Luxury Brand Business Competition Has Begun To Eat This Cake?

Although the year 2017 is not over yet, in the whole year, I am afraid it is.

The electricity supplier has been dynamic for one year.

Not long ago, Bain Capital, KKR and European Permira such as "leveraged buyout king" were competing fiercely in the fashion industry.

Meanwhile, French Lafayette department confirmed its stake in France last week.

La Redoute and become the big shareholder of the latter; last Friday, Private Equity Investment Firm Apax of London announced that it had invested heavily in British luxury goods and fashion e-commerce website Matches Fashion.

Matches Fashion, which has been in operation for 30 years, now employs more than 500 people, with 450 brands and emerging businesses.

The brand maintains a cooperative relationship and has the ability to distribute customers for 176 countries in the world.

As for this paction, although Apax did not disclose the amount of investment, it is estimated that the amount is expected to reach 80 million pounds.

Because of the exclusiveness of luxury goods, the industry's large-scale action against the electricity supplier has only begun in recent years.

Among them, the most pioneering event is the merger of Yoox and Net-a-Porter, the two largest luxury goods providers in 2015, and the birth of Yoox Net-a-Porter.

The total net income of the two companies reached 1 billion 300 million euros in 2014. After the merger, it is expected to attract more than 2 million customers per month.

In an interview with reporters, the founder of the two brand said that the development of luxury electric business is extremely fast.

When two very good business operators in their own fields merge together, they will get more attention.

This is also the first case of luxury electronics merger in fashion industry.

The cooperation between Yoox and Net-a-Porter, the two largest luxury goods supplier, is undoubtedly the big news of the year.

The merger was a success.

At present, the website has three million active users, and the sales volume of Yoox Net-a-Porter reached 515 million euro in the first quarter of 2017.

"Our next development plan is to integrate resources and expand the market in the Middle East," said Yoox founder Marchetti in an interview with reporters.

He has high hopes for the Middle East market and hopes to grow faster than other regions.

Yoox Net-a-Porter will expand its market in the Middle East next.

According to the world clothing and shoe net, it is easy to see from the investment trend that the Luxury Retailing industry is growing rapidly in favor of the electronic business platform, which stems from the consumer's love for online shopping.

In the golden age of the electricity supplier, even WAL-MART has increased sales channels in the joint e-commerce platform.

In the past two years, in order to compete for the market with the e-commerce giant Amazon, WAL-MART has bought Jet.com and Bonobos for 3 billion 300 million US dollars and 310 million US dollars respectively.

However, due to the particularity of luxury goods industry, LVMH, the world's largest luxury group, has been cautious in developing e-commerce.

Now, LVMH is also looking for a place in the electricity supplier. In June this year, it launched the e-commerce website 24Sevres.com.

This website is not an electronic business platform built by LVMH, but a "department store online version" made by its high-end department store Le Bon Marche.

Last year, the total sales volume of LVMH group's official website was 2 billion euros, accounting for 5.3% of the total sales volume of the group online and offline.

LVMH's e-commerce website 24Sevres.com

Even the other luxury giant, Hermes, can't sit still. This summer, it announced that it will launch its e-commerce website in the United States in the second half of this year.

From the offline WAL-MART to the online Amazon and then to the luxury group LVMH, the large investment trends of these companies in the electricity supplier have proved that the power consumption driven by the electricity supplier is strong.

According to fashion industry analysts, sales of luxury electronic business platforms will account for 20% of total sales in the next ten years.

Although the current figure is only 7%-8%, it also shows how strong people are through the Internet and mobile terminals.

How can we forget the Farfetch of London in the fierce competition for e-commerce? The electricity supplier, founded by Portuguese entrepreneur Jos Neves in 2007, has completed some interesting cooperation in recent years.

In March 2015, Farfetch acquired the famous London boutique retail Browns, which was founded in 1970, including all retail businesses under its online and offline businesses.

Since then, it has gained many advantages and strong competitiveness.

At that time, a British weekly commented that the ambition of Farfetch is to bring unique experience and products to the international field, so that more people can see their products through the digital platform.

Brown, a famous boutique retailer in London

Just in the past June, Farfetch bought the domain name and intellectual property rights of Style.com, a new media group Kangtai Nash, which has just pformed from the media business website to less than a year, and has reached long-term cooperation with Kang's group, such as "Vogue", "New Yorker" and "Vanity Fair".

When foreign electric providers are busy trying to seize the market, China's electricity providers are not idle.

Also in June, Jingdong invested $397 million in Farfetch, which is Jingdong's largest overseas investment.

At the same time, Liu Qiangdong joined the board of directors of Farfetch.

Farfetch will continue to operate as an independent brand in the future, but its logistics, finance, technology and social media will be more dependent on Jingdong's resources in the Chinese market.

After accepting Jingdong's capital injection, Farfetch will also use Jingdong's black technology and big data resources to establish an automated marketing system in the Chinese market, and the "Jingdong payment" and the "Jingdong white bar" will become the preferred payment method on the Farfetch platform.

In addition, its logistics will also use Jingdong's recently launched "Jing Zun Da".

Jingdong's injection of Farfetch has allowed Farfetch to acquire more resources in China and expand its global luxury business.

"Luxury brands want to know what consumers really need, but millennial consumers are faced with too many choices," says Federica Levato, partner of Bain Capital. At present, luxury retailers are at a delicate stage.

"And the millennial generation can affect everyone's access to luxury goods."

But in any case, the demand for convenient shopping experience is growing.

Moreover, digital technology has made the electronic commerce platform develop rapidly, and is very beneficial to further improve the offline retail layout.

In such a big environment, it can be said that the electricity supplier has become a key part of the future development of the fashion industry.

For luxury brands, the battle for electronic commerce has already started. It may be sooner or later not to eat this cake.

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