The "Brics" Hidden Rules Of Luxury Goods In China

Contradiction between uneven distribution of high-end department stores

In August 27th, Louis Weedon opened a store of 1016 square meters at the entrance of Ningbo and Yi square. At the same time, it was Louis Weedon's first flagship store in Zhejiang Province, including men's clothing and jewelry.

Since Beijing China World Trade Center, Shanghai Heng Long, Dalian era and Shenzhen Luohu, Louis Weedon now owns 5 flagship stores with complete product lines in mainland China, two of which are opened in the second half of this year.

With the logic of most consumers, people tend to buy luxury goods in Hongkong, not only for more goods, but also for price and shopping promotion activities.

But this is not the case. When choosing a city to buy luxury goods, although 39.8% of the second tier cities said they would often go to Hongkong to consume, 33.3% of East China consumers preferred Shanghai, but the survey found that the number of people directly buying luxury goods in the same place should not be underestimated.

23.9% of people said luxury goods could be purchased nearby, and they did not have to travel to the first tier cities. In Western China and North China, the figure reached 28.8% and 27.3% respectively.

Thus, for luxury goods lovers in second tier cities, luxury goods are becoming more and more routine and life oriented.

As an expert in high-end retail, Lu Xiao knows the status of China's high-end retailing.

In Shanghai, "Louis Weedon has only 1 in Shanghai, which shows that Shanghai's development is lagging behind. At present, the high-end retail venues in Shanghai do not allow it to be opened, and new projects such as Pudong Lujiazui's IFC offer new stores.

Otherwise, according to the economic development of Shanghai, there should be more stores, which is unacceptable to many people.

In other words, luxury goods do not sacrifice their image to enter the shopping mall which does not meet the brand positioning.

Reporters also learned from Baccarat crystal that the brand has set up dozens of stores in the mature market of large and medium-sized cities in Japan. In the emerging Chinese market, it only chose Beijing and Shanghai, and established 5 stores.

This is also a case in point. Baccarat crystal said that if you want to open a shop in other Chinese cities, you must choose the best retail place in the country, but based on the domestic situation, the company has no plans to open a new store.

However, luxury goods still need to evaluate various new factors, including the purchasing power of cities and the promotion of strategic position to the brand. Lu Xiao thinks that the function of each store is different, and there are some differences between the customers.

Urumqi may be a good example. "The purchasing power of many second tier cities in Southern Yangtze River is definitely higher than that of Urumqi, but Louis Weedon decided to open a store in accordance with the importance of its layout in China. This shop may not be the highest sales volume, but in the strategic sense, Urumqi is the Western heavy town and needs to occupy this very good position.

At present, a lot of shops are image problems for Luxury Retailing. For example, some luxury brand shops currently open in the Bund, Shanghai are definitely not profitable.

However, the lack of high-quality retail space is not a problem in the Chinese market. Luxury goods in India, one of the BRICs, are also experiencing this annoyances. When they enter the BRICs emerging market, how to manage and expand is the most crucial test.