Why Are The Industry Not Optimistic About The Market Prospects Of Luxury Goods?

According to the world clothing shoes and hats net, a few years ago, people were not optimistic.

Today, it has become a huge hegemony in the global economic field.

And Ali is a living example? In the market background of the surge of Internet users in China, the vertical e-commerce platform in the field of subdivision came into being, but it can be as successful as Jingdong and Ali.

Recently, the positioning of luxury business platform Temple network in the NASDAQ on the market, blows.

A pool of spring water in the electricity supplier industry.

Compared with other vertical e-commerce platforms, the luxury electric business market is smaller, which is also the reason why the industry is not optimistic about its prospects.

Luxury electric business is not a business.

Indeed, as the first concept stock of domestic luxury electric business, the temple library network was successfully listed in the United States, but the embarrassment of falling 23% on the first day of listing has really made it impossible for people to be optimistic about the luxury electric business.

From the definition point of view, luxury electric business is a false proposition.

In the domestic retail industry reshuffle tide, whether it is Taobao, Jingdong, or vip.com, almost all electronic business platform, use low price to harvest the market.

After a round of competition, the electricity supplier has already been equated with "low price" in China.

Especially in the years when the electricity supplier industry is more competitive, the electricity supplier has become a low price endorsement.

After several rounds of competition, the electronic commerce platform successfully rob the entity store's business under the low price, but the brand premium of the electronic business platform is also seriously overdrawn.

Similarly, a value of 100 yuan of goods, online stores can sell to 130 yuan, the electronic business platform to sell 101 yuan to have the market.

After the homogenization of competition, the domestic e-commerce platform has no premium capability.

Look at the luxury industry, the biggest feature is that the brand has a very high premium capability.

Luxury brands, such as LV, Chanel and Gucci, have a very high premium capability.

The price of an ordinary brand is only about 200 yuan, and the LV bag priced at over 10000 is just the entry money.

In addition to fashion products, luxury brands such as automobiles and red wine can not match the premium of ordinary brands.

On the other hand, it is a luxury brand with high premium ability, while the electricity business is harvested on the low side, and the combination of the two gives people a feeling of irrelevance.

From a commercial point of view, high prices are the characteristics of luxury goods, and low prices are the characteristics of electric providers.

From this perspective, luxury electric business is hard to become a business.

In this case, why are there a lot of capital flowing into the luxury electronics business?

Looking at it, the hot luxury business providers such as Shenma Jiapin net, Shang pin net, Xiu Xiu net, and respecting network were now popular. Now many platforms have become pioneers in the industry.

At that time, all these luxury electric providers released a lot of words and said they had invested a lot of money to prepare for a big fight.

As a result, the collapse of these luxury business operators has been depressed.

In fact, it is not the domestic luxury electric business downturn, foreign luxury electric business market is also very depressed.

Luxury electronic business, many short boards are hard to break

As we all know, luxury goods are faced with a niche market, and the market is very closed and has its own unique social circle.

Although the hotel has been successfully listed, it can represent the future of the luxury business.

Service and premium are not only the short board of luxury business, but also the two mountains that are insurmountable.

Harsh words, no service and premium, luxury electric business will not have a future.

Like the name, luxury is the most notable feature of high price, and therefore price becomes a reference to measure the value of luxury brands.

The question is, can luxury goods be sold on the e-commerce platform, and can maintain a high premium for luxury goods? The first luxury goods supplier vip.com is selling the so-called luxury goods on the platform, which is much lower than the price of luxury goods sold on the market.

Some netizens said at the forum that the same type of LV package had a retail price of more than 30 thousand, which could be bought in less than 10 thousand yuan in vip.com.

Such a big price gap has attracted many customers to go shopping on luxury electronic business platform.

In fact, apart from vip.com, the luxury electronic business platforms such as the respected network and hoha network, which have already been closed down, are taking advantage of the low price to occupy the market.

As a result, vip.com was pformed because of poor sales performance, and the platform such as respecting the network was closed because of poor performance.

The brutal facts prove that the domestic luxury electronic business platform has no brand premium capability, which is contrary to the high premium ability of luxury brands, which is an important reason for the domestic luxury electric business downturn.

Because of the pursuit of low prices, some luxury electronic business platforms in China appear to be counterfeited luxury goods.

The fact that CEO has been arrested is due to smuggling, and the purpose of smuggling is also to reduce the price of luxury goods.

Obviously, the electronic commerce platform has been rooted in China for many years, and has left a low price image for consumers. It is impossible to realize the premium of luxury goods.

In addition to the difficulty of achieving brand premium, service is also a short board for the domestic luxury electric business, because services are also the items valued by luxury customers.

Such as the $4 million 860 thousand Palma Jonny watch, the $2 million 430 thousand Martha Lahti sports car, and the 1 million 800 thousand yuan hermes bags, luxury services are also an important addition to the luxury premium besides brand premium.

In daily life, buying precious jewellery such as diamond ring will provide abundant services such as free cleaning, door-to-door and customized packaging. Luxury goods can provide more services.

In addition, many service items are based on offline, and the luxury online providers who focus on online services are undoubtedly in a weak position.

To provide a wealth of services, luxury electric providers can only open online stores to provide users with services.

Because the luxury electronic business platform has no premium capability, offering offline services to customers is naturally a bubble.

Without services, the value of luxury goods can not be reflected. Luxury electric providers are also abandoned by potential customers.

In the final analysis, luxury demand for premium and service deviates from the value of the domestic e-commerce platform, which is why the luxury electronics business is struggling.

Conclusion: the serious contradiction between luxury goods and electricity supplier value is a difficult problem for luxury electric providers to solve.

Although the location of the luxury goods business has been listed successfully, the temple library is facing more challenges in the future.

Since its establishment in 2008, in recent ten years, the annual turnover of temple library is only a few billion yuan, which is seriously inconsistent with the location of luxury electric business. This also confirms that luxury electric business is not a big business.

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