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Tencent Venture | ID: qqchuangye “A major feature of the market that is connected with “second-hand” is that the water is very deep. If the second-hand luxury e-commerce trading platform wants to continue to gain the trust of users, it has to fight against fakes while also dealing with purchase channels and merchants. The challenge of raising prices.” The source of this article is “kaiboluocaijing” (ID: kaiboluocaijing), reprinted by Tencent Ventures with authorization. Author/Su Qi Edit/gold_[[ From “Sister Riding the Wind and Waves” at the beginning of this year to the present, the second-hand luxury goods market has always been “high fever”. In the show, Ou Wang went out of business with the not-so-respectively ancient Chanel accessories, bags and clothes, causing many second-hand luxury goods stores to call out “Ms. Wang, don’t take it, Chanel’s price in the second-hand market is already too high. , The feedback from the customer base is “unaffordable””. Also detonated are second-hand luxury goods trading platforms. Most of these platforms are mainly on consignment, that is, sellers (including B-end and C-end) who need to change hands place goods on the platform for consignment, and the platform will identify the goods, and then Through the platform sales, the platform draws commissions from it. If the past second-hand luxury goods physical stores did the stock migration that bought out and then resold, the second-hand luxury e-commerce model did an incremental market, leveraging more C-end supply, and transferring more supply to the market. On the market, while increasing industry transparency. The release of second-hand goods has added a fire to the industry’s live broadcast: Xinshang founder Dong Bowen opened an account on Xiaohongshu and Douyin to bring goods; Panghu Technology, which focuses on offline stores, and originally focused on Taobao The live broadcast Feiyu also turned to Douyin live broadcast; only two increased the intensity of live broadcast on Xiaohongshu; Hong Bulin added a live broadcast portal to the original APP, and also brought goods on Douyin live broadcast. This fire also illuminates the “dark” corners of the second-hand luxury goods market that have not been noticed to some extent. A major feature of the market that is connected with “second-hand” is that the water is very deep. If the second-hand luxury e-commerce trading platform wants to continue to gain the trust of users, it has to fight against fakes while also dealing with purchase channels and merchants. Price challenge. Nowadays, while live broadcasting brings new traffic and high efficiency to the platform, it also increases uncontrollability and even exposes new problems. 1 The same second luxury package sold hundreds of pieces in the live broadcast room The chaos brought by live broadcasts to the second-hand luxury e-commerce industry starts with a popular bag. If you select a luxury bag that is both practical and popular, LV nano speedy will definitely be selected. It is indispensable in the list and inventory of multiple personal air bags in 2020. “Seeing its price increase all the way, I still can’t buy it.” Many luxury enthusiasts have set their sights on the second-hand luxury goods market. However, Kaipineapple Finance recently discovered that 99 new LV nano speedy appeared on Douyin Big V “Zi’an” in multiple live broadcasts, and sold hundreds of pieces in a single session. “Isn’t this bag difficult to buy? The same second-hand bag sold so many pieces, I have never seen it before.” Luxury enthusiast Huahua said. According to Cicada’s data, from March 1st to March 8th this year, Zi’an will broadcast 7 shows. The cumulative sales of the LV nano speedy bag alone are 3,466, and the cumulative sales are 32.06 million, accounting for nearly the total sales. 60%. Hundreds of pieces of the same bag were sold on March 6, 7 and 8 Source / Mother Cicada In its April 11th “LV, DIOR, GUCCI Super Brand Lost Fan Feedback Special”, this 99 new LV nano speedy appeared again, selling 50 pieces in a single game. Source / Mother Cicada A single sale can range from dozens of pieces to hundreds of pieces, which is unimaginable in the second-luxury market, which is known as “a product has only one SKU”. “The possibility is almost zero,” Chen Yunda, an insider in the second luxury industry, said that no matter how strong the supply chain is, it can’t be done. “Because even if a platform/merchant has multiple bags of the same color, model, material and year, 90% new and 80% new are not the same SKU.” “This will lead to the fact that after the user pays, the merchant does not have so much inventory, and finally cannot ship the goods, and the user can only refund. This kind of’one package sells more’ situation exists in the era of e-commerce.” Chen Yunda said, but When users choose to refund and return goods, they will encounter some problems. On the Black Cat complaint platform, there are indeed many users who claimed that in the live broadcast room of the Douyin platform “Zi’an”, the luxury goods photographed have not been shipped and no refunds will be given. Source / Black Cat Complaint It is reported that Zian is a Douyin account owned by Panghu Technology. Coincidentally, other accounts of this company, such as “Panghu Luxury Appraisal Center” and “Panghu Discount Village”, have the same second-hand luxury package for sale. There are more than a dozen cases. Source / Mother Cicada After looking at the live data of several other second-luxury e-commerce platforms, Kaipineapple Finance found that this is not an exception. Dong Bowen, the founder of Xinshang, is known as Wenzijie. According to Mama Cicada’s data, her Douyin live broadcast room also sold multiple pieces of a second luxury product. For example, in the live broadcast on March 31, 90% of new second-hand Chanel bags with a unit price of nearly 7,000 yuan were sold 33 pieces. Source / Mother Cicada Feiyu’s head anchor Xia Yan, in a live broadcast on April 3, there was also a situation where 110 pieces of LV second-hand bags were sold. Source / Mother Cicada In this regard, Kaipineapple Finance asked the above-mentioned platform for verification. Among them, Huang Shichang, founder & CEO of Feiyu, replied that the same product sometimes has several items with the same stock condition and the same price, and the customer will refund the excess part. “Sometimes there are situations where multiple customers snap up one piece, the Douyin system will automatically lock the order, and the mother Cicada backstage will count according to the payment caliber, and the internal financial indicators will be counted according to the actual delivery.” As of press time, Fat Tiger and Xinshang have not yet Reply. An industry insider said that although the second luxury trading e-commerce platform stated that it will use the actual shipment volume as the statistical caliber, such an operation actually raises their GMV and ranking on the third-party data platform, which is a disguised water injection. It will be misleading to outsiders. Another industry insider said that in these live broadcast rooms, the anchor often guides customers, “If you want to look good, you can queue up first, and you can take pictures of the goods first, so as not to be stolen by others.” This will cause some goods to be repeated. Taken many times. For example, if the actual inventory is 3 pieces, in theory, after these 3 pieces are taken, others will not be able to photograph them, but if the photographed person does not pay and the inventory is released again, others can continue to photograph. Every time an auction is taken, regardless of whether it is paid or sold, it will be included in the GMV of the third-party platform. However, it is not the case that hundreds of pieces of a SKU are photographed, because if there are only 1-3 pieces in inventory, it is impossible for so many users to repeatedly photograph. People in the industry told Kaipineapple Finance that in this industry, the capital side pays more attention to the actual transaction amount, and GMV does not generate any value. But what are the benefits of obtaining a higher GMV for the second luxury trading e-commerce platform? According to industry insiders, the top platforms are currently favored by capital, and GMV injection may be because the platforms are all telling the capital story of C-end traffic. 2 Why does Ershe Live let users love and hate it? It is undeniable that platforms and anchors have already used live broadcast as an important channel and tool. “Compared to e-commerce, live broadcast is very suitable for second-hand luxury goods, such as non-standard products with high customer unit prices, and the transaction efficiency is much higher than other scenarios.” Chen Momo, vice president of YuanZ Capital, is very optimistic about the combination of the two. “The information in the form of graphics and video used by e-commerce is relatively flat. Most second-hand luxury goods are one thing. Except for new products/99 new products, the content cannot be reused, and the host can review all the products in the live broadcast room one by one. Showcase and interact with online Q&A.” The live broadcast also brings other functions to these platforms besides raising the customer unit price and increasing the turnover rate. Zhou Ke, an insider in the second-hand luxury e-commerce industry, told Kaipao Finance that “it is difficult for categories with high customer unit prices to obtain new traffic”. Live broadcast on external platforms to attract APP traffic and strengthen channel branding and user awareness is the main purpose; The purpose of live broadcasting in the APP is to convert and trade, or to lengthen user time. However, as a new sales channel, live broadcasting has not completely changed the original pain points of the industry, such as fake goods disputes, incorrect versions, difficult returns and refunds, inflated prices, high commissions, and inconsistent quality evaluation standards. Because live broadcasts, Now a new issue of “GMV water injection” has been added. One of the more typical problems is that there are thousands of complaints about “hosts concealing defects” on websites such as Black Cat Complaint and Ju Complaint. Almost all second-hand luxury goods trading platforms have been named. This involves a very typical scene in a second luxury live broadcast room. Because of the insufficient display in the live broadcast room or the introduction of the anchor, some users found that the package was flawed after receiving the goods, and some users found flaws in the communication with customer service before delivery. However, according to the rules of second-hand luxury goods platform, generally Goods are not accepted for 7 days without reason. In this case, users may complain or give bad reviews. Zhou Ke said that it will affect the user experience and the reputation of the platform. “The above-mentioned problems are actually left over from the e-commerce era. The underlying reason is that the second luxury industry is still in its early stages. Even though many platforms have cooperated with the’China Inspection and Certification Group (Luxury Appraisal Center)’, they still rely more on their own. Appraiser. This is prone to discrepancies in the standards for fineness evaluation by various companies.” Zhou Ke said. “Users’ perceptions of these standards are also different.” Chen Momo said that this is also difficult to do in this industry. The reason why C2B2C is to establish channels and service brands is to establish industry standards and win the trust of users. It is a long-term process. “The anchor must make it clear during the live broadcast and fully display the flaws; the platform must continue to strengthen product identification and fineness evaluation, and do a good job in after-sales work.” Zhou Ke said that the cost of platform refined operation is very high, but the current status of the industry Put forward higher requirements on second-hand luxury goods platforms. As stated in the “Research Report on the Development of China’s Second-hand Luxury Goods Market 2020”, as China’s luxury goods industry has not yet established complete industry standards, it has become a “ceiling” that hinders the development of the industry. Reasonable after-sales guarantees, imitation inspection mechanisms, and perfect Merchant certification system, regular self-inspection and spot checks will be the key to e-commerce platforms competing for the trillion-level luxury goods market. 3 The second luxury industry needs live broadcast There are many problems with the live broadcast of second-hand luxury goods in the embryonic stage, but it is undeniable that this is a very imaginative market. Especially during the epidemic, many consumers have cultivated the habit of buying second-hand luxury goods online, and all platforms are taking advantage of the trend. Promote live broadcast channels. According to the “Overview of China’s Second-hand Luxury Industry in 2021” released by Tou Leopard Research Institute, it is estimated that by 2025, China’s second-hand luxury market will reach approximately 34.8 billion yuan, with a compound growth rate of 15%. The luxury goods market in China in the past ten years has reached 40 billion yuan, and the stock of second-hand luxury goods is large, but compared with developed countries, the turnover rate is very low, only 5%, and the market has great potential to be developed. Judging from Zhou Ke’s research, the group who specializes in buying second-hand luxury goods has a high repurchase rate. Huahua also told Kaipine Finance, “Some people buy new bags, and some people buy second-hand bags. I bought a second-hand bag. After using it for a while, I might sell it, and then buy individual second-hand bags.” In 2018, Chen Momo, as an investor, bet on the second luxury market. Originally, she was not so optimistic about the market. She believed that users’ habit of buying second-hand luxury goods through live broadcasts still needs to be cultivated. However, in recent years, the concept of the Middle Ages has been brought into flames. Coupled with the catalysis of the epidemic, the development of the second luxury market has exceeded her expectations In the faster, “Now the top several platforms, the transaction size in a single month is basically on the order of 100 million yuan, which has far surpassed the last wave of second luxury e-commerce platforms that hovered in millions of monthly transactions five or six years ago. Now.” Chen revealed silently. The market prospects are very good. Taobao, Kuaishou, Douyin and Xiaohongshu have all begun to deploy in the field of luxury e-commerce, covering all primary and secondary markets. At the same time, each second luxury e-commerce platform also focused on live broadcasting. Public information shows that in 2019, Fathu Technology’s revenue was about 600 million yuan, and its GMV exceeded 1 billion yuan. The company’s founder Ma Cheng said that by the end of 2020, Fathu’s GMV will exceed 1.5 billion yuan; in 2019, Feiyu’s overall sales will be nearly One billion yuan; the monthly GMV of Hong Bulin’s live broadcast in 2020 has exceeded 100 million, and there is also a regular sales business, which overall exceeds that of several other companies. In addition to live broadcast in their own apps, the external live broadcast channels of these platforms all use Douyin as a key choice. “For brand-based channels, Douyin live broadcasts also have periodic traffic dividends. As new channel brands, these platforms can receive Douyin’s traffic support.” Chen Momo analyzed. The Feigua data list shows that from January to March this year, Douyin’s “shoes, hats, bags” category of anchors with goods, the top three are the second luxury anchors, and quilt, Tracy Dong Bowen and Feiyu Shanghai Taikoo Hui store summer Yan has dominated the list for a long time, and the battle of industry competition has burned to the Douyin platform. Take March as an example, TOP1 is Zi’an. Feigua data estimates that its GMV with goods will reach 180 million yuan, and the estimated sales volume is 42,000, which is far ahead of the second or third place; the second place is Tracy Dong Bowen, with an estimated GMV of 50.1 million Yuan, and the third-placed Feiyu Shanghai Taikoo Hui store Xia Yan’s score is similar. Among these three, Zi’an’s data has changed the most. In January, GMV was around 45 million yuan, and in March it rose to 180 million yuan, but its reputation for carrying goods was not as good as the other two or three. TOP3 anchors in the TikTok “shoes, hats, bags” category in March Source / Feigua data As live streaming has gradually become the infrastructure of the second luxury industry, it has become a “standard configuration” for high user ARPU (average income of a single user) and LTV (user life cycle value), and has an ability to supply the platform and user operations. The test is also increasing. “But for these non-standard products, no matter how good the anchor is and the introduction is good, they can only be sold individually and sung in a single piece. Unlike the top anchor who sells standard products, they can sell tens of thousands of products once they introduce them.” Chen Momo said , This is an established ceiling in the industry, and there is no way to break through it for the time being. In the live broadcast scenario, the average customer unit price will increase, but the influence of the anchor on the user’s purchase decision is actually not that great. The main conversion core is the product itself. A live broadcast battle is unfolding, and the second luxury platform needs to solve two problems if it wants to seize the opportunity. “One is inventory, and the other is supply chain.” Chen said silently. Inventory is the biggest pain point. For example, 10 people like 1 package in a live broadcast, but the merchant can only sell one package at most, which is a test of the platform’s operational capabilities. “Li Jiaqi sells standard products. After 10,000 pieces are sold, you can add more inventory for pre-sale, but the second luxury is one piece.” Chen Momo said. The test of the second luxury circulation is the supply chain capability, which specifically refers to how to leverage more high-quality C-end stock products into the second-hand market. Chen Momo gave an example: “Luxury first-hand consumption is a large pool. Some of this pool will definitely flow into the transaction of second-hand luxury goods. Whoever can thicken the pipeline of this funnel will solve the main problem of the supply chain. problem.” This is a typical operation-heavy industry. Whoever can maximize the SOP (standard operating procedure) of non-standard products will be able to acquire more users when the industry develops rapidly in the future. “It’s not only cheaper but also better, it has become the new industry standard.” Zhou Ke said. *At the request of the interviewee, Chen Yunda, Zhou Ke, and Huahua are pseudonyms in the text. END What is your opinion on the second luxury transaction? Welcome to leave a message in the comment area and share with you.
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