Luxury Brands Are Trapped In China'S "Profiteering Door" Expansion.

Netizens micro-blog broke the news that the GUCCI package priced at over 10000 yuan was imported into the LV leather shoes with a price tag of only a few hundred yuan, and consumers complained about the price of nearly 8000 yuan. After 10 days, the skin split open.

Notice that the recent negative news of luxury brands in the Chinese market is frequent.

In fact, over the past year or so, many of the world's top luxury brands are gathering to speed up the gold rush in emerging markets like China.

The people here are foolish and rich.

They are eyeing China's huge consumer market.

However, with the maturity of local consumers' consumption psychology of luxury goods, it will be more and more critical in China. This is a problem that must be squarely faced in the process of luxury brand "Chinese dream".

Luxury brands fall into "profiteering door" in China

Yesterday, a net friend on micro-blog said that he met the Beijing new light heaven and earth GUCCI shop chief to report that a bag was stolen, but because "the price of the goods is only a few hundred yuan", there is no criminal case.

The netizen then questioned "is the purchase price really so much, or is the new world selling fake goods?" although GUCCI has responded, the price is not only a few hundred yuan.

But the incident still caused many netizens "Tucao" luxury profits.

In recent years, quality problems have also led to frequent criticism of luxury goods in China.

In 2008 and 2011, there were problems such as knapsack and rubber split, but LV refused to admit that the quality of the products was defective.

In 2010, a GUCCI leather bag with a consumer complaint of $10000 was purchased and used to open the belt. GUCCI confirmed that the open wiring was normal and would only be repaired without replacement.

In the same year, consumers complained that the SWAROVSKI watch which had been purchased for 7000 yuan appeared a few days later.

At present, the brand PRADA listed in Hongkong is also repeatedly complained by consumers because of its fading.

Speed up the enclosure of emerging markets

Because of the weak market and low consumption in Europe and America, the Chinese are becoming the most thrill luxury consumers in the world.

A few days ago, CLSA issued a research report showing that Chinese luxury consumption accounted for 40% of French luxury sales in 2011.

The Chinese purchase of GUCCI and PRADA even account for 1/3 of the two brands sold globally.

According to foreign media reports, although LVMN's sales in China increased by 25% in the first quarter of 2012, the company believes that the Chinese luxury market is far from saturated.

Many brands of LVMH are considering entering the two or three tier cities in China.

In addition, PPR SA, the parent company of GUCCI, plans to open 110 shops this year, half of them in Asia and the other half in other regions.

Dimak, President and CEO of the brand, revealed that

There will be 10 new stores in China this year, and last year the brand opened 6 in China.

The same expansion of the Chinese market also includes jewelry, luxury car brands and so on.

The expansion is too fast to keep up with the quality of service.

Some analysts pointed out that perhaps because of the rapid expansion, luxury quality and service problems also followed.

Huang Wenjie, executive chairman of the Guangdong Circulation Industry Association, told reporters yesterday: "it is a warning bell for the development of China's luxury goods to visit the emerging markets but neglect the quality of products."

He said that whether China's high tariffs on luxury goods or luxury brands in China do not track the quality of products, it is not a phenomenon that high-end brands should appear.

With the expansion of luxury goods in China, the localization of production and services to achieve a high level of global unity is the factors that need to be taken into consideration in these high brands.