Ecommerce for the start-up fashion in China
Chinese e-commerce goliaths like Taobao provide a powerful platform for start-up fashion and apparel e-tailers
The year 2013 will be remembered as one in which China has surpassed the United States as the largest market for digital retail world, writes the author of a report published by Bain & Company,
564 million Internet users in the country and 242 million e- customers." Retail online already totaled 6 percent of all purchases ,"
Meanwhile, in the clothing sector , e -commerce sales represent an even larger share of the overall cake .
Approximately 13 percent, according to iResearch estimates .
But for most Chinese e-commerce is dominated by a few domestic giants, including Taobao, VANCL , M18 and Jingdong . In fact, the top five players control 65 percent of the online retail market in China, according Workshop Paribas.
In fact , Taobao alone - which consists of Taobao market, a consumer survey which is China's response to Ebay and Tmall , a site selling business-to -consumer on which brands can open and manage their own e-commerce stores - more than 50 percent of all retail spending online .
Faced with this reality , are trademarks of medium-sized retailers and sentenced to nibble at the edges of the growth of the party e-commerce in China?
Chinese society casual Metersbonwe recently failed to launch a platform independent e -commerce , despite investing millions of dollars in the initiative. Meanwhile, Mecoxlane , clothing once pure play e-tailer and accessories plans to launch a disconnected network of 400 stores to survive.
Indeed, many Chinese fashion and clothing brands have their options of e -commerce as a binary : launch with one of the key players, or wait . Some have decided to wait for a more favorable market environment , but the vast majority of fashion retailers have lined up with the giants of Chinese e- c0mmerce - positive results .
Being on the big sites like Tmall , which hosts more than 50,000 branded stores, allows retailers to tap into the eastern several million daily visitors site. " On 11 November 2012 a special shopping day like Cyber Monday in the United States ,
Tmall had over 250 million visitors, almost the entire population of online shopping in China ," said Florence Shih , responsible international public relations Taobao Group .
At the end of the day , sales sales through Taobao and Tmall market had exceeded $ 3 billion .
By comparison , sales of the entire United States on Cyber Monday in 2012 were less than $ 2 billion . In addition, the launch platform scale as Taobao, with their millions of users, is certainly a good way for brands and retailers to increase knowledge of consumer behavior online .
In fact, it turns out that instead of stopping the growth of e-commerce in China Goliaths offer many opportunities for highly profitable business online fashion medium to flee on their platforms forms , as evidenced by the success of companies like Justyle and Angel Citiz .
Justyle (简 时尚 品)
Founded in 2007 by Xu Qun with English partner Dr. Martin Shoben Research Center of London fashion , Justyle designs and sells clothing menswear for the mass market of China. With charm and vision, Mr. Xu , who goes by the nickname " Runzhi " ( borrowed form Chairman Mao himself) , has raised $ 15 million in investments Zhixin Capital, Balderton Capital and DFJ .
The company has no physical or traditional e -commerce stores. Instead , every day on his Tmall shop Justyle grows a wide range of fashion basics such as jackets . Prices are low - about 100 RMB ($ 16) for a T- shirt or RMB 300 for a jacket - but the volumes are high, up to 50,000 units a bestseller . With about 300,000 frequent buyers Justyle had sales of $ 80 million in 2012 and an annual growth rate of 400 percent.
But this has not been easy for Justyle . When BoF met Mr. Xu Jiaxing , last winter , optimizing its supply chain is a major concern . Indeed, Justyle struggled to plan purchases of fabric and thread correctly to match the extent of consumer demand .
Citiz Angel (天使 之 城)
In 2004 , the founder Li Jing , also known as Miss "A" left a job in an insurance company to launch a fashion boutique on Ebay , which quickly gained popularity. To avoid increasing costs Ebay , Jing moved the store to Taobao market and today 's women's fashion brand online Angel Citiz is one of the best interpreters of Taobao , and in 2010 and 2011 , was voted a favorite customers.
From 2006 to 2009 , sales of Angel Citiz increased steadily at a rate of 300 percent per year. The success came from the selection of boutique products - from Japan , Korea and Europe - which were otherwise difficult to find in China. Miss "A" also modeled all products Angel Citiz itself, which was not only profitable, but makes for a funky shopping experience and distinctive.
In 2012, Angel Citiz income reached $ 38 million , and in the search for greater growth , Miss "A" sold 80 percent of shares in the company for $ 16 million to Liebo , another another fashion industry successful online which began modestly on Taobao Marketplace. The company started with an initial investment of RMB 1000 ($ 163), has since gone on to raise venture capital funds Matrix Partners and Sequoia Capital , and now leads annual sales of 500 million RMB