Nearly half (48 percent) of Luxury shoppers in China are under 30 years old, and the average age of China’s online luxury consumer army has dropped to 25 years old from 35 before, according to the 2017 White Paper on China’s Luxury Online Consumption. But the growing demand for luxury goods by young consumers has been accompanied by a growing problem of disposing of unused luxury goods.
A fat tiger cannot become a “Mountain King”
As early as 2013, data from 2013 China Idle Luxury Goods Report released by Fortune Quality Research Institute showed that the total amount of luxury goods that can be re-circulated in the hands of Chinese luxury consumers reached about 300 billion yuan. Driven by the huge market size and the increasing consumer demand for low-priced and high-quality goods, the domestic idle luxury goods trading market is taking shape, and has ushered in the explosion period in recent years. Idle luxury goods trading platforms such as Aiding Cat, Panghu, Heart and Real have emerged during this period.
When it comes to luxury goods trading platforms, the well-known representative may be Secoo. However, as Secu, which has been in business for ten years, has gradually transformed into a new luxury e-commerce company, Panghu, which was founded in 2015 and has advantages in online and offline industrial chain, has taken advantage of the trend and become the representative of idle luxury e-commerce. The continuous expansion of many enterprises in the idle luxury goods market leads to increasingly fierce competition, and Panghu also faces many problems and challenges in the idle luxury goods field.
First of all, the market impact from sharing luxury platforms and community service idle luxury platforms. With the expansion of the luxury market, the competition in the idle luxury market is becoming increasingly fierce. According to a report by 36Kr, “Zhen”, a luxury e-commerce company, acquired the luxury sharing platform “Doubaobao” for tens of millions of yuan to attract more users through the mode of buyout + consignment + sharing. Edingmao not only provides commodity identification and trading, but also builds its platform into a community with social services, providing one-to-one shopping guidance for buyers. And the heart of the main push including bags, shoes, clothes, jewelry, diamonds and other women’s products…
Secondly, the extension of the industry in the field of luxury consumption competition. Panghu suffered from the same period to enter idle luxury goods companies in the impact of the market, many luxury electric and appraisal of enterprise’s rise will also poses a great threat to fat tiger, ali’s charm hui luxury goods trading platform with idle fish constitute the complete luxury ecological industry chain, and at the same time in the layout of the luxury brand TOPLIFE, In addition to Tencent and 58 turns, the giant’s intention to the luxury consumer market is obvious, Panghu in the idle luxury market is bound to be squeezed by many giants, and its market competitiveness will be even more dwarfed.
Moreover, the appraisal industry, which is extended by the numerous problems of luxury imitation products, can eliminate consumers’ doubts about the e-commerce platform providing authentication certificates. The rise of such appraisal platforms as Luxury Yopai, Zhentan and Value Duo Little has brought a great impact on the self-established appraisal team of Panghu. And these appraisal platforms in appraisal business accumulated a certain degree of market trust, in idle commodity trading also involved. For consumers of idle luxury goods, shepai and other appraisal platforms have more market prestige in quality assurance by entering the idle luxury goods trading field from the perspective of appraisal.
Moreover, the products provided by Panghu cannot satisfy diversified user groups. For the idle luxury goods trading market, the price of luxury goods on the platform is not much different from that of new products. In the case of second-hand goods and fake goods without authoritative certification, consumers are more willing to spend more money to buy new high-quality goods. And for online transactions, the commodity identification process is too long, which has greatly eroded consumers’ desire to buy.
In addition, the single output source of idle luxury goods has reduced the market benefit of Panghu. Idle luxury goods need enough product and customer resources, fat tiger on the product in order to protect the dissimilation of the part of the consumer psychology and each product will not weigh appearance of commitment, which will greatly restricted platform expansion, and affect consumers’ experience, eventually leading to supply a single panghu influence and market competitiveness. In addition, there are some risks in the process of luxury goods trading, such as whether the use and price of goods are reasonable or not. In the early stage of the market, there are no corresponding laws and regulations to improve management and protect the rights and interests of both parties, and there are risks of trade disputes caused by uncertain factors.
Internally, Panghu cannot solve the problem of single output of idle luxury goods, and consumer demands cannot be satisfied; Outside, there is not only the competition between “luxury sharing” platform and luxury social platform, but also the rise of giant luxury industry and the oppression of appraisal platform. Whether Panghu can become a “real tiger” in the idle luxury trading field remains to be discussed.
Online + offline new retail system for the stability of the tiger
Under the situation of internal troubles and external aggression, After two years of efforts and deep cultivation of offline transactions of idle luxury goods, Panghu has developed a new retail model of online + offline, and still has a fighting force in the industry.
On the one hand, the online platform provides convenient services for B and C end users. As a typical representative of idle luxury e-commerce in C2B2C mode, Panghu’s main income source is the commission drawn in the auction by b-end users who enter the platform, while the commission can be reduced by C-end users who enter. For small C-end users, commission exemption can increase their income to a certain extent. As for consumers, the price of C-terminal users will be reduced as there is no trouble from commission. In addition, the C2C mode of Panhu can shorten the transaction chain between consumers and suppliers, which not only saves the transaction time of both parties, but also reduces the middlemen to raise the price.
On the other hand, the layout of offline idle luxury physical stores can provide consumers with identification guarantee. For luxury goods trading platforms, the biggest problem is whether the unused luxury goods that consumers pay high prices for are genuine. The offline layout of idle luxury goods can enable Panhu to have a deeper understanding of the market, so as to obtain a more comprehensive user portrait, and provide a guarantee for the introduction of traffic to the online platform. At the same time, for consumers, offline physical stores can solve the uncertainty of online identification and the inconvenience caused by mailing identification.
The combination of online and offline forms a new retail ecosystem for Panghu in the idle luxury goods field, helping Panghu expand its territory; At the same time, Panghu is also providing financial guarantee for the expansion of the platform in the market through continuous financing. According to 36Kr, idle luxury goods trading platform Panghu Technology has officially announced the acquisition of 100 million YUAN of a-round financing.
Through the combination of new retail model, online and off-line fat tiger can solve single in the field of luxury goods online commodity quality cannot be guaranteed, and offline layout can let fat tiger further contact idle users supply and consumption of luxury goods, get the user, to lay a solid foundation for the panghu the next market expansion.
The solution to the problem of “quality” and “quantity” of fat tiger
The global market value of luxury goods is expected to increase by Rmb1tn to Rmb2.7tn by 2025, according to McKinsey. Chinese luxury consumers account for almost half of the global luxury market (44% of the market). Under the trend of the explosion of luxury consumption, the idle luxury consumption market is guaranteed in the supply of goods, and will also usher in a full explosion.
When the idle luxury goods economy is about to explode, Although Panghu has its own appraisal team in commodity quality appraisal, for consumers, the appraisal results provided by e-commerce platforms cannot eliminate their doubts about the quality of traded goods. In addition, offline entity identification platforms have certain limitations in regional distribution, which cannot meet the identification needs of most consumers. Panhu still needs to solve the “quality” problem of its products in the future market expansion process.
First, in terms of quality assurance, the luxury appraisal team should be optimized to provide users with self-appraisal services. In the process of idle luxury goods transactions, ensuring the quality of goods has become the most important direction for enterprises to remain in this field. In the current market, the appraisal enterprises spawned by luxury appraisal are providing convenient appraisal services for consumers who need luxury appraisal through different appraisal methods. In this era of rapid development of science and technology, the identification enterprises selling artificial intelligence identification have a certain ability to attract eyes.
If Panghu can provide consumers with self-identification service of luxury goods by combining its previous identification experience with artificial intelligence identification, both the efficiency of identification and the cost of identification team will be greatly improved.
Secondly, in terms of product quantification, the output types of luxury goods output sources should be optimized. From the point of view of the present, although Panghu has met the demand of some consumers of idle luxury goods, the psychological demand for idle goods is relatively high. On the other hand, although the supply in the idle luxury market will increase with consumers’ demand for luxury consumption, the competition situation in the idle luxury market has been formed at present. Besides Panghu, the leading enterprises also include Aiding Cat, Heart and Real.
Therefore, in the increasingly hot idle luxury goods market in the future, seizing the source market and providing consumers with high-quality idle goods has become an important way for Panghu to expand its market. In order to expand the market, Panghu still needs to meet the consumer needs of most consumers and provide more categories of goods. And in the output of personalized high quality products, Fat tiger can implement the policy of buying off goods, and then in the form of auction to solve the competition problems brought by consumers’ different psychology, but also improve the income of fat tiger platform.
In a word, both the traditional pawn and today’s online idle luxury goods trading platform have given new life to idle luxury goods, which not only improves the utilization rate of luxury goods but also satisfies consumers’ demand for low price and high quality. Market competitiveness with product quality and user experience as the core is the basis for idle luxury goods enterprises to survive in the expanding luxury goods market. After all, in a market where consumers are demanding the quality of luxury goods, quantity growth comes with quality assurance.
Liu Kuang, meditation on the Internet, wechat official account: Liukuang110