Overseas Stalls, China Pformed Into Luxury Goods

Coach bags, leather goods, accessories, etc.

"When I was in the United States, I never thought that Coach was a high-grade leather bag. It was a high-end consumer goods in foreign countries, but it was so expensive in China."

Zhao Ping, deputy director of the Ministry of consumer economics of the Ministry of Commerce, told reporters.

Entering the first floor of Beijing Xinguang heaven and earth, the smell of high-grade cosmetics is coming, and luxury brands and stores are lined up.

The Coach store, known as the foreign consumer goods, is located near the corner of the first floor of Xinguang world. The opposite row is a brand store of FENDI and CHANEL. Next to Coach is the DIOR cosmetics counter.

"Some of those bags can be hit thirty percent off, the package is not discounted because it is the new model this year."

Coach's shop assistant pointed to a handbag with a price tag of 10500 yuan and a python pattern.

On the official website of Coach, the price of the package is 1000 yuan (about 6456 yuan), which is nearly 40% less than that of the domestic market.

According to Coach's salesperson, the price of domestic stores is exactly the same as that of Coach's official website.

The reporter interviewed the official website of Coach to find a embossed crocodile grain handbag marked on the Chinese official website at 6950 yuan, the price on the English official website was 598 yuan (about 3861 yuan), and the price of another red leather handbag was 3800 yuan in the Chinese official website, which was only 298 dollars (1924 yuan) on the English official website, and the difference between the domestic and foreign prices was nearly 50%.

In the Coach China official website, the lowest price of a handbag is priced at 3800 yuan. In the English website, the lowest priced handbag is priced at only 128 yuan (about 826 yuan). Such a price level can only be regarded as a high and medium consumer goods in China.

All along, the outside world is controversial about whether Coach is luxury. In the 90s of last century, Coach put forward the concept of "public luxury", positioning the product price to about half of European luxury brands such as LV and PRADA.

But in recent years, the price performance and marketing mode of Coach in the Chinese market has become a luxury in the eyes of many Chinese consumers. The situation in foreign countries is not so, but it is still a brand of high-end consumer goods.

Coach said China's market operation costs are high, so prices should be higher.

On the issue of price discrepancy, Coach spokesperson and Victor Luis, President of Coach international retail business, told reporters that the existence of price differences among foreign brands is a common phenomenon in Chinese market.

In fact, there are many reasons for price differences, including pportation costs, marketing expenses, store opening expenses and store operation costs, which are the factors leading to the inconsistency of Coach products between China and the United States.

In addition, "we have been in the United States for 70 years. Coach is the leading brand in the local market, so it is of scale benefit. However, we still do not have these advantages in the international market including China."

Victor Luis said that in the market of China and any other country or region, the price of Coach products is only half the price of European traditional luxury goods, "our benchmark price is lower than that of European luxury brands".

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Netizens list ten "fake luxury goods".

1.COACH netizen spicy comment: don't think you look like LV.

2.Calvin Klein Underwear netizens hot comment: CK is no big deal abroad.

3.GAP netizen spicy comment: This is the Baleno of the United States.

4.MANGO/MNG online reviews: upgraded version of H&M

5.LEVI "S/LEE/ADIDAS ORIGINAL ORIGINAL hot comment: these three brands are supermarket goods.

6.Y-3 netizen spicy comment: it is equally difficult for you to win the noble designer.

"A lot of imported brands are cheap in foreign countries. They can buy a T-shirt for $350, but it costs almost 1000 yuan in China.

Fast fashion brand Y-3 is a popular consumer product abroad, and young people around 20 are the target group. Young people abroad have little money, so this can not be a high-end brand, but Y-3 is quite high-end in domestic fashion men's clothing brands.

7.Vero Moda/ONLY/Jack&Jones netizens spicy comment: Four line city supermarket grade

8.Swarovski Crystal netizens spicy comment: SWAROVSKI crystal is pure, but it is artificial, where can we get it?

"These brands belong to the mass brand in the United States, and the Chinese usually buy several take back in the US, and the price in the US is about 50% cheaper than that in China."

A Chinese student studying in New York said.

Luxury is luxury?

Why do Chinese people crave craze?

Why do these foreign brands come into China successfully after they enter China, and a large number of Chinese consumers are willing to pay for them?

"Domestic consumers' cognition of foreign brands is limited, and there is a lack of corresponding understanding of brand reputation and brand positioning. Many are just following the trend. Under such incomplete information, it is possible to mistake some of the two or three line brands abroad as well-known luxury brands."

Zhou Ting, deputy director of the luxury research center of University of International Business and Economics, said.

She believes that because of the additional factors such as exchange rate, tariff and pportation cost, these brands will sell at home more than foreign countries.

Faced with such a price, domestic consumers naturally think that the price is high, and they can not afford to buy luxury goods.

At the same time, Zhou Ting acknowledged that the reason why these brands can become a first-rate luxury after entering China lies in the superior product quality and brand image, and the spirit of brand communication and some domestic consumers.

"High prices, coupled with superior quality of goods, make these brands available in China."

Zhou Ting said that these brands are comparable in their domestic and Chinese status. However, due to the different consumers, the different needs of consumers, and the different behavioral characteristics of consumers, the market performance in two countries is also normal.

Domestic luxury brands are in short supply and local brands are in the initial stage.

In 2010, the total consumption of China's luxury goods market reached 10 billion 700 million US dollars, accounting for 1/4 of the global share. Only after Japan, it became the second largest consumer of luxury goods.

When foreign second-line brands are active in the Chinese market as luxury goods, Chinese local enterprises can only be embarrassed to watch them share the big cake in the Chinese market.

"Tariff reduction will not bring luxury price reduction. The root cause of high price of luxury goods is Importers' pricing power. Chinese local enterprises do not have luxury brands but can only listen to others."

A person engaged in duty free business told reporters.

"At present, there have been a group of business people and excellent designers who are committed to developing luxury goods, such as Deng Yongqiang's Shanghai and Guo Pei's Rose House. There are also some good luxuries, such as national liquor Moutai, jewelry, Lao Fengxiang, Zhou Dafu, top Dahongpao tea leaves, but these luxuries have not developed into real luxury brands, and their brand line radiated by multi-level people is not aimed at luxury consumption groups."

Zhou Ting, deputy director of the luxury research center of University of International Business and Economics, believes that China's luxury brand is still in its infancy.

"Luxury brands must be rooted in the soil of culture. For example, French wine conveys the romance of the French, and Swiss watches represent the spirit of precision and refinement.

If we want to develop local luxury goods, we must also be rooted in our profound cultural heritage.

Zhou Ting believes that China does not lack the cultural soil that breeds local luxury brands. It is a long-term process to integrate five thousand years of traditional Chinese elements into the brand.

"The growth of local luxury goods needs a long-term precipitation process. In this process, the entry of many foreign luxury brands provides a good opportunity and development for the growth of our local luxury brands."

In addition, Zhou Ting said that the expression of brand positioning LOGO needs to be tested repeatedly to the market.