Luxury Electric Providers Begin To "Withdraw" From The Chinese Market

< p > luxury electric providers gradually widen the gap in fierce competition.

Most of China's local luxury electric providers are still in the "burning money" state. Overseas luxury electric providers with rich experience in operation have been developing slowly in China, and even begun to "withdraw".

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< p > luxury electric providers show bubble > /p >

< p > US high-end department store < a href= "http://news.sjfzxm.com/news/hangye/20130620/346937.html" > Neiman Marcus < /a > vice president of enterprise public relations < a href= "http://news.sjfzxm.com/news/hangye/20130620/346936.html" > Ginger > < < > recently confirmed that the company plans to reduce the operation team of the Chinese website, and all the guests will be shipped directly from the US warehouse.

According to the news, the layoffs reached 50%, and it was less than half a year away from the Chinese website.

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"P", according to company insiders, because of poor sales, the Singapore luxury limited time sale website, Reebonz, which was founded in 2009, has been dissolved by the end of March, leaving only two financial and finishing staff.

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< p > at the same time, last month, the a href= "http://news.sjfzxm.com/news/hangye/20130620/346936.html" > Bluefly "/a" announced on the NASDAQ listing in 1997 was announced that it would be wholly bought by a private equity fund in Losangeles, and the original big Soros East Fund will be withdrawn.

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< p > Bluefly has enjoyed the Dodge of the peak of the Internet bubble. In 1999, the company's share price hit the peak of 150 US dollars, and then dropped to below 1 US dollars in 2012. At present, the market value is only 11 million 300 thousand dollars.

In the past five years, Bluefly accumulated a total loss of $56 million 100 thousand, and it lost $24 million 900 thousand in 2012 alone.

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Soros, a financial predator who once held Bluefly 90% shares, has gradually been reduced as the Internet bubble burst, becoming the second largest shareholder of P.

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< p > luxury industry analysis website founder, a href= "http://news.sjfzxm.com/news/hangye/20130618/346736.html" > Alicia Yu < /a > indicates that Bluefly has long been trapped in inventory, high marketing and management costs.

Its management team is also quite old. Many executives are over 60 years old.

After taking over all 89% of the major shareholders, Clearlake will pay 10 cents a share to acquire the remaining shares in the market, which is basically a "jumping price".

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In 2011, China's luxury consumption market peaked. Bain's report said that the growth rate reached 30% in the same period last year.

The sales of major brands in China have increased, and overseas high-end fashion business providers have also begun to seize the opportunity.

According to the industry data, in 2012, the total number of luxury consumers in China reached 250 million, with a total sales volume of US $2 billion 500 million.

But with the growth of the luxury consumer market and the pressure from all sides, luxury consumers in China seem unable to support the spread of luxury electric business.

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< p > difficult to understand the Chinese market? < /p >

< p > China's luxury e-commerce website started in 2008 and exploded in 2010.

In 2010, there were more than 50 new luxury e-commerce websites, and the main business was basically similar. The growth of luxury e-business reached a peak.

However, with the collapse of the ordinary scale e-commerce website in 2012, fewer than 5 local e-commerce enterprises survived, most of them have the support of large-scale venture capital or private equity funds.

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Overseas luxury electric providers with more experience in luxury goods and electricity business than P, though many of them have studied China through localization teams, do not seem to be able to accurately judge the market and national conditions.

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< p > according to people familiar with the matter, the three overseas luxury business operators who operate in China are not very good.

Among them, a href= "http://news.sjfzxm.com/news/zhengce/20130618/346737.html" > Neiman Marcus < /a > due to a large number of market inputs leading to losses; Yoox has less investment in the market, and the operating cost of personnel and rents is very low, but because some of the brands that are operating on behalf of the company are making money, there should be a small profit; Net-A-Porter itself has some Chinese customers, and its current Chinese version has not launched a large number of market inputs, but it has already recruits large areas to build a foundation, and it is not clear about its profitability.

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< p > at present, there are mainly two channels for overseas luxury electric business to enter the Chinese market. First, through the acquisition of China's electricity providers, they use their resources and teams in China to carry out website operation and maintenance.

Net-A-Porter, a British luxury electric provider affiliated to Switzerland's Li Feng Group, acquired Hongkong's familiar customer network and launched its first Chinese website, the outlets.

Neiman Marcus is also through the injection of the charm of fashion suppliers to enter China.

Recently, China's local luxury goods business Jiapin network is also gradually pforming into Messi's department store's online platform in China.

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< p > the other is to launch the Chinese language version on the basis of the original language website and "curve into China".

Amazon, the US electricity supplier's originator, is the fashion business Shopbop in China.

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< p > Ren Guoqiang, partner of Roland Begg management consulting company, said in a media interview that the Chinese language version may be a way of doing luxury business in China, which will have great advantages in terms of time and cost.

In addition, because the number of online shopping people is relatively mature, saving the cost of education.

This is the most realistic choice.

However, such practices cannot be expanded.

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< p > the industry generally believes that the stability and authenticity of online products and shopping experience, and Chinese consumers still think that online shopping is the concept of "cheap" consumption, which hinders the development of luxury electric business.

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"These large foreign retail enterprises are usually too optimistic about the market situation when they enter China. They will soon realize that in China, especially in the two or three tier cities, consumers are less aware of the brand of luxury electric business," Wang Hao said. "These consumers are very aware of the brand of luxury electric business. The international business providers need to understand the Chinese Internet consumers as well as the local luxury electric providers, and build their brand base and reputation gradually on this basis," P CEO said.

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< p > "the main reason for part of the electricity supplier's retrenchment or withdrawal is that its performance is not as fast as expected. At present, China's entry and tariff policy is also a difficult problem for overseas luxury electric providers," he added.

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< p > > a href= "http://news.sjfzxm.com/news/fushi/20130618/346738.html" > Yoox < /a > the competition magic weapon < /p >

< p > the industry believes that Italy's luxury electric business Yoox, which has two brands of multi brand stores and single brand shops, has obvious advantages in competition.

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P, the first overseas luxury business Yoox to realize its localization in China, has entered its third year in China.

In 2012, Yoox's net income in other countries led by China surged 139.7% to 14 million 600 thousand euros, becoming the largest market for its growth.

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< p > Wang Hao said that because Yoox's Giorgio Armani online shop in China is "very profitable", it should be the most obvious one of the three largest overseas luxury electric providers in China (Italy Yoox, the United Kingdom Net-A-Porter and the US Neiman Marcus).

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< p > the so-called "generation operation" refers to the unique business mode of Yoox, which uses its own global online sales channels to build and operate the single brand shop for its cooperative brand.

Some commentators believe that Yoox's perfect logistics platform and its single brand shop jointly built with its major brands will help them maintain a certain growth in the economic downturn.

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< p > up to the first quarter of March 31, 2013, the yield of Yoox single brand business line was 19%, compared with 16.1% in the same period last year.

The yield of multi brand business lines was 12.2%, compared with 12.5% in the same period last year.

Yoox is still expected to record higher sales and profits in 2013 when the global economy slows down and the purchasing power of luxury goods is significantly affected.

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< p > in the face of the phenomenon of high yield of single brand business, Ivan Domp e, director of financial communication of Yoox enterprise, said: "this is a good test of the effectiveness of single brand profit driven project portfolio management.

The growth of the yield of the single brand business line is also attributable to the positive contribution made by the joint venture established with Kai Yun group. "

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< p > in addition, he disclosed that in general, the yield of single brand business line is high due to the seasonal products provided by the single brand official network flagship store.

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"P > New York fashion trend information media Bomoda CEO Brian Buchwald in an interview with the media, said that the overseas luxury electric business in China's popularity is too small, compared with the brand self-employed electricity providers are less concerned.

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< p > Yoox is not restricted by its popularity because it builds online sales platform for luxury brands with high popularity and potential market potential.

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< p > however, some of the single brand shops of Yoox are also less than expected.

Ivan Domp confirmed that as of the first quarter of March 31, 2013, Yoox closed down 5 official network flagship stores which accounted for about 1.5% of the total revenue of the group. Its average customer price was about 37% lower than that of the single brand business line.

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< p > however, Ivan Domp e said that the goal of net sales growth of single brand line is still on schedule.

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< p > Wang Hao thinks: "Yoox's single brand store mode is exactly the same as opening a brand authorized store, not only to pick up goods, but also to invest certain market fees to ensure traffic.

Of course, if the brand is very well known, it will have a very big advantage, but if the brand is not strong enough, it is also very hard, for example, Yoox's Armani shop operating in China is very profitable, but its operation Bally and Alexander Wang shop sales are very small.

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"Unlike the many other competitors in the Chinese market, the development of Yoox in China pays more attention to long-term benefits rather than short-term gains," said Mimi Vong, Chinese director of P > Yoox.

Yoox group is a listed international company. We have enough resources to invest in the Chinese market, and at the same time have enough patience to help build a healthy and orderly market environment for fashion e-commerce, so as to achieve sustainable growth.

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< p > according to the joint venture agreement signed with Kai Yun group, its flagship store, a single brand official network of some luxury brands, will be launched in China by the end of 2013.

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< p > domestic luxury electric business has fallen down frequently on the issue of brand licensing in the early days, and now it is constantly looking for licensing opportunities.

Taking the lead in the United States this year, Xiu Xiu network signed the Blue Nile, the largest US diamond supplier, and signed the cooperation agreement with the us a target= "_blank" href= "http://www.91se91.com/" > the designer /a /a Association (hereinafter referred to as "CFDA"), selling the CFDA membership brand "a", "four", "clothing" and "designer" member brand.

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< p > Wang Hao said that most of the purchasing channels for local luxury electric suppliers are two tier agents of the brand, while overseas more mature and stable channels are often purchased directly from the brand.

He believes that more and more brands are aware of the need to cooperate with local luxury electronics providers who understand the Chinese market.

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< p > > a href= "http://news.sjfzxm.com/news/fushi/20130618/346738.html" > Mimi Vong < /a > think that luxury e-business is still in its initial stage of development in China, and has very high growth potential.

Most of the local luxury electric business is supported by wind investment gold, so there is a need for short-term rapid expansion.

Some of them also have a good understanding of China's e-commerce practice.

However, cooperation with luxury brands requires a strong understanding of brand exposure, brand promotion and brand culture.

More importantly, building trust in the operation of brand and e-commerce.

This is a great challenge for some enterprises, not only in China but also in the global arena.

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