Second Hand Luxury Electric Business, How Can The Fat Tiger Break Through The Traffic Predicament?

What is the way out for start-up companies? The answer given by Ma Cheng and his "fat tiger" is that they should go down the line or do ToB business.

According to the world clothing shoes and hats net, in September this year, second-hand Luxury goods The first line of the electricity supplier is a real store. The store is "hidden" in Sanlitun. SOHO In a tower, there is no prominent Logo, nor is it on the main road. But Ma Cheng, co-founder of the company, said that the real estate business was profitable in the month and nearly 10 million of its turnover by December.

The Internet start-up company, originally intended to "kill the middlemen of luxury goods and become a C2C platform", has found that C2C is a very false proposition after a year's trial. So turn to start.

Steering

The first time I saw Ma Cheng was in March of this year, with the idle fish and the high-profile spanfer, the platform for the main second-hand trade was once again sought after by the capital. At that time, fat tiger invested in the tens of millions of angels of the enlightened star.

In the university period (2002), the virtual equipment trading platform made in the game was full of money. In the past 08 years, we have come into contact with luxury goods. Starting from watches, partners have opened three second-hand luxury goods stores.

In 2015, Ma Cheng withdrew from the store and bet on luxuries. Online retailers 。 He said that being a fat tiger is due to the problem of information closure and narrow circulation channels in the spanaction of second-hand luxury goods, so he wants to use C2B2C mode to open up the trading links: one side, let the seller take pictures directly to upload the merchandise information, and the other end buyers pay the App directly to the fat tiger. The seller sends the product to the platform of fat tiger for inspection. The platform will issue an appraisal report, confirm the delivery after the confirmation, and the seller will withdraw the money. During the whole process, the fat tiger earned a service charge from him.

In order to increase user stickiness, Ma Cheng even wanted to increase the function of dialogue to App like idle fish.

However, by the second half of this year, Ma has dismissed the idea of making a C2C platform.

"The main problem is traffic. C2C users are growing too slowly and very expensive." Ma Cheng said.

Previously, the flow of fat tiger mainly came from Taobao auctions. The monthly water flow was around 3 million, which not only could eliminate the C end products of the fat tiger, but also could drain the fat tiger. "Every auction participant has 1000 people, and hundreds of people are spanferred to the platform, and four games are held a month."

However, in May this year, Alibaba integrated the leisure fish business with the auction business, and Taobao's auction business was integrated into APP. This allows Taobao auction to reduce the diversion effect of fat tiger. "Users of idle fish are not the target consumers of luxury goods. They are putting the fish and the auction together, and the quality of the traffic is decreasing."

Ma Cheng also wanted to promote App by regular application stores and channel loading, but the niche of luxury goods made him think. According to the data given by him, a downloading cost of App is 10 yuan. Because of the low number of luxury users, more than 100 people will have a user's order, so it costs more than 1000 yuan to get an order user.

Under the pressure of traffic, the fat tiger made two adjustments in the second half of the year.

Adjustment

As mentioned above, the original goal of fat tiger is to build a C2C platform without middlemen. But in this adjustment, the fat tiger reduced its investment in C2C business, but shifted its focus to toB business and offline stores.

ToB business

Ma Cheng told me that the whole second-hand luxury goods industry has about 30 billion of the floating plates, and 1/3 of them are selling goods between peers. It has been separated by tens of thousands of small and medium-sized peers across the country. The direct C2C spanaction is very few, mainly through the small and medium-sized sellers as an intermediary.

Since middlemen can not be eliminated, go to their business.

The 500 people gathered in Ma Cheng's WeChat were twenty or thirty, and in his words, "the basic knowledge of this piece of second-hand goods in the whole country is known." At first, he organized auctions in WeChat group. Most of the products were his own stock, once a week, the turnover was 2 million to 3 million, and nearly one hundred million in one year. "This is just a test for a watch, and nothing has been tried yet." Now what the fat tiger wants to do is lead the auction to the App of the fat tiger, and spanform her colleagues into the B seller on the fat tiger App. "If we focus on toB, we don't need to look for external traffic."

Since WeChat group can make things, why do we have to go to the platform? For this doubt, Ma Cheng said that because many of the customers between the peers are interlinked, they do not want to know how much money they have been photographed, so they need some secret mechanisms.

Although B terminal business does not require traffic cost, its gross margin will be greatly reduced. Usually, the gross margin of luxury goods toC is between 20% and 25%, but it can only be sold to 8% to 10% of peers.

Offline shop

In addition to toB business, Ma Cheng has re established the old line of offline stores. "Buying luxury goods is a heavy experience. Online can only meet the needs of cheap, and can not meet the needs of services. The price of the App is 7000 yuan, which is very high for App, but the 3W of our shop is only offline. After the price exceeds 1W, users still prefer to consume under the line, see and feel, and are more likely to impulsive consumption.

But the difference is that Ma has used the crowd raising mode to expand the shops and focus on the development of the two or three tier cities.

Take the Sanlitun store as an example, the whole shop is 70% of the technology of the fat tiger, and the remaining 30% is a public shareholding company. Because they are luxury goods and want to get together people with high incomes, the fat tiger has a higher demand for shareholders who participate in the crowd raising. Ma Cheng told me that 1/3 of the 30 shareholders who participated in Sanlitun's public chips were VC partners, others were students who studied in Tsinghua EMBA, and students from the Yangtze Academy of Commerce. "There are two or three more powerful ones that can not be said outside."

In the expansion of the two or three tier cities, local partners were added.

Take the Qingdao store, for example, to share some of the equity with the city's partners in the stock market. In Ma Cheng's view, the size of this partnership means the future of the store's customers. "Compared to the first tier cities, there are fewer people in the upper tier of the two or three tier cities, and if they find a good partner, they can cover the whole upper circle." "I hope he comes in with his contacts and social circles. Tens of thousands of dollars do not make much sense to us."

Ma Cheng did not worry about the loss of the shop, and even he did not make any profit. It was impossible for him to make money. He sold the fat tiger to him and had many chips, so the main cost was in terms of rent and manpower. The operating cost of a three line city (such as Linyi) was almost 600 thousand a year. According to the gross profit of 20%, we could get a flat sale of 250 thousand a month.

Conclusion

According to Ma Cheng's assumption, in the next year, they will open 5 - 8 stores under the physical store, and online and offline water will achieve 3 hundred million.

Continue to do C2C mode, fat tiger can not get up, also can not say, after all, want to kill the middleman's fat tiger is not the first, second-hand car field from melon seeds to everyone's car all loud. But Ma Cheng did not want to wait any longer. He said, "we need to get up soon."

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