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    Luxury Market Differentiation, Luxury Brand Force, Young Consumer Groups

    2014/5/31 15:06:00 39

    Luxury GoodsMarket DifferentiationYoung Consumers

    < p > as of May 2014, the annual reports and the latest quarterly reports of all major a href= "http://www.91se91.com/news/index_c.asp" > luxury brands < /a > have been released. From the earnings report, the days of luxury giants are very hard.

    LVMH, the world's largest luxury goods group (with many brands like LV), grew by only 4% in the first quarter compared with the same period last year, while the revenues from the red wine and fruit wine sector declined.

    Meanwhile, luxury goods companies such as Richemont have also said they will slow down their expansion in China.

    < /p >


    < p > in the face of the low speed growth market, the luxury luxury brands began to raise the pricing of commodities collectively and continue the route of "big and tall".

    Beginning in mid April 2014, Chanel (Chanel) increased the price of Classic Flap series medium and large price by 450 euros; the 2.25 series rose by 450 euros per model; the Le Boy series medium price rose 300 euros, or around 15%.

    Data released by the US labor department show that luxury goods prices have risen by 60% over the past 10 years.

    < /p >


    < p > the purpose of increasing the price of old luxury goods is to distinguish between their own products and cheaper entry level luxury goods, hoping to maintain a "high profile" to maintain their image.

    The CEO of luxury brand LVMH, "a href=" http://www.91se91.com/news/index_c.asp "Bernard Arnault < /a", has also constantly declared that light luxury and luxury goods are two words. They should not be confused. Luxury is not a luxury category.

    But the reality is that "entry-level" light luxury is becoming more and more popular among young consumers because of its high price.

    < /p >


    < p > the industry defines "a href=" http://www.91se91.com/news/index_c.asp "light luxury /a > (Affordable luxury)" as "affordable luxury goods."

    Specifically, there are moderate prices, popular designs, good quality, and store brands in high-end shopping malls.

    At present, the most representative light luxury brands on the market are MichaelKors, Coach, Kate Spade and some luxury products, such as MCQ, Giorgio Armani, Emporio Armani and so on.

    < /p >


    < p > it is understood that Michael Kors sales in the 10-12 months of 2013 were 1 billion US dollars, up 59% from the same period last year, and retail income 503 million 400 thousand US dollars, up 51.3% over the same period last year, which is the thirty-first consecutive quarterly growth of Michael Kors.

    At present, the company's latest market value has risen to 19 billion 200 million dollars, becoming the world's fifth largest luxury goods business, close to the fourth ranked Prada 'Prada'.

    You know, Michael Kors was listed on the New York stock exchange at the end of 2011. Now it has become the most successful listed fashion group after the financial crisis. Its share price has increased by 300% in two years, creating the myth of capital market.

    < /p >


    Similarly, the US fashion brand Coach, which has opened a physical store in 49 cities in China, is also proud of the Chinese market: its sales in the Chinese market in the 2013 fiscal year (July 2012 to June 2013) increased by 40% over the same period last year.

    Kate Spade2013 sales in the third quarter increased by 76.4% over the same period last year.

    < /p >


    P > why light luxury goods are so popular, this is mainly because the light luxury makes luxury consumption more and more living.

    The threshold of thousand yuan can satisfy the luxury and the pocket of the wallet.

    < /p >


    P luxury does not necessarily need to buy luxury cars or villas to display their luxurious life, but is a luxury that can be acquired by a little effort and represents their individuality.

    But the luxury is just satisfying the needs of young people.

    < /p >

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    The meaning of the three word "luxury" has been possessed by God in China. In fact, it itself should represent only a hierarchical and spiritual product. In the eyes of the Chinese, "luxury" is a symbol of identity and face. But in the eyes of foreigners, it is only a durable, good quality and high priced thing. So in the foreign market, people often see someone carrying LV bags to buy vegetables in the market.

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