Last Year, Milan Station Sales Model Doubted A Loss Of 169.8%.

< p > a few days ago, Milan station of second hand luxury goods company released its annual performance in 2013.

Last year, the Milan station achieved a turnover of HK $698 million (about 550 million yuan), an increase of 3.2% over the same period last year, and a net profit loss of HK $37 million 520 thousand, an increase of nearly 1.7 times compared with the same period last year.

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< p > to this point, Milan station said that the loss was caused by the continued slowdown in the luxury handbag retail market, the weakening of consumer sentiment and the increase in sales expenditure.

The results showed that sales expenditure increased by 26.5% to HK $139 million last year as a result of publicity and publicity expenses, retail rentals and the Commission of companies operating in the Macao senior club.

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< p > it is worth noting that the sales of Milan station last year < a href= "//www.sjfzxm.com/news/index_c.asp" > Hongkong business < /a > was HK $543 million, a slight decrease of 1% compared with 2012. The overall sales of mainland business declined by 18.8% to about 64 million 500 thousand Hong Kong dollars; the total sales volume of Macao business increased by 69.6% to 82 million 100 thousand Hong Kong dollars over the same period last year; in addition, the contribution of e-commerce business was about 15 million 500 thousand Hong Kong dollars, a substantial increase of 210% over last year.

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< p > > a href= "//www.sjfzxm.com/news/index_c.asp" > Milan station < /a > indicates that the mainland business has been slowed down by the economic growth, the mainland tourists choose to go directly to Europe to buy the brand "a href=" //www.sjfzxm.com/news/index_c.asp "> luxury" /a "and the trend of online shopping is maturing.

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Zhou Ting, President of the Institute of wealth and quality research, told reporters that Milan station has always positioned itself as a channel for the second hand luxury business. This means that its profit comes mainly from the circulation link, that is, the purchase of goods at a low price, and then selling at a higher price, earning the difference or collecting fees, but the real commercial value of the second-hand luxury market often exists in the service link. The difference of business mode has become a major factor hindering the profitability of Milan station. P

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< p > "China's second hand luxury market is far from being developed, but most of the second hand business companies of luxury goods are small and most of them are in a state of loss. The overall business model is single and lacks core competitiveness."

Zhou Ting said that in addition to being confined to the positioning of channel providers, a common problem is the "commercial market of new products using the secondary market".

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< p > according to the Milan station's earnings report, sales of "unused products" in 2013 amounted to HK $437 million, which accounted for 62.7% of the total revenue, and increased by 13.2% compared with the same period last year. The sales volume of "second-hand products" was HK $260 million, which accounted for 37.3% of total revenue, down 10.1% from last year's earnings.

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< p >, which means that the sale of "new products" has increasingly become the main profit mode of Milan station.

In this regard, Zhou Ting said that this model is a short-term hit the ball, in the long run will be boycotted by the brand, because the second-hand shop "new style" is bound to lower the price and compete with the new model of a direct shop, which is not what brand companies want to see.

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< p > in addition, with the booming of second-hand luxury dealers in China's local market, it also has a great impact on Milan station.

The second-hand luxury report released by the Institute of wealth research in late 2013 showed that the number of second-hand luxury goods stores increased from 512 in 2012 to 823 in 2013, an increase of 37.8%.

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