HERMES Launches Brand "Up And Down"

　　 The Chinese market with huge consumption potential is increasingly becoming the "meat and potatoes" in the eyes of luxury brands, even in the market. financial crisis In 2009, China is still the main force in the consumption of luxury goods. Relevant data show that in 2009, China's luxury goods market still increased by nearly 12%, reaching 9 billion 600 million US dollars, accounting for 27.5% of the global market share. In the next 5 years, China's luxury goods market will reach 14 billion 600 million dollars, occupying the first place in the global luxury consumption.

Faced with these data, there is no one. Luxury brand It will be indifferent. They try every means to divide the meat and potatoes, launch products with Chinese elements, or set up as many specialized shops as possible in the Chinese market, which is commonly used in the brand. HERMES launched a brand that is entirely controlled by the Chinese people. It is a bit unexpected in the fashion industry, which has attracted the attention of the fashion industry. It is reported that this series of clothing, accessories, leather bags, furniture and a series of daily life related luxury brands, will be opened in mid September in Huaihailu Road, Shanghai, the first brand store.

We know that, compared to other luxury brands, the HERMES threshold for entering the Chinese market in 1997 is very high. There are almost no entry level products, and they like to push the limited products. The cheapest price of a Kelly package is more than 60 thousand yuan, and it must be customized. Customers will have to wait a year and a half before they can get it. This makes it possible for only those who are really rich to afford their products, while many other admirers are only disappointed. This situation restricts the expansion of brand, and its expansion speed is far less than that of LOUISVUITTON, CHANEL and GUCCI. As of June, HERMES had fewer than 20 stores in Hua men.

According to Bain Consulting's 2009 China Luxury Market Research Report, LOUISVUITTON, CHANEL and GUCCI are still the most luxury brands Chinese consumers want most. The reference rates among respondents are 43%, 25% and 20% respectively. In the ranking, the top three have never changed hands for several years, while HERMES is ninth, and has not changed compared with 2006. This is not what HERMES would like to see in this blowout market. And launched brand "Up and down" is undoubtedly a good remedy.

"For HERMES, of course, we hope to seize more shares in the Chinese market." Faye Wong, a researcher at the Cheung Kei luxury research center of China University of foreign trade and economics, believes that the launch of the "up and down" brand can complement each other with HERMES, while maintaining its high-end image, and at the same time subsidizing the company's finances. It can be said that the introduction of Chinese brand "up and down" is the result of compromise between HERMES and the brand concept.

Then, what kind of brand is "up and down"? According to an interview with PatrickThomas, the chief executive of HERMES global, in an interview with the French capital magazine "capital newspaper" (Capital.fr), "up and down" is a unique brand, from style, material to workmanship, will reflect Chinese culture. Zhou Yimu, head of HERMES media in China, said in an interview that the mission of the "up and down" brand is to "design, produce and promote the selection of the best quality raw materials and the integration of excellent Chinese handicrafts."

It can be seen that "up and down" is a luxury brand developed by HERMES in China. It will have an essential difference from the HERMES brand. Ke Ruihan, managing director of HERMES North Asia, in an interview with the financial times, made it clear that HERMES is a "Paris company" and "up and down" will be totally different from it. It is understood that at present, "up and down" and HERMES in Shanghai belong to two companies, each has its own independent market, public relations and other departments.

Although "up and down" is mainly sold in China, PatrickThomas said: "brand display in Paris will enhance its brand value, especially for Chinese tourists coming to France to recognize this brand." PatrickThomas hopes to make it a good weapon to make up for the shortage of the company in the Chinese market. If the "up and down" promotion is not bad, HERMES will probably choose to open second stores in Beijing. If the "up and down" performance is good in China, HERMES will also extend the brand to other countries.

Postscript:

HERMES in order to maintain its own high-end image, even in the financial crisis, no price has been loosened. But in the face of the Chinese market, it is impossible to ignore the temptation of HERMES to launch "up and down". It may be its compromise strategy. If the product's design and manufacturing process is completed in China, it can use a relatively favorable price to attract consumers who are just in touch with luxury goods.

Previously, most luxury brands acquired Chinese characteristics through acquisitions, such as the acquisition of cheongsam "Shanghai" by Richemont, and the acquisition of Sichuan Wenjun liquor by LVMH. The impression of "made in China" has never been high. Many people in the industry believe that selling a brand made in China is a big challenge in itself. HERMES is willing to accept this challenge, designed by Chinese designers, made by Chinese people, and is currently temporarily sold only in China. In fact, this is not the first time in the luxury industry. For example, BURBERRY's BlackLabel and BlueLabel are only sold in Japan and Hongkong, China. According to reports, LeviStrauss&Co, a denim clothing company, is also planning to launch a Chinese brand this year.

It seems that these enterprises need another way to attract more consumers with localized products without damaging their brand value. But after all, "up and down" is just built by Jiang Qionger. This is an art family. After graduating from the school of art, planning and architecture, Tongji University, she studied in France for many years. Her design field extends to clothing, jewelry, furniture and architecture. She has also designed windows for Chinese women in HERMES. She should not mess up the brand. But whether Chinese consumers will agree with the "luxury" produced locally is still unknown.