Why did N5Capital lead this round of investment in Feiyu?

We believe that the second-hand luxury market is developing rapidly in China, and traditional offline stores are limited by physical space and can only achieve business within the region. The management team of Feiyu has been deeply involved in the field of luxury live broadcasting for several years. It is an expert in the luxury industry and has extensive operation management experience. By reshaping the back-end supply chain through online live streaming, its channel brand, Feiyu, has become a live streaming second-hand luxury head company.

The second-hand luxury live-streaming e-commerce channel brand “Feiyu” completed millions of dollars series A financing. N5Capital and Matrix Partners China jointly led the investment, Legend Capital and Chenhui Venture Partners followed. Yi Qiu Capital serves as the exclusive financial advisor.

Established in October 2016, Feiyu first cut in from the live broadcast of niche luxury goods abroad, and later moved to second-hand luxury live broadcast sales in October 2018 due to the difficulty of integrating foreign supply chains. At present, Feiyu has hundreds of B-side suppliers and nearly one million C-end users, with a sales rate of about 80% and a monthly sale of nearly 100 million RMB. The transaction volume of Feiyu in May 2019 has become the first in the industry.

Goods are the core, to build a “C2B2C+B2C” supply chain system

Feiyu, which has accumulated two years’ experience in live broadcast operation, and a large number of luxury consumers, has established a complete “C2B2C+B2C” supply chain system, and has carried out stable cooperation with hundreds of offline second-hand luxury stores. The stores can consign goods or Feiyu can send anchors to live broadcast in the stores. In addition, c-end buyers can also consign their own bags, etc., the current c-end source has accounted for about half of the total goods. Feiyu has more than 20,000 SKUs in stock, and thousands of new pieces are added every day. In addition, Feiyu has established 6 warehouses across in the country for sub-warehouses, with the total warehouse located in Shanghai.

Feiyu has more than 40 certified appraisers who are responsible for the identification of products. Each product needs to undergo a triple appraisal and re-inspection process. Finally, a certificate is issued by China Inspection and Certification Group. Feiyu tags the product from multiple dimensions according to different categories, and uses the historical transaction data to systematically estimate the price range. When the product is sold, the data is fed back in real time, and the system dynamically adjusts the selling price; to achieve high conversion and high sales, at the same time ensuring the seller’s earnings.

The sales volume is more than 5 times ahead of the second place, and a matrix-type multiple sales channel is established

Feiyu has established a relatively complete anchor selection-training-growth mechanism, and has more accurate matching of anchors, goods and traffic through data analysis and operational experience. At present, Feiyu has set up dozens of live broadcast rooms in nearly 10 key cities across the country, with nearly 60 self-operated anchors, of which more than half of them have a monthly sale of one million RMB.

The overall sales volume of Feiyu in 2019 was nearly one billion RMB, and by the end of last year, it has exceeded 100 million RMB per month. The sales rate of goods within 30 days is about 80%, and the average sales cycle is one week. Feiyu has become the No. 1 sales of second-hand luxury goods on Taobao. In the category of second-hand luxury, Taobao’s live streaming sales are more than five times ahead of its peers. At the same time, Feiyu has also settled in major e-commerce and short video platforms, and has its own APP and small program. As a channel brand, Feiyu has produced some influence in the industry.

Make luxury goods in luxury goods, with scientific independent pricing system

Feiyu raised the customer unit price through live broadcast. Now the average customer unit price of Feiyu is around 4,000 RMB, which is much higher than other competitors. In addition, it also boosted the overall sales rate. High price and high sales rate have brought in more suppliers and individual sellers to Feiyu.

At present, there are hundreds of B-end suppliers on Feiyu, mainly offline second-hand luxury recyclers from all over the world. There are about 2 million fans on the platform, of which about 100,000 are sellers and buyers.

There is no clear boundary between buyers and sellers of Feiyu. During the live broadcast, the anchor will emphasize that fans can either buy or sell on the platform. Now, one third of the buyers of Feiyu will come to the platform for secondary sales. The open trading transaction increases the stickiness of individual users. On average, each individual user will place seven orders on Feiyu, which is about three times in the industry.

Explore more high-end categories and see explosive growth in the second half of 2020

Wang Bo, managing director of N5Capital, said the second-hand luxury market is developing rapidly in China and traditional offline stores are limited by physical space and can only do business within the region. “The management team of Feiyu has been deeply engaged in the field of luxury live broadcasting for several years. It is an expert in the luxury industry and has rich experience in operation and management. By reshaping the back-end supply chain through live streaming, its channel brand, Feiyu, has become a live streaming second-hand luxury head company.”

Under the epidemic situation, although the flow of live broadcasting increased greatly, the logistics of the supply side was affected to some extent, so the number of live broadcasting was reduced and the short-term trading scale was impacted to some extent. However, Huang believes that the second-hand luxury market is expected to explode in the second half of this year as consumers become more concerned about disposable cash flow due to the overall economic environment and the epidemic.

In Huang’s plan, Feiyu will not stop at doing second-hand luxury, now Feiyu has begun to sell the first hand jewelry, Huang hopes Feiyu establish the following cognition: abundant, authentic, high-end. With these features in mind, Feiyu will continue to develop multi-channel and multi-category products in 2020.