Luxury Electric Business Is Still A False Proposition.

A trading company called Yi Peng Hengye has rented a set of dwellings in Yanjiao, Hebei, specializing in the sale of Armani, Burberry, Dior, Hermes and other world-renowned luxury goods, including luggage, clothing, cosmetics and so on. The next step of these high simulation luxury goods is to move to the mainstream Chinese e-commerce platforms such as jumei.com, Jingdong, 1 store, Amazon and Gome online.

In other words, consumers usually buy luxury goods such as Armani, which are purchased at low prices on these electronic business platforms.

Jumei.com and Jingdong responded very quickly. An official statement was issued on the same day, saying that the third party platform providers were sold, but the company was unaware, but they would track down the responsibilities of the relevant auditors and promise to return products without packages. However, such a statement is not enough to quell public anger. They are laborious to log on to these electronic business platforms to find cheaper luxury goods, not because of the latter's intolerance of counterfeit goods.

But luxury electric business is a false proposition from birth. Luxury goods have very high gross profit. Customers purchase more of their needs, such as identity recognition, noble service, exquisite and textured packaging, etc. The biggest advantage that electricity providers can stick to users is low price and logistics, and it is difficult to provide the feeling that luxury can bring to their owners.

Just a few days ago, I just chatted with a business expert, Huang Ruo, who had worked in traditional retail and e-commerce for many years, talked about the topic of luxury electric business. "The entry point of luxury electric business is not right." He said, this is doomed to China's luxury electric business can not be successful, if successful, it is the sword to take advantage of another way.

Huang Ruo believes that most Chinese consumers buy luxury goods first, but the price is almost contradictory with their showing off. Even those who buy discounted luxury goods on e-commerce websites do not want to tell people that they are buying cheap goods.

China's luxury website reached a small climax in 2009. Hohhot, luxury goods network, walk show network, Jiapin network, Fifth Avenue, vip.com and other electricity providers all over the world. They all learn from the Gilt mode of American luxury electric business website - membership, discount and luxury brands.

At the same time, they ignore the key factor of Gilt's success, which is a lot of stock and extrusion products of American luxury brands. This enables Gilt to easily open the door of luxury brands and make them willing to become their suppliers.

The market situation in China is quite different. Luxury goods are still in short supply. For example, the Hangzhou Tower LV counters in downtown Hangzhou are not the largest and most luxurious counters in the world, but the highest monthly sales counters in the world. No stock extrusion pressure brand, no reason to become a supplier of low price to win the electricity supplier.

And China's electricity providers, even if they do the volume of Alibaba, still win the price of goods. In recent years, B2C Jingdong, such as Jingdong, which have low price advantages, have been afraid to pull prices back to normal level in order to attract and stick more users. This makes the electronic commerce website not dominant in the eyes of commodity suppliers. Wang Yulei, President of Tmall, once accepted the business weekly / Chinese version. At the beginning of Tmall, he refused to cooperate because he was unwilling to lower the online price below the offline counters.

along with Online retailers With the fierce development, the platforms of Tmall and other platforms are becoming more and more powerful. Traditional channel Outside the electricity supplier channel. However, as Huang Ruo said, whether in traditional retail or in the field of electric business, luxury goods are different from general merchandise. The marketing rules applicable to general merchandise can not be applied to luxury goods.

Today, even Alibaba, valued at US $200 billion in the US capital market, has just talked about a luxury brand in Burberry, and the price of Tmall's official flagship store is no different from that of a retail store under the Burberry line. Tmall official said that the negotiations lasted for a whole year. Zhang Yong (micro-blog) and Wang Yulei two Tmall president repeatedly led the team to Burberry China headquarters in Shanghai, and finally moved the latter to cooperate.

And all others Luxury goods Electricity providers have no official authorization for luxury brands. Of course, this does not mean that they sell fake goods. Because of normal channels, they can sell overseas discounted luxury goods to Chinese users by buying, purchasing and buying. This has also given some fake products an opportunity. According to Tencent science and technology report, the company called Yi Peng Hengye has a special person who is responsible for forgery of written documents such as brand authorization documents and customs declaration documents, so that some consumers are hard to distinguish between true and false.

Traffic is also a demand for luxury goods and electricity providers. In the field of e-commerce, traffic is king, Taobao Tmall has more than 400 million registered users, Jingdong has more than 100 million registered users, jumei.com has about 10000000 active users, and vip.com has about 7400000 active users. For general merchandise, the advantage of such a huge flow is self-evident. But luxury goods are different. What they care most is not the users who buy a discount item only for a few years, but stick to those old customers who buy new products all the year round, and then use word of mouth marketing to attract new users who share the same purchasing power with these old customers.

Luxury goods providers in China combine the volume of traffic, discounts and extravagant luxury goods. Honestly, this is not the mainstream of luxury goods. Huang Ruo told me that even the Gilt of the industry benchmark has just been profitable in fifth years and is still not considered the mainstream of luxury goods.