Two Or Three Tier Cities Become An Important Battleground For Luxury Goods Giants

From 2010 onwards, Luxury brand One after another, they went inland and went to the countryside crazily. In the two months of the second quarter of last year, GUCCI (Gucci) clothing brands opened 5 stores in two or three cities including Zhengzhou, Ji'nan, Guiyang and Taiyuan. Louis Weedon (LV) also accelerated the opening speed in Changsha, Qingdao, Xiamen and other places. The two or three tier cities are increasingly becoming an important battleground for luxury goods giants.

This is closely related to the increasing consumption ability of small and medium-sized cities in China. According to the Economist magazine, by 2020, 66% of China's middle income consumers will come from a large number of small and medium-sized cities. In the future, the disposable income of the two or three tier cities may be higher than that of the first tier cities, thus having stronger potential purchasing power.

In fact, the high cost of stores in cities such as Beijing, Shanghai and Guangzhou is also one of the reasons why luxury brands have gone to other countries. As the first-line market has become saturated, competition among brands has been fierce, and sales growth has begun to slow down. At this time, luxury goods need to find wider space.

Test water network marketing

In addition to landing on the two or three tier cities in China, luxury brands have also extended their marketing to the Internet. At the end of November last year, Giorgio Armani announced that it would launch e-commerce channels in China, becoming the first high-end fashion brand to launch online stores in China.

The big brand online stores try the Chinese market, largely due to the younger trend of luxury consumers in China. Traditional media are no longer the main channel for young consumers to get information. An Hongyu, McKinsey Global Director, points out that the strategy of luxury brands in the Chinese market must be different from other markets. They should pay more attention to the value of re media, especially the social network. brand Dealers can use social networks to interact with consumers online. "

On the most influential websites in China, Dior and Burberry are quietly appearing. They have opened their own home pages, and the number of fans has reached hundreds of thousands. Compared with paper media, the home page of the organization shows more performance, and the combination of words, pictures and videos can provide the same wonderful shopping experience. More importantly, it enhances the interaction between the brand and consumers, and helps the brand to collect and guide consumer behavior. In addition, on the iPad, users can download APP software such as Gucci and Valentino. LV also appears on Sina micro-blog, which seems to indicate that the massive enclosure movement of luxury goods has developed from offline to online.

Statistics show that some luxury brands have set up new media departments to cope with the upcoming development trend.