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    China'S Attitude Towards Top Luxury Brands

    2011/6/15 13:51:00 65

    Luxury Brand China Attitude

    Van CEO recently announced that he wanted to buy LV (LV) for a while, becoming a hot topic at the end of the street.

    Although he later clarified it was just a joke, he also said that if the company had money and leisure, it would consider buying a few LV like the same price.

    The reason is that he often travels to the workshop of China's manufacturing base, such as Jiangsu and Zhejiang and Yangtze River Delta.

    Luxury goods

    Brands are all the same.

    Fabric

    The same workshop, the same worker.


    No matter whether the old views are biased, there is no doubt that the two fact is that the profits of luxury goods are very high. The wealthy people in China (including some non wealthy sectors) are very popular with LV.

    value

    In 2009, it had reached $9 billion 600 million (5 times over the past 5 years).

    Today, China has surpassed the United States as the second largest luxury consumer market in the world, and is expected to overtake Japan as the world's largest luxury consumer market in 5 years.

    Considering that the Japanese economy will no doubt be affected by the earthquake, the process of becoming "first" is likely to accelerate.


    In order to cater to China's rapidly expanding luxury market, the world's top luxury brands began to expand in the Chinese market. According to McKinsey's survey, in 2005, LV opened 10 stores in 10 cities in China, but now there are 36 stores in 29 cities. GUCCI (GUCCI) has expanded rapidly from 6 stores in early 2006 to today's 39 stores.


    In contrast with the exuberant expansion of foreign luxury goods companies, the domestic enterprises are not reconciled. They hope that China will not only be a luxury consuming country, but also be a big country of luxury goods production.


    But everyone knows that their own luxury brands are beset with difficulties, so many local businesses have thought of acquisitions: far from Lenovo's acquisition of IBM's PC business, and the recent acquisition of Volvo by Geely.

    But in garment enterprises, there is no successful case yet.

    Lu Qiang, a businessman in Shanghai, once thought he was "close" to Prada (Prada). He bought a 13% stake in Prada, which had been in debt crisis before 2010, through a merger and acquisition Italy consulting company. According to his plan, buying another 20% would become the controlling shareholder of Prada.

    But after knowing that the boss behind the scenes is Chinese, Prada has taken tough measures to refuse it.

    In July 2010, Prada officially announced that no one in the family sold shares to Chinese businessmen.


    China's consumer market has never been valued, but it does not want the Chinese to take the helm. This is the general mentality of foreign luxury companies.

    Especially in the clothing industry, even people in the industry have a lot of complaints about this industry. Zhang Jianmin, general manager of Hangzhou Kenna, has sent three "unexpected" feelings when entering this industry: the quality of the practitioners in this industry is so low, and the gap between them is so large that I feel so good about myself.

    And Kenna is the world's top clothing brand Connally (Canali), Versace (Versace Collection) and the world famous jewelry brand George Jason (Georg Jensen) and other brands in mainland China's agents.


    At this year's Beijing International Fashion Fair, Zhou Shaoxiong, chairman of the seven wolves (30.62, -0.60, -1.92%) (micro-blog) officially announced the acquisition of Hangzhou Kenna company at a price of 70 million yuan.

    At the press conference, the media, including the magazine, invariably first concerned about the risk of the seven wolves. Many brands that had already explored the mainland market began to recycle the brand agency right. If a few years later, the brand of Kenna's current agent was recovered, did not the investment of the seven wolves take a beating?


    Zhou Shaoxiong acknowledges that this risk does exist, but the seven wolves insist that Kenna's significance to the seven wolves is not only a new business related to luxury goods, but also more valuable because it may become a "stepping stone" for the seven wolves to open up luxury countries. On the one hand, the harvest of Kenna in Hangzhou can at least provide initial links to take over high-end channel resources. Unlike the past, there is no clue to the resources that want to contact high-end stores. On the other hand, Zhou Shaoxiong emphasized that the acquisition of Kenna also means laying a solid foundation for the possibility of acquiring foreign brands in the future.


    In the past, the seven wolves have been very persistent in upgrading their brands and creating fine products. At the moment, it is probably a feasible path to draw up their own high-end products by drawing on the operation experience of foreign luxury stores and looking for opportunities to acquire foreign luxury goods.

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