The Reasons For The Collapse Of Luxury Goods Industry Are Their Own Reasons.

With the listing of Alibaba and Jingdong, the pattern of integrated electricity market is basically established, and it is very difficult for latecomers to have opportunities.

However, the war of the electricity supplier industry has not stopped. As the integrated electricity market has become oligopoly, entrepreneurs have begun to cut into more vertical and subdivided markets.

The electricity supplier is also one of them.

Over the past year, China's luxury electric business has been favored by the capital market.

In May of this year, the company got the $30 million C round of Jardine LIAN's leading investment. In the same month, the luxury electric business curiosity network completed the A round of 60 million yuan financing. In July of the same year, the temple library network received 50 million yuan of E round of financing from Ping An Innovation Investment Fund, and in addition, the Alibaba won over 100 million dollars in investment.

Although luxury electric providers are sought after from capital, their days are not good enough. The industry is starting to collapse and lay off. This is due to the overall contraction of China's luxury consumer market, and on the other hand, it comes from its own problems in the luxury electric business.

1. the consumption of luxury goods in China has declined.

According to the annual report of China luxury market released by Bain consulting, consumption in China's luxury market fell 1% in 2014 compared with 2013, the first time in eight years.

In 2014, the domestic consumption of Chinese consumers decreased by 11% to 25 billion dollars compared with the same period last year. The proportion of China's luxury goods market in the global luxury market dropped from 13% in 2013 to 11% in 2014, which fell further to 10% in 2015.

In 2015, despite the slow down of luxury stores, even 83% of luxury brands began to close inefficient stores in China. The Institute of wealth quality predicts that by 2016, more than 95% of luxury brands will strategically close some stores.

2. fake worries limit the development of luxury electric business.

The electricity supplier seems to have never been able to get rid of the trouble of counterfeit goods since its birth.

According to the wealth Quality Research Institute, luxury goods in the market are visible 6 times the visibility, luxury everywhere on the street.

Most of them are fake.

At the same time, as consumer demand for luxury goods is growing, it makes domestic

A lot of luxury goods manufacturers have been bred, and their main sales channels are mostly electric providers.

Zhou Ting, President of the Institute of wealth and quality, said in a media interview that the counterfeit rate of individual luxury electric suppliers in China was as high as 90%, and even had its own fake factory.

Hermes CEO also said publicly that 80% of the products sold online are fake.

Because the price of luxury goods is several times that of ordinary goods, the consumer's tolerance for luxury goods is very low, which also leads consumers to dare to try luxury electric business, limiting the development of luxury electric business.

3. nearly 8 of luxury consumption takes place overseas.

In recent years, the proportion of China's local luxury goods market in the global luxury market has decreased year by year, while overseas consumption has been continuously strengthened. According to the survey data, in 2015, the consumption of Chinese luxury goods abroad will reach 91 billion dollars, an increase of over 12% over the same period last year.

This means that the problem of China's luxury consumption outflow is very serious, and 78% of Chinese consumers' luxury consumption takes place overseas.

In addition, with the development of cross-border electricity providers, Hai Tao and overseas purchasing agents, the domestic luxury electric business has had a serious impact.

The biggest advantage of cross-border electricity providers and Hai Tao purchasing is the price. On average, the price of luxury goods abroad is at least 50% lower than that of domestic luxury goods, even if the price of luxury goods on Tmall is about 30% higher than that of Hai Tao.

4. luxury brands favor the comprehensive electricity supplier third party does not have the advantage.

There are mainly 2 kinds of commodity purchasing methods for luxury electric providers. One is to adopt the buying system, to invite experienced buyers to buy them, and the other to cooperate with the brand side. This is also the best way to ensure that the luxury goods suppliers are genuine.

But in terms of cooperation with the brand side, the third party luxury electric business has little advantage, mainly because of the luxury brand in order to maintain the attitude of high cold, most chose to build their own official website for sale. The other part looks at the traffic advantages of the comprehensive electricity supplier, and favors the cooperation with Tmall and Jingdong mall.

For example, Coach chose to build its own e-commerce website, while Burberry entered Tmall platform.