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What Does Corruption Bring To The Luxury Industry?

2014/5/31 15:46:00 28

although the trend of logo in recent years is becoming more and more obvious in China, the most direct driving force of this trend is anti-corruption. Anti corruption measures from the Chinese government and the rule of giving up gifts are making the Chinese rich more low-key. According to the report of GUCCI parent company Kering, in the four quarter of 2013, the group's logo free product contributed 62% growth, compared with 44% in 2012. In the first quarter of last year, gucci did not achieve a two digit growth in logo products, and this year is the year of anti-corruption in China. The central government promulgated eight regulations to eliminate gifts. 
 the preference of the rich directly affects the needs of the local luxury market. Anti corruption led directly to the decline in sales of watches and watches in 2013 by 11%, and the two digit growth that was used to make manufacturers particularly miss. After all, between 2010 and 2011, the composite growth rate of watches and luxury brands in China reached an alarming 40%. The reason why the move is so important is the global attention to luxury watches. Nearly 1/4 of them are from China. According to the Fortune Research Institute, the top four luxury stores in China are the top four brands, while watches consumption mainly comes from the demand for gifts. A senior executive at the peak group revealed that gifts accounted for 20% to 30% of the company's sales in China, and the Group owned many famous brands such as Cartire, Earl, Vacheron Constantin and so on. 
 anti-corruption combined with the economic downturn, the whole industry is weak in China. According to Bain, 20 top brands will slow down the pace of opening stores in China in 2014. A Chinese consumer survey by Hurun also estimated that in 2013, Chinese luxury goods spent 15% less on luxury goods than in the previous year. LV, Gucci and Prada are beginning to cool this year. Luxury goods giant LVMH's engine department leather goods category hit a new low of three years. Once upon a time, sales in Asia accounted for more than 35% of the total sales of LVMH group. 
 consumption potential is still underestimated /p >
"P", even so, China is still constantly driving the earnings of luxury companies. As long as shops are opened in China, there is little loss in the global revenues of major brands, but the high or low point. Prada (Prada) increased its global profit by only 1% last year, but its sales in the Greater China region increased by 12.3%. Versace (Versace) increased its sales in China last year by 13%. Burberry has also maintained a two digit growth in the Chinese market. < .
"P > everything in the global luxury market, whether it's good or bad (though it's mostly a good thing), China is now regarded as the root cause and the root cause" /p.
 of course, anti-corruption is just a catalyst. The real reason for going to LOGO is that most people want to express themselves quietly rather than loudly announcing their differences. More and more consumers in the first tier cities are concerned about brands other than LV and GUCCI. According to a survey, consumers in the first tier cities are most eager to have their brands. Nowadays, the top three brands have not seen the two oldest brands, but in the past, this is almost unthinkable. But in the second tier and below cities, big LOGO, entry level is still the demand of most people. Chinese consumers are polarizing. "Our luxury brand customers often ask us not to put together Beijing, Shanghai and Guangzhou, Wuhan, Chengdu and other cities. They think Beijing Shanghai should be analyzed with Paris, London and New York, because these two cities can no longer be regarded as strictly Chinese cities, but rather internationalized cities, those second tier cities are the real Chinese cities," Zhou Ting said. 
 although China has become a super engine in the global market, the consumption potential of the Chinese people is still underestimated. Although the mainland market is growing and has become a driving force, most consumers choose to buy luxury goods in overseas markets. In 2013, Chinese consumption accounted for 67% of total consumption. At the same time, various purchasing platform purchasing channels have sprang up, and there are tens of thousands of purchasing platforms on Taobao. In December 2011, Taobao's global sales of single day sales amounted to 148 million yuan, the largest transaction was Hermes limited money handbag, priced at 388 thousand yuan. The rise of purchasing and overseas shopping is due to the high domestic prices. 
 according to the presumption of Jon Copestake, chief retail analyst of The Economist Intelligence Unit, China's middle class and second tier cities will become new growth drivers in the future. If we take into account the gray income, the power of these two new engines can not be underestimated. Root 
 according to the estimation of The Economist Intelligence Unit, in China, the number of households earning more than 120 thousand yuan in 2012 is about 1 million 200 thousand, and if the "gray income" is taken into account, this figure may reach 5 million. By 2020, the number of Chinese cities with over 120 thousand yuan in income will reach 194, and according to official figures, only 13 cities will reach that standard by 2020. 
 this means that China still has huge consumption potential to be released, while the demand for < a href= "http://www.91se91.com/news/index_c.asp" > luxury goods < /a "may be seriously underestimated. 
 not < < a href= > http://www.91se91.com/news/index_c.asp > > logo < /a > success or failure /p >
 because because of its status, the industry is more complex and sensitive than other industries. For an industry that sells "privileges", "honours" and "identity", marketing strategy and image can be a matter of life and death. 
 "all along, luxury brands have been misled by two groups of people in China. One is the international consulting company, the second is the international advertising company and public relations company," said Zhou Ting, director of the Fortune Research Institute. 
 "basically, the advice of public relations companies and consulting companies is to copy the Japanese model and the Hongkong model to mainland China. In fact, it is unsuccessful, because consumer culture, political factors and economic development environment are not the same, and the mainland market is too big, it is ladder shaped development, and the economic development state of every city is also different. Because of the diversification of market structure and the diversification of urban structure, the brand may have different ways to use different markets," she said. 
 in Zhou Ting's view, many brands actually have no chance in China. Because some brands have been selling things crazily in the past twenty years, they have made brand value low. "Gucci obviously, LV is also in the process, Cartire is also very obvious, of course, Cartire because of jewelry, this kind of hard luxury will be better, because it is still more expensive after all." 
 however, the number of stores in the a href= "http://www.91se91.com/news/index_c.asp" > LV < /a > has been carefully read through. The total number of stores in China has already been twenty, far less than that of some famous brands and light luxury goods which are relatively unfamiliar to Chinese consumers. In order to preserve value, LVMH president will not further increase the number of LV stores in the next few years. LV is famous for its exquisite workmanship, durability and light weight. Its service life and wear degree are obviously higher than other leather products. However, the ubiquitous twill printing LOGO, high imitation products will make the classic LOGO and package of LV facing the predicament of aesthetic fatigue, and its brand value has also been seriously lost in China. It is not the biggest failure of LV in China that we did not start to crack down on counterfeit goods at the very beginning. In contrast, those brands are good at marketing. 
 Burberry emphasizes the tradition of its brand in the world, and uses the connection with the military raincoat to shape the historical sense of its ebb and flow. Burberry is widely set up in China to open up its fame and promote the fashion, the British and the younger image, focusing on the younger group and the purchasing power of the middle class and the upstart. In addition to micro-blog WeChat brand, Burberry even joined Tmall to open flagship store. Online shopping platform Taobao has been regarded as a severe area of counterfeit products, and Burberry's "adventure" action is not only a consideration of digital marketing, but also a quick response under the anti-corruption situation, taking care of those rich who do not want to show up in the physical store. 
 Jon from Britain says that the phenomenon of Burberry is particularly interesting in China. "In Britain, Burberry faces serious image problems. The classic lattice image of Burberry is often associated with working class, low-income groups and violence." Indeed, the economist has also described that in twentieth Century, Burberry's classic Plaid was once seen as a "kill Matt" uniform. It was a representative of the image of a white migrant worker who was everywhere. The security and taxi drivers also had the ability to block out young people wearing Burberry. But in China, Burberry is considered to be very "British" and has a very traditional tradition. Even though the Burberry grid has been everywhere, the brand has achieved a 14% growth in China. The British seem to always think that they are keeping the secret of Burberry and are worried that if Burberry's secret is known by global consumers, especially Chinese consumers, will it still be as smooth as it is now? Obviously, this worry is slightly redundant, and the brand image depends more on the success of marketing in the local market. 
 in fact, in addition to China, Latin America, North America and Southeast Asia, Burberry has a good brand image, and there is no trouble with the image of the working class. "At present, Chinese consumers are more enthusiastic about western brands, and there are no local luxury brands in China at present. Although in the European market and luxury brands' home countries, people also consume these expensive products, but the motives for buying are different, "Jon said. 
 for example, Coach. "Shops of LV and Gucci are always next to each other. Coach likes to open shop next to Gucci in China, and many people think they are a standard brand, which makes Coach popular in China for a while, "Zhou Ting said. But some brands still have opportunities. For example, BV, it is also a luxury brand, but it has relatively well balanced reputation and reputation. The next wave of market opportunities comes from some traditional and classic old brands, such as YSL and Givenchy. It has a long history of brand history and popularity, and also has a good customer base. There will be better development space in China in the future. 
 luxury consumption is like a mirror. Over the past twenty years, changes in brand awareness and tastes have been directly reflected in the earnings of major brands. These brands are mystique and scarcity. Behind the brand image, apart from the symbol of identity and wealth, they also reflect the civilization and progress of western countries, which has long been deeply obsessed by the Asian people. From the earliest Gucci, LV, to the diversification of choice, to the rise of today's advanced orders, the Chinese try to catch up with luxury consumption, not just taste. 
 like all confident people, they always choose what they like rather than what others like. "In the end, people will choose what they like, rather than just choose expensive things, which is mature consumption," Jon said.