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Luxury Online Stores Are Stationed In China'S &Nbsp; Private Equity Funds Accelerate "Garrison".

2011/4/8 13:10:00 68

Luxury Online Shop Fund

With the further expansion of Japan's nuclear leakage crisis, the industry has speculated that McKinsey's prediction that China will surpass Japan as the world's largest luxury market by 2015 will probably come ahead of schedule.

This is like the last lap of the short track speed skating, and the wait-and-see VCs are gradually accelerating.


In late March, the world's largest fashion shopping website, the online shopping center, won the $20 million investment from the top international venture capital firm, Kai Peng Huaying.

The total amount of financing is higher than that of Japan's luxury shopping website, and its investment in vip.com is flat.

Private equity funds ready for a big Chinese luxury market can't wait.

Preliminary statistics show that since the establishment of most luxury online stores in 2009, the size of its funds has exceeded 500 million yuan in a short span of two years.


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


Bernard Arnaud, France's richest man, has bought Louis Weedon Hennessy, a Italy jeweler, for 3 billion 700 million euros at BernardArnault.

Investor evaluation, then the Tiffany of the United States and Burberry of the United Kingdom may also become the stuff of their pocket, but such foolish behavior is far less than investing the surplus capital in the world's hottest Chinese market.


Due to input

cost

Not high, these

Luxury goods

Big 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 China test water shop


Following the construction of traditional outlets, at the end of November last year, GiorgioArmani 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, 3-4 brands of online stores including Valentino (Valentino), Pu Qi (EmilioPucci), Du Jia Dolce&Gabbana and Zegna (ErmenegildoZegna) will also enter China in 2011.


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, despite the trend of the OCS, 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 advantages are formed, it is not easy for the latter to imitate it.

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

Reporters learned 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 placement

We 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.

The preliminary statistics of the reporter, the total investment of the private fund has exceeded 500 million yuan.


 
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