Another unicorn in the e-commerce industry is "sudden death": 200 billion market, who is the carnival?

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Another unicorn in the e-commerce industry is "sudden death": 200 billion market, who is the carnival?

2019-08-07 00:33:32 476 ℃

The fateful has had its own high-light moment. But all this was stopped after a paper announcement.

On July 31st,’s homepage and’s small program were all announced to suspend business, saying that “the financing was not smooth and the business was blocked. User provides services."

Although the incident was sudden, the investment network noticed that had experienced 7 years of “dying struggle” before officially proclaiming “suspended business”. During this period, the news that the company was exposed was full of words such as “reduction of employees”, “arrears of wages” and “reorganization is not smooth”.

"Because of the problem of low supply of goods and fake goods in the supply of luxury goods, the user traffic accumulated through low-price discounts is difficult to realize through commodity price difference, platform rake or advertising, and low. The price will affect the brand image, which is the most taboo thing for luxury brand owners.” Yuan Ziqiang, a partner of Yuanfu Capital, commented on the investment network.

The fateful has also had its own high-light moment.

CVSource's investment data shows that since its establishment, has experienced 5 rounds of financing. Angel investors are Lei Jun; in 2011, when luxury goods e-commerce was in the air, obtained a $50 million Series C financing to become Capital, Morningside Capital, and Siwei Investment; in 2014, it also obtained D of Gaochun Capital. The round of bets; the last financing was fixed on June 22, 2016, the investors were blue cursors and blueprint venture capital, the amount was not disclosed.

But all this was stopped after a paper announcement.

The Battle of the Sleeping Beast

The announcement of the suspension of was too late.

25 days ago, also announced that due to the recent major financing and restructuring of the company, some orders have been delayed in delivery and refunds since May, but the company's financing is progressing normally. The existing business will remain in normal operation and promise to handle the order problem for each user.

There is a hidden pain behind the calm.

In fact, before the official announcement of “suspended business”, has experienced seven years of “dying struggle”. During this period, the company was flooded with newsThe words "reduction of staff", "arrears of wages", "reorganization is not smooth" and so on.

In just two years after its establishment, that is, in February 2012, was exposed to substantial layoffs. According to the Beijing Business Daily on February 16, 2012, the retired employees at the time revealed that’s large layoffs were due to’s failure to obtain wind investment funds. “Wind investment funds were entered in batches. Due to the chaotic internal management of, the previous promised revision was delayed after one year, so the venture capital suspended the entry of funds.”

However, To eliminate the impact, quickly stated that it has adjusted and optimized the company's organizational structure and business layout. These measures belong to the company's normal management behavior, in order to make the company operate more efficiently.

Since then, seems to have never got rid of the "reduction of layoffs." At the beginning of 2015, was once again exposed to more than half of the layoffs, and some office buildings have begun to be rented out. In June 2019, was the third time that the company was being laid off in large quantities and was still in arrears. However, unlike the previous two, the rumors of the layoffs have not been clarified by until now officially closed.

It is worth mentioning that since the second time it was exposed to the layoffs, may have gone downhill.

In 2014, with the increasing scale of, many international big names believed that it destroyed the old authorization system, so they came to defend their rights. Under this “squeeze out”, was forced to transform and change the route of luxury and fast fashion. After obtaining the exclusive domestic authorization of the fast fashion brand Topshop, which was at that time, finally won an important business pillar. "Topshop's sales accounted for a large proportion of the contribution of Shangpin." Zhao Shicheng, founder and CEO of, admitted in an interview with the media.

However, it is helpless that did not rise. Instead, it was opened by Topshop in August 2018, eventually ending cooperation and losing "arms."

The disaster is not alone. also stepped on the Hemei Group, which is known as the “Flicker Reorganization” company. According to public information, on January 8, 2018, will sell 90% of its shares to Hemei Group at a maximum price of no more than RMB 250 million. However, it is ironic thatIt is reported that Hemei Group has not paid for this acquisition.

In response, China Investment Network tried to contact Hemei Group to verify it, but did not receive a response.

Breaking through the trap is not the only "dead person".

In recent years, the former "Capital Beloved" collection network, Netease still products, Sina luxury goods are inevitably closed. After 2015, there was little news of high-funded enterprises in the luxury goods business.

However, "China's luxury market is welcoming the best times in the past 10 years, and the middle class will still be the mainstream of future consumption." Zhao Shicheng was confidently interviewed by the media in May 2019. Said.

His confidence is not without reason. The guest research institute "2019 China Luxury E-commerce Report" shows that in 2019, the official market capacity of China's luxury goods online market will have a chance to exceed 50 billion yuan, and the total market size will exceed 200 billion yuan.

Under the temptation of huge market size, e-commerce players have exerted their efforts, but they have hindered.

The analyst of China Merchants Securities said to the investment network that the domestic luxury goods supply chain is relatively weak, and the development speed of luxury goods e-commerce is slow. Giants and JD are always affected by factors such as fakes and lack of categories, and are struggling in the field of luxury goods. At the same time, although there have been more and more luxury brands that have embraced e-commerce in recent years, there is a widespread situation in which luxury brands only choose strong luxury e-commerce partners and have reservations about the types of cooperation.

"From the point of view of the supply chain, the luxury goods track will find that the upstream brand has a strong voice and has high control demands on the channel vendors; while consumers have low purchase frequency and high decision-making cost. Brand cognition is far greater than channel cognition. This kind of supply chain form is very unfavorable to e-commerce companies. It is difficult to precipitate the platform value by using the traditional e-commerce traffic game.” Ding Ziqiang told the investment network.

Secondly, unlike general merchandise, consumers buy luxury goods not by consuming their material attributes, but by consuming the social attributes and services behind them. “Simple picture and text descriptions are clearly difficult to meet consumer expectations for high-end consumer experience and after-sales service experience, and the online model is difficult to run through.” The analyst told the investment network.

In addition to this, "efficiency" is also a long-term shortcoming of luxury e-commerce. All-category full SKUs, global sourcing, global warehousing and distribution, etc. all challenge the immature luxury e-commerce business, but a large number of revenues are still acceptable, but luxury goods e-commerce, which has long-term negative net profit due to low operational efficiency, is frequently trapped.

"Brand channel training, consumer education, and supply chain establishment will take a long time, so the overall development of the luxury e-commerce industry is slow." The analysts commented on the investment network.

So, what is the direction of the breakout of the players on the track?

The crisis of trust is the primary issue that needs to be resolved urgently. The industry leader, the temple library, is equally difficult to hide anxiety. In recent years, the expansion of offline channels has become the core concern of the temple library.

According to the data of the beginning of 2019, Temple Library has opened 10 offline experience centers in China, including 3 flash shops. "The core function of the offline store is to let consumers generate trust. If the product has quality problems, you can go directly to the offline store to solve the problem." Temple Bank responded to the investment network.

"Although the consumer's crisis of trust is difficult to lift in a short period of time, once a merchant establishes brand trust online, it will form a high moat." The analyst said to the investment network.

In addition, the guest research institute "2019 China Luxury E-commerce Report" shows that although more than 60% of luxury online consumption is contributed by first- and second-tier cities, sales in third- and sixth-tier cities are increasing. It is far ahead of the market and has greater development potential, especially in areas where luxury brands do not have stores.

Therefore, the sinking market will provide a larger imagination for luxury e-commerce.

In a previous interview with China Investment Network, a commercial real estate practitioner once mentioned that department stores in cities below the third line are often difficult to effectively attract luxury brands. In order to improve their own grades and achieve complementary resources, many shopping malls will actively cooperate with big-name merchants and provide a series of preferential activities including rent reduction and traffic support.

For the relevant preferential policies, the investment network went to the temple library to verify, and the other party said that it really enjoyed the “welfare” of the sinking market. At the same time, the other party revealed that the current experience center of the temple library has achieved self-financing.

However, the luxury e-commerce profitability problem has not been resolved. TempleThe first quarterly financial report released by the library showed that the company's total revenue was 1.175 billion yuan, up 46.5% from 8025 million yuan in the same period last year; net profit was 15.8 million yuan, compared with 25.9 million yuan in the same period of last year, down 39% year-on-year. %. Although the company's revenue rose, but the net profit fell a lot.

"The whole industry is still in the groping phase. The traffic advantage of Internet giants such as BATJ is not well played in the luxury sector. It is still unknown who will lead the 100 billion market in the future." If it is an evaluation. (Text / Chai Jiayin Ma Mujie Source / Investment Network)