Luxury Brands Are "Black And Blue" In Chinese Style.

The depreciation of the euro has caused big price rises.

People excitedly went to Paris to find a leak.

China...

Became their best healing spot.

"Buy or buy", due to the depreciation of the euro, LV, Chanel, GUCCI and other major brands in the euro area prices have risen to varying degrees, and Taobao, who specializes in buying European and American big bags, said: "LV is going up every year and will not depreciate. Moreover, the price of the euro area is still much cheaper than domestic prices, and not only did the buyers not reduce, but quite a lot of people hoard their bags, and maybe they will rise again in a few days."

But the good days for purchasing are coming to an end.

According to a regulation of the State General Administration of customs, since September 1st, China has adjusted the management measures of personal mail items for entry and exit, of which tariff exemption has been greatly reduced.

Before the new deal, the starting point for the collection of personal goods from Hong Kong and Macao was 400 yuan, and the starting point for personal belongings from other regions was 500 yuan. After the new deal, the starting points were all reduced to 50 yuan.

With the sharp rise in the number of overseas purchasing and direct mail shopping, the loss of tariffs is serious, which is aimed at combating commercial smuggling.

According to the survey,

Later, such news will follow, because this policy may be just a question.

Why do the relevant departments tighten up the overseas purchase at this time? According to the insiders, "this policy is only tentative, and may be the chance to reduce the tariff of luxury goods."

He also revealed that in October 2010, the State Council, the Ministry of Finance and the General Administration of Customs will convene the luxury goods association and the China Business Federation to explore how to implement the "import tariff adjustment bill for luxury goods".

The Ministry of commerce is even conducting a survey if the luxury goods are deductions.

These opportunities are strongly stimulating the nerves of luxury brands.

In July 2009, LV, GUCCI and so on first collectively lowered prices in the mainland, while prices in Europe rose to varying degrees.

The underlying reason behind this is the impact of the financial crisis. The European and American markets have been greatly affected, and the profits of the brands have declined rapidly.

They are all under pressure from sales.

"Crazy! Two days ago, a friend told me that he ran seven activities a day, which was unthinkable before.

In the past, high-end brands only had one activity in two or three months, and now there are three or four activities a month.

Li Qing, who is working in a luxury media company, has been busy attending various brands' press conferences recently. He said that because of the pressure of sales, luxury brands are exposed frequently in order to win over new customers in China.

"2010 is a new test for luxury brands and distributors."

Li Qing said.

At Shanghai Hongqiao Airport, a huge ad for a high-end brand occupies a huge wall. Between 2006 and 2008, the brand did not need to be advertised because it might not have been advertised and the goods were sold out.

Of course not all the brands, and a new high - end branded brand new president has just announced a comprehensive reduction of production, published more than 20 new products in the past year, and this year only a new product, "this is the pressure of sales pressure."

As the traditional luxury consumption market in Europe and the United States is shrinking dramatically, the focus of the global luxury sales market is shifting from Europe to Asia, especially the Chinese market.

According to the International Mall of America Association, sales of luxury goods retailers in the United States dropped by 19% in February 2009, the worst in retail sales in the past 10 months.

According to Bain&Company, an American research firm, sales of luxury goods in Europe and Japan dropped by 10% in 2009.

Sales in the US, Europe and Japan account for 80% of the total sales of luxury goods worldwide.

The Prada, which was originally expected to be listed in 2008, is not only listed as "shattered" but also unable to repay 600 million euro debt.

Other brands also had a hard time: in 2009, US Coach profits fell by 29%; in the first half of 2009, British Burberry (Burberry) cut costs, cut 1000 people, and profits fell by 20%; France's largest luxury group LVMH, net profit in the first half of 2009 dropped by 23%; and Germany Hugo Boss2009 lost second euros in the second quarter.

It is reported that the Fifth Avenue in Manhattan, luxury goods are sold below 50 percent off of the "cabbage price", and everywhere are the advertisements for the rent. Before the big ones broke their heads, they had to open shop here, because this is the symbol of the first-line brand.

The Chinese market has rarely maintained its growth momentum.

According to Goldman Sachs, the annual growth rate of luxury consumption in China is around 20% in 2008, and is expected to reach 10% in 2015.

By then, China's total consumption of luxury goods is expected to exceed US $11 billion 500 million. China will also become the world's first luxury consumer country, accounting for about 29% of global consumption.

War in Europe and America

Recently, brand dealers are adjusting the price gap between the mainland and abroad, and accelerating the enclosure, opening shops everywhere.

In the past, many luxury goods were "Made in China" (made in China), and now they are pforming into "Made for China" (for China's production).

According to Ernst & Young's Consultancy data, 175 million of China's population may become consumers or potential consumers of luxury goods.

Under such a huge group support, luxury brands are opening up very fast.

In two years, LV has opened 27 stores in 22 cities in China, including Xi'an and Urumqi.

OMEGA watches have opened 20 stores in the world in recent years, 14 of which are located in China.

In January 2009, GUCCI had 25 stores in 17 cities in China, and most of the new stores were concentrated in two or three line cities.

Affected by the European sovereign debt crisis, the euro has depreciated sharply. Since the beginning of the year, the euro has entered the word "8" from the word "10".

When people are enjoying the shopping happiness brought by the low EUR of the euro, the top three brands of luxury brands LV, Chanel and GUCCI have been raising their prices in the euro area.

"A lot of high-end bags not only do not sell in summer, but they increase their prices."

In June 25, 2010, Chanel's French shops adjusted their prices across the board, with an average gain of 30%, or up to 41%.

The annual price adjustment is a regular move, but the 40% increase is the first time.

In Paris, the 2.55 medium amount was raised from 1670 euros to 2400 euros.

Similarly, the price of LV in France has risen stealthily.

The price increase is directed at the exchange rate.

In June 5, 2010, the euro fell to the lowest level in more than 4 years against the US dollar, and the euro fell more than 15% against the US dollar.

Despite the revival of the global economy, the sales of big brands increased significantly in the first half of 2010, but they still chose to raise prices to make up for the loss of exchange rate.

In this round of price rises, domestic price adjustment is relatively small. Chanel's price adjustment in mainland China in the early July was about 5% to 15%, narrowing the price gap with Europe.

Li Qing said that people who bought luxury goods in the past were just two kinds of Psychology: showing off their wealth and giving gifts.

However, under the financial crisis, the purchase of luxury goods has also become a means of maintaining value and increasing value.

Recovery agent direct business earn 70%

Under pressure, front-line brands have begun to march into China aggressively.

At present, there are 200~300 agents of high-end brands in the agency. It is understood that more than 1/3 of the brands have or will cancel the agents this year.

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At the beginning of 2008, the French Montagut withdrew the agency power; Armani set up a sole proprietorship company in 2007 and opened 50 Direct stores; in May 2008, Coach acquired the Coach retail business in Hongkong, Macao and the mainland of Hongkong, which was represented by Junsi, and Dunhill gradually reclaimed the agency in Wenzhou, Ningbo and Hangzhou in the same year.

In addition, GUCCI and other stores in the bustling zone also changed to direct camp.

Li Qing said: "before entering China, international brands will find stronger dealers in the local market. After the foundation is ready, they will become direct battalions. Besides, other markets are sluggish, and the Chinese market is growing strongly. The brand owners certainly hope that the achievements of the Centennial industry will be won by themselves."

According to the report of the Chinese Academy of Social Sciences, as of January this year, China's total consumption of luxury goods accounted for 25% of the world's total, reaching US $8 billion 600 million, the first time to surpass the United States and become the world's second largest consumer of luxury goods.

In the next 5 years, China's luxury goods market will reach US $14 billion 600 million, and China will account for 29% of the world's luxury market share, ranking first in the world.

Therefore, in the value chain of luxury goods, brands, importers and distributors begin to make strategic changes.

"The profit of the agent is generally 20%, and the profit of the brand is 50%. After the agency is recovered, the profit of the brand can be extended to 70%. On the other hand, it can also strengthen brand control and maintain a high image."

Insiders said.

However, the right to recover the agency will not be completed overnight.

Take Coach as an example. In September 2008, the Chinese retail business was started in the hands of agent Junsi group, and it was not completed until April 1, 2009.

It is reported that more than 20 outlets resources, agents received a compensation of 200 million yuan.

Even withdrawing agents, the road ahead is not necessarily smooth.

Wei Yibo, President of Coach Greater China, once told reporters in the "digital business age" that "the biggest problem of Coach in China is the lack of knowledge about Chinese real estate in the new stage, because location selection is very important for luxury brands."

The location of luxury brands requires elegant environment and large area. The most important thing is "neighbors". Some big brands can get together and produce "aggregate effect" to attract customers.

"Another challenge is not understanding consumer preferences and habits."

He said that there are many differences between Chinese consumers and consumers through careful market research. "Now many consumers have a basic understanding of Coach, but they do not know much about brands."

Internet discounts and big touches are crazy.

Consumers are not too concerned about whether or not the brand agents take back the agency. Instead, Internet discount stores attract their eyeballs.

Which of the following three ways do you choose? Thousands of miles away from European and American counters, the risk of online shopping is not expensive. If it is genuine, the discount is large enough, do not have to go shopping, is it very beautiful?

Maggie is engaged in the financial industry. There are many opportunities to travel abroad and travel. Dozens of famous brand bags at home are mostly brought back from abroad.

"Although it has the ability to consume famous brands, the price of domestic counters is not reliable". Under the instigation of colleagues, Maggie tried to buy famous brands in luxury online discount stores such as Shouxiu and hoha networks, and once ordered more than 20 famous ties.

The websites of the Maggie consumers are also Fifth Avenue, glamour. The former is founded by CCTV's former director Sun Duofei. Nearly 200 big brands are directly supplied by European and American brand sellers. In the form of bulk purchase, they take some non seasonal products abroad with large discounts, and keep two to twenty percent off for a long time, which not only saves the rents of stores, but also ensures the quality of goods.

The glamour benefits were founded by Wei Yibo, former president of Coach Greater China, and Guillaume Davin, senior vice president of LV Japan.

Fifth Avenue founder sun Duffy said: "now even a town in Aba, Sichuan has our users, though there is no express."

According to the survey of the adaptability of the luxury goods and online shopping market by the AI consulting firm, it is considered that the proportion of the "LV" crowds with the excess of vanity is only 23%. 77% of Chinese white-collar workers have recognized the lifestyle of "experiential consumption" luxury goods, and even regard luxury as a reward for their hard work, and this group of people prefer to search the Internet for information about brand history and price.

Perhaps it is early to see this trend, some big brand cosmetics began to try network channels, Lancome, L'OREAL, Estee Lauder began to establish e-commerce sales system.

Even some conservative luxury goods, such as watches, costumes, wine and jewelry, all agree with the future trend of e-commerce and are ready to march to the Internet.

The best example to explain this trend is that in April 2010, the Swiss luxury goods group, Net-a-Porter, acquired a 350 million year old professional fashion network retailing company, Net-a-Porter, which is known as the "model of online Luxury Retailing" and can deliver products to 170 countries and regions around the world.