At present, China's luxury goods consumption market ranks second in the world, and the momentum of rapid growth is favored by the world's major luxury goods makers. In the past two to three years, China’s luxury online shopping has begun to rise and developed rapidly, showing a “barbarous growth†trend. At the same time, experts believe that, in the state of maturity of luxury e-commerce is not high, the current entry of a large number of venture capital, making e-commerce in the staking while ignoring the market's long-term orderly cultivation, domestic luxury e-commerce Already in a state of overheating, the bubble is looming.
Younger groups have become the main force of online shopping luxury goods. While the market share of luxury goods in China has been continuously expanding, the luxury consumer groups are also showing a trend of youthfulness and are concentrated in the age of 45. With the growing strength of young people's wealth, they become the main force of online shopping for luxury goods.
According to the "China Luxury Goods Report 2011" released jointly by the Center for Luxury Goods Research of the University of International Business and Economics and "Wealth Quality" magazine, 80% of luxury consumers are positive about online shopping luxury goods, 52% of which are expressed by luxury consumers. "Want to try", 20% believe that "can be trusted", 7% said "highly trusted", and the "after 80" consumers aged between 20-30 years have the most positive attitude towards online shopping luxury goods. At the same time, research shows that in all the concerns of online shopping for luxury goods, “product authenticity†is the most concern for Chinese consumers, followed by product quality issues and after-sales service, distribution security.
With the changes in consumer attitudes and the increase in spending power and the pursuit of international brands by Chinese people, luxury goods have a considerable market space in China. At the same time, online shopping for luxury goods began to enter people's lives. In the first half of 2011, an upsurge began in China's online shopping market.
Yu Wenlong, general manager of Fufan Excellence China, told reporters that although luxury prices are higher in China, there are also many people who are willing to buy in the country. Especially young luxury consumers, they are not only familiar with the network, but also willing to accept new things, training them to become loyal customers online shopping luxury, will be the main force of the future of luxury e-commerce.
Luxury website "blossoms everywhere"
With e-commerce from the low-end to the high-end, the domestic luxury e-commerce has mushroomed, from Taobao's self-employed shopping service stores to professional e-commerce sites, can be described as "flower everywhere." Moreover, this trend has grown explosively. In 2011, it was also seen as the “Chinese first year†of luxury e-commerce.
Zhou Ting, Executive Director of the Center for Luxury Goods at the University of International Business and Economics, told reporters that China’s luxury e-commerce can be described as “numerousâ€. In the past two or three years, especially after the financial crisis of 2008, domestic luxury e-commerce websites have been online. The scale and benefits are better, such as catwalk show, Fifth Avenue, Shangpin.com, Youzhong.com and Weipin Club. Jingdong Mall, Vanke, Dangdang.com also announced that it will open a luxury sales channel.
According to data released by Analysys International, the volume of online shopping transactions for luxury goods in China in the first quarter of 2011 was 2.9 billion yuan, and reached 3.45 billion yuan in the second quarter, a 19% increase from the previous quarter. It is expected that the third and fourth quarter growth rates will reach 20.3% and 32.5%, respectively, and the annual transaction volume will exceed 16 billion yuan.
Although luxury e-commerce has rapidly evoked an upsurge in China, there is a phenomenon that many luxury brands are very cautious in cooperating with e-commerce companies in China. Li Wen, director of public relations at familiar guest, said that luxury brand owners are concerned about the impact of online price disruptions on them. The more important concern is that luxury products do not look like luxury goods. Many e-commerce companies do not run luxury goods as luxury goods, or follow the “cheap and mass†ideas of low-end and mid-range goods in earlier years. This is not the case with the characteristics of luxury goods, luxury brand image is everything.
Why are luxury brands willing to cooperate with e-commerce in Europe and America? Li Wen believes that e-commerce companies in Europe and the United States can well maintain their brand image and provide luxury consumers with a high-end shopping experience similar to that of luxury goods stores. Many luxury e-commerce companies not only helped brands digest inventory, but also did a lot of brand value-added services. Online sales even led to offline store sales. The most important thing for luxury e-commerce is the image, shopping experience and after-sales service, but there is almost no e-commerce that can really achieve this in China.
VCs favored the luxury e-commerce bubble looming the Chinese market The rapid development of the luxury goods B 2C business has attracted capital concerns and has become a major investment hot spot for the Chinese e-commerce industry in the past two years.
According to the monitoring statistics of the China Electronic Commerce Research Center in August, various types of investment ** have entered the luxury B 2C market in recent years to nearly RMB 500 million***. Typical cases include that Jiapin.com, which was established at the beginning of last year, has already invested in Taishan Angels Investment. After a few months, it has obtained the second round of investment from Songsong Capital and Jiafeng Capital, followed by the third round of Jinsha River Venture Capital. ** This year, VIP will once again receive a combined venture capital of US$50 million from Sequoia and DCM on the basis of last year’s US$20 million.
Luxury e-commerce companies are accelerating their “staking their way†while also being as profitable as many group-buying websites.
Huang Jin, Chief Strategy Officer at Cyberspace, believes that China's luxury e-commerce companies are in the “barbarous growth†phase and young people are the future of luxury goods sales. He said that the company still maintains a 25% annual sales growth rate. This year's sales are expected to be 1 billion yuan, and it is expected to further increase to 2-3 billion yuan next year. Despite considerable annual sales, the show network is not yet profitable. The huge cost input makes luxury e-commerce companies “burn money†like many other industries in the Internet, and it needs to be driven by capital investment.
Zhou Ting said that the luxury market needs time to nurture, to the extreme of service and product quality, but driven by the interests of the capital, the wind betting repays, it is bound to pursue the scale and quantity, and this is not the development trend of luxury brands. “The amount of luxury goods is so many. The fierce competition in the first-line brands leads to higher purchase costs, and there is no advantage for the e-commerce companies to come under the price, so they start to develop the second- and third-tier brands and become fashionable product sales instead of luxury goods sales.â€
According to Huang Jin, there are currently more than 2,000 brands on the catwalk network and plans to cover more than 5,000 next year. Now it is positioned as a fashion e-commerce instead of just a luxury brand.
Ting Zhou told reporters that the current maturity of luxury e-commerce and capital investment is not proportional to the amount of capital from the perspective of input and speed are very fast, somewhat similar to the late 90s investment in the entire Internet industry. For luxury e-commerce companies with low maturity, the risk of so much capital investment is great, which may ultimately damage the orderly development of China's luxury e-commerce market.
Li Wen believes that luxury e-commerce is now in an over-hot state, all kinds of venture capital to enter, the industry has loomed bubble risk. (Wen / Wang Shujuan Gao Shaohua)
Younger groups have become the main force of online shopping luxury goods. While the market share of luxury goods in China has been continuously expanding, the luxury consumer groups are also showing a trend of youthfulness and are concentrated in the age of 45. With the growing strength of young people's wealth, they become the main force of online shopping for luxury goods.
According to the "China Luxury Goods Report 2011" released jointly by the Center for Luxury Goods Research of the University of International Business and Economics and "Wealth Quality" magazine, 80% of luxury consumers are positive about online shopping luxury goods, 52% of which are expressed by luxury consumers. "Want to try", 20% believe that "can be trusted", 7% said "highly trusted", and the "after 80" consumers aged between 20-30 years have the most positive attitude towards online shopping luxury goods. At the same time, research shows that in all the concerns of online shopping for luxury goods, “product authenticity†is the most concern for Chinese consumers, followed by product quality issues and after-sales service, distribution security.
With the changes in consumer attitudes and the increase in spending power and the pursuit of international brands by Chinese people, luxury goods have a considerable market space in China. At the same time, online shopping for luxury goods began to enter people's lives. In the first half of 2011, an upsurge began in China's online shopping market.
Yu Wenlong, general manager of Fufan Excellence China, told reporters that although luxury prices are higher in China, there are also many people who are willing to buy in the country. Especially young luxury consumers, they are not only familiar with the network, but also willing to accept new things, training them to become loyal customers online shopping luxury, will be the main force of the future of luxury e-commerce.
Luxury website "blossoms everywhere"
With e-commerce from the low-end to the high-end, the domestic luxury e-commerce has mushroomed, from Taobao's self-employed shopping service stores to professional e-commerce sites, can be described as "flower everywhere." Moreover, this trend has grown explosively. In 2011, it was also seen as the “Chinese first year†of luxury e-commerce.
Zhou Ting, Executive Director of the Center for Luxury Goods at the University of International Business and Economics, told reporters that China’s luxury e-commerce can be described as “numerousâ€. In the past two or three years, especially after the financial crisis of 2008, domestic luxury e-commerce websites have been online. The scale and benefits are better, such as catwalk show, Fifth Avenue, Shangpin.com, Youzhong.com and Weipin Club. Jingdong Mall, Vanke, Dangdang.com also announced that it will open a luxury sales channel.
According to data released by Analysys International, the volume of online shopping transactions for luxury goods in China in the first quarter of 2011 was 2.9 billion yuan, and reached 3.45 billion yuan in the second quarter, a 19% increase from the previous quarter. It is expected that the third and fourth quarter growth rates will reach 20.3% and 32.5%, respectively, and the annual transaction volume will exceed 16 billion yuan.
Although luxury e-commerce has rapidly evoked an upsurge in China, there is a phenomenon that many luxury brands are very cautious in cooperating with e-commerce companies in China. Li Wen, director of public relations at familiar guest, said that luxury brand owners are concerned about the impact of online price disruptions on them. The more important concern is that luxury products do not look like luxury goods. Many e-commerce companies do not run luxury goods as luxury goods, or follow the “cheap and mass†ideas of low-end and mid-range goods in earlier years. This is not the case with the characteristics of luxury goods, luxury brand image is everything.
Why are luxury brands willing to cooperate with e-commerce in Europe and America? Li Wen believes that e-commerce companies in Europe and the United States can well maintain their brand image and provide luxury consumers with a high-end shopping experience similar to that of luxury goods stores. Many luxury e-commerce companies not only helped brands digest inventory, but also did a lot of brand value-added services. Online sales even led to offline store sales. The most important thing for luxury e-commerce is the image, shopping experience and after-sales service, but there is almost no e-commerce that can really achieve this in China.
VCs favored the luxury e-commerce bubble looming the Chinese market The rapid development of the luxury goods B 2C business has attracted capital concerns and has become a major investment hot spot for the Chinese e-commerce industry in the past two years.
According to the monitoring statistics of the China Electronic Commerce Research Center in August, various types of investment ** have entered the luxury B 2C market in recent years to nearly RMB 500 million***. Typical cases include that Jiapin.com, which was established at the beginning of last year, has already invested in Taishan Angels Investment. After a few months, it has obtained the second round of investment from Songsong Capital and Jiafeng Capital, followed by the third round of Jinsha River Venture Capital. ** This year, VIP will once again receive a combined venture capital of US$50 million from Sequoia and DCM on the basis of last year’s US$20 million.
Luxury e-commerce companies are accelerating their “staking their way†while also being as profitable as many group-buying websites.
Huang Jin, Chief Strategy Officer at Cyberspace, believes that China's luxury e-commerce companies are in the “barbarous growth†phase and young people are the future of luxury goods sales. He said that the company still maintains a 25% annual sales growth rate. This year's sales are expected to be 1 billion yuan, and it is expected to further increase to 2-3 billion yuan next year. Despite considerable annual sales, the show network is not yet profitable. The huge cost input makes luxury e-commerce companies “burn money†like many other industries in the Internet, and it needs to be driven by capital investment.
Zhou Ting said that the luxury market needs time to nurture, to the extreme of service and product quality, but driven by the interests of the capital, the wind betting repays, it is bound to pursue the scale and quantity, and this is not the development trend of luxury brands. “The amount of luxury goods is so many. The fierce competition in the first-line brands leads to higher purchase costs, and there is no advantage for the e-commerce companies to come under the price, so they start to develop the second- and third-tier brands and become fashionable product sales instead of luxury goods sales.â€
According to Huang Jin, there are currently more than 2,000 brands on the catwalk network and plans to cover more than 5,000 next year. Now it is positioned as a fashion e-commerce instead of just a luxury brand.
Ting Zhou told reporters that the current maturity of luxury e-commerce and capital investment is not proportional to the amount of capital from the perspective of input and speed are very fast, somewhat similar to the late 90s investment in the entire Internet industry. For luxury e-commerce companies with low maturity, the risk of so much capital investment is great, which may ultimately damage the orderly development of China's luxury e-commerce market.
Li Wen believes that luxury e-commerce is now in an over-hot state, all kinds of venture capital to enter, the industry has loomed bubble risk. (Wen / Wang Shujuan Gao Shaohua)
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