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Who Will Be The Next "LV" In 2014 When The Luxury Market Gets Warmer?

2014/2/22 10:52:00 54

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P, if winter comes, can spring be far behind?

P, which just passed in 2013, is undoubtedly a "cold winter" for China's luxury industry.

The Institute of wealth and quality has just released the "2013 China luxury report". The data show that the domestic consumption of China's luxury goods market is US $28 billion, the increase is only 3%.

cold winter club. In the beginning of 2014, luxury goods moved frequently in China, and the brand was greeting spring with this way.

And this time of recovery is different from the previous rapid growth. Luxury brands have to re examine the increasingly mature Chinese consumers. How to enhance services has become a new challenge for many brands.

market warming > /strong > /p >

The P > market warming has benefited from the rapid growth of non traditional luxury brands, especially the large range of foreign high-end small group a href= "http://www.91se91.com/news/index_f.asp" > /a > in China, as well as the rapid growth of Chinese local excellent brands.

the luxury industry has never stopped its pace in the marathon's journey.

In recent years, the big strides have made it somewhat "tired". In 2013, the luxury industry slowed down the pace of progress. It was "breathed" and slowed down, and investment banks or institutions were "bad mouthing" the whole industry.

however, in the Spring Festival of the horse year, the international luxury goods owners released their earnings reports and struck back at the bad guys with facts.

Diamond mining and retailer De Beers Group's annual sales volume reached 6 billion 400 million US dollars in 2013, an increase of 5%, and net profit increased by 112% over the same period last year. In the second half of 2013, the fashion department in 2013 increased by 14% compared to the same period last year, and the profit increased by 31% over the same period last year. The sales of Hermes 2013 increased by 7.8% year-on-year; PRADA 2013 sales increased by 9% year-on-year.

Consumers' confidence in purchasing luxury goods is also increasing. The report of the Institute of wealth quality shows that 40% of consumers in 2013 indicated that they will continue to increase their consumption of luxury goods in the future, which is 17 percentage points higher than that in 2012.

Among them, the more people with high assets, the higher the expectation of increasing luxury consumption in the future. 41% of billionaires say they will continue to increase the purchase of luxury goods.

every long holiday is also the peak of Chinese outbound travel. During the Spring Festival of the horse, the enthusiasm of Chinese people to buy luxury goods overseas is still hot.

Li Meng, who worked in a multinational company during his spring festival with his family, went to the French and Italian Three Kingdoms with her family. She made the loot to the China business newspaper reporter show including watches, eight sound boxes, two sets of Italy famous brand suits, 4 bags, and scarves, < a href= "http:// www.91se91.com/" target= "_blank" > shoes < /a > children, suitcases, diamond rings...

She spent less than 100 thousand yuan on this line, but she proudly told the reporters: "scarves, suits and bags are all styles that can't be bought at home. Even if I can buy them at home, I can buy them abroad much cheaper than at home, at least I get back the tickets and Hotel money."

Obviously, middle class like Li Meng did not feel the winter of luxury goods industry, and consumer confidence is still high.

Therefore, wealth quality predicts that China's luxury market will gradually warm up in 2014 and will maintain an annual growth rate of not less than 8%.

From 3% to 8%, it is clear that the luxury industry needs to move forward.

"This will benefit from the rapid growth of non-traditional luxury brands, especially the large scale entry of foreign high-end niche brands, and the rapid growth of Chinese local excellent brands."

Zhou Ting, President of the Institute of wealth quality, said.

from the fourth quarter of 2013, the trend of the top niche luxury goods entering China is quite obvious. The top luxury Zilli of France is rarely known even in the luxury goods circle. The Chinese brand opened in the Bund, Shanghai on the occasion of the year of the horse in the year of the Chinese snake year. The famous shoe brand John Lobb was settled in Shanghai; the US brand Lvanka Trump settled in Beijing.

Less than p luxury and low-key luxury goods are concentrated in China. Brands see the maturity of Chinese consumers. The era of LOGO worship has passed, and the change from visible consumption to invisible consumption has given these niche brands unlimited business opportunities.

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who is the next "LV"?

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some of the traditional luxury brand's secondary line brands and some new brands are known as "a href=" http://www.91se91.com/news/index_h.asp "less than luxury goods /a >, which is also likely to become the next" LV ".

when LV, GUCCI and Cartire became common names or pronoun of luxury goods.

Having a brand's bag or jewelry has become the dream of many consumers.

Nowadays, more and more consumers have realized this dream. The popularity, exposure and recognition of these traditional luxury goods are rising, and some core consumers have abandoned these old luxury goods.

"do not want to be like others, to reflect my own taste and personality."

This is a rich man away from these brands, told reporters.

Zhou Ting believes that over the past few years, the pursuit of profit maximization of old luxury goods has led to the popularity of these brands. Many famous traditional brands have lost a few core consumers, but they have gained more new consumers, and sales and profits have not declined.

but with the maturity of consumers, the core consumers as the opinion leaders, abandoning the traditional luxury brands also let new consumers follow suit. The seemingly prosperous traditional luxury brand now has to face the situation of losing more markets and customers.

Excessive marketing and improper marketing are causing many traditional luxury brands to lose their sense of mystery and walk down the altar.

Less than P, the world's major luxury groups began to seek the next brand that could bring higher profits to the group.

Zhou Ting gives an example. Take LVMH group as an example, its brands include LV, Celine, Dior and many other brands.

Over the past time, fashion and a href= "http://www.91se91.com/" target= "_blank" > Leather > /a > Products Department, LV is undoubtedly the most dazzling brand, no matter in the brand awareness, for the group's profit contribution rate, are outstanding.

next, such as Fendi, Dior and Givenchy, these brands already have a certain brand awareness and reputation in the minds of consumers. Meanwhile, the brands that are not developing fast will have a rapid growth.

the trend of luxury goods industry in recent years is to blend in with fashion. The luxury industry leads the fashion trend, and the boundary between fashion and luxury is becoming more and more blurred.

Some traditional luxury brand's secondary line brands and some new brands are known as "light luxury goods" by the industry. Such brands may also become the next "LV".

Zhou Ting believes that the success of light luxury goods is not accidental. It is mainly due to its noble quality, scarcity and relatively low price. It can be said that light luxury brand is a standard luxury brand.

"Luxury luxury brands entering luxury camps are testing the trend of luxury and fashion. They are the first beneficiaries of luxury diversification and multipolarization.

The emergence of light luxury brands will, to a certain extent, replace the development space of conventional luxury goods, and fast fashion will first destroy the luxury brand.

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brand sinking new challenge

two or three cities open shop is not only the settlement of the terminal, but also the subsidence of the service terminal, which poses a new challenge to the brand's service ability.

luxury brands have never ceased to expand in China. In the past two years, with the rise of new commercial real estate, luxury brands and light luxury brands have sprung up everywhere in commercial real estate, especially in the two or three tier cities.

P > even so, most luxury stores in mainland China have low terminal saturation.

Top luxury brands in China are still in the initial stage of rapid development and have huge development potential and space, especially in the three line and four line cities. Many markets are still in a blank state.

Wang Hong, director of a famous commercial real estate investment department in Zhengzhou, told reporters that the competition for commercial real estate for luxury brands is becoming more intense. Like the first tier cities, the core consumers of the two or three tier cities are also biased towards light luxury goods, and the brand concentration is dropping. But she told reporters that "LV, GUCCI, Chanel, Cartire and other old luxury goods are still the industry's" weathervane ".

All along, Yuda Palace Hotel in Zhengzhou has these luxury brands, but in the past two years, the Millennium Plaza, the Mixc, David city and so on are all eating big brands, of which the Mixc and David city are separated by only one street.

in Wang Hong's view, the current international luxury brand is still mainly sold in the second tier cities. For example, Ferragamo did discount activities in the Christmas season in 2013, and she specially went to Shanghai to buy, because the Zhengzhou store did not offer any discount, but the sales performance was good. Someone bought 5 pairs of shoes.

"P >" luxury brand terminal has been sinking for four or five years, but it has not really landed.

The demand for luxury goods in the two or three tier cities is very much like that of the first tier cities 5 years ago.

Wang Hong said that although the product sales are good, most of them are mainly gift giving, and they are still willing to go to Hongkong to buy their own consumption.

with the prohibition of "three public consumption", this part of consumption is greatly reduced, and the image display and service function of stores will be constantly strengthened.

Luxuries are very demanding for employees' comprehensive quality. In the two or three tier cities, it is difficult to recruit suitable store employees for a long time. The two or three line cities are not only the sink of sales terminals, but also the sink of service terminals. This poses a new challenge to the brand's service ability.