China'S Attitude Towards Top Luxury Brands

Van CEO recently announced that he wanted to "buy LV" for a while, becoming a hot topic in the streets and streets.

Although he later clarified that it was just a joke, he also said that if the company had money and leisure, it would consider buying several such companies to sell the same price as the customers. The reason is that he often travels to the workshop of China's manufacturing base, such as Jiangsu and Zhejiang, Yangtze River Delta, etc. "this is the product of every customer, and the luxury brand there is 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 them. The US research firm Bain claims that the value of China's luxury market has reached 9 billion 600 million dollars in 2009 (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.

To cater to China's rapidly expanding luxury market, the world's top Luxury brand In 2005, only 10 cities opened 10 stores in China, and now there are 36 stores in 29 cities. 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 come to think of it. Buy Far from Lenovo's acquisition of IBM's PC business. But in garment enterprises, there is no successful case yet. Lu Qiang, a businessman, once thought he had "Prada" close to the company. He bought a 13% stake in a debt crisis company through a merger and acquisition consulting company before 2010, and bought another 20% according to his plan to become a controlling shareholder. But after knowing that the boss behind the scenes was Chinese, he adopted tough measures to refuse. In July 2010, the official announcement was made that no one in the family sold shares to Chinese businessmen.

The Chinese consumer market is never valued, but it is reluctant to let the Chinese take the helm. Luxury goods The company's general mentality. Especially in the clothing industry, even people in the industry have a lot of complaints about this industry. Zhang Jianmin, general manager of the general manager, 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 great that I feel so good about myself. And it is the agent of the world's top clothing brands (Canali), Versace (Collection) and the world-famous jewellery brand Georg Jensen.

At the International Garment Fair this year, the chairman of the seven wolves officially announced the purchase of the 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 known the way to the mainland market began to recycle the brand agency right. If a few years later, the brand of the current agent was recovered, did not the investment of the seven wolves take a beating?

Although this risk is indeed recognized, the seven wolves emphasize that the meaning of the seven wolves is not only a new business related to luxury goods, but also a greater value that it may become a "stepping stone" for the seven wolves to open up luxury countries. On the one hand, harvesting at least can help to establish initial links for the high-end channel resources. Unlike in the past, there is no clue to the resources that want to contact high-end stores. On the other hand, the emphasis on acquisition is also a foundation for future opportunities to acquire foreign brands.

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.