Luxury Electricity Providers Set Off Mergers And Acquisitions Tide

Recently, along with the luxury buyers, the buyers of Milan station have seen the shadow of their counterparts. Online retailers Once again, the tide of mergers and acquisitions. This also shows more clearly the current situation of the polarization of luxury electric business, and the collapse and acquisition will further enhance the concentration of luxury goods industry. Channels, sources of goods, policies and services are the leading factors leading to the dilemma of luxury electric providers. The business model of luxury goods providers needs to be improved.

　　 Luxury goods Electricity supplier mergers and acquisitions tide is now polarized

Data show that China now has nearly two hundred million luxury goods and potential consumers. In 2012, the sales of luxury goods in Greater China reached 181 billion yuan, becoming the second largest country in global luxury consumption. A report released by Observer Solutions, a market research and consulting firm, showed that China's luxury e-business market turnover increased rapidly from 6 billion 400 million yuan in 2010 to 18 billion 900 million yuan in 2012, and it is expected to reach 27 billion yuan by the end of 2013. Moreover, a report released by McKinsey also shows that China has accounted for 25% of the total global luxury consumption in 2012, and it is expected that this ratio will increase to 34% by 2015.

Arguably, in such a good environment, with the advent of the tide of e-commerce socialization, the luxury e-business market will usher in tremendous market opportunities and potentials. However, the facts are not optimistic.

Luxury electric business in the past four years, from the early imitation of overseas mode to "Chinese style survival", from a hot pursuit of capital to become a popular mode of decline, experienced a roller coaster ride experience from high-speed development to instant drop, and now there is a bipolar polarization. "Failure", "unauthorized" and "loss" have become synonymous with this industry, forcing more luxury electric providers to swing their hands, but have to turn around.

Less than six months after the official launch, Niemann Marcus, a luxury chain store with a history of over 100 years, has recently announced that it will cut down the number of Chinese online stores, and will also close the Chinese warehouse. The large foreign-funded retail enterprises that are considered to have "congenital advantages" will not be able to escape Waterloo's encounter in luxury e-business. Since its launch in 2009, Jiapin has received five rounds of financing, but soon it will burn itself out. It will inevitably fall into the trap of doom.

However, contrary to the appeal for luxury electric business, the shadow of the luxury electric business Temple library is now shining among the buyers of the Milan station. According to people familiar with the matter, temple library intends to acquire backdoor listing through the acquisition of Milan station. Data show that the annual sales volume of temple Library in 2012 was 300%, on the contrary, the performance of Milan station began to decline at this time. From October 2012 to June 2013, Milan station issued four profit warnings in just 8 months. As of the end of June this year, the Milan station lost HK $10 million 300 thousand, compared with HK $400 thousand in the same period last year, while mainland sales fell 25.9% to HK $32 million.

　 Luxury electric providers are trapped in a dilemma

There are many reasons for the "fall" of most luxury electric providers.

First, the reasons for the channel. International luxury enterprises should ensure their dignity. channel The control has been very strict, enterprises will not easily authorize the third party network channels, but mainly through direct outlets selling products, resulting in the lack of channels, so that luxury goods become the weak spot of online shopping.

The sale of luxury goods by domestic electricity suppliers has become the unspoken rule of the whole industry. Media reports say that more than 99% of luxury goods sold by domestic electricity providers are not authorized.

Secondly, the reasons for the supply. China's local luxury electric providers are hardly able to get the source of goods without authorization, facing the shortage of supply. Luxury brands or the value of e-commerce, so do not want to do business to others, even the international luxury electric providers are hard to get the source of goods, let alone China's local luxury electric business. Therefore, China's local luxury goods providers are mainly buying goods by purchasing agents, wholesalers abroad, professional buyers or sweeping goods.

In fact, more and more Chinese consumers have realized that the gap between the high price and the cost of domestic luxury goods has gradually shifted to overseas purchasing through luxury websites and overseas luxury goods, which has caused a certain impact on luxury electric business.

Moreover, policy reasons. It can be seen from many international luxury brands that policy restrictions also make it harder for luxury businesses. Under the environment of advocating sustainable consumption and moderate consumption, the consumption of public funds has been severely restricted by the central government, and the consumption behavior aimed at showing off wealth has also cooled down, leading to a bitter and bitter result of luxury electric business.

Finally, the reasons for the service. The main force of luxury consumer groups is not bad money, they are totally insensitive to price. They care about service. However, online channels of luxury goods are rampant, and the services received are not as good as those of ordinary buyers. This directly affects consumers' trust in luxury goods suppliers.

　　 Luxury e-commerce business model needs improvement

Believe and capital think, luxury goods business mainly needs to solve the luxury supply channel of public trust, high-end and honorable shopping enjoyment and intimate after-sales service and other customer focus issues.

Shen Zhengyuan, a senior researcher at CIC, said: "luxury electric business will develop on the basis of the increase of brand, platform supply and further improvement of consumer shopping habits, which will be an important trend in the development of luxury goods market in the future. On the one hand, the development of luxury e-business in China should follow the mode and path from low-end to high-end development, grasp the vast number of middle and end consumer groups, cultivate online luxury goods market, and gradually attract brand businesses to enter. On the other hand, domestic luxury electric providers should strengthen the introduction of large brand businesses, and strengthen buyers' resources and designers' strength to give consumers more quality services.

So far, people often say that luxury electric providers lack customer experience. Zhou Ting, President of the Institute of wealth studies, believes that the interaction between offline and online can make up for this deficiency. Offline offline is not a regular luxury store. With the upgrading of luxury retail formats, luxury retail outlets have been gradually abandoned by luxury core consumers, and experience and service centers will become the mainstay of offline retailing in the future. Because experience and service center can further improve consumer's experience perception.

After sale service, the logistics service system of luxury electric providers still relies on traditional logistics at present. This kind of service can not achieve standardization and details, nor can it reach the level of service required by luxury brands, and can not reach the service perception of high-end consumers. Therefore, the business mode of luxury electric providers should be differentiated from traditional electricity providers, and they should seek suitable development channels on the basis of traditional electricity providers.