How Will The Future Of Luxury Goods Business Go?

From the news we received recently, the US luxury flash shopping platform Gilt was sold at a low price of $250 million, and the theory that it is difficult to carry out the luxury electric business seems to be sitting tight.

But is that really true?

Palmer Jonny watches worth 4 million 860 thousand, and hermes bags valued at 1 million 800 thousand...

These "sky high" goods are sold on the "luxury" festival in December 17, 2014.

According to temple library, this day's sales exceeded one hundred million yuan.

And in December 17, 2015, a few days ago, the temple library said that this year's "luxury" Festival is expected to exceed 500 million yuan.

Although these two figures are all very tempting, compared with the sales of Tmall in 2014 and 2015, the sales figures of 57 billion 100 million and 91 billion 200 million yuan, which are double eleven, the above data can only be regarded as "zero".

Such data actually reflect the positioning difference between luxury electronic business platform and the whole category of e-commerce platform in terms of products and consumers.

Although on the average price of commodities, the temple library does not need to consider whether the more equal price brands should be added to the online platform. They only need to consider how to sell tens of thousands, tens of thousands and millions of commodities worth to consumers who are in need.

However, it is expensive, laborious and time-consuming to set up offline experiential shops and appraisal centers, or to recruit and train appraisers and "housekeepers".

It takes about three years to train a junior appraiser, plus the cost of a cross border experience store, which can make the luxury electric supplier look more reliable, but it can not be duplicated in a short time, and it can not provide more experience for peers.

This market looks huge. However, the high unit price determines that this type of electricity supplier is hard to achieve explosive growth in the number of users and sales performance. After all, for most people, buying tens of thousands of dollars online is not enough to guarantee the authenticity of the product. It is a matter of great determination.

And,

E-commerce platform is also difficult to allow direct licensing of front-line brands, so that consumers believe in the "100% authenticity" of goods.

However, in order to deal with this problem, the temple library launched the line.

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Faced with the price attractive online products, and the high quality service on line, the moment of vanity is satisfied, then the customer is easier.

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Therefore, although O2O has become the most popular development mode nowadays, the development of e-commerce is still very long for luxury goods.