Domestic Luxury Market Is Hot.

　 In 2009~2010, luxury goods swept away 155 billion 600 million yuan in China, a large part of which came from the contribution of the emerging consumer market. Since 2008, many luxury companies have increased their strength in opening two or three tier cities in China. Do not care about the brand sinking and the way to sink more channels to earn more profits, so that more two or three tier cities consumers are scramble for luxury goods. What are the business opportunities and hidden worries behind the 8% growth? What are the reasons for the success of luxury goods in the two or three tier cities?

First tier city tree image two or three line city sales volume

In 2009, Wang Di returned to China from New Zealand, after which she had been in DFS World Duty free shop is the operation manager. With the overseas renowned academic background and many years of experience in Luxury Retailing industry, he has become the "big cake" that all luxury goods companies compete for in China.

After returning home, she went to a luxury company as a marketing manager. Luxury goods The market is so hot. " In New Zealand, locals are not so keen on luxury goods. There are not many customers visiting luxury stores every day, most of them are tours from different countries. Wang Di's Chinese company is located in Oriental Plaza, which is much more lively than the shops in New Zealand. In addition to the daily flow of the Wangfujing business circle, many white-collar workers in office buildings carry their Coach bags around Burberry scarves. A brand-name fashion seems to be a must for them.

Wang Di's main job in Chinese companies is to coordinate the operation of two or three line cities. "The target set by our headquarters is to increase the single store operating rate (editor's note: increasing the single store operating rate, referring to reducing costs and increasing sales). This indicator seems easy to complete." Wang Di told the China operation newspaper that "first tier cities build up their image, and two or three line cities deepen the market and increase sales volume. This is repeatedly stressed by the president of China."

The operation of the two or three tier cities is quite different from that of the first tier cities. "The decision to enter a city, from headquarters to the Asia Pacific region, has been meticulously investigated, including the income level of local people, the understanding of fashion, the awareness of luxury goods, and so on, so as to ensure the success rate of opening stores." Wang Di said.

But when Wang Di and his colleagues went to the two or three line city to guide their work, they encountered many problems. Among them, the most difficult thing for them was the overall environmental problems of the two or three storefront cities. "Store display indicators, the staff will strictly comply with the standards issued by the headquarters to carry out, but many stores are located inside the mall, and the property environment of the mall is very different from what we expect." Wang Di said.

For example, in a store in Taiyuan, one side door leads to the plaza outside the mall, and one side door leads to the mall. Every half an hour, there will be cleaning staff in the exclusive stores, but those areas leading to the mall do not belong to the store site. Wang Di said: "mall property also has cleaning staff regularly cleaning and maintenance, but the cleaning standard is different from ours, they ask for no debris on the ground, but every day the ground will always leave dark footprints. Such an impact is indirect, but the feeling of customers can not be different. "

However, Wang Di said that although the hardware environment is not up to standard, it has not affected the store's single store. Sales volume 。

Reporters walked into several large luxury stores in Beijing Xinguang world, and found that many fashionable young people came to the store. However, they were mostly "spectators". Many of them were looking at several products on the Internet, looking at the actual products in the shop, joting down the number and preparing to go to Hongkong or abroad to sweep the goods by the end of the year.

Reporters found in Dalian that some luxury goods are mostly concentrated near the Shangri-La Hotel of Renmin Road. Wang Di has made a statistics. In luxury stores in the two or three tier cities, the ratio of visitors to customers is much higher than that of the first tier cities. "The mentality of front-line consumers can not afford to buy and appreciate it? But two or three line cities, especially some inland cities, are affected by the income gap. Many people do not have the courage to enter these stores. Customers who enter the shop often buy products for various reasons.

Walk into the LV store in Dalian, the shopping guide lady will greet you enthusiastically and accompany you in the store. If you listen to your accent, you will immediately introduce the product from Putonghua to the northeast dialect, and help customers to match the product's professional strength.

The deep ploughing of luxury enterprises in the two or three line cities has also been verified by Bain's research. The result shows that the consumers' brand awareness and consumption intention of many second tier cities are quite close to those of the super cities such as Shanghai and Beijing, and some luxury enterprises have shifted the emphasis of consumption to these areas.

Yu set up its first independent direct store in Hang Lung Plaza in Shanghai in January 1, 2009. Jean Claude Bif, the company's global CEO, told reporters that China is almost an overseas market which Yu Po finally entered after being influenced by language, culture and other factors. His aim is to make China the top 5 market in the next 3 years. It is worth mentioning that after Yu's first shop in Shanghai, the second stop did not choose Beijing, but went straight to Dalian. "I am very surprised to see that Dalian customers have an extraordinary appreciation and mastery of watches and fashion." Beaver said.