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    Made For China! Why Does Luxury Goods Change In China?

    2011/2/11 11:33:00 39

    Luxury Market Consumption

    Astute

    Luxury goods

    Businesses started the strategy of "made for China" - Western multinationals began to specialize in China to cater to the needs of Chinese consumers.

    market

    Design products, and even create unique products for China.


    Please the Chinese


    The growth rate of luxury consumption in China's emerging market is the fastest in the world. It is only a matter of time before Japan becomes the world's first luxury consumer.

    At the same time, the lack of nobility, the gap between the rich and the poor and the insufficient popularity of luxury culture have led to the abnormal development of the market, which only requires quantity but not quality. This means that some people who are not target customers of luxury goods have begun to use such goods.


    For this reason, savvy luxury goods companies started the strategy of "made for China", which Western multinationals began to design products for the Chinese market in order to cater to the needs of Chinese consumers, and even create unique products for China.

    For example, in 2010, the year of the Chinese lunar calendar, the German BMW launched the M3 tiger car, which was sold only in China. The French version of the Chinese red Marcie handbag was issued by Chlo. Because red represents auspiciousness in China, and Hermes specializes in developing stores containing Chinese elements in Shanghai.

    Management

    All kinds of fine scarves, Ming Dynasty style sandalwood tables and chairs, porcelain bowls, jewelry, Mongolia cashmere fabrics and teapots and other high value collection gadgets.


    "In order to cultivate a loyal customer of a brand in the long run and make potential Chinese consumers temporarily affordable, many international brands have launched their own" young version "or second line brand.

    Hu Deqi, director of strategic development of Wooha, said: "maybe you can't afford a 30 thousand piece of work, but the same designer's work may have a secondary product that only sells 2000 for you to buy."


    Ouyang Kun, chief representative and executive director of China Representative Office of the World Luxury Association, said that the consumption of luxury goods in China has now been "picked up from the doll".

    Gucci has launched a schoolbag for Chinese students, which is unthinkable in European and American markets.

    "Now 00 of China has started to use luxury goods. Some parents themselves may be rich in two generations. They are exposed to luxury goods, and the comparisons between children are getting more and more intense. Many parents are too embarrassed to pick up children if they do not drive enough cars."

    Ouyang Kun said that this phenomenon is ironic. China is already an extremely materialized society, and luxury brands also use the products aimed at teenagers only to "curry favor" with China's future luxury consumers.

    "If the child starts contacting the brand from the age of 10, he will spend at least twenty or thirty years, which is a very worthwhile customer for luxury goods."


    In addition, the major luxury manufacturers also hope to use the Chinese Internet to attract gold.

    French LVMH group has said that if luxury goods are not killed on the Internet, then wait for the museum.

    Armani's luxury brand Em-porio Armani was officially launched in China online store in November 26, 2010.

    Gucci, Burberry and Italy shoemaker Tod 's SPA also have plans to profit from China's explosive growth of online shoppers.


    As China's luxury consumers are generally lower than those of foreign countries, online shopping is also a way that these people are willing to try.

    Nearly half of the respondents in the 2010 China luxury report released by Rhodes public relations are willing to buy luxury goods online. 54% of Beijing respondents and 47% of Shanghai respondents have made preparations for this.

    The number of female consumers is relatively high, which is 10% higher than that of male consumers.

    The credibility of products and the uncertainty of physical objects are the biggest concerns of respondents on luxury online consumption.

    As for the driving force of luxury online consumption, respondents who support online shopping say that the quality guarantee and the generous discount are the most important for both the new product and the seasonal style.


    Founded in 2006, Hohhot net, a fashionable shopping B2C website, has come to the forefront of the major luxury goods companies. In April 2009, it officially focused on high-end luxury goods, showing two digit growth.

    "Goldman Sachs reported in 2010 that if the world's top three luxury brands want to cover 70% of China's population, there will be at least 550 stores.

    And opening a luxury luxury store in China requires 30 million yuan.

    Moreover, we need to keep up with many aspects of personnel training and so on.

    Hu Deqi believes that luxury stores are not necessarily very profitable, but to undertake the publicity and education work of this brand. Instead, the proportion of online shopping of Chinese consumers in recent years is getting higher and higher, especially in those two or three line cities temporarily unable to reach stores.


    Glamour Sales, an online luxury retailer founded in April 2010, has more than 300 thousand members in its 8 month business.

    It is reported that the charm of all products are directly with the luxury brand cooperation, from the domestic luxury goods there, because most of the products in the 3-7 fold, so attracting many want to buy genuine goods but not enough drum city small white-collar workers.


    The spring of niche brands


    Ouyang Kun said that after the reform and opening up, the brands such as Pierre Cardin and crocodile, which first entered China, are now hard to attract Chinese consumers, while LV and other brands are in the limelight, but there is always a day of "elimination" of first-line brands. Those small brands that have done well abroad are now a good time to enter China. The rich Chinese who have been in contact with luxury goods for more than 10 years also want to be "outstanding".


    At the end of 2008, Porsche Design, which was introduced into China, provided an opportunity for Chinese consumers to embody their individuality. (Design)

    The founder of this brand is the grandson of the founder of Porsche group. At the same time, it is also the designer of Porsche 911 sports car. Now Porsche design is mainly for men's service, because LOGO is very not obvious, and mainly wins with precious metals and design, so the sales volume in these two years has tripled in China.

    "If you buy MontBlanc's pen or LV's package, the other person will know the price immediately.

    And our brand is very low-key, and the design reflects the elements of a lot of Porsche cars. "

    Zhao Kuiming, manager of Porsche design store in Shanghai, said that 30% of the customers who purchased Porsche had Porsche cars, while Porsche design also attached great importance to the Chinese market. Almost every 1/3 of the limited amount introduced each year was sold in China.


    In May 2009, Alxandre de Paris, the world's only luxury accessory brand, was opened in Xintiandi, Shanghai. This is the first flagship store opened by the brand after its entry into foreign countries.

    The Italy handmade leather shoes Silvano Lattanzi store is also low-key in the vicinity of the business, the average pair of shoes are hundreds of thousands of RMB.

    It is reported that in 2006 the eight G8 summit in the west, six presidents wore Silvano Lattanzi customized shoes; former US President George W. Bush and former US governor Schwarzenegger of California were even more interested in this brand.


    Wine is also afraid of deep alley. Some niche brands are also exploring the Chinese market through the Internet.

    Hoha network has both promoted the work of small luxury brands.

    "I have lived in London for more than 8 years, and I have seen many things very good, not necessarily very expensive.

    But things in China are very expensive, and their quality is very poor. A 2000 yuan garment may be exposed on the outside.

    Hu Deqi said that many people feel that it is not like buying a famous brand commodity at the same price.

    But things in the first tier cities are too expensive. Many people may go to the mall to see the styles and then buy online.

    "In fact, as long as you really understand some niche brands, the quality is very good, but it has not yet officially entered the Chinese market. There are so many brands."

    For example, the international first-rate luggage brand -- Nobeda (Roberta di Camerino) is not well-known in China. It was founded in 1945 in Venice, and designer Carme Rino is the same as Valentino and Armani.

    When customers ask Hohhot customer service to buy what bags, customer service with the nature of shopping guide sometimes recommends nobda.


    Of course, not all small luxury brands are ready to enter China.

    "China's consumer market is not mature enough and rational. Blindly following the trend may destroy those handmade niche brands."

    Daimler Benz Corp research liaison in China, Jia Si De, said that these brands would like to reach the part of the Chinese consumers who really understand and need it through overseas purchasing or online shopping through word of mouth.

    Of course, China's market is worth all the luxury brands waiting for its growth.

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