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    China'S Luxury Brand In The West

    2011/11/4 10:47:00 31

      


    August 6th Italy Super Bowl Milan derby let the bird nest

    create

    The attendance record has exceeded the Beijing Olympic Games.

    The opening ceremony

    Sponsorship activities must be done by two teams coming to China.

    But surprisingly, in addition to Nike and Adidas as sponsors of two sports teams, Dolce and Gabbana, both the sponsors of the two teams, have also held a grand event, and Donatella Versace has even arrived in Beijing personally to attend the event.

    It is fashionable for people to participate in fashion activities. Now many more die hard fans in two teams may not know Dolce & Gabbana and Versace before, but maybe they will wear their suits in the future.


    These two years are undoubtedly many luxury.

    brand

    In the fast growing year of China, we will go to two or three tier cities, open more stores and do more promotional activities to attract more consumers. Of course, luxury brands need more products, more employees and more investment to excavate the country that is expected to become the world's largest luxury market in 2020.

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    Where to open a shop and go with the developers?


    Many years ago, luxury brand shops were mostly opened in five star hotels, because only then could the brand's dignity be displayed.

    Later, a number of high-end shopping malls began to appear. Shanghai's Hang Lung has occupied the highest peak of Chinese luxury brands in a long time. The Hang Lung Group has also become a luxury pronoun by a Hongkong real estate developer who does not rank the top. Even now, Xujiahui's Hong Kong Plaza is also known as Hong Kong and Shanghai Plaza.


    However, only one Hang Lung is far from enough for China. According to Bain consultancy study, 15 luxury brands opened 80 stores in mainland China in the first eight months of 2010. It is not hard to predict that this year's figures should be no less than that.

    The radical strategy of opening a store has much to do with the successive completion of high-end commercial real estate in China. It can be said from a certain point that luxury brands start with real estate developers.

    For example, Hongkong Sun Hung Kai gathered dozens of international brands in the IFC gold center of Shanghai, Pudong and Lujiazui, which basically completed the opening of stores in 2010.

    For example, Hongkong's Swire Properties in Beijing Sanlitun north and Guangzhou's Tai Gu Hui project, among which Louis Vuitton is currently the largest store in the country, reaching 1800 square meters.


    Theoretically, Guangzhou, which is adjacent to Hongkong, is not a battleground for luxury brands. But when high quality commercial real estate comes into being, it solves many of the worries of luxury brands.

    In these places, the establishment of large shops, even if it can not bring too much sales, can at least play a good role in brand promotion. In this age of horse racing, if you do not occupy the shop as a king, you may not be able to find a better Location in the future.


    What's more, these luxury brands are not only able to get a good location but also get a lower rent or even a huge amount of decoration subsidies in the game of real estate developers. What's more, it's not difficult for consumers to go to Hongkong or go shopping abroad. But if you want to buy some gifts temporarily, it's the most convenient way to solve them locally.


    At present, Hang Lung Group has new Hang Lung Plaza in Wuxi, Ji'nan, Tianjin and Shenyang, and Sun Hung Kai also has commercial real estate projects in Suzhou, Nanjing and Chengdu.

    In addition, the domestic developers are also constantly upgrading, they will try every means to attract international brands to enter. In the next few years, we will see more big brands taking root and blossom in the two or three line cities.


    As for the larger super flagship store, it is also possible that Louis Vuitton will open The Maison store and Prada will open Epicenter flagship store.

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    Where are the talents?


    Over the past few years, the principles of the major luxury brands are to open more stores in more cities. From the front end, we need more salesmen. From the matching point of view, we need more relevant personnel, such as shop display personnel, goods management, logistics finance and so on.

    The problem now is that it is hard for brands to find enough suitable people to manage the business.


    In the recent interview with WWD, Helen Willerton, Asia Pacific managing director of Chlo, said that there were too many jobs that needed people. Finding employees in China is an important job on every timetable of luxury companies. Chlo is preparing to double the number of offices in Shanghai, promoting from the current manager level and looking for headhunters.

    She said that companies will recruit some people from their agents.

    Demand is great, but few people are suitable, and loyalty to the company is not high. People often hear job hopping in the industry.


    The root of this problem may be that the education system in China can not cultivate talents with relevant skills for foreign brands. Although some schools have already offered training courses for luxury majors, they are far from enough.

    Because Chinese students learn from memory instead of thinking freely, which is not particularly suitable for training sales skills.

    Compared with those who have overseas learning experience, they will be able to keep pace with them in this regard.


    From the top level, the brand has realized that it is not only necessary but also necessary to find Chinese locals to enter management in the past two years, which has produced a 180 degree turn with the previous attitude.

    Because Chinese employees know more about the local market, even managers from the West need many years of work experience in Asia, such as in Japan and Korea, so that they will be more easily united with Chinese managers.


    Of course, many companies will also employ Hongkong and Taiwanese, but the cultural differences are still huge. Most Hongkong and Taiwanese do not have the experience of managing Chinese business. Even if they have, the price of settling them in Shanghai will be very expensive.


    In addition, on the one hand, as more and more brands take back their retail business from their own control channels, many new job demands are beginning to emerge, such as creative director, senior product director, China regional manager and so on.

    On the other hand, most of the original brands were from Hongkong as the headquarters of the Greater China region, and the mainland reported to Hongkong and Hongkong reported to the headquarters of Europe or the United States. Now it may be reported directly to the headquarters from the mainland, so there will also be a higher level of management in China.


    Godwin Lam, managing director of Trinity, which runs several high-end men's clothing brands in China, says that regional brand managers are particularly hard to find. They need not only to be Chinese, but also to have a deep understanding of cultural differences in different regions, such as Chongqing or Urumqi, as well as zero sales management experience.

    People who often have these abilities have put their homes in Shanghai or Beijing. They are unwilling to return to work in the two or three tier cities.


    Product: is the origin enough for production?


    Growth is so fast that products are in time for production. Luxury is not a popular garment, but rather a factory order.

    Faced with the rapid growth of demand, how luxury brands provide enough products to sell is a problem. We need to know that Herm s's workers need two years of training.

    In June, Louis Vuitton opened twelfth factories in France, and last year LV kept Paris shops closed for an hour to maintain inventory levels.

    So, is it possible to maintain production in the country of origin and meet market demand?


    According to the prospectus of Prada, 20% of Prada's products are produced outside Italy. Besides China, it also includes countries with lower labor costs, such as Vietnam, Romania and Turkey.

    Miuccia Prada said in an interview with WSJ that other luxury brands will also produce some products in China sooner or later, and she mentioned that Chinese shoes are doing well.


    But many people do not agree that Versace family member Santo Versace is also a senator from Italy. He is proposing a decree to make the Made in Italy "Italy origin" more pparent. This proposal is awaiting approval from the European Commission.

    If the law is passed, only Made in Italy label can be affixed to the products that are produced in most of the production cost in Italy, so that there will be no loopholes for the fake products of the one-day tour in the bonded area.

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    Design for China?


    Many brands are inspired by Chinese product design, but have to admit that most Chinese buy luxury brands by buying brand names and buying authentic products, such as Chanel's 2.55 packs, Burberry windbreaker and Ferragamo shoes.

    Of course, it is necessary to adjust the specifications according to the Chinese characteristics. For example, the shoes of Rupert Sanderson and Luxottica glasses are adjusted according to the characteristics of the Chinese people.


    From the product category, the Chinese gift culture has made the leather products more important, as well as the expensive watches and brand style outstanding products.

    In addition, China's planned business policy has made children of single children more and more important. Children's wear has become an important part of all luxury brands.

    For example, Chinese people travel more frequently to make bags and suitcases grow very fast.


    In fact, the best way to design for China is to produce all kinds of products that consumers need. Now, Chinese consumers can only count two brands on average, but only one brand a year ago.

    Therefore, by maximizing the brand and satisfying all the needs of the consumer lifestyle, watches need to be launched and accessories need to be introduced.


    Brand promotion: big or small?


    At present, the most common way is luxury brands to hold super activities to promote their image. These activities will undoubtedly prove the strength of the brand, but some experts also question their long-term effects.

    "It's burning money," she said in an interview with BOF, a former CEO Francis Gouten in the Asia Pacific region. "It's a lot of people who are not brand customers. They will go to the next Party and forget about their previous activities."

    In his view, a more reasonable way is to organize small activities to entertain real customers, such as VIP dinner.


    Of course, holding the brand history exhibition is still acceptable to most people in the industry, because Chinese consumers really want to know the information of the brand, and also want to know where the value of these brands is. Through exhibitions, they can establish the emotional bond between the brand and consumers.


    In addition, it is also important to show the production process to consumers, because some products in China do not yet have relevant technologies, such as the production of some Swiss complex mechanical watches, such as Gucci's handmade leather manufacturing technology exhibition held in Shenyang and Chengdu this year.


    Online shopping: the way ahead?


    Since last year, many major brands have set up official online shopping platforms, such as Armani, Bally, Burberry, Dolce & Gabbana, Marni and so on. In the future, Ferragamao, Prada and Gucci all indicate that they will open official online shopping.

    And the THECORNER group, which sells dozens of luxury brand official website online shopping, Italy Yoox group, which sells many designer brand new products, will also officially launch its business in China in September. In addition, it is said that Net-a-Porter has also opened an office in Hongkong.


    In fact, more foreign online shopping websites do not set up offices in China. Instead, they sell goods directly to China through promotion, such as LUISAVIAROMA in Italy, Shopbop in the United States, ASOS in the UK, etc., all have courier services for China, and even have made Chinese pages. Among them, the RMB price of LUISAVIAROMA includes tariff and freight charges, which makes our calculation headache.


    But if you compare the products of various brand stores, it is hard to find that the same products are being sold. I believe the brand is doing the same in this respect.

    If every shop sells the same thing, the price will become the only winner, which is not conducive to the online store itself, nor is it conducive to the luxury brand to maintain its image.


    Another problem is that the Chinese online shopping market Taobao station to 80% market share, is it possible that the future luxury brands will not survive Taobao's huge flow of people into Taobao mall?

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