Luxury Goods Are Hard To Escape.

When she met Ding Xia, vice president of Jingdong group, TOPLIFE business leader, she just concluded her meeting with Zegna (Zegna) team.

Each big card will enter Jingdong at least seven or eight times. There will be at least two meetings for each team from group headquarters, Asia to China.

Ding Xia said, this is a continuous process, not simple.

At present, this is also the most energy input work.

Even some negotiations with group headquarters are Jingdong's founder Liu Qiangdong himself.

All this proves that Jingdong is in the fashion and luxury market.

And can Jingdong, a 3C based "masculine" Jingdong, be able to pry and capture the hearts of female consumers?

If three years ago, you asked any luxury brand's attitude towards the electricity supplier, the answer must be "no".

Although the electricity supplier is already in full swing, luxury goods are always heterogeneous.

Fake goods, quality control and tonality are their biggest concerns.

Even public choking: GUCCI (Gucci)'s CEO Marco Bizzarri made public statements in October this year, and GUCCI is reluctant to cooperate with China's e-commerce platform in the Chinese market.

But this is no way to change the direction of the tide.

Let me give you an example.

Gucci's parent company, Kai Yun group's top international high-end brands Balenciaga, Saint Laurent, Alexander Mcqueen, Pomellato, has entered Jingdong's luxury platform TOPLIFE.

The life brand of Hermes has also been settled.

A previously unimaginable phenomenon, LV has entered.

And set up WeChat store.

"When you have a product that people really want to buy, they will buy it in various ways," said Ian Rogers Rogers, head of LVMH digital operations at LV parent company, LV.

The luxury goods that have always been high and cold are facing the pressure of growth under the line and the trend of closing stores. The online pfer of young consumer groups is irreversible and has to be changed.

This has also accelerated the betting of Ali and Jingdong in the luxury market.

A "top luxury competition" is being staged.

External channels, Ali and YNAP set up a joint venture to operate its Net-A-Porter and Mr Porter, invest in luxury business Ordre; Jingdong investment YNAP largest competitor Farfetch, joint L Catterton Asia investment Temple library.

And its own channel, Jingdong has TOPLIFE, Ali has Luxury Pavilion.

Honourable, unique and scarce, the pronoun of these luxury goods also set up the last highland of the electricity supplier's attack.

The big man has entered the market, which has been sleeping for many years, and is being awakened.

Harvesting the millennial generation

"Little sister, tell me about your dress today?" this is the most popular street interview.

Most of the respondents were girls aged twenty or thirty, wearing Burberry in hand and LV, with delicate makeup.

She (he) has a common label: "millennial generation".

This international intergenerational term refers to the generation born in twentieth Century, and the adult generation after twenty-first Century.

They grew up with the Internet, and their necessities and lives were deeply bound to the Internet.

They have become consumers, and they have also become the object of luxury goods competition and pursuit.

A Bain consultation report shows that luxury sales in mainland China are expected to grow 20% to 22% this year.

The "millennial generation" will occupy 45% of the consumption power of luxury goods in the future. The average age of Chinese luxury buyers is about 10 years younger than that of foreign buyers.

From the perspective of purchasing channels, the main channels for Chinese consumers are overseas offline purchase, domestic offline purchase, overseas purchasing and e-commerce websites, of which the penetration rate of electricity suppliers is only about 15%.

This figure is not surprising in Ding Xia's view. "It is undeniable that the luxury sales line is the dominant factor. 90% online, 10% online, this is also part of the reason why brands are hesitant" electric shock ".

Besides, luxury goods need to be experienced in person, and the more expensive things are, the more important they are to see.

Ding Xia concluded that the concerns of luxury brands are mainly three points.

First, the environment of the electricity supplier is bad.

Two, there is no physical separation on the electricity supplier. Different levels of brand mix together.

The three is the luxury and honor service of the store compared to the line. The brand is worried that the electricity supplier can not pass the brand's care to the consumers well.

An amazing number is that 32% of the world's luxuries are bought by Chinese people.

But in China, the purchasing market is larger than the domestic market.

The brand lacks confidence in China's luxury market, which leads to the latest purchases in China.

"The first thing we need to do is to dispel their concerns."

Ding Xia said.

In the final analysis, luxury electric business is trust economy.

"This is also the most scarce thing in retail and consumption at present."

Jiang Ke, vice president of strategic planning department of Jingdong fashion department, admits that what is the point of supporting trust? It is quality control, strict warehouse management and guarantee of genuine goods.

For luxury brands, they do not look at cost performance, and sales are secondary. The most important factors are brand tonality and brand story.

They are disgusted with the mass brand display, for the domestic electricity supplier discount sales, it is not buy.

In this regard, Chiang Ke has its own methodology. "The electricity providers and luxury brands want to play together, and need to continue to be patient.

We must make them feel that they will not lose anything by doing business. They must not move their lifeblood.

Once the brand is on the line, there will be sales data, and no brand is for the sake of image.

Conveying brand stories and images is to find more potential consumers, which is also the core demand of luxury brands' electric shock.

Ding Xia analysis, social media is an important position of luxury marketing. The insight data of e-commerce platform enable luxury brands to have a deeper understanding of consumer groups. Jingdong opens up through live broadcasting and social media marketing.

The unique buying habits and consumption behaviors of young consumers.

Jingdong big data can develop exclusive labels for luxury goods industry, lock in key TA groups, and explore new consumption demands meticulous, so as to fundamentally improve the conversion rate.

For luxury goods, the biggest profit comes from inventory. Only strict control of inventory can bring high profits.

Jiang Ke introduced that the intelligent supply chain of Jingdong Y division is precisely doing this.

From front-end procurement to back-end consumption demand, forecast, order quantity, accurate prediction, shorten the procurement cycle, production cycle, logistics distribution cycle, optimize the entire supply chain, so that each brand combined with Jingdong data for more objective judgement.

In an interview, he shared a story about Jingdong and Ruyi.

When asked about the electricity supplier cooperation of Ruyi's brand executives, all the answers are Jingdong.

Behind this is the user quality of Jingdong, the purchasing power of representatives of users and customers, and genuine licensed products.

Ruyi Group Chairman's expectation is that if Jingdong can shorten the industrial chain cycle of 1/3 for one year, that is,

Efficiency increased by 50%.

Seize the user's mind

One hour's drive away from downtown Shanghai, Jingdong's Asia first base built a "Museum".

To be precise, this is TOPLIFE's luxury store.

The whole warehouse is Loft industrial design style, constant temperature and humidity.

Password lock, fingerprint lock, face recognition, 24 hours monitoring and 110 linkage alarm lamp system. The security level of the entire luxury store is not lost to the museum.

In the warehouse, only three packers are working.

The packers do not need to move in the warehouse, and all the goods are shipped from the "wolves" to the operating table.

What is the value of such a high specification warehouse?

Ding Xia introduced, "it is like Jingdong logistics, we must invest at cost.

If luxury stores have long-term benefits for business, they must invest and not take shortcuts.

Luxury brands will require warehouses to protect consumers from receiving good products.

For example, there are tens of thousands of LV packages, and the cost of every link that Jingdong matches is also very high.

Interlacing is like mountain crossing. We must respect this industry. "

TOPLIFE is the luxury electronics brand launched by Jingdong in October 2017. It started its operation as an independent APP and launched "Beijing Zun Da" distribution.

This can be regarded as the "luxury car" service in the area of net car appointment.

Each courier is equipped with uniform uniforms, white gloves and new energy vehicles.

Jing Zun Da is the highlight of TOPLIFE negotiations with the brand side.

But at present, Jing Zun only covers 9 cities: Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Wuhan, Xi'an, Shenyang and Hangzhou.

Over the past year, TOPLIFE has released its report card: there are currently 72 brands, of which 16 brands have been signed exclusively.

Ding Xia predicts that by the end of this year, this figure will be around 90.

In the latest earnings report issued by Jingdong, no specific operation data of TOPLIFE were issued.

But she revealed a key message.

So far, TOPLIFE has sent goods to 265 cities in 29 provinces.

This means that there is potential consumer demand in cities without offline stores, and TOPLIFE provides a buying channel.

TOPLIFE is not the only way to buy.

At the beginning of negotiations with the brand, Ding Xia will first push the brand official flagship store, hoping that all brands will enter Jingdong's main station and TOPLIFE at the same time.

The reason is very simple. Jingdong's main station can interact well with TOPLIFE in the mode of self operation and data exchange.

But from the internal system, brands only need to butt up a brand manager.

The brand manager is responsible for developing two shops of Jingdong and TOPLIFE.

Although Jingdong has 320 million users, not everyone can see TOPLIFE in Jingdong APP.

"TOPLIFE is not only an independent APP, but TOPLIFE represents luxury brand."

Ding Xia introduced that luxury brands have two battlefields, one is the main station, the other is pformation, the other is TOPLIFE, which aims to become the preferred cooperation platform for luxury brands on the 2B side, and the high-end consumer guide for 2C ends.

Ding Xia further explained, "our approach is not to irrigate TOPLIFE from Jingdong, but to precisely select quality consumers from Jingdong.

For example, the number of users who purchase the positive luxury goods in Jingdong at two times or more is recommended by TOPLIFE, and the download is downloaded. These users account for about 1% of Jingdong.

The same is true of Tmall Luxury Pavilion.

Platform purchase, browse or collect luxury goods, some 88 super members with naughty value to a certain extent, or active enough on Tmall, and three comprehensive assessment before deciding whether users can access.

Ding Xia acknowledged that TOPLIFE's current figures are not high.

"The dilemma is that the mind has not yet been occupied. What Jingdong has to do is occupy the mind.

Because in terms of products, it has little difference from other platforms, and the price is almost the same.

But we need a lot of time to occupy the mind.

Jingdong occupying the minds of users is more than TOPLIFE.

As early as June 2017, Jingdong invested $397 million in the UK luxury electronics business platform Farfetch and became one of its largest shareholders. At the same time, Liu Qiangdong, chairman of the board of directors of Jingdong, joined the Farfetch board.

The story of the two companies seems to have not yet fully developed.

When Hermes's "up and down", Kai Yun's Balenciaga, Saint Laurent and Alexander Mcqueen appear on TOPLIFE, more luxury brands have already felt it.

The strong centripetal force, in Ding Xia's words, "this is only a matter of time."