Duty-free shops' income dropped by 90%, luxury goods lost 700 billion yuan, and overseas brands flocked to Taobao to "save lives"

The global fashion world has never been so desperate-Luca Solc, head of luxury goods at investment bank Bernstein, doesn't want to hide his pessimism any more. "This is the worst year I have ever experienced."

In 2020, the global luxury goods industry is estimated to lose 700 billion yuan due to the epidemic; In the second quarter, the sales of LVMH fashion leather goods department decreased by 37%, and the operating profit decreased by 46%. Gucci's sales in the second quarter decreased by 44.7% year-on-year, and its operating profit almost halved.

Luca Solc, head of luxury goods industry at Bernstein, an investment bank, doesn't want to hide his despair any more. "This is the worst year I have ever experienced." .

Despite the decline in performance, big brands can hardly survive with rich family assets, and small and medium-sized brands are already in jeopardy-a survey by Coresight Research shows that 25,000 stores in the United States may close down in 2020.

Even J.Crew, the favorite clothing brand of former first lady Michelle Obama, was once doomed-it filed for bankruptcy protection in May this year.

While the global epidemic is still mired in mud, the China market, where the epidemic has dissipated, has rebounded rapidly and become a "hot spot" in the global brand war. Now, it is the turn of overseas small and medium-sized brands to accelerate their entry-lower threshold, faster speed and less risk.

1

Overseas markets stopped, and China e-commerce was "upper"

In Italy, pickpockets who like Hermes but can't afford it will turn their heads and walk into the shop of BUTI, a luxury handmade bag brand, which is called "fair Hermes".

This "name" makes Buti never worry about sales, and its CEO naturally turns a deaf ear to the e-commerce market in China. However, the epidemic came, and the once-comparable Buti store became deserted, and offline sales completely stopped.

On July 22nd, when the clerks were bored, they unexpectedly welcomed a big buyer, Kotete, and sold 1500 bags. The shocked clerk once thought he heard wrong-this is the biggest business of the store in 2020.

Kotete is a "mystery buyer". She didn't buy the bag for her own use. She is a global buyer of Taobao. BUTI was her first brand launched in 2020 and sold out in the first time-30 seconds 1 19.

This kind of achievement made BUTI executives "meet and hate each other late" for Taobao.

After the arrival of the epidemic, China tourists' travel to South Korea dropped to freezing point, which led to a 90% drop in the sales of duty-free shops in South Korea at the worst time. Many beauty products have to be transported at reduced prices. Shi San, a global buyer of Taobao, found in May this year that the price of a lipstick dropped from 90 yuan to 60 yuan, and the price of a famous brand essence dropped from 500 yuan to 300 yuan.

"They are more and more dependent on our global buyers, so they prefer to sell at a discount," Shi San told Caijing Story. This year, the sales of beauty products in his store increased by about 30% year-on-year.

BUTI and Korean beauty cosmetics were not the only ones who entered China after the outbreak.

Trump's favorite clothing brand "Booker Brothers" airborne Tmall, GNC and Gstar, which once entered the brink of bankruptcy, ushered in hot sales; In the second quarter of this year, the global sales of American sports brand Skye decreased by 42% year-on-year, but the sales in China market increased by 1 1.5%. LV and the Stockholm perfume brand BYREDO, known as the perfume industry, sold 626 bottles of perfume in Taobao Global Buyers Live Room 1 minute. ...

Over the past two years, 5,964 overseas small and medium-sized brands have entered the China market, the largest single market in the world, through global purchase of Taobao.

Founded in 2007, Taobao Global Purchase is not only the earliest Haitao platform in China, but also the largest Haitao consumption entrance in China.

More and more young people began to join the Haitao army on Taobao.

"20 18 Taobao Global Purchase of Haitao White Paper" (referred to as "White Paper") shows that the post-90s generation became the main force of Haitao consumption, and the young post-90s generation also came from behind, and Haitao consumption increased by as much as 80% year-on-year, while the post-80s generation reached the top with per capita consumption. Not only big cities, but also inland areas such as Shanxi and Henan should "buy all over the world".

Young people who love Haitao are not superstitious about big names, and the trend of keen on diversified consumption of personality is becoming more and more obvious. More and more characteristic niche brands are emerging in Taobao. For example, the sales of concealer in the Czech Republic have even increased by thousands of times.

After understanding this trend, Taobao Global Purchase brings together Taobao sellers, global buyers, MCN institutions and professional and mature supply chain partners to jointly support the incubation of small and medium-sized overseas brands.

By the beginning of 20 19, Taobao's global buyers spread over more than 70 countries and regions on five continents and had hundreds of millions of fans in Taobao.

Another important identity of the buyer is a "talent scout"-settling in Amoy, which is the first step for many small and medium-sized overseas brands to enter the China market. They are not well known to consumers in China. If buyers want to get good sales, they must first make these brands have high turnover. In the past two years, Taobao has won an overseas small and medium-sized brand on average every day.

At the moment when the global epidemic has not dissipated, the task of "making stars" for Taobao's global purchase is even more arduous. In 2020, we will make 365 overseas brands sell more than 10 million on Taobao, and at the same time build brands with annual sales of over 100 million in10.

In mid-July this year, when the overseas epidemic was still fierce, Taobao Global launched the second "Global Buyers Day", and the Australian health care brand Dr.Nature was one of the beneficiaries.

The epidemic has hit the health care industry all over the world. Australia's industry leader, AoJiabao, lost more than 60% of its profits and had to lay off employees 10%. GNC, the largest health care product brand in the United States, filed for bankruptcy protection with the court. Dr. Nature didn't want to follow its footsteps, and went to Taobao and China to find new customers and new sales, which became his way to save himself. It sold 360,000 items in 3 days;

Dr. Nature is also willing to test the water for new modes such as live broadcast e-commerce popular in China, and specially invites three new Australian buyers to come to live broadcast to show the whole process of products from raw materials to production and processing to final listing, so that users can quickly generate trust, enjoy the same paragraph and the same price overseas, and buy while watching.

In the past, for overseas brands including Dr. Nature, Taobao Global Purchase and China market may be icing on the cake. However, under the severe epidemic this year, small and medium-sized overseas brands are struggling in dire straits. It is a life-and-death journey to enter the China market where the epidemic has dissipated and the demand has rebounded rapidly through Taobao's global purchase.

2

One-click connection, efficient pairing of ant soldiers

However, it is not easy for small and medium-sized overseas brands with a wide range to enter China-international brands can rely on brand effect to open flagship stores and quickly reach consumers.

But for the first time, small and medium-sized brands enter this strange market in China, which is similar to the listing of new products-generally speaking, the success rate of a new product is only 5%. For them, the cost of trial and error is too high to enter the market through mature offline channels. Moreover, due to cultural, geographical, language and other reasons, they do not understand the China market and China users, and it is difficult to match enough manpower and resources to establish independent sales channels.

Therefore, buyers' recommendation, talents bringing goods and "temperature measurement" in Taobao have become the first stop for many small and medium-sized overseas brands to enter China.

On the other hand, with the rise of live e-commerce, buyers, anchors, talents and online celebrities who are good at attracting customers have obvious shortcomings in the supply chain, selling popular brands, which are highly homogenized and expanding overseas small and medium-sized brands. It is difficult to find suitable products quickly.

Take Viya, a live sister of Taobao, as an example. The number of product selection teams accounts for 80%-90% of the total number of teams. It is even more difficult to choose products in overseas markets. In addition, the number of selection teams of most sellers and buyers is far from Viacom.

The epidemic has completely blocked the way of offline selection. In the past, he would fly to South Korea to choose new products on the spot, but when the epidemic came, the road to South Korea was blocked and he was in a hurry. "Our store has been 1 1 year. Every week, the new products are in a fixed rhythm, and now it will be broken."

Therefore, although brands and buyers have long been interested in each other, they are far apart and it is difficult to achieve efficient matching. After the epidemic, with the demand for small and medium-sized overseas brands to enter China, the pace of online shopping has accelerated, and the previous one-on-one manual contact has become less and less urgent, and the pain points of "face to face" and "hand in hand" between the two sides have intensified.

It has become a new choice for Taobao to buy globally by using technical means to make the two parties realize fast matching connection. In order to solve this problem, on September 22nd, Taobao Global Purchase officially launched the Taobao distribution platform.

Iflytek, head of Taobao user product industry and new market, revealed, "Through Taobao distribution platform, brands can find suitable product sales channels with one click; Merchants can compare prices online through multiple channels, and they can also evaluate and trace the brands they have cooperated with before. "

In fact, since it was officially launched, Amoy Distribution has carried out a small-scale test of water, and the wine residue mask of Japanese maiko from Japanese deer dance is one of the new tasters. After this year's epidemic, it entered Amoy Distribution for three months, and the sales volume exceeded one million, which was at least three months faster than the growth rate of brand-new brands entering China through other means.

In March of this year, Shisan's shop also became the first early adopters of Amoy Distribution. Eager to be new, he opened the backstage and found that Amoy Distribution recommended two or three hundred new beauty brands. "Canada, the United States, Switzerland, New Zealand and Germany do not need offline human flesh selection. It's amazing. "

Moreover, as the owner of store C, I used to negotiate the price with the brand, and my right to speak was limited, so I could never get a good price. Now, sitting at the negotiating table is the Taobao distribution platform, which "has an advantage in getting the price". Since March, he has selected nearly 80 new products in Taobao distribution. "The sales volume is also considerable, because there is also a set of products distributed by Taobao, so don't worry about buying fakes, they are all docked.

Amoy distribution also solved the pain point of capital occupation. In the past, Shi San usually bought the goods at one time and then digested them slowly in the store. Now with the docking of Taobao distribution, there is no need to purchase goods. After the brand receives the order from the C-end consumer, it can deliver the goods directly from the bonded warehouse, "without occupying our funds".

After the online amoy distribution in March, the sales of Shisan Store increased by more than 30% year-on-year. "I dare not think about this achievement. If there is no amoy distribution, our new link will be broken. Where dare to seek growth? ! "

It is not difficult to see from the above cases that the incremental value of Taobao global purchase and Taobao distribution to overseas small and medium-sized brands and global buyers is very clear.

First, Amoy Distribution accelerates the entry of new overseas brands into China.

In the past, small and medium-sized overseas brands often went through a long process to enter the China market, such as consumer research, familiarity with the China market, seeking partners and registering China companies. The gold sales cycle of a new product is usually only 18 months. This long process may lead to the complete loss of the original potential consumers.

Amoy distribution can help overseas brands match sellers, buyers, talents and anchors. Low cost, high efficiency and high precision. The speed of entering China is obviously accelerated, and the threshold of entering China is greatly reduced.

Under the matchmaking of Amoy Distribution, the overseas new products on the shelves of Shisan Store were put on the chain in the red man live broadcast room. "The quantity rose quickly, much faster than our own operation."

Second, Amoy distribution can improve the success rate of new overseas brands entering China.

In the early stage, with the help of ecological advantages, Amoy Distribution can accurately understand user needs and market trends, and provide accurate guidance for overseas brands to enter China; In the later period, after overseas brands successfully purchased Taobao globally, they can confidently lay out official flagship stores and even offline stores to cover more users. Therefore, Taobao Global Purchase meets the full link demand of overseas brands to enter the China market.

Third, behind Taobao's global purchase are 800 million Taobao consumers. Young pickpockets are more and more keen on sea purchase, while Amoy distribution accelerates the docking of supply and demand through more accurate matching.

In 2003, the SARS epidemic ravaged China, and Taobao went online, leaving China brands and businesses with no hard business. In 2020, the global epidemic continued, and Taobao distribution went online, which made small and medium-sized overseas brands and global buyers have no hard business.