The Overall Rise Of Light Luxury Brands In The Face Of Economic Slowdown

< p > "light extravagance is an inevitable trend." He Bin, director of China's luxury brand, "a href=" http://www.91se91.com/news/index_p.asp "> Italy < /a >, believes that" especially in the case of "a href=" http://www.91se91.com/news/index_cj.asp "economic crisis" /a "and" economic slowdown ", it is a consumer concept advocated by consumers, because there is less money on hand but luxury is needed, so there is light luxury consumption desire and concept. < /p >
P less than two years ago, the us light luxury brand Michael Kors, which was originally issued at the price of 20 US dollars, has now exceeded 80 dollars and its market value has exceeded 16 billion US dollars. If you look at Michael Kors's earnings, you can see why it is so popular with investors. < /p >
"P" and Michael Kors's "little partners", such as Kate Spade, also have strong growth momentum all over the world. From the product category to the sales channel and the global market, the luxury brand is rising in an all-round way, and their "magnificent" growth has really shocked the slowing down of the global luxury market. < /p >
< p > < strong > light luxury "comprehensive rise" < /strong > /p >
P Fith&Pacific, which has just sold the intellectual property rights of the Juicy Couture brand in the loss, and its sales of the "luxury" Kate Spade in the third quarter is also very inspiring: sales increased by 76.4% compared with the same period. < /p >
The sales of < p > Michael Kors in the month of 7~9 also increased by 38.9% compared with the same period last year, and the sales growth in the same store was as high as 22.9%, which is the growth of the brand's same store sales for thirtieth consecutive quarters. < /p >
< p > at the moment when the development of the global luxury market is slowing down, the high growth of light luxury brands is very bright. The 2013 luxury research report released by Euromonitor, an international market research firm, shows that global luxury goods sales in 2013 will reach 318 billion US dollars, up by 3% over the same period last year, which will continue to slow down compared with the 4% growth last year, and it will not be the same as the two digit growth in the past. < /p >
< p > "light extravagance is an inevitable trend," He Bin, director of Italy luxury brand China, said in an interview with reporters. "Especially under the circumstances of economic crisis and economic slowdown, it is a consumer concept advocated by consumers, because there is less money on hand but luxury is needed, so there is a desire and concept of light luxury." < /p >
< p > the above report clearly points out that one of the driving forces of the global luxury market in 2013 is the development of "light luxury" brand. The rise of light luxury brands has the potential of omnidirectional and full channel. In addition to achieving a 30% sales growth in the US base market, Michael Kors grew strongly by 101% in the third quarter and 45% in the same store, while sales in other regions including China also increased by 64%. Kate Spade whether offline stores or online official website sales increased by 31%. < /p >
< p > in order to fully open up competition for the market, light luxury brands are also expanding their product lines. In May this year, Kate Spade launched a new perfume series. Its goal is to become an all-around fashion brand covering garments, watches, jewelry and stockings. < /p >
< p > light luxury shoes brand UGG high level < a href= "http://www.91se91.com/pioneer/" > Michael Wellman < /a > also said in an interview with reporters that because of fewer products, UGG is also undergoing transformation and improving product lines to reduce dependence on products in the cold season. < /p >
< p > < strong > beach emerging market < /strong > /p >
P. Despite the sudden decline in the growth rate of the Chinese market driven by luxury brands in the past two years, the luxury brand is still growing. In the US market, Coach, which was "sniping" by rival Michael Kors, has grown stagnant even in the domestic market, but its growth in emerging markets such as China is still rapid. < /p >
< p > Michael admitted: "although UGG has entered China for fifth years, China has developed into an extremely important brand market in a very short time. We think this is just the beginning. It is certain that China will become the second largest UGG market in the near future." < /p >
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< p > and it is worth mentioning that compared with other major markets, the development of China's luxury e-business channel has obviously changed in this year. Although UGG is still at the early stage of its e-commerce development in China, it has made Michael see far more than expected market demand. < /p >
< p > the company also told reporters that the total volume of official website has increased by 50% since the year when the brand added to the official website. The official web page browsing and the two return visit rate showed an ideal upward trend, especially the "new to commodity" page browsing volume has increased by more than 50%. < /p >
< p > according to the survey conducted by more than 19400 respondents this year, luxury goods are the more than 2 brand of Chinese consumers online shopping in 2013, second only to tablet computers. < /p >
The spring of "P", China's light luxury market, has led to the accelerated layout of all kinds of capital. This year, including Furla, Kate Spade and other brands are looking for local partners to work together to develop business in China. Private equity fund L Capital Asia, one of the sponsors of the luxury goods group MOET & CHANDON Hennessy LV (LVMH), is also eyeing the emerging luxury market, including China. < /p >
Since P finally raised $637 million in December 2010, L Capital Asia has invested 13 companies in emerging Asian economies, all of which share some common characteristics. "These brands have three characteristics: they provide products or services that are desired, affordable and substitutable." L Capital Asia is summarized in an interview with reporters. < /p >
Generally speaking, the brand of L Capital Asia investment can be classified as lifestyle consumer brands and services. Their market positioning is between the consumption of luxury goods at the top of Pyramid and the consumption of consumer goods at the bottom of Pyramid. This part also has the sense of respect for high-end luxury goods and the cost-effective of mass consumer goods. P < /p >
< p > "we believe that in China, India and Southeast Asian countries, demographic changes and the increasingly wealthy middle class can drive the strong demand of these brands, thus driving the potential of many new attractive brands in the global market. Apart from the high growth rate, these brands can generate higher profitability and return on capital, and they are more flexible in the economic downturn." L Capital Asia explains its investment philosophy in this way. < /p >
< p > at present, L Capital Asia has completed the first round of fund-raising of second private equity funds, and continues to find and invest in these emerging brands in emerging markets including China. < /p >