Under the impact of the new crown epidemic, what business is the worst in 2020?

Hotels? Catering ? Tourism ? movie and television?

There is no hardest, only more difficult, the nest, and there is no egg.

However, across all segments of the industry, due to the epidemic triggered by the "consumer downgrade", one of the most impacted business, there must be luxury.

Chanel stopped production, Gucci zero orders, LV loss of 200 billion ...... these bad news in the past two months in an endless stream, and more analysts expect the luxury market size is expected to shrink by 15% -35% in 2020, the annual loss of 6,000 to 700 billion yuan is expected. billion yuan.

On April 6, the Hurun Research Institute released a "special report on changes in the wealth of global entrepreneurs after two months of the epidemic", Waterloo NO.1 is also playing the big man of luxury goods - LV head Bernard Arnault, lost 200 billion yuan over the past two months, equivalent to the loss of more than 3 billion per day, topped the global loss of More than 3 billion, honored as the world's worst loss of tycoons.

But we also found a surprising phenomenon, when these traditional industry leaders have folded, there is a mysterious Internet tycoon, precisely stepping on the steps of epidemic prevention and control to make money!

That's right, he is "do not know the beauty of his wife" Jingdong leader Liu Qiangdong, commonly known as Dong.

How does Dong make money?

First of all, we have to say that the "strong generation" Internet BOSSes are the best capital operation, as early as 2017, Jingdong invested in the famous British luxury e-commerce business Farfetch, the proportion of shares is about 16.7%, the investment principal is only a mere 397 million dollars.

What kind of company is Farfetch?

According to the website, Farfetch was founded in 2008 and is the world's most popular and fastest-growing high-end fashion e-commerce site. The company's zero-stock platform model connects more than 400 buyers in over 40 countries with over 1,600 fashion brands.

Said here a lot of white people understand, its positioning is similar to YNAP and Temple Bank, luxury goods in a big move "e-commerce", seeking to break through the consumer scene of one of the capitalization of the product, but the people's base is overseas (UK), facing the nautical from the world's chopping party.

However, although similar to the temple library, but Farfetch's share price performance is too much stronger than the temple library - this is also the East can "lie earn 2020" one of the reasons.

According to the New York Stock Exchange data, since this year, Farfetch's stock price has risen by more than 120%, with a market capitalization of $7.5 billion, and the latest stock price has come to $22.22 per share.

How much money did East make on this holding? It's hard to calculate now, because the shareholder structure of farfetch since it went public has become more complex, taking into account that some of the financial investment has become a direct partnership, Jingdong's shareholding should be diluted, but in the current situation, it's still a few times more than the original $397 million. (farfetch's current price is close to its issue price, much higher than the cost of Dong's stake)

Of course, investing to make money is a matter of vision and luck, and as one of China's largest Internet e-commerce companies, being able to run the luxury category well is a true reflection of strength.

In this regard, Dong is obviously also quite knowledgeable, at least in the first half of 2020 performance, Jingdong's luxury matrix is still quite powerful.

To 618 data to observe, the day in the Jingdong platform, including Prada, Miu Miu, Salvatore Ferragamo and so on, including more than a hundred brands turnover year-on-year turnover of more than 10 times, 10 minutes within the luxury turnover amount is more than 500% growth.

The day's results were finalized, the turnover of luxury apparel and accessories increased by 213% year-on-year, and the turnover of luxury shoes and boots increased by 172% year-on-year, becoming the fastest-growing category in Jingdong 618.

Luxury products have become the strongest growth engine of Jingdong 618, which was not expected in the past.

Of course, the success of Jingdong's luxury layout is also related to Jingdong's investment in Farfetch.

In 2019, Jingdong abandoned the self-built platform route and merged Toplife into Farfetch China. As of today, the Farfetch platform covers more than 3,400 brands, of which more than 500 are partners.

In fact, Jingdong's move is very smart, it knows that they do not have accurate user operations, but also lack of Farfetch's level of operation and management, simply choose to invest while talking about cooperation, Farfetch's invaluable resources "interface" to be over, through the Internet, big data precision marketing. Through the Internet, big data precision marketing ability to complete the "1 + 1 is greater than 2" of the flow of cash.

It is worth mentioning that Jingdong's play is also very healthy - after the acquisition, Farfetch will remain as an independent brand for consumers, rather than through Jingdong Mall sales of its goods. This seems to retain the independence of Farfetch to a certain extent, but Jingdong is not watching the fire from the other side of the river in this cooperation - similarly, the use of Jingdong's BlackLong technology and big data resources, the establishment of an automated marketing system in China; "Jingdong Pay" and micro-credit service "Jingdong Baijiao" will become the preferred method on the Farfetch platform; in addition, its logistics also use Jingdong's recently launched "Jingzunda", the strong cooperation background, the two are almost each reap the benefits.

Of course, and Jingdong mutual "use" is also Farfetch happy to see, according to the financial report, 2019 the company's annual GMV year-on-year growth of 52% to 2.13 billion U.S. dollars, exceeding the 2 billion U.S. dollar mark, revenue is a year-on-year surge of 69% to 1.02 billion U.S. dollars. billion dollars.

Ignoring the aftermath of the epidemic, the two fronts are flying high, Dong's luxury dream is not happy, looking at LV, Burberry's founders at the temples of the time but also the pain of the stop-loss order (closing stores, discount clearance), accurate ambush Jingdong but was able to counterattack against the trend, eat their share of the line, and by the way, the online collection of mouths to improve their own right to cooperate in the discourse. At this moment the spring breeze of the East, want not to smile I'm afraid it is difficult.