Luxury Industry Is No Longer "High Cold" Into The Embrace Of The Electricity Supplier!

4 days after closing its store in Queen's Road Central, Hongkong, the US luxury luxury brand Coach reopened its official flagship store in Tmall at a low profile.

In today's "luxury and cold winter" season, Coach's move is considered a landmark event for the luxury goods industry to take the initiative to embrace the Internet.

Cooperate with domestic electric giant

In fact, this is not the first time Coach has been stationed in Tmall.

Soon after it became the first US registered company in Hongkong in 2011, it soon launched an online flagship store with Tmall, but the flagship store was closed only after a month on the line.

Coach's explanation is that the original agreement is only one month's operation period.

After three years, the Tmall flagship store is reopened, which is related to the strategic adjustment of Coach in the overall downturn of the luxury goods industry.

Reporters learned that Coach announced a series of brand pformation plans in June last year, pforming the brand positioning from "accessible luxury" to "modern luxury" lifestyle brand, and hopes to win more consumers through the "three pronged" pformation of products, shops and marketing.

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According to Coach, "China's

Grow fast and have great potential.

It is one of the global strategies of Coach to fully explore the unlimited potential of digital domain, and also an important part of the Coach brand pformation journey.

According to Coach, as of the fourth quarter of fiscal year 2015, its 55 cities in mainland China have directly operated 151 entities, while the official website has sold products to 300 cities in China. Therefore, besides building official shopping websites, they also hope to adopt Tmall's broader consumer groups for China.

Reporters at the Coach Tmall flagship store saw that the sale of goods covered handbags, clothing, accessories and other men and women's products, and prices were also consistent with the official website.

However, such luxury goods are sold online at the domestic original price, even if there is a genuine guarantee, there is a question mark about how attractive it can be.

Reporters at its flagship store saw a ladies' handbag priced at 5950 yuan, numbered 3440, while Taobao's search for overseas purchasing price was less than 3000 yuan, even if Tmall was another store selling overseas luxury goods, its selling price was only 3999 yuan.

This is already a precedent for Coach, another luxury brand Burberry running by Tmall's flagship store.

The Tmall flagship store, which opened in April of Burberry2014, is one of the first luxury brands to join Tmall. It also covers all its products. But from Tmall's sales record, the most popular selling item is the low price perfume, while its high price handbags and windbreaker are not recorded for a long time.

Another form of cooperation between luxury brands and domestic e-commerce giants is Hugo Boss and Jingdong, not in the form of brand flagship stores. Instead, Jingdong buys four series of nearly 10000 items in wholesale form to Hugo Boss in self run mode, and then sells online.

Reporters saw the sales front is also underwear, belts and other prices in the hundreds of dollars or so.

For consumers who are more sensitive to price, the more popular ones are the form of some luxury brand empowerment, such as glamour, Temple store and luxury goods network.

This kind of vertical luxury electric business is also increasingly favored by capital. In May 19th, Xiu Xiu net completed the C round of $30 million financing. In May 25th, the treasures network announced that it won the A round of 60 million yuan financing. In July 8th, the temple library network announced that it had won more than $50 million in E round investment from the Ping An Innovation Investment Fund. On the same day, glamour Hui also announced that it had won strategic investment from Alibaba, the amount exceeded $100 million, and Ali shares exceeded 50%.

A cautious attitude towards the Internet

However, as the luxury industry has entered a period of slow growth and changes in global consumer habits, luxury brands have been unable to be "proud" by themselves. Previously, their use of the Internet was mainly based on marketing, and their attitude towards e-commerce was relatively cautious.

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Zhou Ting, a luxury goods industry expert, believes that the Internet has become a prominent trend in the luxury industry. On the one hand, it is building an integrated e-commerce platform on its own. On the other hand, it is participating in the third party platform to set up flagship stores.

In 2010, luxury goods group bought 350 million British luxury electric business Net-a-Porter, another luxury giant opened the cloud and set up a joint venture with the electronic commerce platform YOOX, operating its online stores including BottegaVeneta, Saint Laurent and Paris.

In March this year, the two electronic business platforms announced the merger. The merger is expected to be completed this month. After the merger, the new company will be named Yoox Net-a-Porter group, and each group will take up 50% of the shares of the group, which is considered by the industry to be a concurrence between the Yoox and the cloud.

Recently, LVMH, the world's largest luxury goods group, has just dug the chief digital officer from apple to fully open the development of digital business, and has also injected British fashion Lyst.

Many luxury brands around the world have launched an attempt to build their own e-commerce platform.

For example, Fendi launched an e-commerce network in 28 European countries earlier this year, and plans to expand to the United States and Japan by the end of this year.

The industry believes that self built platform can control all aspects of sales, not only the image of the website can match the brand style, but also the best supplier in logistics and customer service, so as to ensure customer satisfaction.

Hermes also formally launched the new men's digital platform MANifeste in September 8th, including the whole men's wear series, including clothing series, shoes, leather products, necktie accessories and so on. All products are featured by video, text and lists, which can be purchased online directly.

It is reported that Hermes will also launch a platform to display women's clothing series.

Prior to the announcement, Hermes CEO Axel Dumas has claimed that "the electricity supplier and the physical store are complementary channels". It is understood that its brand online sales channels have covered 19 countries.

Even Chanel, who has always rejected the electricity supplier, has begun an attempt to "touch the net". In April this year, it cooperated with Net-a-porter to set up a sales area for its premium jewellery series Coco Crush, priced at Euro 1970-19000, and later this year it will sell glasses products on the US electricity supplier platform.

Moreover, Chanel also plans to launch a global electricity supplier network next year.

The report of McKinsey, a leading global consultancy, showed that sales of luxury goods in e-commerce channels totaled 14 billion euros last year, accounting for 6% of the total global luxury goods sales, representing an increase of 50% over the same period in 2013, and is expected to reach 2025.

Sales of e-commerce channels will reach 70 billion euros, and sales share will also rise to 18%.