Big Cards Accelerate China'S Layout

Big brands accelerate the layout of China. What can our local brands do besides watching the "fairy fight"?

A series of theoretical and practical preparations were made, and a large number of brands began to go to China, especially after the financial tsunami in 2008. Now, "going to China" has become the first choice of the 90% international luxury brand.

According to Shanghai International Business Information Center recently released "Shanghai international" Luxury brand The development research report shows that at present, more than 90% of the internationally recognized luxury brands have been settled in Shanghai, Shanghai has become the preferred place for international luxury brands to enter China. The report also points out that 169 international luxury brands have opened retail outlets in Shanghai, covering consumer goods such as clothing, leather goods, watches, jewelry, cosmetics and so on.

The 155 year old Burberry (Burberry) flagship store in Beijing opened in April 13th. Burberry CEO Elenz said Burberry plans to increase the number of Chinese branches to 100 in the short term in response to strong market demand.

Catlett, Burberry's chief financial officer, said Burberry is in China. Sales volume It has grown 30%, and has continued to rise. Looking at the global market, more and more consumers are buying brand-name goods. The purchasing power of emerging markets such as China is particularly striking. In the coming year, Burberry will expand its stores in China, Latin America and the Middle East, and the retail area will increase by 12%-13%.

It is reported that Burberry's sales in China grow by two digits per year. In June 2010, the Burberry brand bought back the retail rights of the Chinese market at 7000 pounds, marking the beginning of Burberry's vigorous expansion of the Chinese market. Most of Burberry's distribution outlets are in Beijing and Shanghai, and 50 stores have sales of 75 million in 2009. In addition to the 50 outlets in the mainland market, Burberry has also recovered 13 stores in Hongkong, a store in Macao and 19 stores in Taiwan.

In 2010, many brands announced that they would open new stores and renovate stores in 2011, and investment will continue to focus on developing sales networks. "The shrinking of foreign markets and the growth of the Chinese market undoubtedly bring space for luxury giants to expand in China." One industry insider expressed this. In fact, as early as the global financial crisis has just arrived, Versace, Hermes, Louis Weedon and other world famous luxury brands have shown signs of expanding the Chinese market.

In Beijing and Shanghai, in just a few months, Tod, s, Louis Vuitton, Bottega Veneta, Cartier, Salvatore Ferragamo, Zegna and many other flagship stores have opened one after another. These international luxury brands are competing to expand their territory in the Chinese market.

Julie Harris, general manager of WGSN Asia Pacific, once said: "the trend of luxury consumption in China and the world is two curves, one from low to high, one from high to low, and finally crossing in twenty-first Century."

Take Dior as an example, as early as the late 90s of last century. Chinese Market Exploration. In 1994, Dior had its first store in Shanghai. The investment in the store has been very rewarding. Dior CEO has said that Dior has doubled its sales in China, and the market is developing too fast. "I am referring not only to sales figures, but also to their depth of understanding and purchase needs."

The report points out that international luxury goods entered Shanghai since the 80s of last century and have gone through different stages of development so far. In recent years, Shanghai's international luxury brands have diversified characteristics, and the concept of consumption is expanding from "small pieces" to "big pieces", from "products" to "services", to "cultural experience", and high-end luxury clubs such as high-end clubs, tourist holidays, yachts and leisure are also accelerating development.

There are two modes of luxury brand management, namely, direct and agent. International luxury groups such as LVMH group, Lifeng group, Gucci group and other international luxury goods groups choose to operate direct outlets in Shanghai, and choose Shanghai as the location of China's regional headquarters and the location of investment and operation center. At the same time, the location of retail outlets also spread from the central commercial blocks to urban shopping centers, as well as new modern commercial buildings and historic conservation buildings.

In addition to changes in business models and siting, better service has also become the "weapon" of many luxury brands to fight for Shanghai consumers and Chinese consumers. The chairman and chief executive officer of Jean-Claude Biver, the chairman of the board and chief executive officer, summed up the success of his brand in the Chinese market: "we opened a watch repair service center in China, providing services in the place where the watches are sold, so that Chinese consumers are confident of us that the Chinese consumers will know that they have bought a very expensive watch and can get no defect service. You can change the battery in time when you need to change the battery. In China, maintenance service is the most important factor for our success. "

In addition to such cities as "north to Guangzhou", luxury brands are still extending to the two or three tier cities. The following is the pace of luxury brands' recent layout in the two or three tier cities:

Italy luxury clothing brand Canali has not been profitable in Beijing Oriental Plaza store. The monthly revenue of Hangzhou's single store has reached 1 million 500 thousand yuan, and it has become the best selling shop in the country.

Ho Yi Avenue, a high-end commercial center in Ningbo, is becoming the second lakeside international famous street. Louis Weedon opened a shop with an area of 1016 square meters at the entrance of the Plaza. In Ningbo, most people who buy luxury goods are 25-45 years old white-collar and private owners. They have a keen sense of fashion and are very sensitive to the quality of life, and the energy consumption is amazing.

Louis Weedon, Wuxi's eight hundred friends shop, achieved sales of nearly 2 million yuan on the day of its opening day. After that, its daily sales volume for four days reached about 1000000 yuan. At present, it is steadily about 400000 yuan per day. Spain's high-end brand Loewe has also introduced garment tailored service to Wuxi for nearly half a year. The number of VIP guests has been directly following the early opening of Nanjing, Suzhou and Hangzhou. The VIP customers of the brand are all those who spend more than fifty thousand yuan a year.

The starlight 68 international famous Plaza, completed in Chongqing, includes over 40 major international brands including the world's top ten luxury brands. Armani and baozi have worked hard when they first entered Chongqing. But now, the annual sales volume of the market has increased by nearly three times. Among the more than 70 sales outlets in the country, Chongqing has the fastest growth rate. {page_break}

The most impressive thing that Shenyang has given to the people is that the sales list has always been the top in the country. Shenyang's luxury goods consumers are fixed and can attract high-end crowds from surrounding cities. Zhongxing international famous Plaza sold for the first time in the first quarter of 2010, breaking through billion yuan mark to achieve two digit growth. Take Dior brand counters as an example, sales in March have risen to the number one in the country.

At the end of 2009, Zhengzhou's right garden department store ushered in Cartire, plus the store of Denis people's shop. Cartire sold two pieces of chess in the second tier market Zhengzhou, which is rare in the second tier cities of China. Ferragamo (Ferragamo) opened in Zhengzhou in December 26, 2009, and Cartire officially settled in Zhengzhou in January 9, 2010. The first store in Henan, GUCCI, opened in March 2010.

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China's first tier cities are strategic forts for brands to build their image, while second tier cities will be the key to success. It is far from enough for luxury brands to succeed in the second tier cities. It is far from enough to stay at the shops only. How to implement a complete and effective market strategy will be the key to developing the second tier cities.

At present, at least more than 100 top international brands are accelerating the layout of the luxury market in China. The total number of franchised stores has reached 1000. Apart from big cities such as Beijing, Shanghai and Guangzhou, the branches of central and western cities have mushroomed. The French luxury brand LV has opened 27 stores in 22 cities in China, including Changsha, Xi'an, Qingdao, Xiamen, Wuxi, Wenzhou and other two or three cities, while Ningbo and Hangzhou have gathered almost all of the international luxury goods. Roger Farah, President of the US top luxury brand Ralph Lauren, recently said at a luxury forum that consumer demand in many two or three line cities is being released, and new markets must be opened up in addition to increasing investment in the first tier cities.