Luxury Goods Protest Chain Reaction: 10 Billion Market Torture Profit Model

A statement by SWAROVSKI made Jingdong mall "in trouble".

As of March 14th, there were still a number of luxury items on sale in Jingdong mall's "360top luxury" page, including controversial ones.

Jingdong mall said earlier that there was no legal problem in the sale of goods, although it did not obtain authorization from the brand manufacturers, nor was it directly licensed by the brand, but it was authorized from the channel distributors.

"The source of luxury goods suppliers must be legal, which is the most important concern when we prepare to invest.

It is also the confusion of luxury websites.

Liu Qing, vice president of Shenzhen Oriental Fuhai Cci Capital Ltd, said.

According to AI consulting data, the total online sales of luxury goods in China for the first time exceeded 10 billion yuan in 2011, an increase of 68.8% over 2010, and is expected to reach 37 billion 240 million yuan by 2015.

The legal source of goods is puzzled.

Since 2009,

"Our brand licensing includes two kinds: one is to sign the license directly with the brand, which accounts for about 30% of the whole brand, and the other is long-term cooperation with the authorized overseas authorized dealer. We have a professional buyer team to buy according to the actual situation of our website."

Wang Yan, director of public relations,

The Shang pin network, which was launched in 2010, is one of the luxury online shopping platforms, with less than 200 brands and sales of around 200 million yuan in 2011.

The brands currently licensed to Shang pin net are HODSON, No.21, Amen, Laundry and so on, but there is no direct authorization from brands such as GUCCI and Hermes.

"First of all, we need to ensure that the goods are genuine and legal. Secondly, we can understand the worry of big brands on China's electricity providers.

It is better to get their direct authorization. "

On SWAROVSKI's "counterattack" incident, Wang Yan said that this is the problem of SWAROVSKI channel management, Jingdong has no fault.

Unless a brand has signed an agreement with a channel or supplier, it has explicitly requested that it be not authorized to sell to the website.

In Liu Qing's view, "the dissatisfaction of luxury brands is a disturbance to the price system of the local market, but we should condemn those distributors who provide goods to the electricity supplier."

Difficulties in business mode

Apart from the source of goods, the luxury business is more puzzled or its own business model.

Before, Liu Qing's team once had an idea to invest in luxury goods, but eventually gave up.

"We still feel that the luxury business is not too mature business model.

This gives us some apprehension. "

A large number of venture capitalists have followed up luxury electric providers.

Shang pin net got three rounds after it was launched in July 2010.

The reality is not satisfactory.

CEO was resigned from the news, and the Hohhot web site was blackened due to the arrears of wages. The home page showed a huge salary picture and finally went bankrupt. The product convergence network announced that it could not continue to operate because of the chain breaking. Even NetEase, one of the three websites, failed to survive its NetEase luxury goods online shopping platform. The NetEase product, which was closed at the end of 2011, was less than one year from birth to closure.

An electric business insider said that Jingdong sold luxury goods because it saw the needs of consumers: that consumers need to buy fidelity goods at affordable prices. As for what kind of goods Jingdong is, this is not a consideration.

Liu Qing also believes that Jingdong's luxury sales are compared with other websites that are purely luxury goods providers.

Jingdong has a lot of cash flow, which is not hard for buying sales, while other luxury goods providers need a lot of money to buy goods from buyers' teams, and there is a risk of hoarding goods.

"We have calculated that the cost of development and operation and logistics is too high. The buyer team buys goods abroad, and the purchasing power directly affects the selling price. This profit is too low for us to dare to vote."

Liu Qing said.

Shang pin admitted that it was not profitable at present.

"But we insist on membership sales. The current buyer team is more than 20, and it will increase in the future. We hope to do the latest follow up, not the full discount outlets.

What we need to do now is clear business models, that is, luxury sales.

"When we studied luxury electric business, we thought that if we want to survive, the platform brand is more valuable than the brand we sell.

Platform credibility is high, consumers dare to consume.

In order to achieve this, marketing and marketing need a lot of money, and other goods are bought. In order to win more discounts and more customers, many luxury goods providers can not find the mode of making money and burn them off.

Liu Qing said, "these are rigid expenses, and we are also observing the profit model of luxury electric providers."

And the only industry that has to go through the market is vip.com.

From 2009 to 2011, vip.com's net revenues were 2 million 800 thousand US dollars, US $32 million 580 thousand and US $227 million respectively. The net losses for the same period were US $1 million 380 thousand and 700, US $8 million 365 thousand and 800 and US $107 million respectively.

According to McKinsey's market survey, China's luxury market will reach 180 billion yuan in 2015.

China will account for more than 20% of the global luxury market.

But the luxury brand's awkwardness has made the luxury electric supplier embarrassed.

The price system of luxury goods is challenged under the impact of luxury electric business.

In other words, luxury electric business has moved big cheese.

The Research Report on China's B2C e-commerce industry in 2011 shows that as of the end of 2011, China's luxury online shopping market reached 10 billion 700 million yuan, with a growth rate of 67.2%, and by 2013, the scale of China's luxury online shopping market will reach 23 billion 760 million yuan.

A person in charge of Taobao Tmall mall revealed that COACH had worked as an online franchised store for the 70th anniversary celebration.

At the same time, the official disclosed that in the second half of 2012, there will be a large number of international brands to enter and open online outlets.

"With the change of consumption patterns and lifestyles, luxury online shopping must be a trend, but how luxury business providers can make profits and how to clear their business models is still waiting for time."

Liu Qing said.