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There Are Three Obstacles To The Development Of Luxury Brands.

2011/1/6 9:24:00 138

Luxury E-business

B2C comes to the forefront.

In November last year, Lanting Pavilion, a 3 year old wholesaler, raised $35 million in financing. Last year, two start-up retailers, luxury goods retailers, Shang Ping and group buying websites slowly moved away from the United States in the past few months.

market

Raised 10 million dollars.

Reporters interviewed yesterday found that with the constant upgrading of the number of domestic middle class and affluent population, luxury e-business B2C is emerging, and capital is changing.

Luxury electric providers are increasingly favored by capital.

Data from the Qing Research Center show that from 2009 to early December 2010 less than two years ago, there were 59 investment events in China's e-commerce B2C market, especially in 2010, which created the largest number of Chinese e-commerce B2C market over the years.

The number of cases disclosed has been 34, and the amount of investment has been disclosed to US $600 million.

The rapid development of e-commerce B2C market attracts many investment institutions. From Jingdong mall, Massa Marceau and Lanting Pavilion to Mai Bao Bao and Meng Baasa, VC/PE can be seen everywhere.

From 2009 to early December 2010, the investment and subdivision of e-commerce B2C market in China showed that group buying, clothing, clothing, food, ticketing and luxury goods were more concerned.

From these subdivision areas, group buying, with its new mode of speculation and extraordinary achievements, has naturally become a rising star in the B2C market of e-commerce in 2010.

Clothing, clothing and food business are closely related to people's lives and have broad room for expansion.

The luxury electric business website, which has quietly sprung up in the Chinese market since 2009, has emerged in the capital market despite its relatively small number of businesses, both in the early stages of development.

Capital concern or further improvement

In a sense, Taobao luxury overseas purchasing business can start to create China's luxury electric business.

From the perspective of the development of luxury e-business B2C industry, China's luxury electric business market quietly emerged in 2009. More representative enterprises such as Fifth Avenue, vip.com, glamour, Jiapin net, poly Shang net, hoha network, I love luxury goods, Ystyle, and even Luxe channel, fashion network luxury channel and so on.

According to incomplete statistics of the Qing Research Center, there are 5 investment events in China's luxury electric business websites since 2009.

Among them, Shang pin net and Yi You Jiapin have won two rounds of financing by virtue of its industry's first mover advantage.

Although strictly speaking, luxury electric providers do not provide consumers with real luxury, but they conform to the mass consumer's shopping idea and have broad room for development.

The research center of the Qing Dynasty predicts that luxury e-commerce will be attracting more manufacturers in 2011, but the competition will also bring challenges.

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Three obstacles need to be overcome in development

Zhang Yanan, an analyst at Qing Ke research center, believes that there are still three major obstacles to the development of China's luxury electric business market.

First of all, how to ensure the supply of diversified commodities and reduce costs are the key elements of the differential competition among luxury goods providers.

At present, China's luxury electric business is usually purchased directly through overseas teams, and the products are sold through one-time buyout and consignment by distributors.

Despite the fact that about 60% of the products of each website are terminal goods, manufacturers usually set up a strict discount zone for the business enterprises because of the maintenance of the high-end image of the brand, which is controlled by the supplier of the channel will seriously affect the bargaining power of the electricity supplier, and the difficulty of cost reduction will increase.

In addition, similar commodity sourcing channels for luxury electric business are more likely to cause product similarity and differentiated competitive advantage is unknown.

Second, how to improve consumer shopping experience is one of the major issues that luxury electric providers need to consider.

Luxury is often a symbol of identity and taste. When consumers purchase luxury goods, they get more valuable shopping experience besides getting a relatively small number of favorite merchandise.

Although luxury electric business adopts membership system or VIP system, shopping experience can not match the physical store, which will affect the choice of some high-end consumers.

Once again, the impact of fake and shoddy products is the "shining arrow" in the development of luxury electric business.

Effectively resisting the impact will be related to the healthy and orderly development of the whole market.