Since The Outbreak Of The Outbreak, The Specific Analysis Of Products To Promote The Development Of E-Commerce.

The high-end shopping centers everywhere in Chinese cities have been quiet for more than a month. Consumers in the world's most lucrative luxury market are unwilling to take risks or be barred from entering these public places.

However, in some boutiques, there is still vitality. The sales of luxury brand salesmen (commonly known as "cabinet elder sister") have joined many other industries that have been affected by the outbreak of the new crown virus. They can broadcast live through professional platforms such as live broadcast or directly communicate through WeChat, and turn luxurious flagship stores into online shopping stage.

To a large extent, this is a walkthrough of customer relationship maintenance -- a way to keep in touch with brand VIP and introduce new series to existing fans, but such interaction also allows people to communicate directly through live broadcast and buy products they like. Shop assistants usually follow through WeChat to complete the purchase, and send products directly from the boutique to provide their urgent income sources for the luxury brands and fashion brands who are in the mire of crisis.

Italy OTB group, which owns Marni, Diesel and Maison Margiela brands, is one of the companies that have started broadcasting live in China. The company's Greater China and Asia Pacific CEO Giovanni Pungetti are very pleased with the results.

"We have touched many audiences, and have already done some business. We have covered every corner of China, "Pungetti said.

Although direct broadcasting has become a mature mode of entertainment and Commerce in recent years, so far, high-end brands have only advertised and sold low priced products (such as beauty products, not clothing or leather goods) on live broadcast, and people believe that there is a cognitive disconnect between luxury and live world.

"For us, this is a totally different way of doing business," Pungetti admits. "I have been emphasizing this to our shareholders in Italy: what we are learning now -- trying to find new ways to develop business -- will be very helpful for the future. When everything returns to normal, it will become another weapon for us to grow and develop.

Alibaba has been an industry leader in the field of live broadcasting. According to Hu Wei hung, vice president of Alibaba and general manager of Tmall fashion and express, the new crown virus epidemic prompted more Tmall's luxury partners to start experimenting with this technology.

Recently, brands such as Furla, Ermenegildo Zegna and Valentino have participated in the high-profile live broadcast through the Alibaba platform, covering all kinds of seasonal products, that is, buying and buying technology, as well as interviews with brand KOL and creative director.

　　 New player, new Arena

Even before the new crown hit the core of China's luxury industry, Secoo has been promoting the potential of online sales to promote luxury online sales.

The platform has been engaged in second-hand luxury transaction since 2008. In recent years, it has turned to cooperate with Prada, Salvatore Ferragamo, Versace, Lanvin and Valentino to sell new products. It is one of the leaders of luxury business live broadcasting. Li Rixue, chairman and chief executive officer of temple library, explained: "we see strong growth in the low and middle cities." He is optimistic about the prospects of online channels.

"Consumers in the high-end market still attach importance to the personalized store shopping experience. At present, the electricity supplier is used as a supplement to the flagship store, not a substitute. But in the future, this trend will be reversed, and the entity store will become a complementary experience for e-commerce, "Li Rixue said with great confidence.

Although electricity sales are estimated to account for only 10% of China's annual luxury sales of $150 billion, Li predicts that this proportion will increase significantly, reaching 30% in the next five years. This is more than Bain's prediction of the global ratio of luxury goods and electricity providers. Bain predicts that by 2025, 25% of the world's luxury goods sales will be completed online.

The growth of temple library seems to highlight Li Rixue's confidence. In the third quarter of 2019, its total merchandise sales amounted to 3 billion 661 million yuan, an increase of 66.8% over the same period last year. Its total revenue reached 1 billion 940 million yuan, an increase of 23.5% over the same period in 2018.

　　 Changing industry landscape

Just two years ago, China's luxury electric business market is still the two largest platform giant Jingdong and Alibaba's Tmall competition, each platform has set up specialized luxury applications and entries. In recent years, this pattern has undergone rapid changes. Jingdong's luxury platform Toplife has been bought and integrated by Farfetch.

Today, Farfetch has made a deep localization in China, and users can access it through its own application, WeChat applet or home page of Jingdong website application. Farfetch has become a popular choice for many brands and boutiques to enter the electricity supplier. They have been working with other platforms in other parts of the world, and its cooperation with Jingdong has brought significant logistics advantages.

Jingdong has 360 million active users and its own "luxury flagship store". Although Jingdong has been struggling with disputes over the years in recent years, and in other areas, it has been forced to avoid competition from new players in the Chinese market, such as many other players. But in recent years, Jingdong has achieved its success by signing high-end luxury brands on its own platform.

Just last week, Jingdong announced that it will become the exclusive online e-commerce platform for Delvaux, the European luxury brand in China.

"Why doesn't anyone buy a special handbag on the Internet? This digital evolution is exciting and provides a wide range of possibilities, "said Marco Probst, chief executive officer of Delvaux.

Like the temple library, Jingdong said its strong national logistics network helps its luxury brand partners enter the area where the fastest growing consumer groups are located, that is, the second tier cities. Jingdong fashion and lifestyle international business President Chiang Ke Salvatore Ferragamo as an example, the brand in Jingdong online shop the third largest sales market is Yunnan's three line city Qujing, it is not unexpected.

Tmall's Alibaba is still China's largest luxury electric business company. A Consumer Search Group research released last month found that 60% of respondents prefer buying luxury goods online via Tmall Luxury Pavilion, compared to 44% of people who like to buy through Jingdong.

OTB's brand in China has chosen to cooperate with Tmall in developing e-commerce business. Giovanni Pungetti revealed that the Italy group achieved a "super successful" electricity supplier growth in China last year, and the sales volume of the three brands doubled. Like many others, the reason why they choose Tmall is in the coverage of this platform.

"Of course, there are other platforms that are developing along the way, and China's electricity supplier environment is hard to predict, because the situation is changing too fast, but Tmall is the most important platform, and its consumer groups are so huge," he said, referring to more than 700 million active consumers on the Alibaba platform.

Prada this month has become the latest Tmall Luxury Pavilion's senior regulator. This shows that a powerful brand does not necessarily have to work with a platform. The Italy brand has signed an agreement with the temple library and entered the Jingdong through an online flagship store in June 2019.

In October 2019, Tmall opened its Net-a-Porter flagship store in Luxury Pavilion, which also made a name for Tmall's luxury goods. This marks the start of operation of Feng Mao, a joint venture between Yoox Net-a-Porter and Alibaba.

The partnership has begun to help giants in the field of luxury electronics to consolidate their strength and in fact exclude other leading global luxury electronics suppliers, such as MatchesFashion and MyTheresa. Compared with Alibaba and Jingdong, MyTheresa is relatively small and does not provide special technology or shopping mode for the Chinese market. At the same time, other domestic platforms are also vulnerable to this duopoly squeeze. The fate of Shang pin and Xiu Xiu net was doomed a few years ago.

　　 Who buys and buys online?

For almost every luxury industry executive, the urgent question is how much Chinese consumers will be interested in luxury consumption after the devastating new crown virus outbreak and the coming economic impact in the coming months. This is a question worth 150 billion dollars.

The Chinese electricity supplier market giant sent out complex information about the online market. Alibaba said that this quarter's revenue growth will be affected by logistics difficulties caused by isolation measures at all levels in China. Isolation measures were first implemented in January 24th and are still being isolated in many parts of China.

On the other hand, Jingdong forecast that its first quarter revenue will grow by at least 10% after the new crown epidemic. Chiang Ke, Jingdong, said: "since the outbreak of the new crown virus, more and more luxury brands have been discussing with Jingdong about setting up online stores."

Meanwhile, Alibaba's Hu Weixiong described the sale of luxury goods on Valentine's day, which was the peak of the outbreak in China, but the results were also "explosive".

However, whether these factors can be directly linked to the future consumers will buy more luxury goods online, whether their consumption habits have long-term changes after the epidemic, the answer is not yet known.

More broadly, at least in the first half of 2020, the offline and tourism retail industry has been hit hard. Can online luxury sales make up for this shortfall?

Market watchers believe that the answer seems to a certain extent positive. The effect depends entirely on brand, consumer goals, and whether they are willing to try new digital operations in "special times".

Since the outbreak of the outbreak, the categories of products that promote the development of electronic commerce are mainly commodities, including food, medicine and masks, while the non essential items, including sister products, are at a low price and remain flexible. When people are worried about their health and economic prospects, a large number of Chinese consumers who plan to buy luxury goods in 2020 are unlikely to do so now.

Having said that, China is a huge country, composed of many different consumer groups. The growth of the second tier city market mentioned earlier will be the target market for luxury goods providers to continue to target, and China's youngest luxury consumer market will also be so.

Although the claim of economic decline has been circulating, Accenture estimates that after 250 million of China is 90 and 00, it seems unlikely that these generations will have their parents' health or economic worries preventing them from enjoying the good times or letting them buy luxury goods.

These young people have been promoting a trend. They are willing to spend their good time on the Internet instead of enjoying their offline life as usual. In the past month, China's nightclubs and live music performances have been broadcasting live DJ and band performances on video platforms like jitter, fast hand and Bilibili. "Yun ddie" has attracted thousands of viewers and earned hundreds of thousands of dollars.

The importance of Chinese youth to luxury brands is extraordinary. Last month, a report released by Thompson gate showed that 88% of Chinese Z generation users felt that online shopping was as comfortable as offline, and 73% of users believed that having luxury brand products was "important". Moreover, according to Hu Weixiong, most of the luxury consumers of Tmall are between 18 and 35 years old. Among them, 15 to 25 years old consumers are growing at two times the rate of consumers aged 25 to 36.

"Z generation has occupied about 20% of Tmall's luxury consumers, and the growth rate is accelerating year by year," he said. In addition, he also believes that the decline in tourism and overseas luxury consumption is a potential bright spot for Chinese luxury goods providers.

"Tourism restrictions implemented by countries will accelerate consumption of online luxury goods," he predicted.

These factors should be able to give some hope to the brand. Young consumers may choose to spend time online browsing and buying their favorite luxury goods instead of the leisure time they used to shop when they were shopping or traveling abroad.