9 Year Old Shang Pin Net Declared Bankruptcy Behind The Luxury Goods Business Is An Embarrassing Industry.

Recently, the homepage of Shang pin App has been announced, announcing "suspension of business". The announcement said, "because of the poor financing and reorganization, the operation has been blocked, and it has been unable to continue to provide services for the vast number of users. So far, the 9 year old Shang pin network has experienced a bumpy development and eventually collapsed in the domestic luxury electricity supplier market.

　 From brilliance to "selling oneself"

Shang pin net belongs to Beijing and Cheng Huaxin Technology Development Co., Ltd. was founded in May 2010 and its headquarter is located in Beijing, China. In July 2010, luxury goods supplier Shang Shang net was formally launched, becoming the first luxury electric supplier in China to put forward "membership + sharing".

The two years that have just been established are the golden age of Shang pin net development. Within two years, Shang Ping network has received more than 70 million dollars in total financing. According to data from the sky, we found that in January 2010, Shang Ping won the A financing of Lei Jun's millions of RMB. In October of the same year, the company completed tens of millions of dollars in B financing of sunrise capital and Siwei investment.

In July of next year, Shang Ping net was awarded the $50 million C round of financing which became capital, morning capital and Si Wei investment. But before and after the Spring Festival in 2012, the Shang Ping network was pushed to the top of the storm because of layoffs. The industry's rumor was directly due to the lack of financing.

A statement released by Shang pin said that the company's organizational structure and business layout have been adjusted and optimized in recent years. These initiatives are part of the company's normal management behavior. The purpose is to enable enterprises to operate more efficiently.

In 2013, Shang Ping network was downgraded. From the beginning of the line, the positioning was luxury transformation, positioning, fashion and luxury. And bet on the agency cooperation with the British fashion giant Arcadia Group Ltd., in September 2014, the fashion supplier Shang Shang net won the franchise of Arcadia Group Ltd. Topshop.

However, the transformation in 2013 also failed to help Shang pin network form an obvious competitive advantage. At the same time, the Arcadia group of Topshop parent company is also somewhat self assured. Its sales declined in 2016 and 2017 for two consecutive years: sales in fiscal 2016 decreased by 2.5% to 2 billion pounds compared with the same period last year. In fiscal year 2017, group sales fell 5.6%, down to 1 billion 910 million pounds.

Although Arcadia did not announce the performance of each brand, the core brand Topshop, which has been constantly exposed to the market's cold shoulder, has become the focus of suspicion.

Although Shang Ping network completed D and E round financing in 2014 and 2016 respectively, it still can not support the normal operation of the platform.

In January 8, 2018, Herme group announced that its wholly-owned subsidiary, Herman commerce, intends to sell a share transaction of not more than 250 million yuan and a total transaction consideration of not more than 150 million yuan to increase its capital, which will allow 90% of the well-known luxury goods providers of China to sell shares of "Shang pin net" and a 100% stake in "Hecheng Yuxin".

According to the trading agreement, the Shang Shang net operation entity Beijing Shang pin Bai Agel Ecommerce Ltd (Beijing: Shang pin) parent company Beijing Xin Shang pin Technology Development Co., Ltd. (short: Xin Shang pin) and Hermine Group signed a bet agreement: the new Shang pin and its actual controller Zhao Shicheng promised that the first year, the next year and the last gambling year were three years from the effective date of the transaction, and the sale of Beijing Shang products in turn was no less than 400 million yuan, 600 million yuan, and 900 million yuan, and the return rate should not exceed 24%.

At that time, some people in the industry commented Shang pin net: "Shang Ping net = half buy fast fashion + Half buy luxury, but because this platform can be replaced in fast fashion, there are too few brands in luxury goods, and both sides are losing."

　 Harbinger of closure

After selling, the Shang pin net did not usher in spring. Before announcing the "suspension of business", there was already news of "layoffs" and "arrears of wages". In late June 2019, there were media reports that many employees left on the website of the Shang pin network broke the news, and the company laid off a large number of workers, which has been reduced from two hundred to 35. The company originally promised to pay wages in June 15th, and has not made any progress.

Dating back to May 15th, this is the day when Shang pin sent wages in April, but employees waited for an email with delayed pay. The mail said that due to special reasons, the delayed payment of wages in May, and the "special reason" mentioned in the mail may be the capital problem of Shang pin net. This time, Shang pin did not issue any further statement. A month later, the hard goods network, which had been struggling on the road, finally stopped.

The epitome of luxury business

The development of Shang pin network is more like a small epitome of domestic luxury electric business. The head platform is "dead" and "injured", and the rest is like a temple library, which has a good momentum of development. It also does not dare to occupy YISHION luxury electric business.

Insiders said that the source of goods, worries about the spread of derivative commodities, lack of shopping experience, and price constraints are all pressing on the top of the luxury electric business. "Especially the sources of unknown origin, but it is all bruising of all luxury electric business websites."

In addition to the traditional internal factors that hinder users' trust in the platform, luxury electric providers will also face the attack of traffic bigboys. Vertical e-commerce platform faces disadvantages such as Tmall, Jingdong and other integrated platforms. In terms of commodity prices, authenticity and so on, how can it be more attractive than the integrated platform to retain users? These are not only the problems that Shang Ping net has faced, but also the embarrassment of industry.