Luxury Electric Business "Yoox" Breakthrough Road

< p > < strong > > a href= "//www.sjfzxm.com/news/index_c.asp" > luxury goods < /a > electricity suppliers are plight. < /strong > /p >

< p > logistics costs are high.

Yoox is rooted in Italy, but its users are from various countries. Its sales range covers more than 100 countries and regions in the world.

On the other hand, Yoox's proprietary business is essentially a "tail cargo" mode, which makes its SKU very fragmented and not convenient for global distribution.

All goods are shipped from the central warehouse in Italy and sent to the regional logistics center for distribution by the local express company.

Global distribution also ensures matching services with luxury goods, which not only directly increases the distribution cost of Yoox, but also brings other incidental expenses.

In terms of payment, because of the large amount of foreign currency pactions, the cost of payment will be higher.

< /p >

< p > < a href= "//www.sjfzxm.com/news/index_c.asp" > storage cost > /a > high.

Because inventory is more dispersed, so management is more difficult.

Moreover, Yoox sells products over the past season, so the sales cycle is longer.

According to our estimate, the Yoox inventory store turnover period is as high as 260 days.

Holding inventory for a long time has not only taken up capital but also increased the cost of warehousing.

< /p >

< p > dispersed a href= "//www.sjfzxm.com/news/index_c.asp" > supply less than /a and scattered demand also increased the complexity of sales and management.

Yoox employees have been growing rapidly, reaching 714 in 2013.

In Europe and the United States, labor costs are high, and the cost per worker is as high as 50 thousand euros.

The cost of labor allocated to each order is 12.8 euros.

< /p >

< p > however, luxury goods is a relatively small business mode.

In 2013, including flagship store business, Yoox's active users just broke through a million mark, reaching 1 million 80 thousand people.

The significance of mass media promotion to Yoox is not large. Yoox is mainly promoted through SEM, EDM and planning activities, and the corresponding promotion cost is saved.

< /p >

< p > Yoox can survive from a financial point of view. It benefits from two points: high unit price and high gross profit.

The profit of luxury electric business is like walking on a tightrope.

< /p >

< p > < strong > Yoox Breakthrough Road < /strong > /p >

< p > luxury electric business is not as good as imagined. The high cost has depressed enterprises.

Improving business efficiency is the most intuitive solution.

Yoox mainly deals with two aspects: first, improving the level of automated operation of warehousing systems; and two, improving the efficiency of commodity operation.

< /p >

< p > in early 2013, the warehouse of Yoox in Bologna was fully completed.

This automated warehouse can realize the automatic processing of small commodities from warehousing, loading, packing, sorting and other processes, improving the operational efficiency of the logistics system and lowering labor costs.

The number of employees in sales and management departments has increased by two times, but the number of employees in the logistics department has increased from only 84 to 148.

The efficiency of the logistics system has been greatly improved.

< /p >

< p > after Bologna automation warehouse was put into use, Yoox's logistics cost rate dropped by 1.3 percentage points compared with the same period last year.

Yoox is currently preparing to build professional warehouses for large commodities and footwear.

< /p >

< p > the efficiency of commodity operation is mainly related to the business mode of Yoox.

Yoox has developed a process oriented and automated merchandise shooting and photo editing system for proprietary products.

At present, about 65% of Yoox's proprietary products are processed through the automatic shooting system.

By 2016, Yoox will increase the proportion to 90%.

< /p >

< p > aiming at the flagship store products of the generation operation, Yoox still uses live models and photographers to make scenes based on collocation.

As official flagship stores, these goods represent brand image.

< /p >

< p > above measures are strengthening internal strength.

On the outside side, Yoox's development strategy is quietly pforming.

< /p >

< p > Yoox takes 13 years to scale from 0 to 460 million euros, which is not a fast pace.

However, Yoox has at least succeeded in finding two positions in the luxury industry chain: tail cargo and generation operation.

Yoox has also been building its core competitiveness around these two businesses.

< /p >

< p > luxury goods itself is not a very popular industry, but the two link of Yoox is the minority in the minority.

But if Yoox can build a competitive barrier here, it may become a "small and beautiful" company.

< /p >