How Will The Future Of Luxury Electric Business Go?

According to the China luxury report released by the Institute of wealth and quality of the luxury goods authority in November 24th, the Chinese consumers in 2015

Consumption will reach 116 billion 800 million dollars, an increase of 9% over the previous year, that is, 100 billion yuan.

China is still the largest market in the global luxury market. Behind the demand is huge market potential, and mobile Internet brings rich channel opportunities.

An ill fated track.

For the development path of luxury goods, a lot of analysis believe that in 2011, it is still four of the beacon smoke, 2012 began to expand the shuffle, 2013 into the wave of sand, and to 2014, 2015 to obtain new financing companies are rare.

Surviving luxury goods providers are also having a hard time.

Jingdong, a big cash cow, now has a market value of tens of billions of dollars, but as a "slow business", luxury goods providers still rarely have opportunities to list.

In fact, in order to ensure survival, runners on the track mostly change their positions in the pattern, hoping to control the pulse of the market as soon as possible.

A survey of the 2015 China luxury report from the Institute of wealth research shows that Chinese consumers are still not enthusiastic about luxury goods providers, and are still the most active online buyers of young people.

41% of users said they would not buy luxury goods from the Internet, 38% of users said they would like to try, and less than 1% of them expressed a high degree of trust in online shopping.

No doubt, this is a bad track.

Luxury electric business "itch"

According to Bloomberg recently reported that even if the global online retail business turnover increased by 17% annually, about 40% of high-end brands are not willing to sell their products online.

Many luxury brands consider that tailoring for high-end customers is an important part of the brand and an important component of high-quality experience.

And with

The difficult problem of cooperation is not only here.

With the expansion of physical stores, more and more luxury goods are starting to get electric shocks.

But the problem is that even if luxury goods come online, the low price volume model is not suitable for them.

Take Tmall as an example. The first luxury brand Coach was forced to close because of poor sales for only a month after trial operation. In 2014, Bubbery also had no promotional discounts, nor had the offline experience. Similarly, its performance was poor, and it also had a 26.4% return rate because of the "no reason to return" clause.

In addition to facing the brand's weakness, the pressure of the supply source is more from the distributors. The traditional agent associations account for the overwhelming majority of the shares, and even have more advantages in the category and even the price.

Electricity providers often fail because of the lack of brand authorization, which leads to unstable sources of goods, or because they can not get the latest and most popular styles, and become inventory or tail cargo processing centers, which affect the shopping experience.

Is the future worth looking forward to?

Although the concept of cross-border electric business is hot, luxury business is still on the edge of the topic.

But with the reshuffle of many rounds and the entry of bigwigs, the attraction of this growing cake is still expanding.

The electronic trend of luxury goods industry can not be avoided.

According to McKinsey, a world-renowned consulting firm, by 2025, the proportion of luxury electric business will reach 18%.

China will be a big consumer of luxury electric business.

Prior to 2009, McKinsey had predicted that luxury electric providers would account for 2% of total luxury goods sales in 2015, but the actual figure in 2015 had reached 6% ($14 billion).

But everything is not easy. In the Internet circle that loves to boast of numbers, all kinds of luxury electric business websites still keep silent about their core performance data. The only thing that can be announced is the amount of registered users' "water content" table data.

Electricity supplier profitability is a difficult problem for all walks of life. After all, investors are patient and limited. Once the fund's expiration date is over, it will be embarrassed for many luxury electric providers when the market is exhausted.

But the racecourse is still there, and the running is still continuing. Sixth years after the cross-border electricity supplier, whether the capital can really bring "high profile" to the "lucky" people's entry and holdings, is still worth looking forward to.