LV And Other Brands Lose Themselves In China

The PR staff of BMW are distressed by the consumer image of China's upstart and rampage driving BMW, which makes more high-quality, young and unassuming users worry about their choices. The Prada brand doesn't care about selling products to anyone: "we won't refuse to sell products to consumers because they are digging coal in Shanxi."

After a clear judgement of the Chinese market, luxury companies voluntarily convey luxury information = money + identity information.

This is very effective for the face saving Chinese. In order to identify oneself, there are often queued girls in front of the Gucci store in Hongkong, and many young men and women are willing to carry Prada bags at the cost of their money.

However, this educational strategy against the Chinese market is now at a crossroads. Is it like Prada's insisting on strategy or BMW?

The demand for "wealth and status" brings consumers' brand freedom to treat luxury goods. Chinese consumers have their own set of standards, which must be internationally recognized "expensive".

Kelly went to Europe to travel to the Italy headquarters flagship store of BottegaVeneta (BV). She saw a handbag with exquisite knitting, modeling and design, and the price was only half of the domestic price, so it was very cost-effective to buy it.

But after thinking for a long time, she gave up and bought LV.

The explanation of Kelly is that BV is really good, but no one else knows it, or LV value.

This is a blessing for LV, but it also hides the misfortunes of LV.

Is this brand loyalty to LV?

No, this is the loyalty of luxury brands to the symbols of "wealth and status".

This is reflected in the brand loyalty, it is negative value.

The trouble with luxury brands is that too much emphasis on identity makes luxury brands homogeneity in the minds of consumers.

Some people may save a month's salary to buy a LV wallet, but when choosing a handbag, they may consider other brands.

"Maybe follow her to buy COACH's handbag."

SebastianSuhl, chief executive of Prada Asia Pacific, said that in China, brands do not have loyal customers.

Consumers are always wandering among different brands, appearing in Prada today, appearing in LV tomorrow, and do not know where they will appear the day after tomorrow.

There is another reason why there are queuing shopping in all kinds of famous brand shops in Hongkong. There is another reason why it often happens to be 30 percent off. Even during the Christmas season, some large department stores will have 50 percent off of luxury brands for promotion.

This may be the second step of the price. The homogenization of the brand brings the close hand fight of competition -- the price war.

Under the pure education strategy of "you are a person of status", people have made Tiffany's brand image plump through the movie Tiffany's breakfast, which is starred by Audrey Hepburn.

Some people will be willing to listen to the long story about Tiffany, but more luxury brands don't have such good luck in China. People even prefer to listen to the history of Lining's brand, because gymnast Lining is hidden in people's memory and can be recalled at any time. But the story of many luxury brands is only a story of different names and similar plots to Chinese people who do not understand western cultural history.

Luxury brands who use a longlongago story to highlight brand personality are hard to achieve in China.

AstianSuhl sipped his lips and sped out two words "education", which is their simple strategy for foreign markets.

"Chinese consumers rarely use luxury goods to express their true identity. They just want to express my wealth, and I succeed.

But what kind of success is it?

Is it the success of a lawyer, the success of an artist, the success of an entrepreneur, or the success of a government official?

Yan Shibin, President of Long Xi luxury goods network, said.

In the eyes of luxury brands, Chinese consumers are not mature. They usually pay attention to the external embodiment of price and style, and do not understand the cultural connotation and history of luxury goods at all.

Under the power of communication, SebastianSuhl's way is to tell Chinese consumers directly what products my products are for.

Under the similar advertising strategy, look at two advertisements: "you can never really own a Patek Philippe. What you do is just watch the watch for the next generation."

The other is, "you deserve it."

In addition to the more implicit or direct differences of expression, their appeals are valuable and worthwhile.

If not bombarded by advertising attacks, can you know that the former is expressing Patek Philippe's personality and the latter is Rolex's expression?

In the mainland of China, luxury brands put down their noble status and strive to create brand awareness. Despite the single but effective dissemination, that is, putting a lot of hard ads into the market and telling consumers repeatedly, I am the best.

Under the strong spread, luxury goods and Chinese consumers establish the first relationship - I will help you explain your identity and wealth.

Let's take a look at the promotion techniques under the line.

Do you remember who told consumers how expensive their prices were by setting up a direct store in a five star hotel, who implied consumers' upper class status through some celebrity charity auctions?

"This is what luxury leads to," says Yin Zhixian, assistant publisher and editor in chief of fashion magazine. "From the very beginning, luxury is the way to guide consumers in mainland China, telling consumers constantly, using my product to show that you are an identity person."

No wonder consumers only recognize "LOGO".

Zhai Yongkang, a partner of Ogilvy's advertising planning department (MickeyChak), said that in fact, the product was bought by buyers when it was combined with this strategy.

Just like Y3 (Adidas's casual brand co worked with Japanese designer Yamamoto Teruji), this brand seems to be very popular overnight in China. The important reason is that the brand logo is obvious and can attract consumers' attention.

Yin Zhixian said, the loss now is that Chinese consumers have not yet recognized their value in culture.

MollyZhang, a master of luxury management in France, says that we often neglect salesmen in luxury stores, and terminal hints are often the most important promotional tools.

In China, salesmen sell products with "expensive" products.

But if you study carefully the advertisements of luxury goods, you will find that there are few words that are luxurious and expensive.

With the psychology of proof, the reporter came to Chanel on the first floor of Xpu Ha Palace Hotel in Beijing.

A salesperson told reporters that sales staff's understanding of brand is limited to all kinds of media and advertising.

Apart from being sensitive to price, they know little about the brand history they sell.

"As long as there is an objective profit, we will not refuse to sell it to him because the consumer is Shanxi," said Zhang Linlin, a public relations manager at Versace (Versace).

Whether it is responsible for shareholders is the first thing for luxury companies to consider. Zhang Linlin said that the sales figures of Versace are very confident that they will open 6 stores in the mainland of China in Versace2007.

Yin Zhixian said, this is a contradiction.

Driving luxury into the Chinese market is economic interests (other markets have not so strong growth momentum), in their view, China's consumption power is growing rapidly, so they must seize this interest, this is a businessman's perspective.

Goldman Sachs's 2006 global luxury report titled "go east".

MollyZhang said luxury goods, regardless of the way they enter the Chinese market, will target their final sales performance.

Even if it is full of LOGO, it is also a prelude to the cultivation of Chinese consumers' consumption habits.