Follow Up: The Operation Of CEO Website Arrested For Smuggling Is Not Suspended.

According to the world clothing shoes and hats net,

CEO Ji Wenhong, who was arrested on suspicion of smuggling, made the original quiet Internet show popular.

In August 17th, the media revealed that the number of suspected cases involved in smuggling was 321 million yuan.

As a result of the incident, the public opinion of the Internet has been one-sided. It is said that the network is a conscientious enterprise. It is better to smuggle than to sell fake goods in order to provide luxuries at low prices.

However, in the eyes of the industry, smuggling is difficult to equate with genuine products. It is only the performance of avoiding the tariff and reducing the cost of Xiu Xiu net. This low price competition has disrupted the industry rules, and only strengthening the control of the supply chain is the life-saving straw of luxury electric providers.

Entrainment! Open secret.

When it came to the scene of the accident, the walking network did not press the pause button for the company's operation.

On the day of Ji Wen's arrest, Yuxiu network issued a statement in the official micro-blog, admitting that a person was checked for the matter and that all the business of the show is normal.

According to public information, Xiu Xiu net has formed a rigorous process in the smuggling link.

When pported to Hongkong, the intermediate organizations will be pported to the territory in batches through the inspection channels, and then pported to the warehouse of the logistics company.

In addition, the company will also make a large number of goods that need to be imported through general trade, forgery as personal personal items and customs clearance in the form of "E express".

Before that, the company will provide false price information to the corresponding Hai Tao company and logistics company, and smuggle into the territory through express channel through low price and false trade nature.

A person engaged in luxury purchasing said that smuggling is a common means of luxury business. When the platform needs to reduce costs and save time, it will smuggle goods through its own special channels.

Smuggled goods

When the network was caught up in the smuggling wave, the Internet public opinion was associated with smuggling and genuine products.

From the products sold in the network, the low price is a fact. Whether it is a genuine product can not be generalized.

In August 17th, the reporter compared the same products sold on many electronic business platforms: Longchamp lady's fabric handbag, nylon medium sized dumpling dumpling bag.

On the same day, the price of 380 yuan was provided by the show net (sea crab overseas franchised store), the price of Shang pin net was 670 yuan, and the discount price of a discount website Rue La La was $92.99, according to the exchange rate at that day, the discount price was 620.5 yuan.

The price of the bag in the show network is 56% of the Shang pin net, which is 61% of the Rue La La discount price.

A luxury electric business operator told reporters that the handbag from domestic suppliers received more than 600 yuan, and the price of electronic business platform fluctuated more than 700 yuan. Although such platform can only maintain a small profit, the price of the network is far below the reasonable price range.

The above personage said that even if the walking net could get the discount of the holiday from the US outlets, it would be difficult to get a large quantity of goods, because the goods sold in the outlets were mostly defective products, broken codes and broken numbers, and they would not be sold in bulk, but the package was classic, with few discount, and the brands would not sell at a low price.

The luxury goods themselves are low in gross profit and pparent in price. Rue La La is already a special sale website, which still can not reach the attractive price of Xiu Xiu net.

Meanwhile, a luxury buyer said.

In addition to having their own factories, the production of products will be subcontracted to some factories, brands will provide templates and materials, and factories will produce according to the template. Therefore, some factories are specialized in "counterfeiting" business, and make wholesale products after making large quantities of templates. However, these factories only have the right to produce without the right to sell, and naturally they will not get the authorization of the brand.

The wholesale price of these products is only 10%-20% of brand pricing. There are many domestic luxury electronic business platforms for these enterprises.

Lower costs

Although smuggling is not necessarily a genuine product, it is an indisputable fact that smuggling reduces competition costs and improves profit margins through smuggling.

According to the relevant regulations of the state on import tariffs, the import tariff of clothing and bags is 10%-20%, the import tariff of mechanical watches is 15%, the tariff of electronic watches is 10%, and enterprises also need to pay 17% value-added tax.

A responsible person in charge of luxury customs clearance said that after paying the tariff, luxury goods will cause the price of luxury goods to rise by about 30%. In order to maintain the competitive advantage of the price, the enterprises can not increase year after year when they sell the goods to consumers, so they have to constantly cut down the expenditure link. Therefore, many enterprises are willing to take risks and evade taxes, so as to expand the competitive space.

A luxury platform founder expressed the same view. A wallet sold by Prada's overseas counters sold for 4000 yuan, and the company bought 2400 yuan for 40 percent off incoming goods. The cost of logistics was removed, and the import tax and value-added tax would increase by 720 yuan. If the enterprise evaded taxes, it would mean that the enterprises had more chances to compete for consumers. After all, the lower price of the same wallet was full of temptation to consumers.

A luxury dealer, who does not want to be named, said that the international price difference of luxury goods has been shrinking. It has shrunk from 50% to 10%-30%, especially the price difference between bags and bags has shrunk to 10%, and the competition among enterprises has become increasingly fierce.

In the view of master Li Zhongyi, the consumer of luxury goods is still in the stage of training and education, especially for consumers who buy luxury goods on the platform of electronic commerce, most consumers show the high activity of online shopping and the very sensitive characteristics of prices. They hope to buy luxury goods at a lower price, and think that the price of luxury goods is much higher than that of psychological expectations, and the space for reducing prices is huge.

Luxury electronic business platform to cater to consumers, can only continue to lower the cost of price war.

Li Zhongyi further explained that the low user stickiness of the luxury E-business has been continuously competing for consumers. The luxury E-business has been plunged into a vicious circle of price war. The platform attracts consumers through means of mail, bonded, discount and so on, and hopes to win the price from competition. The gross profit of luxury goods is very low, and the enterprises' uncontrolled efforts to cause price problems result in frequent problems. The price war has made the development of the luxury electric business industry more and more chaotic.

{page_break}

Jump out of low price competition

Behind the hustle and bustle of the network of smugglers is the cool thinking of luxury electric providers in mastering the supply chain capability. For luxury electric providers, the supply chain is the gate of platform development.

With the upgrading of consumption, low price will no longer be the first means and the only means to attract consumers by luxury electric business. Consumers will gradually return to the pursuit of quality. The purchasing side has always been the pain point of luxury electric business, and the cooperation between luxury electric providers and brand dealers is also difficult. The supply chain has become the weakest link in the development of luxury goods business.

Luxury electric business is hard to enter the sales system of luxury goods.

Luxury brands rely on brand effect and bring their own traffic volume. After a long period of development, luxury brand manufacturers have formed a complete sales chain. In order to ensure their commodity market status and brand tradition, they will not easily authorize the brand to sell to the electricity supplier. Their own e-commerce platform plays a more role in promoting the products of the old customers, while the third party e-commerce platform lacks the rigid index to obtain the brand authorization.

Several years of deep ploughing luxury electric business operators told reporters that want to maintain the platform's reputation, can only continue to extend to the upstream, "hard to bite" luxury brand business, to seek cooperation opportunities, or through purchasing means, fought in Oteri J and brand Direct stores, or cooperate with brand dealers.

Now Ali and Jingdong are constantly cutting into the luxury goods industry and working with brands to become a tacit agreement between the two platforms.

Luxury brands LVMH, including Swiss luxury watches such as tiger Heuer, Guerlain, SEF, and noble life of Hermes, have entered Tmall in succession.

Jingdong invested $397 million to invest in Farfetch, a luxury electric business in the UK.

Li Zhongyi said that the luxury platform would like to create a continuous appreciation of space and enhance user stickiness, so we need to extend the development direction to both ends, while we should go forward and cooperate with the brand partners, while improving the service quality.

We will completely open the online and offline businesses to enhance the quality of service.

Another luxury business operator suggested that luxury e-commerce platform should consider enhancing the efficiency of physical stores and brand providers through e-commerce channels, playing the role of the brand virtual shop, and harmonization and standardization of services.

But in any case, luxury electric providers must jump out of the vicious circle of low price competition and make the supply chain solid enough to cultivate user stickiness.

More interesting reports, please pay attention to the world clothing shoes and hats net.