Luxury Electric Providers Need Calm Thinking About Business Models

Here world clothing shoes Hat net Xiaobian introduced to you the status quo of luxury electric business: the source of hunger game.

The domestic electronic commerce platform's successive listing in the US has really stimulated the morale. In terms of numbers alone, the increase of over 30% of the luxury electric business is not pessimistic. The overall development of the luxury sales market also seems to have enormous room. However, since this year, the luxury electric providers such as the respected network have gone bankrupt, but the industry has to calm down and think about it.

The lethality of the supply problem has been mentioned at an unprecedented level. How can luxury electric suppliers find the way to survive in the cracks between consumers and brands without the formal authorization of luxury brands?

Respecting the net fell down, and never got up again.

The less than 3 years old luxury e-commerce website, which won the $10 million investment of Sai Asia Fund in 1 months on line, even pulled China Merchants Bank as its platform, but ended the operation of the website by the end of May this year.

In May 27th, CEO, a respected network company, said in his micro-blog: "my general manager and shareholder status of Agel Ecommerce Ltd in Wales flourishing in Shanghai have all been transferred out in October 2013, and VIP has also been replaced by management.

The domain name of the respected network is not accessible by the journalists. The official micro-blog has not been updated since September 24, 2012. As Yan Yan, an investment partner of Sai Fu Asia, said, "getting investment proves that you are recognized by a certain investor. It does not mean that it has been recognized by the market, nor does it mean that it has been successful."

In fact, the fall of the pride network is not a case. In the past two years, most of the luxury electric business websites are in bad luck, or they have gone bankrupt, or they have chosen a painful transformation.

　　 Helpless behind banks

In the early November 2007, Alibaba B2B business has successfully launched the H-share market, setting off a hot start in China. In this upsurge, in 2008, the luxury industry, with its high customer price and strong purchasing power of target customers, stimulated the germination of China's luxury business model.

In 2010, with the great ferment of the whole business, the luxury electric business also sprang up like mushrooms, and the capital was also vigorously touted.

Respecting the net is one of them. In August 2011, we enjoyed online shopping, including luxury goods, fashion trendy clothes, beauty care and skin care. Only a month later, the SAF Asia Fund injected tens of millions of dollars into its rush. As a luxury electric business company, the main problem facing the network is to get consumers' trust in their products. Otherwise, grabbing the market will be a passive source of water.

Based on this, the strategy of founder Ren Kefei is to pull banks to stand in line, so as to create their own trust. According to the previous market strategy of Zunwang, the project started cooperation with banks, telecommunications and other enterprises, and even used FedEx (FedEx) to deliver goods. This kind of bundling marketing mode has indeed made a lot of efforts for the growth of respecting the network. According to public reports, the sales of some similar websites have been completed in 4 months.

　 Behind this bundle mode, there are also some helplessness.

A business insider told reporters that the sales volume that merchants can really get from banks is negligible. "To put it plainly, there is no user stickiness in the banking channel, and there is no advantage in products and prices. Especially luxury consumers will hardly shop in the mall, because they have too many channels to choose."

Soon, the network enjoyed a common problem facing vertical electric providers -- traffic pressure. The electricity business insiders said that the past four years are four years of rapid development of domestic electricity providers, and the cost of obtaining users is also soaring. Even Tmall's leading e-commerce provider has a cost of more than 100 yuan to acquire a new user, not to mention other websites that do not have any traffic source. "Respecting the network wants to gather a large number of high-end users from the platform online shopping users. It needs strict operation and long-term accumulation, and it will not achieve results overnight."

Supply chain mode to be tested

Traffic dilemma is not the biggest problem of enjoying the Internet, nor is it the main reason for its collapse.

The industry generally believes that the biggest embarrassment of the luxury electric business is the problem of the extension of the source of goods, which can not get the brand authorization from the brand dealer or the scarcity of the luxury itself, resulting in insufficient quantity of goods. Without formal authorization, it can only be flooded with counterfeit goods, leading to complaints from consumers and brands. Even if they are authorized, they will not be able to get enough goods from the brands, and they will not be able to satisfy the consumers' demand for shopping.

Because of the restriction of goods supply, luxury electric providers usually obtain goods by way of brand agents or by recruiting buyers. As a result, the purchase cost of luxury electric business channel is basically at the same level as that of traditional channels, and the cost of advertising by electricity suppliers is not dominant in cost competition with traditional channels.

Similar luxury e-commerce cost chain, contrary to the general business model structure, also can not reflect the advantages of the electricity supplier.

Temple library network CEO Li day study explained in an interview with reporters, "luxury products sold by e-commerce dealers have certain rules, the price for the first tier luxury brands can only be about 15% cheaper than domestic prices, after all, our profit margins are not that big, and the low price will also cause consumers' distrust."

Although it seems that many luxury electric business employees interviewed by reporters, the sale price of luxury goods is not the only factor, more is the provision of services, but Hao Zhiwei, a senior business observer, pointedly pointed out that the supply chain and price can not get the advantage. Only an isolated website has no ability to provide more services. "What is the unique service that the pure luxury electric business website compares with the LV store under the line of Hang Lung Plaza?"

Therefore, he believes that the user's consumption habits and product characteristics determine that the flourishing development of the luxury goods industry in China is difficult to continue to the electricity supplier industry.

Reporters learned that, after two years ago, everywhere, there have been a large number of luxury electric providers have been exposed to business problems, including the acquisition of several rounds of financing Jiapin net, Shanda banner product network, hoha network.

According to public reports, a respected network staff revealed that compared with the slower growth orders, the quality complaints about the products made the company break the brain. At first, it was only a few scattered pieces, but then it was a large-scale outbreak. The most common complaint was the source of goods.

In addition, complaints from brands are more difficult than consumer complaints. The online enjoyment almost covers the first tier luxury and fashion brands, such as Burberry, LV, Estee Lauder and so on, and these brands are not authorized to enjoy the network.

Cao Lei, director of the China Electronic Commerce Research Center, said in an interview with reporters that the source of goods, worries about the spread of derivative commodities, the lack of shopping experience and the restriction of price are all the peaks on the top of the luxury electric business. "Especially the sources of unknown origin, but it is all the bruising of all luxury e-business websites, and may even stop here."

Cao Lei believes that most luxury websites have conflicts between supply and consumer experience. Without the authorization of the brand, respecting the network can not get the products that are perfectly justifiable, nor have the endorsement of the partners, so it is very difficult to get consumers' trust.

Compared with the winter of luxury electric business, the electricity supplier industry has been in the spring for nearly two years after years of hard work. Jingdong mall, vip.com, jumei.com and other sites have been listed in the United States, and have been recognized by the capital market. However, luxury electric business is still in the test period of the market, and constantly tug of war between the "high-end" positioning and the "cock wire" Internet users.

In the interviews with many people in the industry, Luxury electric business It is a false proposition, on the one hand is constantly erupted online shopping demand, while the luxury online shopping is cold. Respecting the net is not the first fallen website, nor will it be the last one. "More and more websites are at the crossroads of transformation."