"Half Blood" Beach Market? Hermes Builds Up And Down Brands

China's position in the global luxury market has become pivotal.

However, in the initial stage of China's luxury brand, it is entirely up to the Chinese designers team to design and advocate the "up and down" of the Chinese elements, whether it can be accepted by consumers. Whether the "up and down" brand can safely pass the "breeding period" remains to be tested by the market.

What is more serious is that the launch of the sub card may also lead to the loss of the global customers of Hermes.

Hermes's "reverse innovation" is still a huge question mark before consumers.

Cultivate local brands

For the entire luxury industry, the strategic significance of Hermes to launch a new brand "up and down" for China is that it has opened up a new way for the global luxury brand to fully occupy the Chinese market.

According to the consultation of Boston, China is already the second largest consumer of luxury goods. China is expected to become the number one in the world in 2015 and will account for 32% of the global luxury market.

In the market grabbing war, the traditional way of luxury brands to occupy the Chinese market is to expand the number of stores.

And Hermes has set up high-end brands for China, which is the first step in the history of China's luxury market development.

But the introduction of original brand products in China can bring luxury brands with huge sales results. Why should we invest a lot of money and energy to cultivate the brand in the market where China's local luxury brands are still in its infancy?

Ouyang Kun, China's chief executive officer of the World Luxury Association, said: "Chinese consumers are still blind to the choice of luxury brands, but there will always be a balance in the cultural foundation of luxury choice in the future. Many consumers will return to the Chinese elements and the spirit of China. By that time, luxury brands will be pferred in a rather late direction, while China is not able to create an international luxury brand.

At present, 90% of China's luxury consumption comes from consumption of foreign luxury brands.

China's luxury brand is still a vacancy, but in Ouyang Kun's view: "in the future, some consumers will return to local brands, which is a great opportunity for luxury companies. Moreover, the move of Hermes will lead more luxury merchants to follow suit, and it will also lead to the emergence and development of Chinese local luxury brands."

"Half blood" takes China Road

No matter how forward-looking the launch of Hermes is, it is difficult to avoid the possibility of losing customers.

According to the psychology of consumers' luxury consumption, luxury brands are often just symbols, highlighting their noble status.

Although the positioning of "up and down" in China is high-end, the average price of its clothing and capes is five thousand or six thousand yuan.

Extravagance is not comparable to Hermes.

Will the side card weaken the positioning of the main card?

In this regard, Ouyang Kun analysis: "high-end luxury goods to launch differentiated licensing, will indeed affect the brand itself.

Moreover, Hermes is still the most high-end brand, once the quilt is made in China, the threshold of the brand will immediately decrease, and the recognition of consumers will also be reduced.

Nevertheless, Hermes chose to swallow more market share in China in the future.

In order to better cultivate "up and down" and balance its relationship with Hermes, Hermes has adopted an independent operation system for "up and down" in order to make strategies and implementation more flexibly.

At present, "upper and lower" and Hermes are divided into two companies in Shanghai, each with separate market and public relations departments.

But Hermes has injected his spirit into the "up and down".

As we all know, the noble lineage of Hermes is due to the preservation of tradition: tradition of handicraft and inheritance of history and culture.

Hermes China's "up and down" will also uphold this essence, the product is made by the best craftsmen in China, and it can find the lost history and culture of China, which are all very scarce.

The incubation period of a brand is not an easy journey. It is bound to face many challenges.

The "up and down" brand of French and Chinese "hybrid" brand can be steadily extended in the market. Ouyang Kun believes that sticking to Chinese elements is crucial.

"Although Hermes is the basis for" up and down "support, it is necessary to adhere to the real Chinese elements and consciousness, or simply brand grafting, and its success is unlikely.

Ouyang Kun said.