What Is The Reason Why LV And GUCCI Do Not Want To Touch The Net?

Luxury goods sales have slowed down in recent years, but are still reluctant to cooperate with e-commerce sources?

　　 LV Why is GUCCI reluctant to authorize the electronic business platform?

Warehousing logistics as the leading cause

Although some luxury brands that prefer lifestyle do not evade the Internet, traditional luxury brands always seem reluctant to distance themselves from business.

In addition to traditional luxury brands, they have been focusing on fostering low profile, distance sense and mystery. For the reason why they are unwilling to authorize the electronic business platform, an American luxury brand insider Li Lingli (pseudonym) told reporters that one of the important reasons is that it is difficult to control the other party in the warehousing, logistics and other links do not appear in the issue of counterfeit goods. "Once consumers complain about receiving fake goods, it is hard to tell which link is the problem."

Li Lingli told reporters that her luxury company had its own official website of the electricity supplier, but the company took multiple protective measures because it heard that similar processes might be transferred during the delivery process. First of all, the company will wrap the product three layers, the outermost layer will not appear the brand LOGO; secondly, when sending goods, the sender's name will not write his own company, but write the names of other companies; in addition, the company will provide free courier operators with high credibility to consumers.

Another worry for Li Lingli is that Luxury electronic business platform Consumers are attracted by low discounts, and luxury brands worry that licensing these brands will upset their price system. She explained to reporters that the price of her brand's official website and line is exactly the same, but luxury platform providers often have their own discount rhythm.

"We know that the authorized e-commerce platform will allow sales to go up, but for luxury brands, on the one hand, many products are hand made. We are worried that the output will not keep up. On the other hand, as a listed company, we also hope that the performance will gradually increase, and sustainable development does not want to rise or fall." Li Lingli said.

She said that although the Chinese luxury goods market did not maintain double-digit growth in the past few years, "but now the high single digit growth is acceptable. In the past few years, luxury brands have opened their stores in China, and her brand is developing at a speed of dozens of shops a year, and it is hard to do well in terms of talent, training and management."

The reason why luxury goods are reluctant to authorize the e-commerce platform is that luxury research expert, GachouchaKretz, a marketing professor at HEC business school in Paris, told reporters that there are too many exposures on the electronic business platform. "Consumers can not only compare different products, but also compare different brands. This is not a good thing for luxury goods. For example, different luxury brands have "Boston" bags and have similar ones. Design "

However, GachouchaKretz believes that this also provides a healthy competitive environment, forcing brands to be more creative in design, more accurate in product development, and more creative in sales. "The Internet makes choices easier to replace: designers and brand managers need to publish original products instead of products that can be replaced. If you are attracted by some design, if you have the impulse to buy a new product, you will not compare it online.

　 Careful observation and cooperation

No matter whether consumers will buy luxury goods, the Internet has changed the way people shop, because they can get more choices in the same place, compare products and prices, refer to other consumers' comments and recommendations, and avoid wasting time and energy.

Despite all the concerns, Li Lingli told reporters that the company is also observing changes in the luxury electric business. "Nor is it not working with other e-commerce providers. For example, we will consider temporary luxury" flash shopping ", but at the moment, we will not do long-term business platform authorization cooperation.

Flash buying mode is also known as the time limit rush buying mode. Some B2C websites will regularly launch international famous brand products in the form of time limit sale. The price is usually limited to 1~5 at the original price, which is limited to panic buying by the exclusive members. Each sale time lasts 5~10 days, first to the first time, the time limit is limited.

For luxury brands, this is a new attempt to solve the problem of tail cargo. Li Lingli told reporters, "shoes, bags, clothing and other different categories of seasonal merchandise sales time and discount time is different." Prior to the sale of a new type of footwear in the summer, it usually began selling in March, and began selling 50 percent off in July 20 percent off and August. If there is still no sale, it will enter the OUTLETS store. Now part of the cargo can also be partially tried to sell with a high degree of trust in the luxury electronic business platform.

On the other hand, Li Lingli's luxury brand in the United States is also trying to cooperate with the large traditional department store's e-commerce platform, such as the electronic business platform of Messi's department store, so the news of Messi's stationed in Tmall recently also made her nervous.

Another factor that makes it difficult to make a luxury is that GachouchaKretz believes that the Internet enables consumers to get the lowest price. For luxury groups, pricing strategies in the digital age will face challenges.

For luxury brands that sell internationally, currency float means regional price differences. Different tax rates also affect retail prices, whether online or physical.

Differences in prices will allow sensible consumers to buy tax-free goods at lower prices or get tax rebates. When they are unable to travel, they will try to search for goods with price advantage on the Internet. This price advantage usually comes from the exchange rate or the price difference of online shopping websites in different regions.

For luxury brands, the traditional pricing strategy is not easy in the digital age, because the Internet allows consumers to enter any website. "If the luxury brand obviously obstruct consumers from one place in a certain area, this will cause consumers' antipathy. However, I think this is the only way for the brand to solve the pricing problem. " GachouchaKretz said that some companies are already using IP addresses and geolocation to ensure that consumers visit local servers or websites in some area, while shielding consumers from other regions. "I think this is the right way to do it, and it can also be done elegantly. This is very important for luxury brands."