What Are The Advantages Of Luxury Goods?

For a fully competitive market, it is not so easy to wear a pair of trousers. Sun Yafei, founder and CEO of the luxury goods network of Fifth Avenue, believes that the three luxury groups can not really achieve alliances because of their respective interests and differences of ideas.

Sun Yafei said that the group has announced that it will own 50% of Yoox/Net-a-Porter shares and 25% of the voting rights. Therefore, even if LVMH group and Kai Yun group inject capital, the two will have no advantage over the company's shareholding ratio and voting rights. As a large group with rich luxury resources, it will take high-quality brand resources on the platform of competitors' holdings, but at the same time, it will be subordinate to the equity and voting rights. This will not be acceptable to LVMH group and Kai Yun group, a French enterprise background. In the field of luxury goods, the competition is intense, and the electricity supplier trend is in the experimental stage. No one will be willing to do the wedding dress for others.

In addition, as the backing of Yoox/Net-a-Porter, the core brands such as Cartire, Vacheron Constantin, Jaeger Le Coulter and so on have not been put on the line, which may also make competition hold hands.

According to the view of the North Business Research Institute, the peak group is eager to show its good performance. It is closely related to its declining performance. The competition in the luxury goods industry is intensified. E-commerce is the future of the retail industry.

The 2015 financial year results released by the peak group recently showed that net profit fell for the first time in five years, a year-on-year fall of 35.4%, from 2 billion 67 million euros in fiscal 2014 to about 1 billion 334 million euros.

At the time when Li Feng invited competitors to join the electricity supplier, luxury goods were at a stage of price reduction. Obtaining the global unified selling price is regarded as a luxury item to pave the way for further touches. Chanel cut 20% in China in March 18th this year, and soon launched its debut on the Net-a-Porter luxury website with its new jewellery. This will undoubtedly become an example for other brands.

Brand price reduction, luxury electric business has also set off a low price frenzy, sharing this rare consumption stimulus. When Chanel lowered its price, the domestic luxury goods business Temple library quickly posted "Chanel whole bag bag down" theme on the top of the official website's home page, and even some products were lower than the European price.

Analysts believe that, "before, luxury brands have been excluded from e-commerce, and are keen to expand their stores, but in the future they may cooperate with professional e-commerce platforms." Sun Yafei believes that the platform that is consistent with brand positioning and tonal adjustment is more likely to get the authorization and cooperation of luxury brands.

At the same time, the luxury group will also expand its market. CEO, Ji Wen Hong, shows that luxury goods giant is actually encouraging more users to buy luxury goods through e-commerce channels, not just limited to physical stores, which is actually making the market bigger and allowing more players to participate. But Ji Wenhong also admitted that the luxury group could not put all its styles on the online channel for its own consideration.

As for landing Electronic business platform Will it lower the brand positioning? Luxury brand Industry insiders say that for today's luxury brands, maintaining image is important, but sales performance is also the basis of survival. In the future, the brand may decide the depth and product line of its cooperation, such as brand glasses and accessories, depending on the positioning and tonality of the electricity supplier company. The positioning requirements for the electronic business platform are not too high, and it is good to get a higher sales volume; and core brands and core businesses such as leather goods, clothing, high-end jewellery, wrist watches and so on will be relatively cautious.

Previously, e-commerce giants in China Alibaba Also revealed the ambition to enter luxury. In March this year, Ma Yun went to Italy to meet with government officials to discuss the introduction of the famous brand of Italy into Tmall in the way of cross-border e-commerce. For this reason, Tmall is intensifying its in-depth cooperation with the Royal Mail and Australia Post in cross-border logistics, striving to "enable Chinese consumers to enjoy the global parity" without leaving home.

However, it is not easy for a comprehensive e-commerce platform to get involved in luxury products. Many luxury electric providers in China are operating bottlenecks, eventually transforming mass consumption or high-end, such as Shang pin network, vip.com, etc., which started with limited time discount mode. (Beijing business daily / Wang Xiaoran)