Luxury Electric Business: Starvation Game

< p > the domestic electricity supplier platform goes to the US market in succession. It really inspires morale. In terms of numbers alone, the increase of over 30% of the luxury electric business is not pessimistic. The development of the luxury sales market also seems to have huge space.

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 the market demand. That is the problem of the business mode. < /p >

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< p > 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? < /p >

< p > < strong > the pride net fell down and never got up again. < /strong > /p >

Less than 3 years ago, the luxury e-commerce website, which has been established for less than 1 years, has been invested by millions of dollars in Sai Fu Asian Fund for 1 months. It even pulled China Merchants Bank as its platform, but the operation of the website was completely over by the end of May this year.

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< p > 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Ltd in Wales flourishing in Shanghai have all been pferred in October 2013, and the VIP honor network has also been replaced by management.

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< p > the domain name of the respected network is not accessible by the reporters through the archival information. Its 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."

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< p > in fact, the fall of the respected network is not a case. In the past two years, most of the luxury electric business websites are in bad luck, or they have already closed down or have chosen a painful pformation.

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< p > < strong > the helpless behind the bank standing team < /strong > < /p >

< p > early November 2007, Alibaba's B2B business was successfully listed on H shares, 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.

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< p > 2010, along with the great ferment of the whole business start-up tide, luxury electric business has sprung up like mushrooms, and capital has been vigorously touted.

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< p > 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.

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< p > based on this, the strategy of founder Ren Kefei is to pull banks to stand in order 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.

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< p > < strong > there are also some helplessness behind this binding mode: < /strong > /p >

< p > 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."

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< p > 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."

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< p > < strong > supply chain mode to be tested < /strong > < /p >

< p > traffic difficulty is not the biggest problem of enjoying the Internet, nor is it the main reason for its collapse.

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< p > 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.

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.

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< p > 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.

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< p > strong > similar luxury e-commerce cost chain, violating the general business model structure, nor can it reflect the advantages of the electricity supplier.

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"P," said CEO, Li School of temple library network, told reporters in an interview with reporters: "the price of products sold by luxury electric business has certain rules. The price of luxury brands can only be about 15% cheaper than domestic ones. After all, our profit margins are not so large, and the low price will also cause consumers' distrust."

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< p > despite the fact that many luxury electric business employees interviewed by reporters seem to think that the sale price of luxury goods is not the only factor, it is more about providing services. But Hao Zhiwei, a senior electricity supplier 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?" < /p >

< p >, 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.

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< p > reporter has learned that after two years of blossom, a large number of luxury electric providers have been exposed to problems, including Jiapin network, Shanda banner and hoha network, which have won many rounds of financing.

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< p > > a href= "http://sjfzxm.com/news/index_p.asp" > according to < /a > public report, there is a respected network staff revealed that compared with the slow growth of orders, the quality of the complaints about the product has caused the company to lose its head. At first, it was only a few scattered pieces, and then it was a large-scale outbreak, and the most complaints were the source of goods.

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< p > in addition, the complaint of brand is 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.

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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, lack of shopping experience, and price constraints are all on the mountain top of the luxury electric business. "Especially the sources of unknown origin, but it is all the bruising of all the luxury electric business websites, or even very likely to stop here". P

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< p > 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.

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< p > 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.

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"P" in the interview of many industry insiders, the luxury goods e-commerce is a pseudo proposition, one side is the continuous spray of 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 pformation."

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