What Are The Difficulties In Seizing China'S Luxury Clothing Market?

The Chinese market, which has solved the problem of "food and clothing", seems to be entering an era of luxury consumption. People think that this market has been formed and has a large scale. Therefore, on the market, any new clothing brand has started, and has no scruples to claim that it represents the high-end, can provide aristocratic life experience and have the temperament and demeanor of successful people. this may be due to the growth of China's luxury market, or the formation and growth of the new rich and middle class. How many luxury markets are there in China? Can Chinese clothing brands become global luxury brands? And what conditions are needed to seize the luxury market in China? Host: at present, what is the situation of China's luxury market? Lu Xiao: from our point of view, there are about 345000 Chinese people with financial assets over 1 million US dollars. That is to say, in addition to their houses and cars, they have $1 million in cash as their financial assets. This number is very strange, because this number is equal to that of France, half of that of Germany. It should be said that this figure is a very important number, that is to say, there are enough people in China to consume these high-end luxury goods. As far as the annual income of families is concerned, there are three categories. There are 5 million households with an income of more than 1 million yuan. These are rich families. In addition, there are 40 million households with an annual income of 500000 yuan. We call them rich families, and 150 million households have more than 100000 yuan. These are called middle class families. These people belong to the middle and high-end income families, that is to say, there are 195 million households. these 195 million families are well educated and have university degrees. These people are mainly concentrated in China's economic core areas, such as Beijing, Shanghai, Guangzhou and Hangzhou. In order to better understand these consumers, we can analyze them in different ways. We can classify them according to their consumption mentality. We can divide their attitude differences into four types, that is, luxury lovers 15%, luxury followers 22%, luxury rational 35%, luxury laggard 28%. For luxury goods lovers, that is to say, 15% of these people prefer to pursue a certain social status. And luxury followers, which are 22% of the people, pursue success. They want to show others that I belong to a certain social group because I buy a certain brand. Then there are luxury rational people, accounting for 35%. These people are often pursuing the luxury culture and some knowledge behind the brand. They understand the value and story of these brands, and they should understand the knowledge before buying. Finally, there is another kind of market segment, that is, people who enjoy life. This market segment will appear. at present, one of the biggest characteristics of Chinese luxury consumers is that 64% of consumers think luxury represents success, and only 1% of consumers think luxury represents superficiality. Therefore, China's luxury market has a bright future. Zheng Yonggang: in today's Chinese market, it is not luxury brands that cover the whole Chinese consumer market, but luxury brands are only a small market space. Of course, this space will really cultivate the development of luxury brands only after China's economy continues to rise and develop, forming a large number of middle class, entrepreneurs and rich people. However, on the contrary, we feel that it is more important to make China's own brands serve a large number of emerging development markets. Host: what are the difficulties in seizing China's luxury market? Xia Hua: I think luxury goods have been in the Chinese market for so many years, and they will also face a problem, that is, the difficulty in communicating with their real customers, because at present, most of the luxury goods are used as gifts, and they are not bought and worn by a group of people. In addition, even if they buy and wear one person, not many people really understand the brand and really understand the feeling it brings to them. The exploration period of culture. I believe this is the biggest problem facing every Chinese brand. Over the years, men's wear has been especially popular. Since the birth of suits, we started with suits. The term "foreign clothes" has the flavor of imported products. At a product launch held by soimi and even at the product confirmation meeting every season, we are thinking about who we are, what are our core values and cultural support Is that right? Whether it is LV or other brands, I think I buy their products because of their history, because their legendary stories make us feel that their price is acceptable. For Chinese brands, enterprises growing up in China, we don't have that long history, and it's hard for us to make up those stories.