Why Luxury Goods Are So Popular In China?

Like most forums staged in China's top tier cities each year, the second top brand Summit Forum held by CEIBS has not brought any breakthrough conclusions.

The fact is that competition in China's top business schools is getting hotter and hotter. The high density Summit Forum is actually the embodiment of the value of business schools.

The forums of this forum are strong, including sarvor Ferragamo group CEOMicheleNorsa, LVMH senior manager of China, Lu Xiaoming, managing director of MontBlanc China Limited, vice president CetinSekercioglu of Shangri-La Hotel group, Wang Xingzheng of Yongfu Hui and so on. Among them, Lu Xiaoming is an alumni of EMBA95 class in China and Europe.

The message that China and Europe have been hoping to convey is that they have an advantage in the cultivation of top brand professional managers.

From the forum's point of view, it seems to be a setback - the first discussion on how to win Chinese consumers. By this year, the guests have debated the consumers of luxury goods in China's rapidly growing market share.

China's luxury market is still in the unenlightened period of commercial arrangement, but we can at least feel a strong trend. No matter how unconditionally we have accepted these concepts before, someone has reflected on it after the storm and started to think about what and why luxury is.

　　誰在消費？

Luxury is actually a constant concept.

They must first be the good things that everyone yearns for, and then the ordinary people can not get them. The highest state of their goods is that they can not be bought without money.

Because of different cultures, regions and classes, luxury goods are different in different contexts, and their functions are different.

The reason is not hard to understand. You can't expect a highly customized customer to understand young people's pursuit of ar-e, and the significance of buying these luxuries.

The key words will come out of a lot of data. The publisher will be a company similar to PWC and Rhodes's public relations professional consulting company, and similar to the "World Luxury Association". It was exposed as a leather bag company a few years ago. The list of "luxury list" released on the basis of no research has no credibility, but this does not affect the work of the association. Its new data released in February this year are cited by many mainstream media as a basis for the development of China's luxury market. It is reported that the generous Chinese consumption of luxury goods amounts to $8 billion 600 million, and China's luxury consumption accounts for 1/4 of the global market, becoming the second largest luxury consumer in the world. If you import luxury goods on search engines and China two

Only a single increase rate can be found in a few sets of different percentages.

In China, this is still a blank. No research institution can provide a truly valuable reference for the industry or the enterprises wishing to enter it.

Lu Xiaoming also admitted that he saw a lot of data, but that did not prevent him from coming to the conclusion, because all indicators were moving up. He believed that China's luxury market is still full of potential.

The argument is not hard to find. In addition to the upsurge of the luxury consumer market in 2009, the Western municipality directly under the central government will set up a global financial center with a height of 320 meters. One of its main functions is the international luxury Plaza. Lu Xiaoming, who works for MontBlanc, opened the boutique to Urumqi, Xinjiang.

Just having a large customer base does not mean the maturity of a market.

"There are so many international brands that we see in any shopping mall. I don't even want to talk about you, even I feel bored.

In other markets, such as North America, this kind of phenomenon does not exist. I remember a report that actually the brand entering China is only a small part of the total number of luxuries. "

In a sense, this is a big market.

However, it may not be the expansion of an emerging market as seen by the Western nuggets.

"The Chinese are Chinese. They will not become an American because they wear high-end suits and suits.

Never. "

TomDoc toroff, chief executive of JW, Greater China, is a China hand. He never came back to China after he came to China in 1994. He knows well the traditional culture's internalization of Chinese consumers' values and how he should make use of this unique consumption psychology.

The success of HugoBoss is a typical example. In strict sense, the brand that has been incorporated into the big industrial production can not be called luxury in Germany.

Just because of the name "Boss", the promotion in China saved a lot of effort.

The reverse example is that BottegaVeneta, a brand without big Logo and bad name, can hardly be recognized by most luxury buyers after entering China.

To understand the Chinese market, it is necessary to understand that there is no conflict between low-key and high-profile at the same time. What is important is the occasion.

"Some cars, bags, suits and many other things in China may have these two characteristics. I think luxury goods may balance these two points, and the change between them actually shows the choice of different consumers."

TomDoctoroff thinks.

This is an age of utilitarianism.

Wang Depei, the director of the Shanghai economic prediction Institute, may be able to reflect the problem. When a new female employee enters the office, the first thing a male colleague sees is a face. The first thing a female colleague sees is her bag.

The motivation of Chinese luxury consumption is the reason for the growth of sales. Yuan Yue's zero point research consultancy made a survey. "The real financial consumers actually spend only 30% of the stuff, and another 70% are some consumers who gather their purchasing power. For example, he has not been living well for several months, just to buy a LV bag, we call them extravagant consumers.

Now this phenomenon is becoming more and more popular.

The labelling of luxury goods makes the target audience of luxury brands seriously separated from the actual customers. One problem that Lu Xiaoming has to face is that they need to strengthen the elite value of the brand on the one hand. On the other hand, they hope to open up China's three tier city market and get more benefits.

LVMH a high level in China does not approve of tagging a group of people with luxury goods. Those who are rich in the two generation and are fond of buying a certain brand of coal in the gossip of the media and the Internet are demonized luxury goods.

"20 years ago, a college graduate bought a pair of Nike shoes with half a month's salary. We thought it was very luxurious. Similarly, today, they bought Gucci bags, and it may take half a month's salary. It sounds as if it only happened in the field of luxury goods, but in fact, it is a commonality in different fields of the market."

　　誰能創造？

Another theme of the forum is to create local luxury brands. This is a commonplace issue. The guests discussed include several Chinese brand owners and Lu Xiao, a professor who specializes in luxury industry in Fudan University.

Most of the time the topic is dissociated. The core is not focused on how to create in advance, but around whether there is a yes or no.

All the guests can reach a consensus that the emergence and development of China's luxury goods industry must be based on our culture. Before luxury goods become goods, they represent some kind of respectable way of life. China does not lack the foundation, but how to achieve the profit goal through the export of the article.

In this regard, the international brand is obviously experienced. At the end of last year, Hermes made a low-key takeover of a Chinese brand called "up and down". The production of the entire product line was entirely responsible for Chinese designers, and all the elements and materials came from China.

Indeed, Chinese brands have made great efforts.

In recent years China International Fashion Week, the northeast tiger will "revive" the design of the national treasure silk weaving technology that has never been heard by the overseas people. The stage decoration and the overall style follow the luxurious wind of China's prosperous Tang Dynasty, while the Xia Wen Hua of the Ewing group has spent three years building a classical architecture in lotus pool park, displaying the skills of the traditional culture masters and becoming the inspiration of fashion.

But in any case, at the Chinese fashion week, which is not very high in design level, so far, the highest appraisal that Chinese brands can receive is only "too big like", and whose sadness is this?

Lu Xiao believes that the necessary condition for the luxury brand to emerge is the self-confidence and recognition of the nation's culture.

The problems encountered by Zhang Zhifeng, the chairman of the northeast tiger, seem to illustrate the malformation in this mindset. In order to let the international luxury brands enter the shopping mall and create artificial prosperity or high-end impression, the market owners often take the initiative to reduce rent, send decoration or even reduce rent for a period of time. These preferential policies are undoubtedly another ceiling for domestic brands.

Menswear brand, now he has no intention to share a luxury in the luxury industry. A brand has to go through a very long journey from creation to profit. He once went to Jiangxi and Jingdezhen to investigate. Ceramic lamps are very beautiful, and packaging will have a good market prospect. But the premise is, "you have to stay in that place to study the flies full of flies." he said, "I don't want to do such a thing." the fame and gain of Yongfu's success is enough for him to have a very decent life. Maybe he is in the outside world, and his viewpoint is sharp and direct. In his view, the reason why the development of China's luxury industry is slow is that the public's aesthetic level is too low. Wang Xingzheng, chairman and designer of Yongfu Association, a famous private club in Shanghai, was once a fashion designer.

He does not deny that the word "Volkswagen" includes all practitioners in China's luxury industry.

"They must understand that a generation of capital can not create luxuries, and the future of China's luxury industry is on the two generation."

In his opinion, luxury is different from consumer goods. Imagination and creativity can make up for the late start. "They have seen and used the best to expect them to create the best."

Right or wrong, in this open space, this is probably the most emotional words.

Luxury has always been a perceptual industry, from the product itself is very personal, but all people from a rational perspective to study all kinds of possibilities.

For the Chinese market, which is still in the initial stage of the game, any viewpoint and strategy can only be a blind person. Unless we are all finished, we can know what this looks like.

Luxury goods in China are now in progress. As practitioners, we should continue to understand consumers, and should not rush to conclusions.

Perhaps it is not the purpose of this forum to put forward constructive suggestions. As Wang Xingzheng said, luxury goods after encountering the capital market is a lie.

What we miss is the best era of luxury goods. Today's capital can produce a lot of profitable products, but now we can no longer produce a decent lifestyle.

　　奢侈品品牌店

SalvatoreFerragamo Shanghai

The flagship store of the international financial center

The strategy of Ferragamo in China is almost the same as that of MontBlanc, and the consumer body is basically the same, but the former's action in the Chinese market is more conservative and prudent.

This is a rare move by Ferragamo. The flagship store has an area of 680 square meters, which is the largest specialized store in the Asia Pacific region.

In addition to regular merchandise, the store is the only shop selling the Ferragamo Museum Series in the Greater China area (Creationfunction (iterator) {var results =]; this.each (function, value, index) {results.push ((iterator, Prototype.K) (});}); the shops are unique in that they are all limited editions, and their creativity comes from the classic shoes and packages, each with the trademark of Ferragamo, which is designed by the future painter.

　　LouisVuitton淮海中路力寶廣

Flagship store

The word "flagship" is not so heavy in the expansion plan of LV. The biggest store in every city is often named after flagship. The special feature of the store is that it is the largest store in LV Greater China by far.

There is also a struggle between luxury brands. Last year, Gucci launched a 2000 square meter Chinese flagship store in Nanjing West Road. LV first lost a game in Nanjing West Road's luxury street, but the struggle has been upgraded this year. Rumors about the new store with the size of Gucci shop have made LV win the battle in Huaihailu Road.

　　卡地亞滬上三店齊開

The three boutiques, including Hang Lung Plaza, Hongkong Plaza and world financial center, run through Puxi to Pudong, not only for the first time in brand history, but also in Shanghai's luxury development.

Among them, the Cartire boutique, with a total area of nearly 700 square meters, is Cartire's largest boutique in mainland China so far.

　　Coach淮海中路旗艦店

Coach has been in China for many years and has taken this step this year. Shanghai has chosen to open its first flagship store in Greater China.

This is the first big move that the company has formally completed the repurchase of distributors in China and directly operated in the Chinese market. The matching plan is the opening plan of 15 stores nationwide this year, it is known that last year, the figure was only 4.