Chinese AirBnB Tujia gets popular with New Funding

Chinese AirBnB concept 

New Tujia (www.tujia.com ) fund raising reflects strong investor confidence in its business model and market position, which could help the company to post strong growth before an IPO in the next 1-3 years.

 Tujia raises $ 300 million 

It seems that the hot websites only need to say they seek new funds these days, and they can automatically attract a large investor interest that allows them to raise huge funds and get high valuations.

Tujia popular in China

The latest company to follow the pattern is Tujia, a site that allows owners to lease their vacant properties to travelers, using a model similar to popular US site Airbnb. Just one month after media reported that Tujia is finalizing a new funding round of $ 250 million (previous post), the latest reports say the demand was so strong that it ended up raising $ 300 million ...

This kind of fund-raising outperformance has become quite routine these days, helping to boost a new generation of Chinese Internet companies that often simply copy western business models. Others to engage such turbocharged fund-raising include Didi-Kuaidi, which started out as a taxi app operator but is rapidly moving into the private car services model pioneered by Uber. Didi-Kuaidi originally set out to raise about $1.5 billion in its latest funding round last month, but ultimately ended up with $2 billion due to huge demand. Tujia isn’t quite as advanced as Didi-Kuaidi, but the company itself has become hot property by borrowing Airbnb’s business model of linking up property owners with travelers looking for cheaper, more homey accommodations than traditional hotels. Tujia’s latest funding is its fourth to date, and follows a previous round that saw it raise $100 million about a year ago.

source http://www.youngchinabiz.com/en/travel-airbnb-imitator-tujia-gets-hot-with-new-funding/


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Luxury Brands mainly deal with Chinese clients

Despite a deteriorating environment in their country, the Chinese still represent a future customer for the luxury industry. It is the belief of HSBC's analysts unveil their recommendations on key values ​​of French industry.

Luxury market slowdown

Economic growth slowdown, property market at half mast, stock indexes were down: the rich Chinese have to worry about, and with them, the big luxury sector groups worldwide.

Over the past decade, these companies, French (LVMH, Hermes, Kering), Italian (Prada, Tod's, Ferragamo, etc.) and Swiss (Richemont, Swatch Group), took the extraordinary appetite of Chinese to prosper. And for most of them, China is now the number one market.

Macroeconomic difficulties are pervasively present in a year. But industry players are sullen longer. The anti-corruption campaign launched by the authorities in 2012 severely affected both segments of the industry from 2013: luxury watches and high-end spirits, choice of objects for the "business gifts" in practice that the Chinese authorities want to stop now.

Photos source @Agence Marketing Chine

Thus, sales of watches, for example, or cognac Remy Martin, probably fell more than 30% in 2013 and 2014 in the China

Bling Dynasty is over

However, a financial analyst, the luxury sector specialist at HSBC and author of a book on the luxury in China, "The Bling Dynasty," this market is full of promise. The year 2015 should, he said, mark a return to healthier fundamentals, with the end of destocking, particularly in watches and spirits.

Especially the Chinese will continue to travel. Now this is abroad they realize much of their luxury goods purchases. A reality that also reflects the share of sales made by the major groups with Chinese nationality customers. source

Revenue share realized with Chinese customers

• Louis Vuitton (LVMH) 33%
• Gucci (Kering) 34%
• Hermes 29%
• Prada 38%
• Swatch 57%
• Richemont 38