Luxury Electric Business Market Variables Revive Into Survival Dilemma

Luxury electric business market variables again. Less than half a year after the official launch, Niemann Marcus, a high-end chain store with hundreds of years of history and luxury goods, recently announced the reduction of Chinese online shop staff and will close the Chinese warehouse to the US headquarters for product sales and shipment.

The large foreign-funded retail enterprises, which are considered to have "innate advantages", are also encountering Waterloo in luxury e-business, which makes the luxury electric providers pessimistic about changing the situation of gloomy business.

　 Market potential brings excitement

Like group buying websites, from the early imitation of overseas mode to the "Chinese style survival", luxury electric business has experienced a roller coaster experience from high speed development to instant drop in China, and "failure", "unauthorized" and "loss" have become synonymous with this industry. More luxury electric providers have been transformed, many of them become fashion business providers focusing on high-end brands.

However, contrary to the current situation of poor management and the continuous closure of luxury goods websites, it is a statistical report and a broad market prospect for the growth of the luxury market.

According to the data provided by Bain consulting, the sales of luxury goods in Greater China in 2012 amounted to 181 billion yuan, becoming the second largest luxury goods market in the world after the US.

At the same time, data from China Electronic Commerce Research Center show that in 2012, the scale of Chinese luxury online shopping market reached 17 billion yuan, and it was expected to exceed 20 billion yuan in 2013.

Let more luxury business operators "excited" is that compared with developed countries, China's luxury online sales account for only 3% of the overall sales of luxury goods, far behind the proportion of 12% of the US market, which means huge market opportunities and potential.

　　 Trapped in the dilemma of survival

In fact, in the background that China's luxury goods market has jumped to second in the world, people can not help asking, why do luxury electric providers still get into a survival predicament under the vigorous demand?

Since 2009, luxury goods providers in China have been competing with each other: luxury websites such as vip.com, Tian pin, Xiu Xiu, Fifth Avenue, Wan Dian net, Ju Shang Wang, and treasure net have been launched online, while Sina, NetEase, Jingdong, fan Kong and others are trying to open up luxury Channel.

However, there is no experience in the luxury industry, and the upstream industry chain is controlled by others. The days of domestic luxury electric business websites are not very good at the beginning.

This embarrassment not only makes the luxury goods sold by these mainland suppliers unknown, but also makes it difficult to distinguish between the true and the false. It also makes it possible for the mainland electric providers to operate these unknown sources of luxury to face the great risk of becoming defendants at any time.

"The low credibility of the electricity supplier and the instability of the supply channel are the main causes of the loss." Insiders said that the sale of luxury goods by domestic electricity suppliers has become the unspoken rule of the whole industry. The management and control of international luxury goods enterprises has been very strict. It is not easy to authorize the third party network channels, mainly through direct sales outlets. This makes luxury goods the weak spot of online shopping, and is also the main reason why luxury electric business performance has been difficult to break through.

In March this year, SWAROVSKI, the world's leading crystal maker, issued a statement warning Jingdong mall to sell its products, saying that it did not authorize any website to sell its products in China. In June 2012, the official micro-blog of the Tissot official also stated that dangdun watch sold by Dangdang's "father's Day sales promotion activities" had not been authorized.

Disputes like this brand dealer and network business have come one after another in recent years. Among them, Kark has been reported and sued by the Chinese agent for the show. It has a far-reaching impact on the industry. Since then, Dangdang and Gao Peng have been exposed for selling counterfeit watches, which has aroused widespread concern.

A press survey found that up to now, there is little possibility that the luxury goods suppliers in China can fully win the authorization of luxury goods. The regular source of luxury websites in China mainly comes from overseas discount stores, brand retail stores, brand agents at home and abroad, as well as the purchase of goods from brands. Under the narrow and unreliable channel of purchase, the quality of goods sold can not be guaranteed. Most of them are "off the shelf goods" over season and non hot money, and consumers simply can not enjoy the perfect service of luxury goods.

Earlier, media reports said that more than 99% of luxury goods sold by domestic electricity providers were not authorized, and pointed out that under the condition of high gross profit and luxury goods themselves, it is difficult to identify and identify the online luxury goods. The most urgent task of luxury shopping websites is to solve the bottleneck of upstream channels, that is, the shortage of goods without authorization.

According to some overseas purchasing shop staff, the average import tax rate of luxury goods in the Chinese market is 16%. In contrast, the average import tax rate of international luxury goods in the North American market is 10%, while that in the European market is only 6%. In addition, many luxury goods companies pursue the "skimming strategy" in the Chinese market (pursuing high profits and high pricing), making the price difference between the same luxury goods at home and abroad huge. "A GUCCI bag will sell for more than 8000 yuan in the exclusive stores in China, and it can be bought in more than 4000 yuan in Italy."

In fact, more and more Chinese consumers have realized the gap between domestic high prices and costs. The number of luxury goods purchased overseas and overseas is increasing. This also has a certain impact on luxury electric business.

　　 Contradiction between less and more

Sun Lijian, vice president of the school of economics, Fudan University, said in an interview with the media that, compared with the past few years, the consumption capacity of Chinese luxury goods is weakening from the market group of luxury goods, which also reflects that China's entry into the luxury consumer market is very limited. A few high-income groups in China have already held commodities through pre investment, which also brings pressure on the subsequent expansion of the luxury consumer market.

"The definition of luxury is something that few people can afford, but the electricity supplier wants luxury goods to be what most people can buy, and the two are paradoxes." The industry generally believes that under the environment of advocating moderate consumption and sustainable consumption, the consumption of public funds has been severely restricted. The consumption behavior aimed at showing off wealth has also cooled. The authenticity and shopping experience of the products on the online channels are still lacking, and Chinese consumers still think that online shopping is the concept of "cheap" consumption, which makes the domestic luxury electric providers may undergo a more severe test.