Two Or Three Tier Cities Are Becoming The Main Battleground For Luxury Consumption.

< p > South of Renmin Road south of Chengdu, there is a huge "LV" logo on the Ren Heng Plaza on the red wall.

< a href= "http://sjfzxm.com/news/index_c.asp" > LV < /a > is a weathervane of luxury brands in the world.

The purchasing power of the people of Chengdu was excepting. The LV flagship store in Renheng Plaza sold the merchandise with a total value of 5 million yuan on the day of trial operation in September 2010.

The western city of China is becoming a new growth point of luxury sales.

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Huang Zhongxing, general manager of Yan Heng land (Chengdu), was delighted with this: "we are very right in putting Chengdu in this city as a luxury market." P

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< p > although the price of "a href=" http://sjfzxm.com/news/index_f.asp "luxury" /a "in China is 30% or even 1 times higher than that in Europe and the United States and Hongkong, this does not affect the presentation of the strong consumption power and business opportunities in these Chinese" cock wire cities ".

According to data released by Goldman Sachs, a well-known investment bank, in 2012, Chinese luxury goods spent 46 billion dollars a year, including 18 billion 900 million dollars in domestic consumption.

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< p > two or three line cities are becoming the main battleground of high-end brand consumption.

Ogilvy China consumer insight and trend research team also reported in January 7th that consumers in China's two or three tier cities are controlling China and the world economy.

In 2011, all brands invested in advertising in two or three line cities as high as 2 trillion and 200 billion yuan, 4 times as many as those in the first tier cities.

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< p > < strong > LV leaving < /strong > /p >

< p > recently, a group of 30 tourists from Beijing and Shanghai traveled around Europe and brought back many luxury brands.

Shen Li, a senior fashion editor, was one of the 30 people. She was surprised to find that there was not a LV in the "sweeping" action.

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< p > Beijing, Shanghai and other places have gradually passed the crazy growth period in the past few years, "LV, no matter how true or false".

Shen Li analyzed the reasons why traditional luxury brands such as LV, < a href= "http://sjfzxm.com/news/index_s.asp" > Gucci < /a "became" disfavor "among consumers in the first tier cities in China from the perspective of fashion. She said that nowadays, consumers in tier one cities are pursuing" LOGO "when they buy luxury goods. They are becoming more rational and mature. They prefer LOGO less obvious brands, such as Prada, and the most popular and low-key brands such as Celine and BV in the past two years.

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< p > data prove this point.

"LV stores in Beijing and Shanghai, where high-end consumers are concentrated, store sales decline 5% to 10% a year.

They are also stepping up their adjustment models to retain top consumers, but the result is disappointing.

Shen Li said.

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< p > she thinks that one of the reasons is that LV is mainly promoting low-end products in China.

In foreign countries, LV's basic products are many ordinary people and even nanny to spend.

"Of course, compared with the LV and Gucci that first entered the Chinese market, with more luxury brands entering the Chinese market and the Chinese people's recognition of luxury brands, it is also one of the reasons for the diversion of some LV sales."

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< p > luxury goods in China's first tier city market has brought opportunities to the market of the two or three tier cities.

LV in Wuhan, Changsha, Zhengzhou, Shenyang, Harbin, Urumqi and other two or three tier cities, have gradually increased the strength of the shop.

This makes the Chinese market Qi Ping Japan, becoming the largest market share contributor of LVMH group's sales in 2011 exceeding 23 billion 700 million euros.

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< p > September 2012, LV opened forty-second stores in China in Shijiazhuang, the capital of Hebei province.

The head of the northern market development of a jewellery brand in Hongkong revealed that LV LV store was located in the first world square, where many brands were competing to enter because of the entry of LV.

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< p > the responsible person also said that Shijiazhuang is not a second-tier city, but after LV entry, business is still very good. Slowly, other international luxury brands will arrive.

At present, in the northern market, luxury brands are preparing to enter the two or three tier cities: Taiyuan, Datong, Baoding, Handan, Hohhot, Baotou and so on.

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< p > can not underestimate the consumption ability of the two or three tier cities.

It is understood that the reason why LV opened flagship store in Chengdu is that the sales performance of LV Chengdu's direct sales outlets up to 900 million yuan has been ranked the top three in China after Beijing and Shanghai, while Prada, ErmenegildoZegna and other brands have been ranked third in China.

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< p > Research Report: in-depth China: pformation and continuity, is the Ogilvy research team focused on the market in the past 7 years third times.

The report reexamines the two or three line city market in China. Over the past few years, with the development of the Internet and the growth of the incomes of the two or three tier urban residents, their followers of big cities are becoming more and more synchronized with the first tier cities.

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The 234 line city of China has a large consumer group of two hundred million families, according to Lingyun sword, the senior consumer insight director of the Chinese consumer insight and trend research team of the Chinese consumers' p.

In 2011, the disposable income of the first tier urban residents was 1 trillion yuan, while the total disposable income of the 234 line urban residents was about 8 trillion yuan.

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< p > "according to experience, the sensitivity and trend of Chinese two or three tier cities to fashion is 3~5 years later than that of first tier cities.

In the past few years, the most popular trend of LV and Gucci in Beijing, Shanghai and other places were pmitted to the two or three line cities, and the latest trend of Beijing and Shanghai has not yet affected them.

Shen Li said.

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< p > < strong > high-end consumption "go to the countryside" < /strong > /p >

Similar to luxury goods, luxury hotels are also opening up the two or three tier city market in China in recent years. < p >

Sheraton, Sofit, intercontinental, Wenstin, and even Ritz Carlton all appeared in the streets of Tianjin, Zhengzhou, Wuhan, Changsha and Urumqi.

According to Wang Qi, public relations manager of Chongqing Suofeite Hotel, only five new star hotels opened in Chongqing in 2012, up to 5, including Kempinski, Hyatt, Hilton and so on.

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< p > "the market of the first tier cities is getting saturated, especially the hotel industry, location and location.

Therefore, we must move to two or three tier cities.

With the improvement of living standards and the strengthening of economic activities, the two or three line cities have also formed a certain source of tourists.

Senior hotel manager Cai Yuling said.

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< p > "this is also due to the consideration of future market layout, and compared with the competitors, this needs to establish group advantages and form national brand value," said Song Xiang, chairman of Hainan hotels group. "Especially in the context of the general rise of the two or three tier cities' land price, if the future is not ready, the future cost may be greater."

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Less than P, but with luxury goods in China's two or three tier cities to expand sales and grab more profits, the difference is that in two or three cities, the newly opened luxury hotels are basically at a loss.

Song Xiang said, "this is not just a matter of growing up. The reason is that there are not many market visitors in the two or three tier cities at present, as compared with those in Beijing and Shanghai. Compared with the one thousand or two thousand rooms in Beijing, Shanghai and other cities, the room price of the two or three tier cities is usually only six to eight hundred yuan."

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< p > another obvious case of high-end consumption "going to the countryside" is wine.

Zhang Xiang, chairman of a wine industry Co., Ltd. in Shanghai, believes that the wine consumption boom is quietly changing from the first tier cities to the two or three tier cities.

For liquor market, it is more accurate to infiltrate from coastal cities to inland two or three line cities.

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< p > in his view, Chinese people should start drinking wine from Guangdong, Fujian and Zhejiang provinces, and later developed into Shandong.

A clear pfer point of consumption growth point was in 2011, during which the economic growth slowed down in the Yangtze River Delta region, coupled with the continued accumulation of wine investment bubble burst.

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< p > almost all importers and agents realize that the first tier market has entered a relatively stable dynamic equilibrium barrier period. The two or three line city with strong consumption capability is the focus of market development.

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The P Zhang Xiang company made 6 wine tasting sessions in December last year, all of which are two or three line cities, such as Changsha, Wuhan, Kunming and Langfang.

As a very experienced wine lecturer in the circle, Qi Shaoren is aware of the change in his lectures. His latest job is a golf club in Kunming, which tells the wine of a bank's private bank customers.

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< p > Zhang Xiang thinks this is the inevitable result of years of market education.

The process of market structure change is very fast.

"I went to Beijing Houhai bar in 2003, no one was drinking wine, and I was pouring Tsingtao Brewery.

No one knows rato, everyone says that the wine is sour, only Lafite, some people say it sounds familiar.

Qi Shaoren said.

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< p > < strong > urban considerations < /strong > /p >

< p > like the first tier cities, similar to Wanda Plaza and Renheng land Plaza, the comprehensive urban format has become an important place for brand consumption in the two or three tier cities.

Ling Yunjian believes that based on the administrative characteristics of China's urban development, the comprehensive format of these cities is related to the planning of local governments.

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< p > the responsible person of the planning department of Qingdao Hisense Donghai commerce and Trade Co., Ltd. said that Hisense Plaza is the most concentrated store in Qingdao's luxury brands.

Hisense Plaza adopts the latest combination format of "senior department store +SHOPPING-MALL", and the proportion of world-class brands reaches 80% of the total brand.

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< p > over the past ten years, this commercial property has been sinking to China's 234 tier cities.

Lu Yi, general manager of Beijing Jinbao, thinks that this sinking is driven by luxury enterprises.

"If these luxury brands do not enter the two or three tier cities, no developers dare to go."

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Huang Zhongxing, general manager of renhang land (Chengdu), thinks that this is also related to government planning. < p >

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< p > according to the assumption of Chengdu Commerce Bureau, Chengdu should strive to become the first international brand to launch in the West and internationally known fashion consumption destination.

They have made the goal of "introducing 20 famous international brands and enterprises every year, and by 2015, the first line of international first-line brands will reach above 80%".

The two great books of luxury and luxury appreciation are placed on the desk of Zhang Weidong, director of Commerce Bureau of Jinjiang District, Chengdu.

He hopes to build Jinjiang District into a luxury gathering area in the western region.

At present, the number and size of international brand flagship stores stationed in Jinjiang District have ranked third in China and the first in the West.

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In order to achieve the goal, Chengdu commercial bureau has formulated a reward mechanism for internationally famous brand suppliers, operators, agents and promoters to achieve the goal of P.

And Jinjiang District has also issued a "new Jinjiang District settled in the international well-known brand enterprises to give a maximum of 500 thousand yuan of decoration subsidies" measures.

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"P", which is a Singapore business, is attracting investment under such a plan.

Under such a planning pmission, the owners of the city's comprehensive format also regard the entry of luxury brands as high-end consumer brands as a promise to enhance the city's taste, and therefore throw out various kinds of preferential olive branches to high-end brands.

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< p > Song Jianzhao, Secretary General of Chengdu retail trade association, said that the purpose of Chengdu's introduction of international brands is to attract customers from surrounding areas.

At the same time, Luxury Retailing can also bring huge tax contributions.

It is reported that the comprehensive tax rate of the supermarket is around 10%, while the comprehensive tax rate of some luxury goods stores is as high as 50%.

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< p > mall owners have other considerations. For example, the entry of LV will bring other brands.

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< p > in fact, according to normal indicators, Shijiazhuang, Handan and many other two or three tier cities can not meet the stringent requirements of luxury brands.

In the past, the new sites of these international brands had been inspecting for at least two to three years.

Hongkong jewelry brand north market development leader said.

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< p > international companies are very particular about data. In addition to their own teams, they will hire third party consulting firms to provide information.

Local population data, GDP level, per capita disposable income, per capita consumption level, economic activity measurement, consumption capacity and other simple peripheral data, new and old business circles will be strictly investigated as the content of the survey.

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< p > but now things are quite different.

The official said that even though some indicators obviously failed to meet the requirements of luxury brands, they all wanted to occupy the market.

"Plus our shopping malls are really heroic, providing many temptations."

He said that according to the current situation, the preparation period of a luxury brand new shop shortened to a year, which also includes two or three months' renovation period, order time, recruitment and training period for professionals.

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< p > above, the shopping malls have personally offered two to thirty million renovation fees, and still try to give them big profits.

He also revealed that since the second half of 2011, department stores began to adjust the original jewelry and gold brands on the first floor to the upper floors to make way for international luxury brands. Now this is a common phenomenon.

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< p > in a second tier city, one of the most influential department stores in the region is undergoing pformation and upgrading. Dior, Chanel and others have been stationed, using the lease to expire. The Department Store began to sell orders to the sales mainstay, some of the popular brands.

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P, a luxury distributing center in Hangzhou, has also undergone such a pformation.

In 2007, intime department store invested $526 million to acquire the 50% stake in Lakeside international fame street. It reformed the product item and invited some brands that are not consistent with the location of the block. The brand that you invites should be aligned with the existing high-end brands.

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< p > for Jordi Constance, the new president of the LV and the Spaniard of 48 years old, the need to make a good trade-off is to let LV have more sales, seize more market share, achieve the effect of small profits or quick turnover, or maintain the noble sense of the brand. The brand loses its mystery and noble feeling, and will be abandoned by many consumers who want to "make things scarce".

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< p > Shen Li thinks, "the pmission effect will appear.

The future two or three tier market in China will not be infatuated with a brand like now.

Ling Yunjian also believes that China's high-end consumer market will show a diversified trend in the future. The consumers of the two or three tier cities are not only followers of the first tier cities, but also in turn affect the consumption habits of the first tier cities.

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