O2O Or Change The Traditional Luxury Retail Mode Follow-Up Market Will Go?

In the past two years, the luxury industry in China has not had a good time: the traditional luxury retailing has entered the "closed shop mode", but the luxury goods supplier favored by the capital can not open the market in the high asset group.

However, all of this may be changed by connecting the store and online O2O mode.

A few days ago, the China luxury report released in 2015 by the Institute of wealth research showed that in 2015, 83% of luxury brands had various forms of customs clearance in China.

This phenomenon will continue. It is expected that more than 95% of luxury brands will strategically close some stores in 2016.

Only in the middle of November this year, two big brands were hit by a closed shop crisis.

LV was exposed to close 3 stores in Hua men's shop. Burberry also reduced the double flagship store in Hongkong's Pacific square to a single layer.

In fact, in recent years, Prada has closed about 1/3 of Chinese stores and Hugo Boss has closed 7 stores.

Turning to the reasons for the closure, luxury electric business Fifth Avenue CEO Sun Yafei told reporters that the top luxury brands will consider the index of per capita consumption and population density when they open their stores.

In the downside of the industry, it is necessary to close the poor stores and maintain profits.

Local suppliers have never been able to clearly explain the source of goods. The intermediation of luxury circulation is an inevitable trend. Finally, online retail of luxury goods can only be done by itself.

Nowadays, the traditional luxury industry is really hard.

According to the China luxury goods report, the proportion of China's luxury goods market in the world dropped from 11% in 2014 to 10% in 2015, compared with 13% in 2013.

Zhou Ting, Dean of the Fortune Research Institute, revealed that the loss rate of most luxury brand customers is greater than or equal to the increase rate of new customers. "De logo" is rapidly pforming into "de branding".

At present, the Fifth Avenue O2O platform has signed with more than 200 brands or total agents, and there are about 30 stores in the online and offline system.

Sun Yafei disclosed that in the past, B2C was the most frequently asked question of consumers.

Now turning to O2O mode, the problem of source of goods will be readily solved by brand players directly facing online consumers.

It is worth noting that the wealth Research Institute pointed out that compared to 2011, the difference in luxury prices between domestic and overseas has significantly narrowed, from an average of about 50% before, to 20%~30% in 2015.

This has a significant relationship with the government's policy of further lowering import tariffs in recent years.

Zhou Ting believes that China will further increase its import tariff adjustment efforts in 2016, and use various policy measures to restrict overseas shopping so as to promote the growth of China's local consumption.

This means

And the allure of the sea will continue to decrease. Chinese luxury goods are expected to flow back from overseas to the mainland. By then, the luxury O2O mode based on local stores will be promising.

The Internet was once considered a life-saving resource for luxury goods.

In the first half of this year, a large number of luxury electric providers received large amounts of financing, and the market was once active.

However, according to the survey of high net worth people, only 4% of Chinese consumers are willing to choose local luxury electric providers if they choose online shopping channels. The proportion of willing to choose luxury brand official website and foreign luxury electric business is 44% and 27% respectively. The profitability of Chinese luxury vertical e-commerce providers is insufficient, and the overall risk of falling into danger is falling.

In this case, Zhou Ting believes that O2O is expected to completely change the traditional luxury retail mode, and the future Chinese market will produce a number of O2O based products.

Retail enterprises, based on big data and Internet, will become the bright spot of the luxury market.

For brands, it is an inevitable choice for luxury brands to further strengthen the pformation of existing stores, establish a large experience and service center instead of existing stores, and achieve O2O online and offline.

Correspondingly, Fifth Avenue announced recently that it had received tens of millions of yuan A round of financing from Yuan Shi capital and circulating capital, and launched a new O2O mode, which is also the first O2O platform in the field of luxury goods.

The plan is to set up shop on O2O platform to open up the source of goods online and store, and share members.

Information about theme activities.

Customers can place orders from stores, deliver door-to-door products, and make reservations to stores.