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    Financial Crisis Drives The Change Of Luxury Consumption Concept

    2010/9/4 20:03:00 180

    Luxury Goods

    Compared with the lacklustre 2009, the first two quarters of this year were European luxury.

    Luxury brand

    Sales growth has generally reached 2 digits.

    Some analysts believe that this is in the past two years after the financial crisis, consumers are depressed.

    Luxury goods

    A big outbreak of buying desire, and how the future is uncertain.


    Another explanation for the growth of luxury sales is that the strength of the general public can not be underestimated in addition to the super high-end consumers such as the rich. This is related to brand strategy.

    Many brands have or are about to launch a more approachable low price series, the so-called "affordableluxury (affordable luxury goods)".

    The development of brands is still huge because of their low price and low attitude.

    This is a new definition of luxury.


    In fact, the market of this new "luxury" has long been mature, because many

    brand

    It started very early.

    For example, affordableluxurybrands such as Coach and KateSpade has now become a strong trend brand.

    The value cards they played were "classic, high quality and fashionable."

    For example, AlexanderWang, 3.1PhillipLim and other new designer brands, besides their eye-catching bold and innovative designs, lower pricing than those of the old designer brands is also an important factor in the success of these brands.


    In contrast, those traditional luxury brands are more contradictory.

    They want to maintain their status and do not want to lose the price war to those affordableluxurybrands ("cheap luxury brands").

    Fendi's CEOMichaelBurke said that the market differentiation is becoming more and more obvious, either choosing an entry price or maintaining real luxury, compromise is the most difficult.

    As a traditional veteran leader, MichaelBurke is right: "luxury is not a product catalog of democracy."

    The implication is that the status and shape of luxury goods are not pferred by consumers' wishes.

    Of course, MichaelBurke also admits that we must choose "resolutely maintain the form of high quality and high price" and "win the battle in price war".


    For consumers, if buying luxury goods in the past is a process of "choosing the best and choosing the best," then the action may turn into a "better choice in the second best".

    A new definition of luxury is also generated from customer's consumption habits or consumer goals.


    It is undeniable that the years before 2008 were the age of luxury consumption, and the economic depression greatly restricted the purchasing power.

    The "impulsebuying (extemporaneous purchase)" has been ebbing away, and rational shopping has become a new consumption habit.

    The focus of consumers' purchase is shifted from high-end luxury brands to more affordable "new luxuries" - that is, looking like luxury goods is not a luxury product.

    For example, the second and second cards of the major brands are the same as those of the mainline products, but the price difference is quite different.

    Consumers seem to be able to buy a master's work with less money.

    Compared with the expensive main line luxury goods, the second line with high cost performance has become a beneficiary under the crisis. This situation is likely to continue.


    In the impact of the economic crisis, sales promotion and fast fashion brands have become the main consumption targets.

    Occasionally, luxury purchases are targeted at the classic iconic products.

    For example, all major brands have ItBag all year round.

    There is no obvious seasonal single product can often exist for a longer time, and those fashionable showpiece rarely people ask for favors - they only have the rich and the stars.

    As a result, sales of high quality, classic and easy to match products are rising. Gucci's president and CEORobertPolet said that for luxury brands, these iconic products are competitive.

    {page_break}


    Fendi's CEOMichaelBurke also points out that the sale of luxury goods is also closely related to the stock market.

    In the financial crisis, the market in Europe and Japan is still strong, and the value of fur sales is worth 50 thousand to 10 million euros.

    In the past year, the Peekaboo brand, the most expensive leather product, still has a long waitinglist.

    "In the luxury industry, we do not engage in short-term business."

    MichaelBurke added.


    Where does the traditional luxury brand go?

    After the announcement of sales performance in the first half of the year, the chairman and CEOFranois-HenriPinault of PPR, group chairman of Gucci, said that the products of Gucci will gradually "liberate" from logo. "This is a kind of adjustment and change of the concept of luxury, though it may be just a slight change, but it appears more sophisticated and elegant."

    Franois-HenriPinault said.


    Luxury brands want to adjust their concept of luxury through the change of their products, which is a positive move for the development of luxury goods industry, especially for China, Russia and some Middle East countries that are still developing in the luxury market.

    In these immature luxury markets, a large proportion of consumers will link luxury goods to logo, while ignoring the value of design, material and technology.

    LucianJames, the founder of AgendaInc., a famous strategic consultancy, also reminds luxury brands that they must have stronger elements to represent brand values rather than just arouse consumers' desire to buy.

    Because in the future, people will no longer be mass produced or stereotyped luxury goods, but the sense of meaning brought by luxury brands, and even rise to the level of spiritual satisfaction.

    This is why today's spiritual luxury consumption such as tourism, art and entertainment is gradually replacing the traditional material luxury consumption such as fashion and leather goods.

    Following the way of life of contemporary people is the next step for luxury goods to go.


     

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