Luxury Brand Horse Drawn Enclosure Shenyang Chengdu Hangzhou Three City Favored

"The growth of Chinese luxury consumers in five years has caught up with the precipitation and change of half a generation abroad." Lin Hongceng, chairman of Max Mara, Kiton and other luxury brands in China's joint venture GEIL Gold Co., Ltd., sighed in an interview.

Indeed, the rapid change in Chinese consumers has caught the branding unprepared. When the US financial crisis brought the luxury industry into a global downturn, the rapid growth of China's luxury market gave hope to luxury brands, but only three or four years later, a number of international agencies' market reports pointed out that consumers in China's first tier cities began to shift from conspicuous consumption to more self and personalized demand.

Same time High-end brand The two or three line cities with relatively poor environment are just another few years after today. Look at Shenyang, the Youth Street known as "Golden Corridor" by the local people. In just 7 kilometers, there are more than 10 high-end shopping malls, more than 150 luxury stores and counters.

When the consumers in the first tier cities become more self aware and cautious, these rapidly rising "new frontline" enters the luxury outbreak period, which is bringing a new round of huge profits for luxury brands.

　　 Shenyang: rich and generous

　　 Luxury brand Cartire (Cartier) recently held its famous global exhibition "Cartire collection" exhibition in Shenyang. Before that, the exhibition covered all the international metropolises of Paris, London and Tokyo. Although the Cartire collection was not held for the first time in China, it used to be the Museum of Shanghai, the the Imperial Palace of Beijing and the the Imperial Palace Museum in Taipei.

"The Shenyang market is really important to us." Familiar with many luxury brand practitioners told reporters, "for many luxury brands, Shenyang's sales performance is ranked the top three in the country."

As a sign of high-end property, LV (Louis Vuitton) opened its flagship store in the Mixc, Shenyang, in the first half of this year. This is the fourth store that it opened in Shenyang, second only to Beijing. What is interesting is that from the map, these four specialized shops all fall on the above "Golden Corridor" of Shenyang.

"The Shenyang market is oriented to the three northeastern provinces, which has a wide range of radiation. Many luxury customers here come from the surrounding cities." He Bin, director of Italy luxury brand Kiton, told our reporter. The ability of a city to radiate its surroundings is related to its potential as a luxury market. This is also one of the factors to consider when choosing a luxury brand.

But the surging market does not always stimulate luxury brands. "So many high-end Shopping Mall have gathered in a certain volume, plus the establishment of Shopping Mall around other cities, the crowd is more diverted, the sales volume of the monomer is falling faster, and the overall cost control of the brand is even more difficult. Moreover, whether the growth of consumer groups can keep up with the hot development of this high-end property is also a problem. This is He Bin's concern about the Shenyang market.

　　 Chengdu: a new line of fashion

With regard to the hot development of high end real estate, another rising new line is Chengdu. In addition to the old brand Renhe Spring Department store and Meimei Cheng Department store, Chengdu's consumption power attracted the entry of high-end Mall such as Yan Heng Plaza, IFS Chengdu state gold center, Lotte Department store and Tai Koo square in a short time.

{page_break}

The bottom line of these high-end real estate comes from the popularity of the international top brand in Chengdu. According to the Chengdu International Retailers Association's "investigation report on the international famous brands' entry into Chengdu," as of the end of last year, Chengdu has introduced 199 international brands at all levels, accounting for 79% of the total number of international brands in the world, 252. And a large number of luxury brands in Chengdu shop has set up a single store sales success.

Unlike other luxury brands, the first thing that attracted Kiton attention is Chengdu's non-traditional first-line city. In He Bin's view, the consumption potential of the Chengdu region is higher than that of the three northeast provinces, because not only local consumption, but also the tourism economy of Chengdu is very developed, which brings consumers all over the country.

What is more interesting is that He Bin finds that Chengdu's consumers are very receptive to new things. Even if it is a relatively new brand for Chinese market, consumers in Chengdu can accept it as long as they understand it. This is different from the general consumption concept that only selects internationally famous brands.

　　 H&M Magnus Olsson, general manager of Greater China, feels this too. "In terms of fashion, Chengdu even surpasses the first tier cities, where consumers are extremely sensitive to fashion." Magnus Olsson sighed to reporters. Not long ago, H&M opened the world's 3000th landmark stores in Chengdu.

Even Lane Crawford, a luxury department store with many small designer brands, will open its first store in Shanghai later this month, and will also actively deploy its store opening plan in Chengdu.

　　 Hangzhou: strong consumer learning ability

Like Chengdu, Hangzhou has a strong consumer learning ability in the new front-line city. The Hangzhou Tower in the city has been sitting in the luxury department store sales champion for the past few years.

"Hangzhou's sales performance has been very good, and consumers here are very professional about fashion and quality. There is a lot of private businesses in the region. In addition, there are many people in the region who are engaged in clothing and downstream industries. They know a lot about foreign fashion, and their psychological desire is close to that of foreign consumers. He Bin introduced.

Kiton's retail strategy in Hangzhou is quite different from those in Shenyang and Xi'an. For example, the color of Hangzhou's products is relatively rich and its style is relatively new. Similar products are hardly seen in Xi'an, where consumers like conservative colors and wider type of trousers.

Despite the different characteristics of the new front-line consumers, there are common challenges and risks for luxury brands. "After all, luxury brands have a high demand for customers' care and service. In the rising new front-line cities, the talents in the luxury industry will be a bigger challenge. These cities should have a high-end brand retail atmosphere and a group of people who have a full knowledge of luxury brands and how to deal with the brand itself and customers." Xu Youhong, director and director of retail business in Accenture, Greater China, suggested to our reporter.

In addition, as with other retailers, Xu Youhong believes that large-scale chain leads to the risk of luxury brands in inventory management, while seamless online and offline links will be effective ways to solve the contradiction between luxury brands' diversification of goods and inventory management in the layout of new tier cities.