What Will The Future Pattern Of China'S Luxury Electricity Supplier Industry Be?

The electricity supplier industry has never been as busy as today.

According to the world clothing shoes and hats net, 10 years ago,

Test the water electricity supplier, and detonate the industry concept; 10 years later, the same group of 24 S vres online, ignited the fire of the luxury goods business war.

There is no doubt that the final battle for luxury electric business will be carried out in China. Not only the Chinese have consumed the most luxury goods in the world, but also because China is the country with the highest penetration of smart phones and e-commerce.

Last month, after Jingdong's $397 million injection of Farfetch, it proved that the war had already begun.

Therefore, it is time for us to spend a certain amount of time to analyze the specific pattern.

The luxury electric business in China can be divided into four categories. The first category is the international luxury goods represented by Yoox and Net-a-Porter.

Brand; the second category is luxury brand and group business channel represented by Burberry and Coach; the third category is the local pure electric business representatives represented by Temple library network, Xiu Xiu net and glamour Hui; the fourth category is luxury channel or department such as Tmall and Jingdong.

The above four kinds of companies are related and have their own advantages: the platform with a heavy financial resource, the industry leader who sits firmly in the western mature market, the largest brand group in the world, and the survivors after the most brutal market.

If, in the above four categories, choose a final Chinese market command world, I will not hesitate for a second to choose the local electricity supplier represented by Temple library, walking show and charming charm.

Of course, there may be integration among these local businesses, such as the US group review.

Why do we say this? We analyze them one by one.

Yoox.cn and its parent company, which were launched in China in 2012, have been in China for 5 years, and have never disclosed the specific data of the Chinese market in 2012.

YNAP's annual report shows that in 2016, the Asia Pacific market revenue growth (fixed exchange rate) was 27.1% to 300 million euros, accounting for 16.2%.

How can we measure the current position of the Chinese market in YNAP? We should compare the income of several major luxury groups. The Prada group accounted for 12.4% of the Japanese market in fiscal year 2016, and the other Asian Pacific market accounted for 31.6%; the Burberry bolboy Asia Pacific market (except India) earned 1 billion 69 million pounds in the 2017 fiscal year, accounting for 39%; Gucci Gucci accounted for 10% in Japanese fiscal year 2016, and 34% in the Asia Pacific market.

It can be seen from the proportion of Asia Pacific market that Chinese consumers who have unlimited desire for luxury goods actually have much less desire to buy luxuries in the channel of e-commerce.

There are several reasons. Fakes are the most important ones. The Jingdong sales and the fake express orders issued by the logistics industry have made consumers feel uneasy. The second reason is that luxury goods usually open the electricity supplier channels in the Chinese market at the latest. Third, the Chinese consumers who prefer to consume luxury goods in electricity consumption are the first choice for tourism consumption, that is, overseas consumption.

The world's largest luxury goods supplier YNAP's discount electricity supplier The Outnet has become an unfortunate test in China.

YNAP's entry into China for 5 years is very small, partly because the industry is still in its initial stage, but more importantly, there may be a lack of essential understanding of the Chinese market.

In technology related industries, we see many examples, from Amazon to iPhone, and ultimately to China's local competitors.

Fast learning and fast running are the biggest characteristics of Chinese technology enterprises.

Even if there is no comparison of cars in the past, in the luxury electric business, we can see that Nyman Markus has been disbanded half a year in China's e-commerce website. Messi's investment in Jiapin network has been completely different from "upgrading". When do I know when to open again, these bloody real cases, even YNAP's discount website theOutnet.cn is a very typical failure case.

Therefore, YNAP will not be able to run ahead in the past 5 years, and the next 10 years will be even more difficult.

A true paragraph: a British brand that sells things on Tmall can pay royalties to Alibaba.

The second category of brand e-commerce channels can actually not be discussed, because most luxury brands are under $5 billion, and the ceiling of their e-commerce channels is around 600 million dollars, accounting for 12%, not to mention China's e-commerce channels.

But why do I have to say it? Because there are a few large groups such as LVMH SE, Kering SA, and Richemont SA, and even LVMH SE, the 24 S vres, which was launched in early June, is one of the landmark events of the industry this year.

However, judging from the current pattern of luxury electric business and the above luxury group strategy, they are not the real competitors of the market.

In the past few years, has luxury group been able to prevent YNAP from becoming the industry leader? Neither Yoox.cn nor Net-a-Porter.com has sold a LV product today.

Back to the brand to do business, LV began to do business 10 years ago, and it was immediately wrong.

Today, even if the line is 24 S vres, but it is not a strategic level, the group also expressed the hope that the outside world should not expect too much.

In addition, the Chinese market has not been opened.

As an industry leader, the average customer price of YNAP is just enough to buy a wallet with the lowest LV price. There is still a huge gap between the channel's consumption power and the luxury goods industry.

So, as LV, Gucci and Chanel, these brands are not for sale.

Therefore, luxury groups are not necessarily less capable of being the leader of the luxury electronics business, but for their own interests, this is not a good thing.

A true paragraph: in 2015, Chanel's price cut in China triggered an unprecedented cut in the industry. It neither saved Chanel nor saved the luxury goods industry. The depreciation of RMB and foreign exchange tightened the retaliatory rebound of China's luxury market in the second half of 2016.

The focus is coming. As the third category of local pure luxury electric providers represented by Temple library network, Xiu Xiu net and glamour Hui, why is it the most likely winner?

It is hard for China's luxury electronics business to have new local competitors. The current "Survivor" is a brutal battle over the past 8-10 years. The brand of performance, mode and team trust has finally been left behind. These brands are few and far between.

The financing of the network is comparable to that of glamour. However, glamor Hui is currently held by Alibaba. Especially after Jingdong's stake in Farfetch, it is believed that Alibaba will pay more attention to the charm, while the uncertainty of the network is slightly larger.

Only investors' pursuit or Ali's "Dad" is not enough, just like Tencent has not been able to hold the pat as a "Survivor" to kill the encirclement.

There is no doubt that, as a luxury electric supplier born in China, there are many "innate deficiencies". The most important point is still the counterfeit rampant China, the consumer's trust in brand products. When consumers trust the platform, it is also a price problem, and they need to face the price competition in purchasing and shopping. More importantly, they also include problems in the high-end consumer market, such as luxury sale, experience and so on.

Take the temple library network established in 2008 as an example. The company set up an appraisal team in the following year. The appraisal center in Yizhuang, Beijing, is currently the largest in Asia. Besides, the company also insured every product sold.

The above two services, no doubt, have eased the biggest worry of Chinese consumers, which is much more reassuring to consumers than the "100% genuine" e-commerce platform.

Why is the international brand of the YNAP platform and product credibility not very likely to be out of question for 5 years in the Chinese market? Instead, giving the temple library a chance to become a unicorn? It is very important that the Chinese know the Chinese better.

In the local brand luxury electric business, why does the temple library network come out as a typical example? Because in almost no disclosure of specific sales data, the 13 million high-end members and 3500 yuan passenger price announced by the temple library network are the highest in the industry, and the two data is undoubtedly a "moat".

However, compared to the data, what I personally value more is the overall mode of the temple library network. It creates a complete set of closed loop business under the online, offline, domestic and overseas, shopping education, maintenance and sale, which is not available to other competitors or even all competitors.

And this "appearance" also reflects its ability to create and manage the team. Therefore, it turns out that the users, customer price data, and the leading position of financing data disclosed in fact are complementary to each other.

In the service experience of Chinese consumers, temple library network launched a "Mercedes Benz commercial vehicle service in 24 hours" logistics service in some cities in 2012. This service even took the lead in the international competitors. In the past half year, glamour has hosted a user Carnival and a free experience of sending VVIP customers to visit the equestrian events in France.

When it comes to experience, the most important factor is the physical store element.

Ma Yun and Wang Jianlin's billion dollar gamble, I have already said the end.

Today's online and offline has not been so sharp, and they talked happily about it.

In the luxury electric business, and even the entire electricity supplier industry, the temple library network is forward-looking in this regard.

Chinese consumers are much faster than Western consumers in embracing e-commerce, but the opposite is true in terms of luxury consumption.

Beginning in 2011, the temple library network launched the entity store business. In 2013, it expanded to overseas, including Hongkong and Milan, and set up branches in the United States and Italy, and set up an international supply chain to improve the global responsiveness and service capabilities. Its overseas stores in Milan could provide non product Tourism services to households first.

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In the past 7 years, the Temple store has set up 7 experiential shops in Beijing, Chengdu, Shanghai, Hongkong, Milan and other cities to provide sales, appraisal and maintenance services.

Of course, these offline investments have been rewarded, for example, the Milan experience store has been widely recognized by the Italy luxury industry. Its recent authorized partners are all Italy brands, and the role of the entity store can not be underestimated.

Its newest Malaysia store is located in Biguiyuan forest city, all of which are "knowledgeable".

The mobility of China's wealth is accelerating. Where the Chinese go, the money goes where they go.

Last year, the industry report of the commercial real estate service and investment agency, CB Richard Ellis, also proved this point. In 2015, Canada became the largest number of new luxury retailers.

Canada is the largest destination for Chinese immigrants in the past 10 years.

Immigrants are almost entirely rich.

It is also reflected in the most basic page presentation of local luxury electric business.

Whether it's Yoox.cn or Net-a-Porter.com's home page, there is a strong magazine style, especially the latter. Although the style and mode of fashion magazines and electronic magazines are widely copied in European high-end business, Chinese consumers may not like such shopping websites. Intensive waterfall products and familiar LV, Gucci, Prada and Hermes bags layout can stimulate their consumption desire.

Although the luxury industry advocates the rise of Chinese consumer brands, brand LOGO is still the primary and decisive factor for most consumers to conclude pactions. That is to say, the magazine style of Yoox.cn and Net-a-Porter.com is not wrong or bad. It just doesn't adapt to the actual situation of luxuries consumption of Chinese consumers at this stage. More importantly, Chinese consumers can know LOGO or name products on Yoox.cn and Net-a-Porter.com far below the local luxury electric providers such as temple library network.

In China's three major local brands, the temple network has been insisting on the product waterfall flow, the charm from the magazine type to the waterfall flow, and the walking net has the meaning of changing from the waterfall flow to the magazine type.

Competition, especially important, of course, price.

The most important strategy of the three major local luxury goods providers is to tilt the price strategy, because it is clear that the price is still at the top of the current consumption channel in China, although consumption upgrading and consumption upgrading have been kept on talking.

As a direct business platform, luxury electric business is actually similar to the traditional department stores in the US, but its delivery channel will be more diversified.

In the past 10 years, the luxury goods business in China has been strangled by luxury goods, because luxury goods still tighten the issue of authorization. Therefore, the supply problem is one of the core competitiveness that can break out of the encirclement. Today, the growth of the luxury market is sluggish, and the discount of European and American department stores is becoming more and more intense. In this process, the capacity of Siu Cun net and Xiu Xiu net should be greatly improved. Although some luxury goods will tighten the wholesale channel and maintain brand positioning, there are also groups like Prada who have to increase the revenue of wholesale channels because of their low performance, including the wholesale business of electricity suppliers.

The problem of slow growth or even recession of luxury goods industry is actually beneficial to the luxury electronics business in the short term. Take YNAP as an example. In the past two years, including Chanel, Tiffany Co. and so on, it is unthinkable before 2012.

In China, there is also such a trend. Temple library network and Xiu Xiu net all welcome the authorization of some world-renowned luxury goods. The official website of temple library website shows that Roberto Cavalli, Tod 's and La Perla are authorized by it.

In the future, the luxury industry will attach importance to the two businesses of the electricity supplier channel and the Chinese market. As YNAP becomes the partner of the luxury industry in the European and American markets to embrace the preferred electricity supplier, the temple library network may also be the preferred platform for the luxury goods industry to embrace the electricity supplier in China.

A true paragraph: in order to teach users to identify Hermes, the temple library has cut a 100 thousand piece of Hermes bag.

In the last category, let's take a look at the competitiveness of Ali and Jingdong in the luxury industry.

There is no doubt that Ali and Jingdong are the strongest category. But this category has two most important fatal defects, one is the fake problem, the other is the positioning problem. GMV is the most important.

Ali has been positioning in the (Tmall) low (Taobao) end, while Jingdong is 3C, and some genes can not be solved by financial difficulties.

Of course, it will eventually solve many problems, but the problem of gene may take a long time, ten or even decades.

Tmall and Jingdong are not allowed to make luxuries, but for consumers, the main purpose of heaven cats and Jingdong is definitely not to rush to luxury goods. This means that Chinese consumers will not choose Tmall or Jingdong for luxury goods. Even if online shopping is needed, Jingdong and Tmall will not be the first choice.

Jingdong and Alibaba may also realize that they lack genes in luxury goods, so Jingdong has Farfetch pactions, and Ali has attractive deals. But at present, the two fashion business platforms are still independent of Jingdong and Tmall platforms.

We can be sure that Ali and Jingdong are interested in luxury goods, but even Amazon did not make things in the United States, Ali and Jingdong want to make it easier in China.

A real paragraph: Michael Kors best time I sing it empty, sing good Coach, no fashion Chinese net, a netizen thought I was deliberately black MK, and some time ago, he thanked me by saying that she was lucky enough to enter a little Coach stock, otherwise I would worry about three meals.

2023 China luxury electric business outlook, local electricity supplier accounted for the main share, but Ali, Jingdong can still be changed through acquisitions, restructuring.

The development of luxury electric business in China in the short 10 years is obviously not yet in the final stage, but we can still make some bold predictions. China's electricity supplier industry is no doubt a dispute between Ali and Jingdong. The electricity supplier in the United States believes that the future is bound to be the battle between WAL-MART and yamazson.

The luxury goods business used to be Yoox.cn and Net-a-Porter, which was later merged and aggravated the pressure of other competitors.

What is the future of China's luxury goods business? What will be the reversion of YNAP, such as the strongest alliance between temple library network and another local electricity supplier brand merger? I think this may be more likely than the monastery of a monastery.

In 2015, the founder of the temple library network, CEO Lee day school, issued a "big deal" micro-blog before the F round of financing. At that time, the financing of the show and the charm of Ali holdings made the industry a good idea for a while.

Two years later, China's luxury electronics business has added some new variables. After 3 or 5 years, if Li Rixue can send another micro-blog with "the overall situation decided", I am afraid that it will be the general situation now. As an individual, I hope he can send another one.

Dongfeng, drum drums, see how much news has happened in China's luxury electronics business in the past month! The latest is that Gucci also came in on Monday.

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