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    How Can Luxury Brands Find Their Way Out In A Sluggish Luxury Market?

    2014/4/19 16:40:00 48

    Luxury BrandLuxury MarketChinese Market

    < p > < < a href= > http://www.91se91.com/news/index_c.asp > > World Luxury Association < /a > 2012, the number of luxury consumers in China is about 35%, but its rising speed is fast. In the department stores, the consumers of light luxury goods are 25% higher than the top ones.

    According to the US business week, European luxury goods manufacturers are raising their handbag prices to more than 4000 euros in order to cope with the slowdown in growth.

    All of these may bring opportunities to light luxury brands with lower prices and better quality.

    The magazine even thinks that the light luxury brand represented by Coach will usher in the best time in China.

    < /p >


    < p > more and more "a href=" http://www.91se91.com/news/index_c.asp "light luxury" /a "brand is entering the Chinese market.

    Pierre Balmain, the French luxury brand Balmain, moved its stage of the 2013 global spring summer series to Beijing.

    In September 2013, the Pierre Balmain new concept boutique officially landed in China. It is expected that in the end of 2013, 35 a href= "http://www.91se91.com/news/index_c.asp" clothing series /a boutique shops will be set up in China and 20 boutique shops for shoes and accessories.

    < /p >


    P, the originator of light luxury, the American leather brand Coach has been besieged all over the world in recent years. Its sales performance in the US has lagged far behind the Michael Michael, another luxurious brand.

    However, the Chinese market has obviously become a life-saving straw for Coach to alleviate the pressure. In the first quarter of fiscal year Coach2014, although the global sales fell by 1% over the same period, the total sales in China increased by more than 35%, enough to show the huge consumption potential of the Chinese market.

    Continuation of last quarter trend, Coach two sales of $1 billion 420 million, down 6% compared with the same period last year, but China's sales growth of 25%.

    In this fiscal season, Coach opened 10 new stores in China.

    Coach currently has more than 100 direct outlets in China, and its first flagship store in China just opened in 2010.

    < /p >


    < p > last year, after the two brands of Lucky Brand and Juicy Couture were stripped last year, the US apparel group Fifth&Pacific Companies, Inc. became a single Brand Company, and decided to rename the company to Katespade&Company. This shows a strong breakthrough of the luxury brand in the world.

    < /p >


    < p > according to the third quarter 2013 earnings report, Kate Spade sales increased by 76.4% to 179 million 700 thousand US dollars over the same period last year.

    Its CEO William McComb said that the growth momentum of Kate Spade handbags and small pieces of leather was very strong, and targeted young consumers had a high rate of repeat purchase.

    In recent years, the purchasing power of China's luxury brands has accelerated the expansion of these brands in China. Craig Leavitt, the group's chief executive, attended the opening of new stores in Tokyo. It said that the brand will open 8-12 stores in China this year. In order to cater to the Asian market, it may also launch localized products in the future.

    At present, Kate Spade New York operates 20 stores in mainland China, with 6 in Hongkong, and the mainland stores in China are mainly concentrated in East China, as well as Beijing, Chengdu and Shenyang.

    < /p >


    < p > today's light luxury brand is not Michael Kros. In 2013, the top five luxury companies listed on the stock price rose Michael Kors was the only light luxury brand. In the total ranking of the 22 luxury listed companies, Michael Kors ranked eighth in an old luxury brand with 16 billion 500 million dollars.

    The US luxury brand Michael Kors, based in Hongkong, released its third quarter earnings report: Sales of $1 billion, a year-on-year increase of 59%, retail sales of $503 million 400 thousand, an increase of 51.3% over the previous year, and sales in other regions, including China, also increased by 64%, up to $8 million.

    < /p >


    < p > although the design of Michael Kros is often accused of plagiarism, it still can not extinguish the enthusiasm of the American people, and its proportion in the North American market is as high as 90%.

    Ordinary consumers do not care where clothes come from. They value who can provide themselves with cheap products, which, to a certain extent, illustrates the reasons for the popularity of light luxury consumption.

    Zhou Ting, President of the Institute of wealth and quality, believes that the North American market is already a very mature market with limited market capacity, while China's market capacity base will be several times higher than that of the North American market. The Chinese market will undoubtedly be the focus of development after the Michael Kors.

    In early 2012, the Michael Kors group, which was just released soon, announced that it would vigorously expand the Chinese market: "in the next three to five years, we will set up 100 branches in the Chinese market". At present, Michael Kors has 37 stores in Greater China and 27 in the mainland.

    < /p >

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    Analysis Of "China Curve" In Luxury Industry

    Despite the large number of retail outlets in the fashion industry, its core shopping malls are usually relatively homogeneous. Compared with the resources of the first tier cities, the two or three tier cities not only have different resources, but also have far less pparency than the first tier cities. This also makes foreign fast fashion enterprises not long in China. It is difficult to discern the true situation of the market only by peripheral research.

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