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    China'S Luxury Growth Path Is "Double-Edged Sword".

    2012/3/21 15:00:00 7

    Brand Consumer Price

    "Luxury" is a very common word in the consumer's mouth. Luxury is no longer "luxurious". What's the matter? "Recently, the social debate is whether our tax is too high, leading to many luxury goods buyers to buy abroad."

    "Even if the tax rate is reduced to zero, the price of luxury goods will be so high!" -- Sun Yibiao, deputy director of the National People's Congress and deputy director general of the Chinese Customs General Administration, once again discussed the topic of luxury as a hot topic of discussion.


    Sun Yibiao said: "in some places in the country, those luxury brands can come in, and finally make comparisons between domestic and foreign countries.

    For example, the famous brand bags and cosmetics, which are so expensive in China at present, are definitely not caused by tariff collection on them. Instead, they are determined by the price of the luxury brand, and the brand is intending to give the domestic consumers the highest price in the world.


    According to McKinsey Co research, China's luxury consumption will reach 180 billion yuan in 2015.

    By then, China will account for more than 20% of the global luxury market, more than Japan, the world's largest luxury market.

    The "2011 China luxury report" released by University of International Business and Economics luxury research center in January this year said, "Chinese consumers have become one of the largest luxury consumer groups in the world".


    The "double-edged sword" of luxury development


    Zhou Ting, an associate professor of University of International Business and Economics and a luxury goods research expert, told reporters that "the overall trend of luxury consumption in China in the future is cautiously optimistic."


    China's strong luxury consumption enthusiasm has prompted many international luxury brands to enter China. In the past 20 years, the consumption of luxury goods consumption has gradually shifted from conspicuous consumption to self consumption and enjoyment.


    The fierce competition in the luxury industry has, on the one hand, prompted the international luxury brands to tap the potential of the Chinese market, and the market has begun to expand from the first tier cities to the two or three tier cities. On the other hand, the domestic luxury brands are still in the embryonic stage, which provides the relevant domestic brands with the opportunity to learn advanced management experience, speed up their integration with the international market, and at the same time, the cruelty of the external market environment also challenges the development of the domestic luxury goods industry.

    Zhou Ting said.


    Zhou Ting believes that this "double-edged sword" will become the main theme of the development of China's luxury goods industry.


    "The fundamental reason why China can maintain such a high level of luxury consumption is the sustained development of China's economy. The accumulation of wealth has given birth to a large number of high consumption groups. This is the basis for stimulating and stimulating the continuous growth of luxury consumption in China."

    Zhou Ting said.


    He has served as the Chinese commercial director of the French Hermes, and is now the president of China BOTTEGA VENETA (BV) in Italy. He also accepted an interview with the China Youth Daily reporter. He believed that the luxury consumption of such a fast growing Chinese market is positive for China's luxury industry.

    Whether in Hermes or BV, the brand management career in the past 8 years has witnessed the flourishing development of China's luxury market.


    Haste makes waste.


    In order to truly establish a representative luxury brand, Chinese enterprises should not only make efforts in content, but also need to pursue the acme in a comprehensive and meticulous way from spirit to material, even if it is a small appliance.


    "Time is the core of the ultimate product, just as life is the most precious possession of human beings.

    Building brand is the same as planning life, but haste makes waste.

    Gao Feng said.


    Zhou Ting agrees with the idea that "Haste makes waste".

    She believes that at the present stage, the domestic luxury brand construction is in the embryonic stage. If China wants to create local luxury brands, it must adhere to the three principles: stick to it, stick to it and endure it.

    That is, we must adhere to the brand value of luxury brands, stick to the highest level of the market, and accumulate slowly in bad market environment.


    The development of the Internet has diversified the way of shopping, and online shopping of luxury goods has attracted much attention.

    Luxury brand

    It is difficult to predict and distinguish the genuine and fake buyers.

    The peak of this phenomenon indicates that in the near future, more brands will take the initiative to intervene in online business and provide consumers with high quality products and service guarantees, which will also bring further market competition in the industry.


    Zhou Ting said that luxury goods, as a special commodity, are scarce and satisfy the dreams of a few people. It seems that it is difficult to embody the value of luxury goods through the online sales mode of low discount routes.


    "Safe distribution will also be a concern for luxury consumers when shopping online."

    Zhou Ting said, this is mainly because the luxury website in the initial stage mostly used the way of logistics outsourcing, but China does not have a comprehensive high-end logistics distribution system, once the loss, damage or wear of goods in the process of distribution, it is easy to cause disputes between consumers, logistics companies and luxury electric business between the three.


    European luxury brands have been involved in all areas of people's lives. After more than 100 years of development, many old family brands have been replaced by new brands.

    Peak believes that the competition between brands has existed for a long time, in fact, it has also promoted the development of the industry.

    Therefore, China's luxury brands should create and develop local brands through healthy market competition.


    Gao insists that the luxury industry is an industry that emphasizes innovation while safeguarding value.

    {page_break}


    Chinese luxury industry operators must be able to place their affection on their works when creating the highest quality products.

    Peak said: "brand is not entirely based on advertising investment and marketing package.

    A real brand has a line of affection hidden behind its products, and the brand is the ultimate relationship between things and people.


    The core of luxury brand creation


    Luxury brands have been introduced into China for about 20 years, and Chinese consumers have been able to drive the development of the world's luxury goods industry, even in the financial crisis.

    The McKinsey report shows that even during the global recession in 2009, China's luxury consumption market increased by 16%, a little lower than the 20% growth rate in previous years.


    Peak said: "luxury brands have always been good at getting through the economic crisis.

    This phenomenon may reflect the persistence and uncompromising attitude of high-end consumers to quality life.

    An excellent brand, an outstanding work, must be able to awaken feelings and go directly to human nature.


    China's luxury market development in the past 20 years has led to the prosperity of the world's luxury goods industry, but failed to bring a luxury brand belonging to China.

    Peak summed up the current shortage of luxury goods in China: the design has not yet formed a system.

    Marketing

    Lack of quality control, inadequate terminal management, and improvement of service flow.


    China has five thousand years of cultural details and good genes for the growth of luxury brands, but the peak thinks: "traditional crafts can not be equated with brands, because design is the soul and technology is the means."

    Material language and contemporary functions are indispensable factors for brand establishment.

    The difficulty for Chinese enterprises to create local luxury brands is largely that they fail to recognize the practical problems and ignore the practical needs of handicrafts.

    Gao said, "only by keeping pace with the times, meeting the functional needs of contemporary society and breaking through the functions of life, the use of material language is the core of creating luxury brands."


    Zhou Ting believes that although the material language has packed the core of the luxury brand, but the lack of precipitation and accumulation will make the luxury brand deficient from the beginning and may die young.


    The core value of the luxury brand is to deliver a high quality life to the consumer through the top products.

    This shows that the essence of consumer luxury goods lies in its deep cultural connotation and brand value through luxury goods. Most of the luxury goods have unique stories in the course of a century's operation, which runs through the whole development of luxury goods.

    Although with the development of the times, luxury products are more closely related to the process, but their brand value never fade in its business process.


    Zhou Ting said: "luxury cultural construction is not achieved overnight.

    The construction of luxury brands applies traditional elements, sticks to the most distinctive value of the brand, and then makes breakthroughs in technology, which is the foundation of creating luxury brands.


    Road to luxury development


    "I predict that no more than 20 years from now, we will have the luxury brand of China.

    And every category is possible. "

    Peak said, we can learn from and learn the way to successfully manage luxury brands, but we can not copy their development models.


    According to a survey in the 2011 China luxury report, luxury consumers in China are drinking liquor.

    Clothes & Accessories

    After comparing the more than 20 categories of watches, jewelry, cigarettes, tea, porcelain, furniture, handicrafts and 300 Chinese brands, it is considered that China's high-end liquor brands are the most potential brands of luxury goods, and the Chinese liquor Moutai is placed the highest expectation.


    "This is mainly because Moutai not only has a long history of brewing technology and strong drinking culture and unique geographical advantages, but also has excellent quality, high price, market position and word-of-mouth, without doubt, the most potential Chinese brand of luxury goods."

    Zhou Ting said.


    The peak does not agree with this view. He thinks that not only those industries with economic strength are the cradle of luxury goods, but young enterprises can create the ultimate products as much as traditional crafts and innovative products.


    "Chinese enterprises need to pay attention to the details of life, grasp the quality of life and aesthetic concepts of the nation, and the more deeply understand and understand the traditional craft industry, the easier it is to create the ultimate product to break through the functional needs of life."

    Gao Feng said.


    The real luxury must have its spiritual connotation behind it. This spiritual connotation should be valuable to individuals and society.

    Building China's luxury brand with Chinese symbols is the most realistic way at present.

    The more national, the more the world.

    Ethnic things often have personality and characteristics, and can form brand value.

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