Why Luxury Groups Enter The Chinese Market?

In the early days, the booming "luxury brand recycling agent" is like a gimmick. "The German Chamber of Commerce, the French Chamber of Commerce, the Italy chamber of Commerce and other international brand enterprise alliances all want to enter China early, and look for agents for four."

Wang Wei, a shoemaker in Hongkong, quickly launched the business opportunity.

"Under the guidance of the Italy Trade Development Council, we have won more than 50 Italy brand dealership, of which the exclusive agency has about 12 brands."

Wang Wei told reporters in the south that these brand legions will be combined into an "Italian brand" comprehensive store to enter China with the overall image of "made in Italy".

At present, the first shop of "Yi Shang name" has been settled in Chengdu Wuhou direct selling shoe city, with an area of more than 4000 square meters.

This is a signal that "in the future, more and more international brands will be landed in China in the form of" group ".

But choosing a second tier city like Chengdu, "low-key side attack" is extremely dangerous.

Liu Hui, chief consultant of Zhao Yi's zero business management consulting company, thinks so.

Luxury group in China

In August 20th, "Yi Shang Ming" held the first trend conference in Chengdu's Wuhou direct shoe city, preheating its first store in China.

Parkerson, LatitudeFemme, NilaNila, Boemos and other thirty Italy brand shoes appeared on the stage.

"We have got more than 60% of high-end brand dealership in Italy," he said.

Wang Wei, a shoe trader in Hongkong, is a trader of "famous brand". He believes that "the history of hand-made brand Parkerson can be traced back to the Grand Duke of Tuscany in nineteenth Century. Rome's Pope, British Prime Minister, and many European politicians are loyal customers.

We hope to cut it from marketing and make it the next LV and GUCCIC. known to the Chinese in 3-5 years ".

"It's easier to make money.

Before that, the common practice of international brands entering China was "an agent acting one or two brands".

The real big businesses such as LV and GUCCIC leave little room for agents. The two or three line international brand is not as well-known as the domestic first-line brand, and the risk of "putting eggs in one basket" is great.

Liu Hui, chief consultant of Zhao Yi's management consulting firm, told reporters that in the same store, relying on high-end brands "point to the surface" rating, attracting popularity; relying on the mass brand to expand sales and make full profits, this is also a sign strategy for the retail industry.

More and more international brands have landed in China's "blank market" in the form of "group".

For example, the Guangzhou new shopping center, "5 Apron", which was scheduled to open in December 18th, has also brought together a number of international luxury brands, including CASAMILANO, LUXOL88, a luxury luxury store in France.

Zhu Zhiwen, director of investment promotion at No. 5 apron, said.

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The paradox of "low key"?

international

According to this logic, Wang Wei divided the "Yi Shang Ming" into two yuan structure: the popular brand below 10000 yuan and the luxury brand of more than 10000 yuan.

"The core of the whole trader is no longer the" low buy and sell "of the past, but WAL-MART's" civilian price "and the" aristocratic marketing service ".

Wang Wei said that after three years of in-depth research, we found that China's luxury consumption has gradually returned from "blindly chasing famous brands" to the essence of "pay attention to cost performance".

But outside doubt, the credibility of this assertion is not high, and even implies a deep meaning of profit seeking.

"As we can see, LV chose to build flagship stores in the golden section, heavily advertising, and enter China in a high-profile manner.

Why?

The psychological consumption of luxury goods is always greater than the consumption of "use value".

The so-called "low cost" low-key strategy, many times the agent is not enough funds, eager to sell through large sales to recoup the funds, rather than really out of "brand" considerations.

Ouyang Kun poked at the key.

"This is a low-key paradox."

Liu Hui further analyzed if

What is the strategic importance of luxury site selection?

Hong Kong

To some extent, the success of LV in China can be attributed to the proliferation of counterfeit counterfeit products, and the experience of the whole people can solve the problem of "brand recognition" very well.

It is difficult to find thousands of square meters of property in the core cities such as Beijing, Shanghai and Guangzhou, and Chengdu is the leading city in the western cities. The local government has a strong support for the footwear industry and has a strong demand for consumption.

Liu Hui, chief consultant of Chiu Yi Business Consulting Co., Ltd.

Entering a new market, first accumulating word-of-mouth through product sales, and then establishing landmark stores in key node cities is also a good way. The key to the problem is how to choose sites.

Chengdu mostly reflects the consumption situation of Sichuan province.

life

Now, Beijing, Shanghai, Guangzhou and other first tier cities have large one thousand or two thousand square meters of idle property, if for saving money considerations, from Chengdu "partial peak" cut into, brand promotion behind the road to go is very difficult.