The Chinese Market Is Hard To Figure Out The Luxury Business.

< p > most of China's a href= "http://sjfzxm.com/news/index_c.asp" > luxury electric business "/a" is still in the state of "burning money". Overseas luxury electric business operators with rich experience in operation have been developing slowly in China, and even begun to "withdraw".

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< p > < strong > * luxury electric providers show bubbles * * /strong > /p >

Ginger Reeder, vice president of corporate Marcus, Neiman Marcus, the US high-end department store, has recently confirmed to great wisdom that the company plans to reduce the operation team of Neiman Marcus Chinese website, and all customers will be shipped directly from the US warehouse.

According to the news, the layoffs reached 50%, and it was less than half a year away from the Chinese website.

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"P", according to company insiders, because of poor sales, the Singapore luxury limited time sale website, Reebonz, which was founded in 2009, has been dissolved by the end of March, leaving only two financial and finishing staff.

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< p > at the same time, in 1997, the Bluefly of the US luxury electric business listed on NASDAQ announced last month that it will be wholly bought by a private fund Clearlake in Losangeles, and the former major shareholder Soros fund will withdraw.

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< p > Bluefly has enjoyed the Dodge of the peak of the Internet bubble. In 1999, the company's share price hit the peak of 150 US dollars, and then dropped to below 1 US dollars in 2012. At present, the market value is only 11 million 300 thousand dollars.

In the past five years, Bluefly accumulated a total loss of $56 million 100 thousand, and it lost $24 million 900 thousand in 2012 alone.

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Soros, a financial predator who once held Bluefly 90% shares, has gradually been reduced as the Internet bubble burst, becoming the second largest shareholder of P.

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< p > > a href= "http://sjfzxm.com/news/index_s.asp" > luxury industry < /a > analysis website founder Hua Lizhi Alicia Yu said Bluefly has long been trapped in inventory, high marketing and management costs.

Its management team is also quite old. Many executives are over 60 years old.

After taking over all 89% of the major shareholders, Clearlake will pay 10 cents a share to acquire the remaining shares in the market, which is basically a "jumping price".

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In 2011, China's luxury consumption market peaked. Bain's report said that the growth rate reached 30% in the same period last year.

The sales of major brands in China have increased, and overseas high-end fashion business providers have also begun to seize the opportunity.

According to the industry data, in 2012, the total number of luxury consumers in China reached 250 million, with a total sales volume of US $2 billion 500 million.

But with the growth of the luxury consumer market and the pressure from all sides, luxury consumers in China seem unable to support the spread of luxury electric business.

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< p > < strong > * difficult to understand the Chinese market? * * /strong > /p >

< p > China's luxury e-commerce website started in 2008 and exploded in 2010.

In 2010, there were more than 50 new luxury e-commerce websites, and the main business was basically similar. The growth of luxury e-business reached a peak.

However, with the collapse of the ordinary scale e-commerce website in 2012, fewer than 5 local e-commerce enterprises survived, most of them have the support of large-scale venture capital or private equity funds.

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Overseas luxury electric providers with more experience in luxury goods and electricity business than P, though many of them have studied China through localization teams, do not seem to be able to accurately judge the market and national conditions.

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< p > according to people familiar with the matter, at present, the three overseas a href= "http://sjfzxm.com/news/index_f.asp" > luxury electric business in China is not very good.

Among them, Neiman Marcus caused a lot of losses due to a large number of market inputs; Yoox invested less in the market, and the operating cost of personnel and rents was very low, but because some of the brands that were operating on behalf of the company were making money, there should be a small profit. Net-A-Porter itself had some Chinese customers, and at present its Chinese version has not launched a large amount of market input, but it has already recruits the base extensively, and it is not clear about its profitability.

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< p > at present, there are mainly two channels for overseas luxury electric business to enter the Chinese market. First, through the acquisition of China's electricity providers, they use their resources and teams in China to carry out website operation and maintenance.

Net-A-Porter, a British luxury electric provider affiliated to Switzerland's Li Feng Group, acquired Hongkong's familiar customer network and launched its first Chinese website, the outlets.

Neiman Marcus is also through the injection of the charm of fashion suppliers to enter China.

Recently, China's local luxury goods business Jiapin network is also gradually pforming into Messi's department store's online platform in China.

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< p > the other is to launch the Chinese language version on the basis of the original language website and "curve into China".

The US electricity supplier originator of Amazon's fashion electricity supplier Shopbop in China is this way.

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< p > Ren Guoqiang, partner of Roland Begg management consulting company, said in a media interview that the Chinese language version may be a way of doing luxury business in China, which will have great advantages in terms of time and cost.

In addition, because the number of online shopping people is relatively mature, saving the cost of education.

This is the most realistic choice.

However, such practices cannot be expanded.

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< p > the industry generally believes that the stability and authenticity of online products and shopping experience, and Chinese consumers still think that online shopping is the concept of "cheap" consumption, which hinders the development of luxury electric business.

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"These large foreign retail enterprises are usually too optimistic about the market situation when they enter China. They will soon realize that in China, especially in the two or three tier cities, consumers are less aware of the brand of luxury electric business," Wang Hao said. "These consumers are very aware of the brand of luxury electric business. The international business providers need to understand the Chinese Internet consumers as well as the local luxury electric providers, and build their brand base and reputation gradually on this basis," P CEO said.

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< p > "the main reason for part of the electricity supplier's retrenchment or withdrawal is that its performance is not as fast as expected. At present, China's entry and tariff policy is also a difficult problem for overseas luxury electric providers," he added.

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