Revenue Soared 48% In The Third Quarter

? ? ? ? On May 18, mytheresa, a German luxury e-commerce company, announced its latest fiscal quarter results for fiscal year 2021. Data show that the third quarter continued the double-digit growth trend of the previous quarter. As of March 31, sales of mytheresa rose 47.5% year-on-year to 164.8 million euros. Adjusted net profit surged to 4.5 million euros, compared with a loss of 100000 euros in the same period last year. According to the financial report analysis, the strong performance is mainly due to the continuous global market expansion, strong brand partnership, high-quality customer growth and the decrease of customer acquisition cost. In addition, the number of first-time buyers of mytheresa's platform has set a new record, and the newly acquired customer base shows a higher buyback rate than before. Looking ahead, mytheresa is expected to achieve sales of 600 million to 605 million euros in the fiscal year ending June 30, with a strong growth of 33% to 35% year-on-year.

? ? ? ? Affected by the new crown pneumonia epidemic, most countries in the world have implemented travel restrictions, which greatly promotes the upsurge of online shopping and the booming development of luxury online shopping. Mytheresa is also one of the beneficiaries of this wave of dividends. However, with the increase of domestic and foreign players, serious homogenization of vertical luxury e-commerce, as well as the squeeze of online and offline markets and high customer acquisition costs, other luxury e-commerce competitors may fluctuate in profits or expand losses in 2020, but mytheresa's online sales business has always been profitable. How to take advantage of the opportunity to break through to achieve "overtaking on the track" when the tuyere comes? Recently, Michael Kliger, chief executive officer of mytheresa, was interviewed by 21st century economic reporter to share his unique business strategy and expansion plan in China market in recent years.

Michael Kliger, chief executive officer of mytheresa. Information map

Focus on the most valuable head customers

? ? ? ? Bain luxury research, jointly released by Bain consulting and Fondazione altagamma, an Italian luxury goods association, points out that the global online market size of personal luxury goods has increased from 4.3 billion euro to 49 billion euro from 2010 to 2020. The epidemic has accelerated the change of luxury consumers' shopping habits. The proportion of online shopping in the total sales of luxury goods has increased from 12% in 2019 to 23% in 2020, almost doubling. According to the forecast data, by 2025, the proportion of global personal luxury online sales is expected to reach more than 30%, becoming the largest sales channel. Undoubtedly, the luxury e-commerce industry has great potential to "dig for gold".

Mytheresa was first born in 1987. It is a multi brand fashion buyer named Theresa founded by Susanne botchenand and Christoph botschen in Munich, Germany. In 2006, the store launched an online e-commerce platform called mytheresa. Later, it gradually developed into a luxury e-commerce covering women's, men's and children's clothing, shoes, bags, accessories, beauty and beauty, with top international luxury brands including Gucci, Balenciaga, Loewe and Valentino. However, for a long time in the past, the luxury e-commerce in the vertical category of e-commerce market was mainly dominated by net-a-porter and farfetch. In order to win in the fierce market competition with many experts, the differentiated playing method is particularly important. Mytheresa, which started as a buyer's shop, is also engraved in the brand's genes. Compared with other luxury e-commerce companies with large traffic and multiple categories, mytheresa's strategy is to focus on the real "less but better" - the most important customers and the most profitable products, and explore their maximum value.

? ? ? On the one hand, the "less but better" target customers can not only reduce the cost of obtaining customers, but also have a deeper connection with this group of customers and understand their needs. Michael Kliger told 21st century business reporter: "in fiscal year 2020, the largest customer base generated 30% of our total sales, even though they accounted for only 2.6% of the total active customers." He analyzed that in all online shopping customers, there are only a few users who have luxury consumption demand and consumption ability. Compared with the consumers who only buy a package once a year, high potential customers are those who are really interested in luxury goods and will continue to pay attention to and purchase luxury goods. They are the real "core assets" for mytheresa. Michael Kliger explains that the key to profitability is to attract and retain the customers who buy the most because it means high average profit value, high repurchase rate and high full price to income ratio. For these high-end customers with high consumption potential, mytheresa has developed many deep interactive services for them. For example, mytheresa's private shopping team will visit customers' homes in person and understand their preferences; Customers will also be invited to exclusive designer events and parties. By focusing on serving buyers with high CLV (customer lifetime value, a measure of customer value to the enterprise in the future), the cost of customer acquisition is reduced.

Strategy of "high quality goods"

? ? ? On the other hand, mytheresa helps customers to shop efficiently by carefully planning and optimizing the products displayed, so as to accurately target customers' exquisite fashion taste. While most online shopping platforms are keen on "scale" to provide consumers with more and more dazzling choices, mytheresa chose to do the opposite. Through the selection of the most appropriate style items in different brands and categories, coupled with a deep fit for the real needs of customers, it wins the favor of customers with the least but most special fashion selection combination. According to the reporter's statistics, there are about 250 brands on mytheresa's official website, but among the same type of luxury e-commerce, farfetch has more than 3000 brands, net-a-porter has more than 800 designer brands and 200 beauty and beauty brands. When the reporter also searched for the keyword "ROMAN SANDALS" on the app, 9769 results were shown on farfetch FAQ, while 26 products were found on mytheresa. Between less and more, mytheresa chooses to do a lot of screening work for customers in advance. "Mytheresa has a unique position in the field of online multi brand luxury goods, thanks to its highly selected products and close attention to the high-end luxury industry," J.P. Morgan said. In terms of products, mytheresa promotes an efficient purchasing process for time pressed consumers, focusing on quality rather than quantity, making it easier for consumers to find the best product in a short period of time. "

? ? ? Michael Kliger told 21st century business reporter: "real luxury shoppers will look for the best selection combination among luxury brands. We provide fashion inspiration, not just product aggregation." The exclusive sales products and capsule series jointly launched with the brand are another "killer mace" of mytheresa. It is reported that mytheresa releases five to ten capsule series of different sizes every year, with rich themes covering environmental protection, home furnishings, sports apparel, etc., so that customers with higher pursuit of fashion can buy "exclusive" styles that can't be bought on other platforms. According to internal survey data, only 21% of the 7000 unique style items owned by mytheresa in December 2019 coincided with other luxury e-commerce companies.

In addition, at the moment when luxury online shopping has become saturated, many e-commerce platforms will "innovate" the online shopping mode by introducing AR and VR technology, i.e. buy as you see mode. Michael Kliger said that mytheresa wants to get customers excited and focused on the brand, which undoubtedly means the need to offer and demonstrate new technologies“ Previously, we have worked with Burberry and Valentino on such projects, and we will launch an exciting ar project with Christian Louboutin in in May this year. " But at the same time, he stressed: "innovation does not always mean having the latest technology. Innovation also means faster and more accurate services. Sometimes the "simple" approach can create the best shopping experience for our customers. "

Grasp the Chinese market

? ? ? China's market, which is very mature in online shopping consumption, is naturally the place of contention for luxury e-commerce. According to statistics, Chinese consumers are expected to contribute more than 40% of sales to the global luxury market in 2025, while the proportion of domestic luxury e-commerce consumption is less than 10%. Facing this huge business blue ocean, mytheresa launched its layout five years ago.

"For us, there are huge business opportunities in the Chinese market." "Chinese consumers have a high awareness of luxury brands and products, and their lives are highly digital," Michael Kliger told 21st century economic report. Therefore, expanding our customer base in China is an important goal for us. " According to Michael Kliger, as early as 2016, mytheresa began to build a Chinese website, and then actively arranged channels including wechat, microblog and little red book to carry out more extensive social platform marketing. At the same time, it also highly adapts to the special consumption habits of Chinese consumers: providing customer service consultation in Putonghua, opening Alipay and wechat payment channels, promising to quickly and safely deliver goods to China within 72 hours, and returning goods free of charge within 30 days, so as to improve brand awareness and establish trust in mytheresa for Chinese consumers. Around China's local shopping festivals, mytheresa has also planned a series of festival promotion activities such as "double 11" and "Chinese Valentine's Day" according to the time nodes. In January this year, it also launched a dedicated H5 wechat game to celebrate the lunar new year.

? ? ? In addition to online planning, mytheresa also attaches great importance to offline contact with consumers. On the evening of May 13, mytheresa held a fashion talk in Beijing. Lucia Liu, executive deputy editor in chief of Chinese version of T magazine and fashion director, was invited to take the chair to share with a group of fashion culture personages their views on current fashion trends and unique clothing ideas“ We are keen to increase our business in China through events and local marketing. In the past few years, we have held a very successful event in Shanghai, and just held our first field event in Beijing to establish contact with local celebrities, media and customers in China. " Michael Kliger told reporters: "we believe that the men's and children's clothing provided by mytheresa, as well as the best products from major luxury brands, will have a good response among mature Chinese consumers."

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