Luxury Brand Test China Online Store

along with

In late March, China's largest fashion shopping website "Xiu Xiu net" won the investment of the top international venture capital organization, Kai Peng Huaying, for 20 million US dollars.

The total amount of financing exceeds Japan's main attack.

The rate of return on acquisitions is not as good as that in China.

The French richest man, Bernard Arnaud (BernardArnault).

Because of the low input costs, the luxury goods stores in China assume that the sales margin of each store is 2 million euros and the operating profit margin is 15%, and the marginal return on investment will reach 20% to 25%.

In contrast, Burberry, whose market value has risen to 5 billion pounds, has a pre tax investment return of only 4.5% in the first year, even without a premium.

The current trend indeed corresponds to this statement.

It is reported that almost all the luxury brands that landed in China gained two digit growth last year.

McKinsey predicts that by 2015, luxury sales in the Chinese market will reach US $27 billion, thus surpassing Japan and becoming the world's largest luxury market.

By then, up to 20% of global luxury sales will come from China.

Luxury brand test China online store

Following the construction of traditional outlets, at the end of November last year, Giorgio Armani announced that it would launch e-commerce channel emporioarmani.cn in China, the first high-end fashion brand launched online in China.

At the same time, it also announced the landing of China's Yoox group, the online retailer selling global luxury brands, running 23 single brand official flagship stores and two multi brand online stores. Emporioarmani.cn is one of them.

According to the company's top executives, in 2011, 3-4 brands of online shops including Valentino (Valentino), Pu Qi (Emilio Pucci), Du Gabbana (Dolce&Gabbana) and Zegna (Ermenegildo Zegna) will also enter China.

The big brand online stores try the Chinese market, largely due to the younger trend of luxury consumers in China.

According to McKinsey's statistics, the most prominent feature of Chinese luxury consumption is different from other markets: age 73%: Chinese luxury consumers are less than 45 years old, and this proportion is only a little more than 50% in the United States.

Among them, the proportion of luxury consumers in China under 35 is 45%, while in Western Europe, this figure is only 28%.

Based on this huge market, Gucci, Velentino and other brands also condescended to appear in iPad downloadable APP software, while LV appeared on Sina micro-blog.

Ranked first in three years

However, although the "touches" are the trend of the times, most luxury brands are still cautious about this channel, and regard physical stores as the focus of China's development, especially the two or three tier cities.

Comparatively speaking, China's local luxury online stores are more active.

"In the environment of consumption upgrading, luxury is indeed a good investment direction.

The e-commerce itself is also in the hot stage, the platform class Taobao occupies the market share, and the later is more difficult to intervene.

But in the vertical platform, after the popularity of the diamond shop, it is now the turn of clothing and luxury goods.

There is a high threshold for the management of luxury goods, and once the advantage is formed, it is not easy for the latter to imitate it.

The founder and CEO Ji Wen Hong of Xiu Xiu network said.

I understand that most of China's luxury online stores have only been established for 2 years. According to the report of the third party ERI consulting, it has become the first place in the fashion e-commerce website in China, and it has only been three years.

Private equity workers can't wait.

Before the show, the northern lights joined the Sequoia Capital to invest in the top nine of top quality men's clothing. Jiapin got the third round of financing from Jinsha River venture capital, Taishan Angel venture capital, song wo capital and a consortium in Hongkong.

In October last year, it was only 3 months since the official launch of Shang pin net. Under the circumstances of no achievement, angel investors and the VC group of Disney, Siwei and sunrise venture capital have invested millions of dollars.

DCM and Sequoia Capital are $20 million, and venture capital is injected into vip.com, a luxury business website.

According to the preliminary statistics, the total investment amount of the above private equity funds has exceeded 500 million yuan.