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Jun
2014

Luxury e-commerce is cooling down?

In March and April, there has been a tremendous amount of news in the media that affordable luxury is now so popular online that consumers are rushing to buy it. However, at the end of May, the e commerce site VIPChina.com, which received funding from SAIF (Softbank Asia Infrastructure Fund) and investment quicker than any other, went into liquidation. Were the market expectations nothing but hype?

Looking back four years, the market was much like that of the dot.com era; it was the hottest time for luxury e-commerce in China, people invested and got involved in this industry not because it was well analyzed and used a proven business model but because every competitor was looking forward and willing to invest, so other investors just rushed to follow the trend driven by the fear of being late and left behind…

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