Luxury Industry: The Touch Of Competition Between Peers

The McKinsey digital luxury experience report shows that as of 2014, online luxury goods sales totaled 14 billion euros, accounting for 6% of the total global luxury goods sales (224 billion euros), representing an increase of 50% over the same period in 2013.

Prior to 2009, McKinsey had predicted that by 2015, the sales of fashion business accounted for 2% of the total sales of luxury goods, about 4 billion US dollars.

To this end, it has adjusted its view of luxury digital channels. It predicts that in the next ten years, the sales of luxury electric business will increase significantly. By 2025, global online luxury goods sales will reach 70 billion euros, accounting for 18% of the total sales of personal luxury goods (390 billion euros).

The other two luxury goods groups have also explored a lot in the field of e-commerce and digitalization.

As early as 2010, the Swiss luxury group made a full acquisition of Net-A-Porter, a luxury electric business in the UK.

France Kai Yun group and Italy luxury electric business Yoox set up a joint venture in August 2012, which is responsible for managing the e-commerce website of Kai Yun group's brand.

By the end of March this year, the world's first and second luxury electric providers, Net-A-Porter and Yoox, formally announced the merger.

The group's estimated market value will exceed 2 billion 500 million dollars (about 15 billion 600 million yuan), and the two companies will officially complete the merger in September this year.

(Richemont) executive chairman JohannRupert has said that the company is working with two other luxury electronics giants, LVMH and Kai Yun, hoping that LVMH and Kai Yun will be new partners.

Electricity supplier YooxNet-A-Porter group financing.

"The merger of Net-A-Porter and Yoox's two big business platforms will make the two major luxury groups of the peak and Kai Yun go further on the road of electricity supplier convergence". Zhou Ting believes that luxury brand competition has entered the era of competition and cooperation. It is not ruled out that the three major luxury goods groups will further cooperate in the electricity supplier in the future, and once again monopolize the luxury pattern of the control line.

In addition to reforming the organizational framework to set up the chief digital officer, LVMH group also increased its investment in the luxury Internet sector this year, injections of $40 million into the British fashion business Lyst, founded in 2010, and has become a leader in the LystC round of financing.

Lyst is a collection platform of luxury brands and buyers' stores. In 2014, its total sales volume was $40 million, compared with the sales volume of 650 million pounds (1 billion 20 million US dollars) of luxury shopping websites in Net-A-Porter2014, Lyst is still growing.

In China, Benefit, the cosmetics brand of LVMH group, entered Tmall at the end of 2011, but it withdrew after half a year in.

According to Benefit later, Tmall is an attempt by LVMH to China's electricity supplier. Although the feedback data is good, no final conclusion has yet been reached.