Which Way Should Luxury Brands Enter The Chinese Electricity Supplier Market?

Luxury brands entering the Chinese electricity supplier market choose Tmall or WeChat, which has aroused wide discussion in the industry. Recently, the authoritative fashion media WWD released an analysis and comment that WeChat is the first choice for luxury brands to enter the Chinese electricity supplier market.

With the development of WeChat, its retail channel will be more perfect. Not only consumers can trust WeChat, but also the brand can be reassured to embrace WeChat actively.

As long as an official online shop is opened in Tmall, users can generally get users easily.

Last year, Tmall platform sales amounted to US $463 billion.

Surprisingly, Coach, the US luxury brand, suddenly closed its Tmall flagship store last month. Instead, it joined Cartire, IWC, MontBlanc and other luxury brand camps and chose to build a buying platform on WeChat.

This is the last time that Coach has withdrawn from Tmall since its second visit to Tmall last year. The brand entered Tmall for the first time in 2011, but its entry time was less than two months. As a result of the conflict between the two sides, Coach withdrew from Tmall.

Other luxury brands, such as Dior and Bvlgari, are promoting sales of WeChat products by conducting promotional activities with special products on Tanabata Festival this year.

On the seventh day of this year, Dior announced on its official WeChat public platform, "Lady Dior Small handbag Tanabata limited, online boutique officially launched", opened the electricity supplier service, the brand planned to organize 4 days of Tanabata Festival promotional activities for the 200 limited handbags priced at 28000 yuan, but within 24 hours after the news release, the handbags had been robbed.

WeChat has a large user base, and all luxury brands are tacitly informed.

APP, an active user with more than 700 million people, combines the functions of medical appointment, ticket purchase, online shopping and shopping. It has a very high viscosity and high utilization rate. It is not comparable to the general shopping APP.

Under the background of rapid growth of China's mobile users, according to data from Analysys think tank, by the end of 2015, 64.8% of online shopping activities were completed through mobile terminals, and this figure was only 9% at the end of 2013.

Apart from WeChat, no other company can sit on so many China Mobile users.

According to a research report released by McKinsey in April, the survey was conducted.

Of these, 31% used WeChat shopping, which is two times that of last year.

The report also pointed out that consumption of clothing and personal care products, which account for 25% to 30% of the total consumption, is mostly impulse consumption.

WalktheChat Graziani Thomas, co-founder of the official WeChat account for enterprises, points out that WeChat's "walled garden" effect has created an unprecedented sense of trust for China's e-commerce platform.

If the brand is built on WeChat's e-commerce platform that consumers can visit by WeChat, even the third party website, consumers will feel secure. Because they trust WeChat, trust is also important for luxury goods. Besides, users can also use WeChat payment for convenient purchase, which greatly improves the efficiency of shopping.

At the same time, Tmall has been trapped in its fake problem.

Data from L2 consulting firm show that brands do not necessarily make profits in Tmall, because shops selling on Tmall platforms have a long running time. When consumers search for products, these stores usually have a higher ranking of products. In fact, only 12% of Tmall's search results will lead to.

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L2 consulting points out that the flagship store established by luxury brands in Tmall does not get any priority when consumers search for brands. Such a priority can only be obtained by a few luxury brands, such as Ports 1961, Burberry and Tommy Hilfige, which can get 90% of search priority.

As for why these brands have priority, L2 consulting company did not disclose more.

Luxury brands Gucci and Michael Kors have been very sick of the Alibaba's selling problem. In the letter to the International Federation of anti-counterfeiting alliances, Alibaba said that Alibaba is the most dangerous existence in the fashion industry. Alibaba's strategy is confined to verbal support for brand law enforcement, but the problem of counterfeit goods on its trading platform has not been solved practically.

Last May,

Accusing Alibaba of connivance in selling and benefiting from the lawsuit against the Alibaba, the US Apparel Association recently called for Alibaba to be included in the notorious market.

Of course, the problem of counterfeit goods exists not only in Tmall, but also in China's whole business environment.

But Thomas Graziani emphasizes that WeChat's products are not suitable for every company, but only for those with a large number of loyal fans.

Thomas Graziani revealed that the success of Dior's 7th Festival Promotion was successful because of its high brand awareness, and many brand fans also actively spread the news on social media.

In addition, for the unexpected behavior of luxury brands, Dior's action has also caused different controversies. Earlier fashion headlines reported that Dior was the first luxury brand to sell handbags on WeChat platform. He believed that other brands selling products in the same way would not necessarily duplicate the effect of Dior.