Second, the 100 billion market for watch transactions
According to the “China Luxury Report 2019” released by McKinsey, China’s luxury consumption in China and abroad reached 770 billion yuan in 2018, accounting for one third of the global luxury consumption . According to data released by the China Internet Economics Research Institute, as of the end of 2018, China’s second-hand product transaction scale has exceeded 690 billion yuan, and it is still increasing at a rate of more than 30% year by year. 100 million yuan.
The strong consumption power of luxury goods in the country has also contributed to the prosperity of a second-tier luxury trading platform.
Luxury online channels include brand-owned channels and third-party e-commerce platforms. Take Taobao and JD.com as two examples of integrated e-commerce platforms. In addition to the introduction of Taobao In addition to opening Tmall flagship stores, major luxury brands have also launched the built-in luxury platform Luxury Pavilio and pop-up store Tmall Space in Tmall Mall, and invested in charm Hui to establish a joint venture with YNAP, a luxury e-commerce company under Richemont Group. ; JD.com conducts the layout of luxury e-commerce through self-built luxury platform Toplife, equity investment in UK luxury e-commerce Farfetch and luxury vertical e-commerce first stock temple.
In terms of categories, the luxury goods sold by integrated e-commerce are similar to most luxury vertical e-commerce, with a full range of products, including clothing, cosmetics, jewelry, watches, etc. . Apparel and cosmetics are relatively large in size, and because of their own product characteristics, watches perform generally on integrated e-commerce platforms, but on professional watch vertical e-commerce platforms.
If the second-hand luxury goods trading platforms on the market are all “doing women ’s business”, they focus on bags, jewelry, apparel and other categories. The second watch platform owned by Wanbiao chooses to “make women’s business, but also men’s business”.
Million Watch was founded in 2011. At the beginning, it was a vertical watch e-commerce “Million Watch Network”. Its sales are mainly high-end watch brands from Europe and Japan. There are high-end brands such as Patek Philippe, Vacheron Constantin, Omega, and Rolex, as well as nearly 30 European independent brands and fashion luxury brands that are exclusively represented by Van Watch, such as Tuo Tianma, CYS, Aibao Shi, Herbert, Divos , And Japan Oriental Star. In 2012, the company won a 20 million yuan A round of financing.
In 2019, Wan Watch officially launched the second watch transaction. In May 2020, Wan Watch ’s positioning was upgraded from a vertical watch e-commerce to a “global watch industry Internet platform”.
Million Watch Second Watch Platform
According to Wanbiao ’s user survey statistics in 2018, its existing members (9 million registered members) accounted for 40.2% of their second-hand trading intentions; and already owned 1 or more Respondents of watches had 85.6% acceptance of the second watch; 33.7% of them had special precision requirements for the second watch. This shows that the existence of the second watch market is not only attractive to high-end watch “entrepreneurs”, but also a “playground” for high-end watch players.
Xiao Xiao, the founder of Wan Watch, is optimistic about the future of the domestic second-hand watch market. In his view, in addition to its practical function, the watch also has the function of “social currency”. Consumers of second-hand watches are mainly price-sensitive (hoping to buy watches of medium and high-end brands at relatively low prices), play-type (frequently updated), and collectible (mainly concerned with limited-edition brands). In addition, the market price of high-end watches is stable, and some people regard it as an investment and financial tool.
Xiao Xiao observed the pain points in the second-hand watch transaction in many years of watch trading: Despite the market scale of hundreds of billions, this industry is extremely fragmented, the most in the past Active subjects are second-hand merchants and pawn shops, but there are many shortcomings in identification, information transparency, and consumer communication, and the entire industry chain has not been broken. The industry urgently needs a second-hand trading platform with “quality assurance, complete categories, transparent prices, and safe funds”. For example, “appraisal” is a key part in the transaction of second watches. It requires an authoritative appraisal criterion and process that are recognized by the industry, consumers, and brands.
From 201From the beginning of the 9th, the multimeter team began to build a second-hand watch trading platform. Through the B2B2C model, as an intermediate platform and appraisal party, the two parties of the transaction were accurately connected. Cumulative GMV of 300 million in 2019. From January to April 2020, the cumulative GMV exceeded 300 million.
The second watch transaction, the whole performance process from recovery to identification to transaction service, is the threshold. Identification is extremely important. In the appraisal of watches, Van Watch has reached a strategic cooperation with China Light Industry Watch Research Institute and China Inspection and Certification Group (hereinafter referred to as China Inspection), and Van Watch issued an intermediate inspection appraisal certificate for the goods traded on the platform. The appraisal cost ranges from hundreds to thousands, and the price is related to the value of the watch itself. The appraisal certificate is priced according to the order value: less than 10,000,299 yuan; less than 50,000,399 yuan; less than 200,000,599 yuan; more than 200,000,1099 yuan.
According to the plan of Wan Watch, through the spread of watch culture, one watch sales, two watch transactions, and after-sales maintenance of watches, break through the cut The cracked market will reshape the new industry pattern of watch lifecycle management. At present, the industrial Internet platform layout of Wan Watch includes: watch brand communication, one watch sales, two watch recycling services, two watch trading services, watch repairs all over the country-Wan watch masters), watch identification, Wan Watch Academy, etc.
In terms of transaction channels, most of China ’s second-hand merchants have already launched the 10,000 watch second-hand watch platform, more than 200 active second-hand high-quality merchants, monthly activity reached more than 80% 15% of merchants have a monthly transaction value of over one million. At the same time, in the past nine years, Wan Watch has deposited 9 million users (registered members).
The transaction data of the Wan Watch Second Watch platform shows that the unit price of the second watch is nearly 30,000 yuan, and the frequency and demand of the second watch transaction are strong, even during the epidemic. . The profit model of the Wan Watch 2 watch transaction is to extract a certain percentage of the transaction price as a commission, and provide a series of supporting services (such as identification services) for both buyers and sellers.
In terms of consumer scenarios, the multi-meter masters of the Wan Watch Group, as a watch repair and maintenance integrity alliance, connect more than 500 high-quality watch repairers nationwide, covering 28 nationwide. 110 cities in provincescity. This means that maintenance services for one watch and two watches, as well as offline transactions for two watches, can form an industrial closed loop through this system.
Xiao Xiao, the founder of Wanbiao, pointed out that under all channels and new scenarios, Wanbiao strives to achieve the strong empowerment of 2B and the re-experience of 2C.
Energy empowerment means that Wanbiao provides brand endorsements, marketing and service tools, payment and settlement systems, etc. for Wanbiao cooperative merchants, as well as various trainings for merchants , Exchange opportunities, and launch an information sharing mechanism. The Wan Watch platform has launched a global watch market tool that provides global first-hand and second-hand watch prices at home and abroad, making it easy for merchants and consumers to check at any time. At the same time, Wanbiao also provides brand promotion services for watch brands in the Chinese market.
Re-experience means that Wan Watch provides consumers with a global watch market query and the same price comparison tool, providing reference for consumers to buy and sell second watches. One-stop watch recycling service, consumers publish idle watches online, mass merchants bid online at the same time, the platform provides transaction guarantees, and the recycling price is more reasonable and closer to the market.
Overseas second-hand watch market is developed and trading is more active than first-hand watch. In 2018, the UK second-hand watch trading platform Watchfinder was acquired by Richemont Group. On the other hand, this market has just started. 10,000 meters estimate that the domestic annual transaction value of one watch is about 80 billion yuan, and the annual transaction value of the second watch is about 100 billion yuan.
Xiao Xiao, the founder of Wan Watch, said that Wan Watch will continue to focus on watch categories and be highly vertical, because mid-to-high-end watches are very special in the field of luxury goods and have high unit prices. , More professional, this is destined to be a valuable but closed “circle”, the general Internet platform’s “burning money” method does not work, it must be solid and step-by-step, both the Internet and the light The depth of the industry is important.