Overseas Luxury Electric Providers Into China Brand Resources Fear Diversion

Recently, the Shanghai Free Trade Zone announced that it will fully liberate the proportion of foreign equity in the operation of e-commerce business, up to 100%.

This move, means that a large number of pure foreign luxury goods and fashion business enterprises will be able to enter China, local fashion e-commerce pattern or will usher in change.

Not long ago,

The Free Trade Zone issued a circular on the liberalization of the proportion of foreign equity in online data processing and paction processing business (Electronic Commerce) in the China (Shanghai) free trade pilot area. The announcement pointed out that within the Shanghai free trade area, the proportion of foreign equity in online data processing and paction processing business (e-commerce) can be reduced to 100%.

The reporter learned from the Shanghai Free Trade Area Management Committee that fully liberalized the proportion of foreign equity, which means that pure foreign luxury business enterprises can directly carry out business in China in the free trade area.

Not only internationally renowned overseas luxury electric providers can set up new businesses in the FTA directly in China, but also wholly funded by foreign investors in the Shanghai free trade area.

As a result, shopping on the foreign fashion business platform will be very different from shopping on the local fashion business platform. There will be no high international freight constraints. The goods can be made by foreign fashion providers in China.

。

Prior to that, even overseas companies such as Amazon and eBay had been exploring the Chinese fashion online shopping industry, but overseas luxury goods and fashion providers did not fully exert themselves in China.

Now, the new deal of the FTA will attract a large wave of pure foreign fashion e-commerce to China market.

Domestic fashion providers will no longer be the two or three giants of the local industry.

If Alipay used to be shopping on the four largest overseas cooperation department's electronic business platform, it was an annual event that excited domestic consumers. Then the new policy of Shanghai Free Trade Zone meant that the market pattern of domestic fashion e-commerce will be changed.

Competition is fierce.

Compared with overseas luxury electric providers, there is a big difference between the operation environment of luxury goods and fashion e-commerce platforms in China.

The first thing to bear is the authenticity of the goods.

For example, luxury luxury goods group such as net-a-porter, such as the famous luxury goods supplier of the overseas luxury goods group, sells goods on the channel strictly, and the genuine source is absolutely trusted by consumers.

Now, pure foreign electricity providers with absolute advantages in genuine supplies are allowed to enter China, and the pressure faced by local fashion business enterprises can be imagined.

However, a senior Chinese fashion dealer who did not want to be named, told the Beijing Commercial Daily reporter that whether it was Amazon, or eBay, overseas fashion retailers were not convinced in the Chinese market.

China's luxury and fashion business environment has been flooded with no lower price competition.

Under the low price of breaking the bottom line, selling or selling fake or fake is an open secret in the industry.

And overseas luxury goods providers face such a "bloody" domestic luxury business environment, to ensure absolute quality, and how to win the price is a major challenge.

And abandoning the source of genuine goods, overseas fashion providers have lost their core strengths, which is a difficult task.

"If the foreign luxury E-business has successfully launched its business in China, under the pressure of competition, the fashion brand may have the trend of collective" electric shock "self operated online business in China. At the same time, because of the bonded policy of the free trade zone, the price of luxury goods will also be lowered with the accession of overseas electricity providers.

Fifth Avenue luxury network CEO Sun Yafei said.