Latest News:  

English>>Business

Chief's self-styled approach pays off (3)

By Cai Xiao  (China Daily)

08:59, January 28, 2013

Ji said Xiu.com's main warehouses are in Shenzhen, as imports are the main focus."We are confident about the payment pattern because our rate of returns is low, only about 4 percent," Ji said. He also said they will consider going public, but not for half a year.

"Clothes and shoes in Chinese shopping malls are very homogeneous. If we serve customers diversified fashion products with pleasing prices and service, the opportunity will be huge," Ji said.

After the financial crisis in 2008, purchasing power for luxury consumer goods in the US andEuropeweakened, with many high-end products selling through outlets malls, private sales and the Internet. US-based Gilt.com is a successful example of selling discount luxury fashion goods.

Many similar high-end fashion online sellers emerged in China, such as 5lux.com, Jiapin.com and Shangpin.com. Many of them only target luxury products sold online.

The Chinese Internet shopping market was valued at 284.2 billion yuan in the third quarter of 2012, a 43.9 percent increase year-on-year, according to a report by Beijing-based market research company iResearch Consulting Group.

Taobao Mall has been the largest player among business-to-customer online clothing sellers, with a market share of 68.5 percent and trading volume totaling 41.1 billion yuan in 2011, according to iResearch.

Zhao Xueqin, a senior analyst at CITIC Securities, said online sellers save on rental, labor and operating costs, but have to spend more on storage, delivery and marketing fees than traditional retail companies.

Zhao said that in 2011, the advertising fees of Web portals, search engines and navigation websites increased more than 50 percent on the previous year.

"In the Chinese e-commerce market, most online sellers are striving for customers with low margin and subsidies," said Zhao. "Online sellers with sustainable funding support can survive and improve their profitability to gain satisfying returns."

【1】 【2】 【3】


We recommend:

Report on the rich in China released

Sales boosting measures for Spring Festival

1st express sleeper train starts operation

Top 10 most transparent multinational companies

Top Ten Economic Events in 2012

Beijing leads nation on rich list

Email|Print|Comments(Editor:马茜、梁军)

Related Reading

Leave your comment0 comments

  1. Name

  

Selections for you


  1. PLA air force conducts air raid drill in S. China

  2. Y-20 gives air power a push

  3. 2013 Ilopango Air Show kicks off

  4. In photos: Instant noodle & Spring Festival travel

  5. Shanghai takes a bite of Diaoyu Islands

  6. People on way home during Spring Festival

  7. Li Na faces falls, defeat light-heartedly

  8. Chinese prepares for Spring Festival

  9. Apple retail stores hold sales activities

  10. Bright neon portraits of exotic life underwater

Most Popular

Opinions

  1. Princess's unique perspective for cultural integration
  2. Who is to blame for death of 38 hostages in Algeria?
  3. US needs to rethink rebalancing
  4. Chinese consumption grossly underestimated
  5. Western debt addiction poisonous to world
  6. Only dialogue can melt ice between China, Japan
  7. Teacher says 'left-behind' children need respect
  8. Scientist wants food waste criminalized
  9. Japan's policies helpless to economic resurgence
  10. Why does shortcut mentality prevail in China?

What’s happening in China

China's weekly story (2013.01.21-01.27)

  1. Children toy with new forms of leisure
  2. Migrant workers honored for rescue work
  3. Sansha taking shape with projects
  4. Foggy weather to afflict central, eastern China
  5. Chinese transport strengthened for travel rush