, users who buy Ferragamo products on the show can also receive after-sale services such as maintenance, maintenance and so on from the network and the brand side.


    Luxury "e" difficult


    According to the 2011 China Luxury Market Research Report published by Bain Capital, 55% of China's luxury goods consumers are between the age of 25 and ~34 years, while most of the luxury consumers abroad are over 40 years old, which is 15 years lower than the average age of the world.


    Luxury goods can better meet the young trend of Chinese luxury consumers, and can help luxury brands from the first city to the two or three line city, in order to alleviate the shortage of the offline sales channels.


    According to research data released by AI consulting, the online shopping scale of luxury goods in mainland China in 2011 reached 10 billion 730 million yuan, which is 68.8% annual growth compared with 6 billion 360 million yuan in 2010.


    Reporters learned that, including LV, Celine, Fendi and Dior brands such as the first luxury group LVMN group is watching the mainland business strategy.


    Slightly, some parts of the region have set up an online sales platform, and its mid end cosmetic brand Benefit (micro-blog) (Benefit) has entered Tmall (micro-blog) to test the water and then withdrew.


    Li Feng Group, the second largest luxury group, owns Vacheron Constantin (Vacheron Constantin), Cartire (Cartier), MontBlanc (Montblanc) and other brands.

    Although there is no direct marketing platform for the brand, there has been a positive attitude towards e-commerce.

    In 2011, Li Feng bought Net-a-porter, a well-known luxury website in the UK, and Net-a-porter officially entered the Chinese market in March 2012.


    However, there is always a discrepancy between luxury brands and e-commerce providers.

    Cai Yi, who has many years of experience in luxury brands, told reporters: "luxury brands are very taboo to overexpose their products and brands."


      

    Luxury goods

    It is not to satisfy people's rigid demand, but also embodies a kind of cultural and spiritual consumption value orientation, which has very high added value.

    However, the traditional electricity providers generally adopt large-scale sales methods, in order to cover more and more target groups for the purpose of pursuing quantity sales.


    Previously, based on the traditional marketing concept of e-commerce, the "member invitation" and "limited time sale" represented by Shang pin net and Fifth Avenue shopping attract customers through the "genuine discount" mall.

    Their development is not satisfactory.


    Luxury brands can not be exchanged for scale at low prices.

    "There is a huge gap between how luxury brands get to know more about the Internet and how Internet users can understand more about luxury brands."

    Cai Yi said.


    In addition, for the vast number of consumers, in e-commerce platform, it is difficult to intuitively feel the unique charm of products, as well as the thoughtful and considerate service of businessmen.

    This will also test the important link of the development of luxury electric business.


    Luxury electric providers need to build an operation design team, logistics distribution and service system according to the characteristics of luxury brands.

    And the establishment of this team is not achieved overnight.


    {page_break}


     


    However, Cai Yi said at the same time: "in e-commerce platform, consumers can enjoy the hard line effect.

    For example, a cooler, more dazzling product demo, and a deeper understanding of user needs by data mining.


    Temptation and challenge


    At present, the luxury goods business of the show network accounts for 30% of the total turnover.

    In fact, in addition to the show network, there are more third party e-commerce brands competing for luxury brands.


    Shang pin network in August 2012 split sale business for Shang AI Lai online, brewing new business model.

    In 2010, the 4 founding members of the joint venture in Shanghai were Frenchmen.

    Through the glamour benefits, the marmgo group will launch e-commerce websites by the end of 2012.


    "With the further standardization and health of luxury online shopping market, the cooperation between luxury goods and third party e-commerce is a major trend in the future."

    Ji Wenhong said.


    But there have been many "disturbances" in the cooperation between luxury goods and e-commerce.


    At the beginning of March this year, SWAROVSKI claimed that the company did not authorize any network to sell SWAROVSKI products in China.

    In June 2012, Hermes CEO said that 80% of the products sold on Hermes were sold on the Internet.

    In August 2012, Cartire sued WAL-MART's "shop No. 1" in Shanghai Pudong court against trademark rights and unfair competition.


    Channel confusion, lack of integrity, so that the brand as a luxury for the life of the electricity supplier is still a scruple.

    Zhao Zhongxiu said: "fashion dealers will have a deeper reshuffle in the future. Only those websites that really provide better service and better word-of-mouth can be authorized by luxury brands.

    At the same time, open licensing is a major trend, and only formally authorized electricity suppliers can survive in the shuffle.


    Ji Wenhong told reporters: "this year, the network has cut off about 30% of the brand, control growth speed, clear profit schedule."

    In the last year, the concept of electricity supplier is becoming more and more cold. The fashion business providers are also striving to change from the extensive competition of speed and scale, reflecting their advantages and positioning more deeply.


    However, how to make a good bridge between brands and consumers is still a serious challenge.

    A week after Ferragamo's official authorized shop in the show network, consumers complained constantly.

    The most intuitive feeling of consumers is: "too few goods."

    In addition, many consumers said: "there is too slow delivery," and "packaging is not fine enough" and other issues.


    The close combination of luxury goods and e-commerce will obviously lead to a long road to improvement.


    In fact, in the past two years, the development of "luxury electric business" looks promising, but there are many difficulties in reality.

    The grass-roots spirit, which emphasizes freedom, openness and equality, has some conflicts with the mysterious and high-end elite culture of luxury brands.

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