Some leading Chinese e-commerce companies are also trying.For the purpose of investing in Farfetch, Chanel’s term refers to the exploration of the other side of the “e-business”.
Does the luxury industry care about how much Farfetch sells shoes each year, and can it challenge YNAP’s leadership?The investors behind Farfetch are even more nervous, they are IDG, conde nast and so on.
Last year, jd.com invested nearly $400 million to become one of Farfetch’s largest shareholders, and Mr. Liu entered Farfetch’s board.In fact, in 2016, the seven wolves invested 35 million yuan in Farferch and became a minority shareholder.
In February, Chanel replica bags uk announced its investment in Farfetch, a European luxury e-commerce company that is often seen as a competitor to YOOX net-a-porter (YNAP).
YNAP is the world’s number one luxury e-commerce company, with a total revenue of 2.1 billion euros last year, up 16.9 percent year on year.
For this investment, Farfech’s boss was very reserved, saying that Chanel’s investments were small, but important.
Chanel said the investment does not mean Chanel will sell chanel replica bags online at Farfech to improve the experience of the customers in the physical stores.They also said they were confident that online experience and physical stores could not be compared.
A little earlier than Chanel replica bags sales, Burberry announced that it was working with Farfetch, and the digital control company had no qualms about selling goods at Farfetch and talking excitedly about how to get consumers to buy more online.
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Farfetch who is it?Someone might ask.
The luxury e-commerce platform created by Jose Neves of Portugal in 2007.Today, their customers are all over the world, with more than 700 brands selling on them.
The industry often compares Farfetch to YNAP, and Farfetch also digs out a merger from YNAP, net-a-porter founder Natalie Massenet.
It is reported that the annual sales of Farfetch in 2016 is $800 million.Now you should know Farfetch’s place in the luxury e-commerce industry.
In the eyes of consumers, Farfetch is an e-commerce platform, and in the IT industry, people have noticed that Farfetch, like NYAP, is exploring various new technologies and wants to be a cool company in IT.
Farfetch has a department called “the store of the future”, which develops technologies to enhance customers’ experience in the store and integrate the online and offline worlds.
Farfetch also has a division that specializes in building its own e-commerce platform for luxury brands, like a third party in charge of outsourcing services.
Farfetch bought a shop in London three years ago, acting like a showroom, and Farfetch’s touch screens and other new things were put here to test customer response.
So now, Chanel and jd.com and seven wolves are on Farfetch’s list of shareholders, a bit of magic.
But that doesn’t mean much, and the shareholders don’t have much to do with each other.
So, what does Chanel invest in Farfetch?
Chanel’s fashion chief Bruno Pavlovsky told the financial times that it needed to be clarified that Chanel was not selling the product at Farfetch, nor was it trying to create its own e-commerce platform.
The purpose of the investment, he said, was to enrich the experience of consumers before and after the store.In the past year he has made clear that he has not been an e-commerce player, and has done so many times.
The financial times estimates that Chanel’s annual sales are about $6 billion.2017 is Chanel’s best year ever, the President said.
This immediately reminds us of another thing, not long ago, when richemont said that as the largest shareholder in YNAP, the world’s largest luxury e-commerce company, they wanted to buy the remaining shares, 100% owned.
This also explains why Chanel invests in Farfetch rather than YNAP, which has been under the control of rifeng, as a competitor, of course, to pull the other children’s team.
In the past few years, LVMH has restarted its own e-commerce platform, opening the official e-commerce site for Gucci (special reading).
Over the past decade, the big crocs have been negligent, and no one has fully realized the energy of the luxury e-commerce business, except for richemont investment net-a-porter.
Today they collectively wake up, but it is clear that it is too late to start from scratch.But there are ways, too, that the big crocodiles have the money to find their own e-commerce platforms, investments and acquisitions on a global scale.
The parties try to understand the logic given by the President.
For example, the shopping habits, preferences and other data that customers accumulate at Farfetch, if used for the Chanel store, the clerk can “guess you like” before the customer arrives at the store.
If the customer values privacy and wants to “wander around”, he can also let the clerk know in advance that he will be invisible and let the other person relax.
We believe that this is one of Chanel’s intentions for Farfetch, but it is not the first.
Chanel says it won’t sell packages online, which doesn’t mean they are indifferent to digital media and e-commerce.On the contrary, Chanel has repeatedly appeared on the top of the “most digital luxury brands”, leading the way in digital marketing.
Chanel replica bags may not be as daring as Gucci (subject reading), but it’s also ahead of Louis Vuitton.
Nor is Chanel definitely not selling on the Internet, for example, perfume is sold on WeChat several times.When people start to care, will the Chanel handbag go online?The brand has denied it again and again.
Chanel customers in many Asian regions are strongly opposed to selling packages online, the President said.
Chanel struck a balance at this point in time.
Stuart Lauchlan, an IT writer with 23 years of experience in the United States, wrote that Chanel was extremely sensitive to e-commerce, and worried that if IT was sold online, IT would lose some customers.
Some of the most important customers of luxury brands are traditional, they reject e-commerce.However, today’s young women also have very good consumption power, online shopping, they love Farfetch creation, they are still in the kindergarten, buy on the net bag for them for granted.
It is possible for every brand owner to have a hard time thinking about how to maintain the high quality of the old and keep up with The Times and not be abandoned by the young.
As we mentioned at the beginning, YNAP’s annual sales have reached 2.1 billion euros, growing so fast that no one dares to ignore it.
Chanel finally decided to keep up with the development of luxury e-commerce with a little investment, but firmly denied that it would be a bad idea to sell goods online.
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LVMH, richemont and kaiyun have acquired dozens of fashion, leather goods, watches and jewelry brands in the last 20 or 30 years.For now, they seem to be happy with the brand mix, and the snake is eating slowly.
Perhaps it makes little sense to buy one more package brand, and the acquisition of a global e-commerce company makes strategic sense.
If one day the e-commerce becomes the climate and the mainstream channel, then their own brands can be sold to their own e-commerce, and will not be controlled by people.
If your brand wants to be an e-commerce player, and the big e-commerce platform is under the control of competitors, it is very passive.
The luxury-goods giants are snapping up e-commerce giants, and the next few days are part of the divide.With few luxury e-commerce companies around the world, Farfetch is an ideal target for YNAP.
Of course, there are some local luxury e-commerce companies in different regions, such as Revolve in North America, ASOS in Europe, China, South America…Different categories also have different roles, such as selling cosmetics and selling watches, which are worth buying.
Farfetch and net-a-porter were initially dismissed by the brand, but today they are hot stars.
The Chinese market, the international luxury e-commerce companies do not have much to do, that is to say, the luxury group whether to acquire Farfetch or YNAP, can not achieve the layout of the Chinese market.
A number of luxury brands have started to license jd.com, Tmall and Vipshop, and perhaps future luxury groups will also invest in these Chinese e-commerce companies.
The two sides seem to have begun a game that is changing every day.
When your business is big enough, you have to consider the safety of the channel.LVMH bought a 51 per cent stake in DFS and also owns sephora.
Another unknown fact is that swatch and LVMH have long invested in hengdeli, China’s biggest watch dealer.
It is a good idea to take a stake in the channel, to strengthen the relationship, to maintain communication, to ensure the safety of the sales link, and to control the supply chain of upstream raw material factories.
As e-commerce becomes an important channel for luxury sales one day, the giants will not waste one day, and the tentacles will soon be filled with digital space.
The battle for online sales channels between luxury goods giants.