How Is The Luxury Electric Business Hotter? How Can Jingdong And Alibaba Give Up?

Paradox seems contradictory, but it often reveals truth.

According to the world clothing shoes and hats net, China

The vertical electricity supplier Temple library was listed on NASDAQ in September 22nd. The first electric business with many "first" (following the 36 months after Ali's debut in the US) and the first luxury electric business in the us to be listed in the United States was broken down on the first day of the IPO. After closing two weeks in October 10th, it closed 8 US dollars, still down 38.5% compared with the issue price.

Wall Street so bad luxury luxury vertical electricity supplier, October 10th this day,

But has launched its own independent luxury electric business App TOPLIFE.

As early as August,

There is also a virtual APP Luxury Pavilion that sells luxury goods.

In 2017, how did luxury electric providers get hotter?

2010-2017 China luxury electronics business ups and downs

Now, almost all the famous market research institutions in the world have indicated that "China's luxury market is going to erupt. China will soon become the world's largest luxury market."

McKinsey's latest "2017 China luxury consumer report" mentioned that in 2016, Chinese consumers accounted for 32% of the global luxury market, and Chinese consumers were the main source of global luxury goods.

It is estimated that by 2025, Chinese consumers will digest 44% of the global market for luxury goods.

It looks very beautiful, but most luxury electric providers in China, which started in 2010, did not catch up with this good time.

Since 2010, a large number of vertical luxury electric providers have emerged in the Chinese market, such as Xiu Xiu, Fifth Avenue, Zun Xiang, Jiapin, etc.

In 2011, the company was awarded the largest B round of $100 million in the history of Chinese electricity supplier.

But in the 2012 place, the government began to fight corruption, and the consumption of gifts was curbing and adding to the burden of the Chinese luxury market.

Since 2014, respected network, product convergence network, Jiapin net and so on have been closed down, the charm is pferred to almmen, the valuation of the show network has dropped sharply, and the smuggling of the Xiu Xiu network this summer has revealed the survival dilemma of the luxury electric providers.

Luxury electric business? It's not that easy.

In the eyes of the large number of people, luxury is the most unsuitable category to sell online.

Luxury goods are highly experienced before buying, especially new products.

But the big weakness of the electricity supplier is that it can't feel and experience before buying.

Whether consumers or luxury brands, e-commerce pactions trust costs are too high.

The proliferation of counterfeit goods has been an obstacle to the electricity supplier industry. This problem is infinitely magnified in the field of luxury.

In addition, the biggest embarrassment of moving luxury goods onto the Internet is that the scarce, highly cold luxury goods and the electricity providers who rely on cock wires and start price wars naturally do not seem to match their tonality.

LVMH, the world's number one luxury group, has refused Amazon's offer in the US.

In the Chinese market, last year's cross-border electricity supplier tax reform, coupled with the global luxury brand, is trying to eliminate the global spread. Now, no matter the buying system, or the proprietary mode of luxury business platform, have lost the original price advantage, the vertical luxury electric business survival space is not big.

Even so, Jingdong has reasons for not doing TOPLIFE.

First of all, the Chinese luxury market is destined to be a big cake in the future.

In this year's Milan fashion week, Claudia D 'Arpizio, a partner of Bain consulting company, said that 30% of the global luxury goods market of 249 billion euros was paid by Chinese consumers. After three years of quiet experience, China's luxury market rebounded sharply this year, with an expected growth of 6-8.

China's luxury consumer report released by McKinsey, a world-renowned management consulting firm, said that by 2025, the global market value of luxury goods will increase by 1 trillion yuan to 2 trillion and 700 billion yuan.

Such a great potential in the Chinese market, no matter how Jingdong and Alibaba, will give up?

Second, the upgrading of consumption and the rise of new generation of consumers.

The world's richest population is getting younger and younger, and so is the Chinese market.

The degree of brand digitalization needs to match the younger generation of consumers.

Shopping behavior happens everywhere. They can see the fashionable handbags in the social media. They will immediately think that the "fast" and "interactive" online pactions are in line with the shopping experience of the new generation of consumers.

Thirdly, the market power of the electricity supplier is giving full play to its advantages.

In the Chinese market, luxury brands represented by LV have closed some stores in two or three tier cities since 2016. With the improvement of Chinese consumers' living standards, the luxury consumption potential of high-end consumers in two or three tier cities is being stimulated, and the opening of electricity providers will make up for this market demand gap.

The more favorable news is that the rejection of luxury brands to e-commerce has gradually collapsed.

The most symbolic event is that LVMH, the world's largest luxury group, which has always been conservative and prudent in the development of electricity providers, launched its first e-commerce website 24Sevres.com in June this year.

Another luxury giant Hermes also announced the launch of e-commerce sites in the US in the second half of this year.

The report released by L2 Data Research Institute shows that the luxury brand launched in China online shopping service or the three party e-commerce platform such as Jingdong, Alibaba and WeChat has achieved blowout growth in 2017.

In addition, the international capital market has seen a good momentum of luxury business, and investment is also growing.

Against this background, Jingdong and Alibaba will certainly exert their strength in the field of luxury goods.

Take Jingdong as an example, Liu Qiangdong is now trying to make his wife Zhang Zetian a top fashion icon, who has been a consultant of Jingdong fashion brand development, endorsed the clothing brand of Jingdong and French designer, and appeared in New York and London Fashion week from time to time in an attempt to occupy the fashion to the highland and try to win the international fashion discourse.

In June this year, Jingdong also bought a well-known global fashion shopping platform Farfetch at a price of 397 million US dollars.

What do you think of TOPLIFE?

TOPLIFE is fully independent of Jingdong's main station operation, focusing on experiential luxury consumption, highlighting sales services, customer experience and supply chain management.

The user's shopping mode will be dominated by brand, and can also enjoy customized fashion consulting service and 24 hours of endless customer service.

TOPLIFE is also equipped with a luxury storage facility invested by Jingdong. The warehouse employs multiple security systems such as cipher lock, face recognition, 24 hours monitoring, 110 linkage alarm, fingerprint identification and so on.

From the present point of view, the design of TOPLIFE refers directly to the major problems of luxury electric providers: for example, "TOPLIFE is completely independent of Jingdong's main station operation". On the one hand, it is to isolate the sale of luxury goods from other commodities and businesses on Jingdong platform so as to facilitate quality control and improve the trust of consumers and luxury brands.

"To build online shopping experience, such as high-end storage," white glove "respecting distribution service, one to one fashion consultant, is undoubtedly the adjustment of domestic luxury electric providers' ubiquitous" service failure ".

Jingdong is relying on past accumulation to distinguish other competitors through services.

But in the view of the retail krypton star, there are two problems worth paying attention to. One is, what is the offline action of Jingdong or Alibaba in the field of luxury goods?

From the total retail sales of consumer goods in China, online retail sales accounted for 15.5% in 2016.

The trend of luxury electric business is lower than that of mass consumer goods. It is expected that online penetration will reach 15% in 3 years.

In the future, the scale of domestic luxury electric business market is 40 billion yuan, and the scale of stores under the line still has 230 billion yuan.

The view from AI analysis ifenxi is that although the luxury market has 100 billion market increments in the future, the ceiling of the electricity supplier market is only 40 billion yuan, so the larger increment must come from offline channels.

Second, there is a clear direction in this round of "luxury business" race.

Who can move and persuade the new generation of consumers with the luxury brand as soon as possible?

With the big data and huge flow of marketing, Jingdong and Alibaba still have to solve the problems that must be solved in the development of luxury goods providers, how to reduce trust costs, increase experience, how to make consumers satisfied with services, and how to find new ways to maintain luxury tonal and experience, and to play online advantages.

Anyway, an independent App play is absolutely not enough.

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