Sneakers Business: Under the tens of millions of dollars of financing, the real dilemma of nice ~ Katja News

Sneakers Business: Under the tens of millions of dollars of financing, the real dilemma of nice

Recently, the sneaker trading platform, Nice Guanxuan, completed tens of millions of dollars of D-round financing. This round of financing was jointly led by TPG Softbank Joint Venture Fund and Yuanhao Capital, Jingwei China, and Fanchuang Capital. I have to say that this is a successful attempt to open up the male and "post-95" market for the rise of the Chinese shoe economy. But behind the optimistic capital, the complaints of rising consumers have revealed the loopholes in the model and the high reversal of localization.

The evolution from picture social to trend trading

In the series of labels posted on the nice platform, we can read the two distinctive features of "young" and "vertical". In the increasingly popular domestic sneakers' e-commerce market, such a platform with a distinctive personality like nice and poison is dividing the market of old-fashioned e-commerce companies such as Tmall, Jingdong, and Jieduo, forming a phenomenon of “secondary market for sneakers”.

Looking back at the growth of the nice platform, it can be divided into two phases, the first is the social picture, and the second is the shoe e-commerce. Six years ago, nice transformed from the original KK shopping to SNS. Its brand filter was developed by Kidulty and became popular in the country like Instagram. Less than a year after its establishment, Nice has completed more than $60 million in financing in three rounds.

The favor of investors is an incentive for entrepreneurs, but for a model is a way to choose the right path. Since then, nice has triumphed on the road of socializing pictures.

In 2016, nice is taking the prototype of C2C and adding the entry of “My Good Goods” to the personal homepage, which contains “I posted” and “My Order”. After three years of user accumulation and community building, nice finally formed a test field for B2C e-commerce. In business logic, nice has a deep understanding of the user's portrait. Under the premise that 80% of the users of the platform are “post-90s”, how to realize the traffic (700 million+label, 1 billion+ concern) is the key...

This proposition was finally broken in 2018. Nicole smashed the heat of the secondary market of sneakers and quickly transformed into an “influx of people + trading platform”. Strategically, this may be a negative for social, but it is a subdivision. Follow up.

Nice seems to be right, the data shows that since July 2018 officially launched, nice only took five months to achieve the goal of monthly GMV billion.

Moved model, localized high anti

Users familiar with the StockX model will feel that Nicol has a suspicion of plagiarism. From the perspective of the two platforms, this is justified.

StockX, which is a limited-edition single-sales platform in the United States with authentic identification services as its core value, includes a limited range of luxury bags, watches, fashion shoes, streetwear and more.

The platform has four major characteristics: First, the price is transparent, and all transaction prices have a trend chart like stocks. Second, the bidding mechanism, which is also very similar to stock trading, buyers high-priced for sale (HIGHEST BID), sellers low-cost offer (LOWEST ASK), in the combination of supply and demand and platform effects, expert transactions are relatively straightforward, easy to deal. Third, limited offers. The price advantage of the platform is that it can save 12% of e-commerce taxes and international express postage compared to purchasing. Fourth, genuine confirmation. The platform appraisal team provides fidelity and is absolutely imitation goods. The profit model is mainly because the platform completes profit by arranging from the transaction.

Compared with StockX, nice is more vertical, which is the sneaker auction, and its authentication service is outsourced to get. In the resale business, nice's charging standard is 4% of the pricing of spot goods; 8% of the price of pre-sales. Nice also retains the second-hand resale business. In the eyes of its founder Zhou, it is important to change the track but to grasp the differentiated demand is the king. He believes that nice has formed a set of effective links in demanding Amway farming and trading model innovation.

However, behind this link, relying on the pumping mode to realize the realization of traffic and the difficulty of controlling the related products and services, all of which have laid a high-reaction lead for the localized copy of the road.

Among them, the sneakers identified the signboard of this nice push, and its professionalism and credibility became the focus of the user's criticism. The introduction of nice identification is outsourced to get, and at the same time add poison, knowledge, BAN, Yoho, etc., constitute the status of the domestic identification circle. On the major complaint platforms led by black cats, large-scale rollovers on the issue of selling fakes and defaulting claims are common. The root cause of these self-proclaimed appraisers is uneven, the identification criteria are not uniform, and the human intervention factors are too Wait a minute. Most of the platform tests are jigsaw puzzles, and there are very few bare shoes.

Credible appraisers, like many industries, abide by the 20,000-hour law. Without the experience of big data, it is difficult to avoid hitting the face and not overturning.

For the platform, although there is no intention to sell fake, because the fee is earned, the word of mouth is gold. However, when shipments are large and the appraisers are insufficient, there is a good chance of a leak. Therefore, the problem to be solved urgently is how the platform can give feedback to users as soon as possible after discovering mistakes, establish a friendly and efficient communication mechanism, and honor the genuine promises, such as paying a loss of three and quickly paying in place. In this regard, no matter how good the customer service quality, communication skills, commitments, etc., each platform has more or fewer problems.

The same track on the secondary market in the sneakers

According to Euromonitor data, the global sales of sportswear and apparel has increased from US$194.37 billion in 2010 to US$30.15 billion in 2017, with a year-on-year growth rate of more than 5%.

Among them, the United States is still the world's largest market for sports shoes and apparel, accounting for 36% in 2017; followed by China, accounting for about 10.5%. The data shows that compared with developed countries, China's per capita sports shoes have a low amount of possession, and there is still much room for improvement. At present, China's per capita sports shoes have a total of 0.4 pairs, 4.3 pairs from Americans, 3.7 pairs in Europe, and 4.4 pairs in Japan. The difference is very far.

It is precisely this demand that has been aimed at the domestic market. On this track, more and more of the peers are working together to make a big piece of cake that is still vertical but still subdivided. Although there are no official statistics, industry insiders have revealed that the market share should be the highest from the poison of tigers. According to data from 2018, the monthly GMV of poison has approached 200 million yuan; in 2019, the annual GMV is expected to approach 6 billion to 7 billion yuan. In March 2019, the MAU of poison was more than 1.4 million. In addition to poison, nice, get these head players, as well as UFO, YOHO! Bullfighting DoNew and so on have entered. Among them, the UFO's first-day trading volume exceeded one million; the bullfighter's GMV in April approached 50 million yuan.

The popularity of the secondary market for sneakers has also made capital eager to try. Just two months before Nice got the fourth round of financing, the drug just announced the completion of a new round of financing. Although the specific amount was not disclosed, it is reported that the valuation of the drug has exceeded $1 billion. Considering that the new consumer trends such as “post-95s” are on the scene, this is only the beginning.

Realistic anxiety behind good business

However, we must also face the reality that the serious imbalance between supply and demand has spawned the birth of the shoe resale platform. Brands such as Nike and Adi have a small number of goods allocated to the Chinese market every year. For example, there are only a few pairs of shoes in the new market. The scarcity of this rationing and the huge domestic market demand eventually gave birth to the secondary market for sneakers. However, when manufacturers are rushing around, industry standards and service levels are showing partial vacuum, which is likely to cause various disputes and even rise to the legal level.

First, identify the problem. Because the brand-name limited-edition shoes are expensive, fidelity is the basic appeal of consumers. If the appraisers do not take good measures, the platform may become a channel for the circulation of fake goods, which will eventually lead to a crisis of trust. Taking Putian shoes as an example, the top-grade shoes are exquisitely crafted, and the appearance materials are not recognized at all. Many appraisers can only rely on auxiliary measures such as anti-theft buckles and shoe label batches. Imagine if a platform appraiser passes the map and sees a hundred pairs of shoes a day, he will not go wrong. The solution is to establish an appraiser association as soon as possible, formulate industry appraisal standards and rules, provide professional appraisers training, increase AI auxiliary appraisal, and establish compatibility mechanisms between appraisal books and brand parties.

Second, the service issue. The platform should set standards for customer service and strictly enforce it. If necessary, introduce AI assistants and labor to complement each other, establish a friendly and efficient communication mechanism, and actively implement the guarantee clauses such as fake one payout and other timely payment, which may alleviate consumers and platforms. The crisis of trust, strengthen the sense of responsibility, avoid litigation disputes, and gradually explore the feasible space of industry self-discipline conventions.

Third, the issue of scale. For a platform like nice, after initial branding, it is necessary to consider the expansion of categories and scales under the premise of the solid consumer experience. If you stop for a long time, you can't satisfy the user's new consumption demand, or you can't do it. It's not a long-term solution to rely on the transaction to make a living.

Sneaker trade is indeed a good business in this era of personality, publicity, and fashion. Therefore, there should be no shortage of rumors in the future, but how to grasp it and only hold the hot spot is not a good strategy. You should think more about the nice hotspot of the sneakers.

Source: (Katja News)

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