How Is The Pformation And Development Of Chinese Fashion Vertical Electric Business Right?

Opened in September

In the middle of the season, when the four fashion week of New York, London, Milan and Paris will continue the trend of spring and summer in 2016, China's fashion

Burning with passion.

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And so on, the electricity supplier of the comprehensive platform also took aim at this fashion trend.

Tmall announced the launch of fashion strategy last year. This year's "Tmall Huan Xin" autumn and winter new season, combined with more than 1000 brands to launch the new products, has also launched the "magic ride" virtual matching dressing room.

Jingdong has also recently joined hands with many fashion brands to interpret the fashion trend of autumn and winter in 2015. It also announced the launch of App Beijing wardrobe for women's fashion.

The comprehensive electricity supplier has entered the oligopoly competition state, and has continuously promoted the competition threshold: in 2014, Tmall traded 441 billion, Jingdong 122 billion 500 million, suning.com ranked third, 28 billion 400 million.

So are the vertical fashion providers who focus on a certain category have played these great skills?

Shadow of giants

It is understood that at present, the domestic vertical fashion business can be divided into four main categories. The first category is dominated by vip.com, dream bazaar and other clothing brands. The second category is beautiful, mogujie.com, clothing assistant as the representative of buyers, collocates led clothing business, the third category is dominated by jumei.com and other cosmetics, the fourth category is the show, charm, luxury and other luxury goods.

The field of female fashion electronics has been developing rapidly in recent years.

Insiders analyzed that women's strong online shopping consumption ability is the main driving force for the development of the industry.

For example, the amount of female consumption is generally higher than that of men in terms of the cumulative amount of online shopping. Among the high consumption group (annual consumption of more than 10 thousand yuan), women also occupy a significant trend.

In 2010 ~2013, the annual growth rate of female fashion business was more than 100%, while the growth rate slowed down in 2014, but it also far exceeded the overall growth rate of online shopping industry.

Analyzing the advantages of the integrated fashion platform and the vertical fashion business, Mo Daiqing, director of the online retail department of the China Electronic Commerce Research Center, said: "Tmall and Jingdong and other integrated platforms create a fashion ecosystem, and quickly grasp resources to create a fashion business through fashion brands, institutions and fashion professionals." although vertical electric providers do not have such a wide range of business scope, their niche areas are relatively specialized and sophisticated, which is a great advantage.

"The future standardization of vertical electricity providers have no chance," Liu Qiangdong, founder of Jingdong, predicted that "there will be only two modes for the electricity supplier to survive in the future, one is platform type, the other is personalized and branded vertical website".

Other standardized vertical websites either sell or die.

Because the frequency of repeated consumption of products sold on standardized vertical websites is very low, but the cost of obtaining consumers is very high.

The founder of clothing assistant and CEO Gu Ying Sai believe that the vertical electricity supplier and the comprehensive platform electricity supplier's future development direction are different. "The comprehensive platform flow is big, provides the customer more choices, the key may be selling itself, but the vertical electricity supplier's living reason is, provides the comprehensive experience service system for the vertical crowd, the purchase is only the middle link, rather than the first place".

In the mobile Internet environment, Gu Yingying said, compared to people reading, social networking and other behaviors through mobile phones, the frequency of purchase is relatively low, so vertical electric providers must meet some high frequency demand in the service before buying. The clothing assistant chooses strong content and occupation reading, while some fashion vertical electric providers choose to occupy the society with the community.

Price war can't burn out competitiveness

In fact, the development of the comprehensive platform business has also experienced nearly 10 years to establish its own barriers. The early stage of the development of Taobao is known as the "universal Taobao" because it can satisfy the extensive demand of consumers and reduce the trade links. The later Jingdong appears to further enhance its service pain points, such as improving product quality and brand, and improving logistics experience, such as consumers can buy afternoon service.

For other vertical providers, if they do not compete in price war by subsidizing consumers, it may be difficult to attract enough traffic, but burning money can not afford competitiveness. Vertical platform competition can not be built on the price, because the price is cheap and built on the basis of large quantities of procurement at the supply side. This vertical electricity supplier has no advantage over the comprehensive platform electricity supplier.

Therefore, the vogue vertical business operators should regard "selling" as one of the commercial links, and use more targeted experience to attract users. In the early stage of selection, collocation, fashion reading, community discussion, fashion hot recommendation and so on, later stage after-sales service will provide value-added services to consumers.

Gu Yingying believes that this is the meaning of the survival of the vertical category of fashion providers.

For example, for some young, post-90s consumers who are willing to choose branding, cost-effective, fashion changing clothing, the fashion vertical business platform will tell you how to choose a fashionable windbreaker, and will analyze how a windbreaker is produced on the supply chain end, and help consumers identify the windbreaker that is below a certain price, never buy it, because it can not be done from cost.

Focus on promotion and personality experience

In 2006, Chinese female fashion vertical electric providers began to develop.

With the increase of categories and competition, vip.com is going public, mogujie.com and beauty are in pition. The development of fashion women's vertical electricity supplier industry is deeper.

The research center of the Qing Dynasty expects that the paction scale of Chinese women's vertical e-commerce industry in 2015 is expected to exceed 60 billion yuan.

Because of this, vogue vertical business is popular with capital.

Vip.com successfully landed at the NYSE in March 23, 2012. The issue price surged from the initial 6.5 US dollars / share to the US $210 before the stock market was opened last year. At present, the market value of the company has exceeded 14 billion US dollars.

In terms of beauty, it revealed that its total turnover reached 5 billion 600 million yuan in 2014, and its performance target in 2015 will be 2 times higher than that in 2014, reaching 15 billion yuan.

In February, the dress assistant also announced that it received tens of millions of dollars in B round of financing, valued at nearly 100 million dollars, and invested in Jingdong. In February last year, mogujie.com also received more than 200 million dollars in C financing.

Like beautiful saying 338 million, "run, brothers!" in the third quarter of the famous commercial seats, Gu Ying noticed that some Internet platforms began to increase their investment in brand promotion from the second half of last year, and because the related promotion is still in the initial stage, the effect is very obvious, and the clothes assistant also started the action of brand promotion.

In the past, most of the vertical electric providers applied in the market to promote their functions. Although the cost is low, the loyalty of users is also low. Now vertical electric providers want to pass the brand dissemination, allowing users to accept and download through search mode. This way is expensive, and even compete with traditional brands such as electricity and advertising, but the loyalty of users is relatively high.

Of course, many vertical electricity providers are constantly changing in the growth to find the most suitable mode, for example, mogujie.com from the shopping guide mode to vertical electricity supplier.

Dressing assistant has also been pformed into a mobile fashion business from the original dressing and matching community, and is currently upgrading its brand to enhance the target consumer group to 200 yuan ~300 yuan white-collar, trying to remodel the mobile fashion business with content.

"The premise of going to the stage of brand communication is that the strategy is clear and the mode is relatively stable. Otherwise, large-scale brand promotion may not be worth the candle."

Gu Yingying thinks.

Of course, vertical electricity providers can not exert too much force. "If they come up and sell directly, they will put efficiency instead of the unique user experience in the front."

And the fashion business providers who focus on women also need to identify the target consumer groups and their own direction.

The founder and CEO Xu Yirong said that in the mobile and social networking era, Internet technology is needed to redefine the fashion industry, so we need to embrace the fashion enthusiasts, and say that the future will move towards the C2B2C platform.