Embarrassment Of China'S Luxury Brand Dislocation

With the rapid growth of China's economy, the global luxury brands have landed in the Chinese market. Relying on their strong brand assets, they have conquering the city through different market development methods. In less than 20 years, the concept of luxury consumption has been accepted by a large number of Chinese consumers. Chinese consumers are also enthusiastic about purchasing luxury goods, and purchasing power is stronger and stronger. In the past 5 years, China has been growing in Asia's second largest luxury market with an annual growth rate of 28%.

However, in the favorable market environment, the profitability of foreign luxury goods companies in China is not optimistic. At present, only 10% of the luxury brands in China can make profits. Only a few of the most powerful well-known brands have gradually increased profit margins after several years of losses, and the entrants are still in trouble.

In the face of one hundred million households with average assets of 620 thousand yuan and middle-income families, the consumption rate is 65%. In 2020, the Chinese market with per capita GDP of more than 15000 US dollars in the coastal developed areas has witnessed the huge potential of China's luxury market, which will be gourmet by foreign brands, and Chinese enterprises are unwilling to do so, and how to solve the luxury marketing mode of "cool water and tea brewing slowly"?

Characteristics: the main consumer of luxury goods is young people.

In China, attitudes towards luxury goods have changed radically compared with a few years ago.

A few years ago, people objected to any luxury that flaunting luxury. Luxury consumption was regarded as a wasteful act and not accepted by traditional social beliefs.

But nowadays Chinese, especially young people, like to show off their social status.

The Ernst & Young report shows that the age of Chinese luxury consumers is between 20 and 40 years old, while luxury goods in Europe and the United States are luxury.

The significant difference between China's luxury market and western mature market is also reflected in the consumption pattern of luxury goods.

China's luxury consumers are rich consumers. They like to avoid the crowds and pursue personalized services. They often visit luxury stores and buy the latest and most popular products. They usually do not consider the price issue.

The more important consumer group is the "overdraft" type of luxury consumers, most of whom are white-collar workers with a monthly salary of several thousand yuan. Among them, the employees of the middle and upper levels of large and medium-sized enterprises are the most typical. They will spend a full month's wages or even pay for overdraft to buy a luxury goods, commonly known as "Yue Guang clan".

An interesting phenomenon in the Chinese market is that only a small part of the radar watch is worn on the wrist of the real brand target consumers, while most of the radar watches are owned by successful young people. Chinese people still have the need to show off consumption when they have not yet fully met their basic needs (necessities).

In China, luxury consumption is still dominated by products, that is, consumers pursue the latest series or products.

In the western mature market, consumers prefer the experience of reverence, such as luxurious vacations, services for saving time and home delivery services.

Compared with European and American consumers, China's luxury consumers pay more attention to product brands, producers and countries of origin. They like to buy logo with high public visibility, visible brands and imported luxury goods from abroad, but rarely visit unfamiliar luxury goods that are not well-known in China.

Who is the manufacturer of luxury goods and the brand of luxury goods is very important for Chinese consumers.

In terms of purchasing luxury goods, almost everyone can afford to buy certain luxuries in mature markets such as the United States, which leads to luxury goods everywhere, and is often dubbed "democratic luxury".

In supermarkets, people can even buy the best food, and even order online or by telephone.

In China, buying luxury goods represents wealth and social status.

The world's major luxury goods businesses in China

Embarrassment: instant luxury brand is the "luxury" of Chinese enterprises.

At present, China does not yet have an internationally recognized luxury brand.

Even a few local brands, such as the national liquor Moutai and Shanghai clothing, which are sought after by the Chinese, are still some distance away from real luxury goods.

None of the world's most valuable brand top 100 list, which is awarded annually by the US business week, belongs to China.

According to the author's conclusion, a successful luxury brand needs three elements, good quality, profound product culture connotation, and a fixed target consumer group.

What is most lacking in China's luxury brands is the latter two.

Early luxuries were shaped by some family businesses in Europe, and their models were also pformed from family business models.

Although there are many family businesses in China, the factors such as brand building, ignorance of keeping pace with the times and imperfect management have been gradually disappearing, not to mention luxury brands.

Therefore, some of our old brands still lack the cultural connotations of one of the necessary conditions for luxury goods.

After the reform and opening up, some family businesses in China have begun to enter the international market. The mode they adopted is only copying the business mode of developed countries. Although there is some innovation, the corporate culture is still insufficient.

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The local market has not yet opened, and the natural international market is even more difficult.

Another factor in the lack of local brands in China is the failure to open the local market.

China is still a developing country, and the consumption concept of the common people is based on high price and low price, and the luxury is the more expensive non - living necessities.

Therefore, local brands can not cater to the needs of most consumers.

In addition, China's positioning of luxury goods is also a problem.

It is not that expensive goods are luxuries, nor can luxury goods be expensive.

Take the national liquor Moutai and jade as an example, they can not be called luxury goods because the consumer groups they are facing are all consumer groups.

Foreign luxury goods have a fixed target population, for example, high-end white-collar workers, their corporate culture is also related to the corresponding consumer groups.

So how should we create China's own luxury goods? The most basic point is to segment the market, tailor some limited products to some specific people, and take the route that is scarce and expensive. At the same time, we should focus on strengthening brand building and gradually enrich the connotation of enterprise culture.

This is not just "ten years of grinding a sword". Without 30 or 50 years of hard work, it is difficult to achieve a meaningful brand.

This is like a man. Only when he lives to the age of no doubt can he see through many things in the world, so there will be no confusion, no hesitation and everything.

After decades of walking down the road, he can sum up his whole life's perception of the world. He has a lot of insights into life. When he meets challenges, he knows how to deal with it. He knows how to solve problems when he is in trouble. When he is in a difficult situation, he should not be too inflated. When he is in adversity, he should not be too pessimistic. He should share the truth of life and work with others, enlighten his own unique thoughts, values and ideas, and let others take fewer detours and pay less tuition fees.

So,

The fast luxury brand is the "luxury" of Chinese enterprises. Luxury brands can not reach this level only after the accumulation of brand time, the accumulation of brand quality, the accumulation of brand money and the accumulation of brand love. If the practice is not enough, we can not build the world's top high-end luxury brands.

Dislocation: there is competition pattern and market blank area.

Rolex watches with diamonds, all hand made Rolls-Royce cars, and 3 karat natural ruby rings, are not able to consume and disdain consumption for these old fashioned luxury goods that show off their self-esteem and show their individuality.

Perhaps the limited edition of Adidas sports shoes, the charming Chanel perfume, the lovely Swatch watch, the elegant Starbucks coffee, the chic carpenter wooden combs, the luxurious and expensive scallowski crystal, these occasionally luxurious, beyond their daily consumption level can be able to have their own things, more to touch their hearts.

These products and services, compared with similar products, are of better quality, higher taste, and more attractive to consumers. Although they are expensive, they are not too expensive to be expected. We can call them luxury goods.

Every day, all kinds of people buy different kinds of luxury goods for various reasons. Some of them are just for a while, but others are crazy about some kind of product.

Or from the perspective of "care for yourself", reward yourself with some kind of consumption; or take some kind of consumption as a means of interpersonal communication; or want to acquire new experiences, new experiences, and expand personal horizons from the consumption of specific luxury goods; or express personal taste by spending money, show their differences, show their maturity and success.

Although the reasons for consumption vary, the result is common. They all have the need to consume some or some subluxury goods.

This undoubtedly provides opportunities for Chinese enterprises who are interested in creating luxury brands. If we can touch their hearts, we can pry their rich wallets. This is a business opportunity for our enterprises.

Chinese enterprises should divert their vision and thinking, and have countless fields to do well.

For example, in the IT industry, digital products, these areas do not pay attention to the history, everyone is new, who can create aristocrats in the category, who has luxury brands, equal opportunities.

A domestic company has created a "E navigation" business, which is a media interactive propaganda platform for high-end customers on the Internet, and has become a luxury in the digital age of the enterprise.

Secondly, in the eyes of foreigners, China's Jingdezhen porcelain, Suzhou embroidery and Tang costume are luxury goods.

In recent years, the success of the "golden 99999" gold medal is one of the representatives.

The third is to develop luxury new products through product innovation. For example, we should integrate the unique raw materials and processes of silk and embroidery into international fashion, invite internationally renowned design masters to dress design, and let the style match the trend of Milan and Paris, and create a brand new luxury brand.

The clothes rack of Jinyi Wei is a successful example in this respect.

Subprime luxury is always based on emotional needs, and consumers' feelings for such products are far superior to those of other products.

The innovator of Asian luxury goods must understand consumer behavior, consumer demand, and consumers' unexpressed or even unrealized expectations, and find a strong product positioning.

The most important thing is to ensure that products give consumers different advantages, including technological, functional and emotional.

These three advantages are progressive.

First of all, the product must be successful at the technological level and be different in material, workmanship, or technology to make it truly competitive.

At this unusual technological level, it embodies the inherent quality of the product, that is, the product has no defects in quality and can operate as promised.

The choice of coffee beans, hand grinders and coffee is now cooked, which gives Starbucks a relatively high price.

Secondly, the difference in technology must help the product achieve better performance.

If the product does not improve in any way, it just looks different, or it is far from enough to make changes that make it appear to be changed.

Finally, the advantages of the product in terms of technology and function must be combined with other factors, such as brand standards and company spirit, to resonate with consumers.

For emotional support consumers, the biggest benefit comes from how the product relates to their needs.

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In the aspect of communication, the spread of brand in China mostly uses the mainstream media to invest heavily in advertising or outdoor publicity.

But this does not apply to luxury brand marketing.

Advertising can not bombard luxury brands in a short time. The connotation of luxury goods is more dependent on users' word of mouth.

For example, Rolls-Royce has made extensive use of this method in mainland China and Hongkong, and achieved good publicity effect and brand image at low cost.

In addition, we need to build a professional team to achieve a luxury brand. We must have a professional team, including professional and technical team and brand management team.

They have enough knowledge and experience in luxury brands, and they can constantly optimize and enhance their brand and market characteristics.

Experience: maintain customer enthusiasm and brand loyalty with magnetic service.

Luxury brands rely on soft services to stimulate consumption, which is the marketing rule of luxury brands.

Customers regard the service experience in the consumption process as one of the important criteria for brand performance.

When we regard service as the way to break out of luxury brands, we must also make it clear that reasonable quality and service are what customers expect. Enterprises must avoid the mire of price war and create a lasting competitive advantage. We must provide customers with a service experience that will enable them to maintain lasting enthusiasm and loyalty.

The magnet can release a steady, unquestionable attraction.

Therefore, we use the term "magnetism" to describe the service experience that can build and maintain customer's lasting enthusiasm and loyalty.

Attracting and nurturing the enthusiasm and devotion of customers is not a simple process. In this process, two psychological factors must be considered: on the one hand, you must put the appropriate elements of color, shape, sound and texture into your brand service, so that these elements can tie together the personal experiential preferences in the customer's mind and induce their strong attraction; on the other hand, your products and services must also become a symbol of the status of the customer's social status.

After in-depth research on the ten luxury brands, the author sums up seven secrets of creating warm and sincere customers.

1. trust should be dynamic.

The most fundamental principle of magnetic service is trust, but the foundation of customer trust is always changing.

Trust begins with truth. We can trust him only when we understand the true motives of others' actions. Trust comes from every communication that reflects your true concern for your customers; trust comes from the true cashing of every promise you make; trust also comes from the real ability proven through practice.

2. focus on customers' deep aspirations, not just needs.

Behind the explicit and explicit customer needs, the underlying aspiration and hope of customers lie hidden.

Knocking on the customer's inner world can not only earn the loyalty of customers, but also enhance and stabilize customer loyalty by anticipating the future needs of customers.

3. add "Charisma" in service.

Excellent service not only exceeds the expectations of customers, but also differs from customers' expectations. These unexpected services will make your brand service more distinctive.

4. inspire customers' curiosity.

An important way to stimulate customer curiosity is to create opportunities for customer participation.

There are many forms of customer participation. The most effective way is to involve customers in the process of providing services.

5. surprise customers.

The surprise in service brings more emotional to customers than simple joy.

Occasionally, special behaviors in service should convey not only the desire to serve customers, but also the enthusiasm to attract customers.

6. Authorize customers in service.

The provider of magnetic service creates the comfort and pleasure of customers through delivering reliable and predictable services to customers.

When customers experience psychological comfort and pleasure from the process of obtaining services, they feel that they have been authorized.

7. show courage and personality.

Magnetic services should reflect more profound business objectives or missions, and keep pace with business vision and market strategies.

Therefore, service must be able to highlight the individuality of an enterprise.

The service showing individuality is more simple, natural and pure, and appears to have a deep foundation.

The individuality of an enterprise needs no attention in its service, but it can never be perceived by customers as artificial or ambiguous.