Temple Library Revenue Grew By 13.8% Over The Same Period, But The Worries Of Luxury Electric Providers Are Still There.

After its listing on NASDAQ in 2017, the monastery achieved 14 consecutive quarterly profits.

Recently, the temple library has released its fourth quarter and annual earnings report. In the fourth quarter, the total revenue of temple library network was 2 billion 40 million 100 thousand yuan (US $293 million), up 13.8% from 1 billion 792 million 600 thousand yuan in the same period last year.

However, since August 2018, the stock price of temple library has fluctuated, and now it fluctuates at 3 US dollars. As of May 25, 2020, at 13 p.m. Beijing time, the stock price was 2.43 US dollars, which was 80% lower than the 13 US dollar issue price and the market value was only 122 million US dollars. Although the temple library is facing revenue growth, as a mainstream luxury electric provider, it will also face the situation of falling share prices. What worries do luxury electric providers have?

After retaliatory consumption, we need to remain sober.

After the effective control of the domestic epidemic, consumers' retaliatory consumption for luxury goods is very obvious, and there is a situation of stimulating consumption by increasing prices. In May 13th, Chanel announced that the price of raw materials and handbags and small leather goods will be raised in the world due to the impact of the epidemic on the rising cost of raw materials. The overall price increase will be between 5% and 17%. But in the face of rising prices, people's consumption enthusiasm seems to be higher. The Chanel counters in Beijing, Guangzhou and Shanghai are queuing up to rush to buy. This is also evident from the line.

In the face of the above phenomenon, luxury electric providers can not be deceived by appearances. Sometimes retaliatory consumption only brings "temporary prosperity". After the enthusiasm of consumer retaliatory consumption dissipated, luxury electric providers are faced with a group of sober consumers, because Chinese consumers are very sensitive to the price of luxury goods, and consumers care about the value of their purchases, and the extravagance of them is also substantial.

At this time, luxury electric providers are more sober than consumers. Consumers will not abandon the purchase of luxury goods, but will reduce the frequency of purchase. The growth of luxury consumption mainly depends on the potential consumers. This group of people has many advanced consumption situations. In the special period of the epidemic, they also limit their consumption ability. The rich category and positive product protection are the main competitiveness of the luxury electric business, while the price unification on line and online is the constraint factor. This needs to be soberly considered by luxury electric providers.

The smaller the cake, the easier it is to lose it.

According to the analysis of the market situation and development prospect of China's luxury goods industry in 2020, China's luxury market scale (excluding overseas consumption) has continued to grow, reaching 170 billion yuan in the past 2015-2018 years. According to this trend, the market size is expected to exceed 400 billion yuan by 2025. Seeing this, it seems that the prospect is very impressive, but this is only the prospect of the whole industry. For the temple library, on the one hand, the market revenue has entered a period of weakness. On the one hand, the market share has been attacked by domestic and foreign luxury electric business giants and domestic new members, such as the recently more prominent Wanli.

But is this just what the temple library is facing? Otherwise, in every changing market, every luxury electric supplier has such worries.

The prospect of the industry as a whole will be more and more participants, so that the market segmentation will become smaller and smaller. It will become a replica if it is well done. How to seize the opportunity to occupy more shares, maintain the existing characteristics and create new features. If the two can not be taken into account, the original features must be kept, because not every copy is a loser.

Loss is inevitable and the plight still exists.

In a report released by Bain consultancy, in February this year, the entire luxury industry affected by the epidemic could lose 300 to 40 billion euros (about 307 billion 600 million yuan), which means that the industry revenue will drop by about 15%, and the loss will reach 10 billion euros. Because of the epidemic, losses are inevitable. Many industries are on the line. As luxury providers, it is easier for them to find new opportunities, but they still fall into the dilemma of the old and new.

The new dilemma is that although the domestic epidemic is gradually controllable, as a major source of luxury goods and consumer markets, the spread of foreign diseases has gradually interrupted the operation of the monastery in overseas areas, and the supply of goods has not been replenish in time, and the transportation channels have also been greatly restricted.

The old dilemma is still related to the "fake problem", which is the industry's pain spot for luxury electric providers. On this issue, temple library has been struggling in this predicament. As of late May 19th, there were 474 complaints about the temple library on the black cat complaint platform.

In fact, as a luxury electric business, it is inevitable to encounter complaints. This is not the plight of a platform for the temple library. Similarly, the key words for searching for luxury goods on the black cat complaint platform are more extensive.

At the present stage of the development of luxury electric business, losses are inevitable and difficulties still exist. The change of technology is changing the times. The change of the times brings not only the future and expectations, but also the unknown and challenges. Luxury goods providers face new and old two levels of predicament, with a cautious attitude and resolute steps to meet them.

Temple library is just a microcosm of the industry. Facing these hidden worries, Lao Liu believes that these 12 words should be fulfilled, looking at the future, meeting problems, observing changes and doing themselves.