The Ten Secrets Of Luxury Industry

Today, 60% of the market share of luxury goods is controlled by 35 major brands.

The annual turnover of brands such as Gucci, Prada, Giorgio Armani, Hermes and Chanel is over $1 billion.

In fact, most of the luxury brands we like to talk about are created by the humble artisans in eighteenth Century and nineteenth Century for making exquisite handicrafts by the royal family.

During the Bourbon family and the Bonaparte family rule France, the luxury goods that modern people knew were born in France.

At the end of the nineteenth Century, the royal power declined, the bourgeoisie rose, the European aristocracy and the elite of the United States, such as the Vander Bill family, the Astor family and the Whitney family formed a closed circle. Luxury became their exclusive domain.

Luxury is an element of life belonging to the upper class. It is desirable to join a senior club or to have a famous family name.

Moreover, they are always produced in small quantities, usually custom-made, only to a very small number of customers.

Today, these companies still call the founder's name. In fact, the vast majority have been bought and run by business tycoons.

Over the past 20 years, they have turned a single brand into a big brand known by billions of dollars worth of big companies and earth people.

The label of origin label

To protect their labels and trademarks, we will provide manufacturers with only a certain number of labels in each batch of handbags orders.

Manufacturers told reporters that very few handbags really use the "Made in China" label.

Even so, the technique is very subtle.

Some handbag labels are sewn on the bottom of the suture of the inner pocket.

In some handbags, the label is printed on the stamp size of the company's trademark.

You need to use a magnifying glass when reading.

In most cases, the handbags are labeled "Made in Italy", "Made in France" or "Made in U.K".

The label of the word.

Brand manufacturers avoid the "made in China" label as much as possible.

The label of a brand "Made in China" is actually a sticker attached to the outer package.

When the goods arrive in Italy, the brands will tear up the adhesive stickers and replace them with the new "Made in Italy" stickers.

Some brands sell all their handbags in China except for handles.

When handbags are shipped to Italy, the handle is added, and some brands put the most intensive parts of shoe processing in China, and then wear shoes in Italy. These products are all labeled "Made in Italy".

IT Handbag - masterpiece in marketing

At the end of the eighteenth Century, women in Europe wore plucent high waist skirts without pockets, and had to put valuable items in their bags. The bag was seen as the front of the handbag.

At the end of the nineteenth Century, sewing and embroidery had become a daily activity. The upper class women put needles into gorgeous sewing bags.

Besides, anything else on your body will be regarded as impolite: that's why you should bring your attendants.

Modern handbags came into being with the appearance of women's participation in politics in twentieth Century.

The handbag symbolizes a new independence. It means free to come and go wherever you like, leaving home without telling anyone.

Soon handbags become an important accessory for ordinary consumers.

IT handbag phenomenon has only been produced for more than 20 years. It can be said that young and dynamic is created by the marketing operation of luxury enterprises.

In the 90s fashion magazine, if you can't keep up with the clothes in the wardrobe every season, you can make a new look through a new bag.

Fashion companies push handbags into cutting-edge products, making them more and more provocative commercial advertising centers.

The handbag has become a fascinating temptation.

Today, in the success of a luxury brand, handbags have become such an important factor that Gucci group (Gucci) blamed the poor sales of Saint Laurent in 2005 for its lack of popular handbags in several of its products.

IT is also a Fendi bag. Gefendi has pformed from a vulgar, vulgar old fur company into a top luxury fashion brand.

Louis Weedon's popularity and blemish

Louis Vuitton is very good at packing and packing beautiful skirts and fancy things, thus becoming queen Napoleon Ou Renni's box packing worker and leather box maker.

The Queen's Royal authorization order represents the highest honor.

Vuitton's business is booming.

In 1859, he decided to expand the storefront, bought an acre of land in the Northeast suburb of Paris, and built a factory with two rooms. Now it has become the Louis Weedon Museum for visitors.

The period from the end of nineteenth Century to the Second World War was an elegant age, perhaps the last true golden age of luxury.

During that time, Georges, the son of Vuitton, at the age of 31, designed LV's most famous checkerboard, chocolate brown and beige Western chessboard pattern. In some chessboard there were "Marque Louis Vuitton Deposee" written in white, indicating that it was a legally registered trademark, and the so called "brand name" was born.

During World War II, in order to maintain operation, some French luxury stores and women's clothing stores also sold goods to Nazi officers and adultery wives, and Louis Weedon also listed them.

This family history was not mentioned by Louis Vuitton, and was not disclosed until 2004.

Luxury stores: results of vertical integration of industries

At present, most luxury brands we see are direct outlets located on the streets.

In fact, this is not the case. This is the result of an important reform in the luxury industry, and it is also related to Louis Weedon.

In 1977, the Weedon family's son-in-law, the 65 year old Henry Lei Camille, accepted the management of Louis Weedon brand.

After reading a lot of books, Ray Kamil found that in the commercial chain, retailers, especially franchisers with franchises, took the biggest part of profits.

At that time, most luxury companies were still small in size, run by the founders' families, and they were not good at commercial operation.

Ray Camille is not a fashion man, he is a businessman.

He decided to implement a strategy of "vertical integration" for Louis Weedon: he kicked off middlemen and set up a direct run shop directly managed by Louis Weedon.

This is an important reform in the luxury industry and has achieved unprecedented success in finance.

In just a few years, Louis Weedon's profits rose to an astonishing 40%, while most of their competitors could only earn 15%-25% profits.

Nowadays most of the luxury brands use Lei Camille's mode to vertically integrate upstream and downstream.

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The pformation of luxury industry -- hierarchical standard to monetary standard

In the past 30 years, the income of the developed countries has been increasing dramatically. The age of marriage between men and women is getting late. This allows them to spend more money on themselves.

And consumers are generally more educated than the previous generation, and have gone through more places, thus developing a better taste for fine life.

Business tycoons and financiers smell business opportunities.

They took advantage of the old brand owners and their inheritors who failed to inherit them. They converted the family businesses into branded businesses, and unified brand elements such as storefronts, shop uniforms, products and even coffee cups for meetings.

Then they aim at the new target customers, the middle market.

They are a wide range of socio-economic population, including everyone, from teachers, salesmen to high-tech entrepreneurs, residents of luxury homes, vulgar upstarts, and even guilty of the rich.

Executives of luxury goods companies explain that this is to achieve "democratization" of luxury goods so that luxury can be "accessible to everyone".

It sounds sublime. It seems to be a communist society.

In fact, the goal is precise and clear: try every means to earn more profits.

Charles worth -- the first fashion Godfather

Charles worth is honored as the father of modern advanced custom dress.

In the middle of nineteenth Century, women wore large size skirts, with a Petticoat Skirt underneath them, also called petticoat frames.

Later, he invented the skirt.

He was called the father of modern advanced customization because he did not make clothes that he was asked to customize, unlike his peers.

He has to design a season fashion for customers to pick each season.

He was one of the first designers to host the fashion show, and was the first designer to sew the signature label on his clothes.

He decided what fashion trends were, and then there was a crowd.

"Women are willing to put down any form to dress him up."

The historian at the time was evaluated by Hippo Ti Tyne.

Oscar prize giving ceremony -- the most important publicity opportunity for luxury brands

The Oscar presentation ceremony is the most famous celebrity event and the most important publicity opportunity for luxury brands.

Carol Brody, Harry Winston (Harry) jewelry company, told reporters that if a celebrity was photographed wearing your product on the red carpet of the Oscar presentation ceremony, "every month's sales volume would go up once more" and it would last for several years in.

"Harry Winston's advertising budget in the US is only $about one million a year," he said. "But if you ask Americans who are Harry Winston, they will say," Oh, that's the jeweler who sponsors stars. "

Dressing up stars is the most effective way to attract attention. "

Uma - Mundy made Prada (Prada) famous. Charlize Theron helped Wang Weiwei (Vera Wang) become famous. Haley Berry created Elie Saab.

Sometimes the star brokerage company even signs an agreement with the brand. The brand shows its request: the brooch must be above the waist; the earrings should be clearly visible, so the hair should be bundled up; the star must speak the name of the brand 2-4 times on the national TV channel; if the star is asked about the dress, he must clearly and definitely say the brand name.

There is no such thing as fragrance, fragrance and fragrance.

If Chanel, Baddou and Hermes brand want to launch a new perfume, first of all, summarize a summary to illustrate what kind of perfume they hope to design, and then invite each fragrance and fragrance company to bid.

Compared to the golden age of perfume, this is no longer the case. It is no longer the designer and designer who lunches together to think about the new perfume. Today's "summary" includes the contents of the sales director based on polling, data survey and sales index, usually just taking a fancy to the point of view and the market situation.

Take the "real me" perfume released by Dior in late 1990s, for example, it wrote to Kuster, "this perfume should be as sexy as high heels and as comfortable as Tods's (Tod) s shoes".

In fact, the essentials of famous perfume are all the same.

"Basically, it's what we want to present to women."

A perfume director said to "New York guest".

If it's a luxury brand in France, the outline will say, "also, it should be a great and uncompromising artwork". If it's an outline of the American perfume, it will say, "also, it should sell 4 million dollars in the first two months of Europe two years ago, but also like Givenchy in China."

If the spices and fragrances are interested, they will take the list and let their perfumery work.

On average, every big company does 10 to 15 projects at the same time.

Three weeks later, the perfume lab handed over the "test samples" to the famous perfume directors.

If the supervisor chooses one of the samples, it will set 2 to 3 tons of perfume at the beginning. If it sells well, it will be added.

Perfume editor aRNA has confirmed some rumours about perfume nose, such as he doesn't eat garlic, and he doesn't smell at home.

But he debunk other absurdity, such as the so-called pre tune and keynote of perfume.

"That's bullshit," he said. "When you smell perfume, you smell all the smell."

I asked him the difference between making men's perfume and women's perfume. He wrinkled his nose and waved scornfully. "That's just a marketing trick."

China market -- new challenge of luxury industry

Like Japan, Chinese love to travel and shop.

In 2006, China accounted for 2% of the luxury market, but in the global sales, Chinese accounted for 11% of the total.

The figure is likely to double in ten years, according to the Merrill Lynch report.

"At present, 25 million Chinese travel, reaching 100 million in 2020."

In 2004, analysts at Merrill Lynch in Paris said, "they spend an average of about $1000 per trip per person on luxuries.

They may save on meals and accommodation, but they will not be miserly on luxury goods. "

In 2004, Cassel, chairman and chief executive of Louis Weedon, said: "mainland Chinese are most keen on shopping during travel.

Whenever we sell 100 items in the mainland of China, we sell 150 items to the Chinese who leave the country. "