Luxury Industry Opens Up Electricity Supplier Competition Era To Accelerate Digitization

Apple has been repeatedly removed from the luxury industry by executives of technology companies, and has recently been dug up.

LVMH group, the world's largest luxury goods company, has announced the establishment of a new chief digital officer to fully open digital business.

The post will be appointed by IanRogers, former senior director of Apple Corp music business, which will take office in October.

For the LVMH group, the luxury industry believes that

In the luxury industry has become an indisputable trend, and luxury electronics business platform Net-A-Porter and Yoox will be officially completed this month to mark the two other luxury goods group, the peak of competition and the opening of the cloud in the electricity business, the LVMH group also has to accelerate the process of digital reform, including the reconstruction of human resources in this field.

Accelerate the process of digital reform

The chief digital Officer (ChiefDigitalOfficer) is a senior executive position that has risen in recent two years and is seen as a powerful help to achieve the vision of the organization.

Transnational human resources service solutions

Sun Haining, marketing director of Ren Shi Da China, said in an interview with reporters, "for luxury companies, sales management of key accounts is very important. Setting up the position indicates that LVMH group pays more attention to data marketing and customer big data analysis and management.

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It is reported that IanRogers8 has just announced its departure from Apple Corp on 28 February. He joined the company after being bought by Apple Corp for 3 billion dollars in BeatsElectronicsLLC2014.

Despite the prospect of digitalization, the brand of LVMH group, which owns many luxury brands, is of different digitization.

Despite the experience of LVMH group's main brand LV in the website (for example, from selecting products to completing shopping, the number of times customers need to click the mouse is reduced, it is very convenient to find offline shops, and the sharing of a product to the social network is more convenient), but it is ranked the lowest among the group's C e line and Fendi composite score. The two brands have not exposed to any social media, nor have they opened an e-commerce platform.

"The Internet has become a prominent trend in the luxury goods industry. The luxury group like LVMH will exert its strength in two aspects in the future," Zhou Ting, President of the luxury research and wealth Quality Research Institute, told reporters. "On the one hand, we will build our own electronic business platform. On the other hand, we will establish a flagship store with third party platform providers. The electricity supplier will lead the flow to the brand, the brand will control the logistics and information flow, and communicate directly with the consumers."

In view of the above Internet trend, Zhou Ting understands, "at present, luxury brands are carrying out four aspects of action, one is the pformation of offline stores, the two is the reconstruction of information system, the three is the combing and reshaping of goods and price systems, and four is the pformation of talent resources that match them.

The latter includes increasing recruitment of new media and market research talents, digitalization and Internet talents.

Last year, L'OREAL group, the world's largest cosmetics company, also set up the position of "chief digital officer". LubomiraRochet, a Bulgarian executive who took up the post, joined the Group Executive Committee.

L'OREAL group's first half report released last month showed that the sales revenue of group electricity suppliers increased by more than 40% over the same period, accounting for 4% of the total sales, of which the sales volume of mass products department in China has reached 15% as compared to that of online sales. The sales volume of the group in 2015 is up to 15%.

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Electricity supplier competition

In fact, more and more

Increase investment to improve and enhance the digital experience of the brand, and expand the digital business team.

The other two luxury goods groups have also explored a lot in the field of e-commerce and digitalization.

As early as 2010, the Swiss luxury group made a full acquisition of Net-A-Porter, a luxury electric business in the UK.

France Kai Yun group and Italy luxury electric business Yoox set up a joint venture in August 2012, which is responsible for managing the e-commerce website of Kai Yun group's brand.

By the end of March this year, the world's first and second luxury electric providers, Net-A-Porter and Yoox, formally announced the merger and set up YooxNet-A-Porter group. The estimated market value will exceed $2 billion 500 million (about 15 billion 600 million yuan), and the two companies will officially complete the merger in September this year.

JohannRupert, executive chairman of Richemont, has said that the group is discussing with two other luxury electronics giant LVMH and Kai Yun, hoping that LVMH and Kai Yun can finance the new luxury YooxNet-A-Porter group.

"The merger of Net-A-Porter and Yoox's two big business platforms will make the two major luxury groups of the peak and Kai Yun go further on the road of electricity supplier convergence". Zhou Ting believes that luxury brand competition has entered the era of competition and cooperation. It is not ruled out that the three major luxury goods groups will further cooperate in the electricity supplier in the future, and once again monopolize the luxury pattern of the control line.

In addition to reforming the organizational framework to set up the chief digital officer, LVMH group also increased its investment in the luxury Internet sector this year, injections of $40 million into the British fashion business Lyst, founded in 2010, and has become a leader in the LystC round of financing.

Lyst is a collection platform of luxury brands and buyers' stores. In 2014, its total sales volume was $40 million, compared with the sales volume of 650 million pounds (1 billion 20 million US dollars) of luxury shopping websites in Net-A-Porter2014, Lyst is still growing.

In China, Benefit, the cosmetics brand of LVMH group, entered Tmall at the end of 2011, but it withdrew after half a year in.

According to Benefit later, Tmall is an attempt by LVMH to China's electricity supplier. Although the feedback data is good, no final conclusion has yet been reached.

The McKinsey digital luxury experience report shows that as of 2014, online luxury goods sales totaled 14 billion euros, accounting for 6% of the total global luxury goods sales (224 billion euros), representing an increase of 50% over the same period in 2013.

Prior to 2009, McKinsey predicted that by 2015, fashion sales accounted for about 2% of the total sales of luxury goods, about 4 billion dollars. For this reason, it adjusted its view of luxury digital channels, and predicted that in the next ten years, the sales of luxury electric business will increase significantly. By 2025, global online luxury goods sales will reach 70 billion euros, accounting for 18% of the total sales of personal luxury goods (390 billion euros).