Light Luxury Brands Are Becoming Popular Among Consumers.

A few years ago, Chinese consumers were chasing and favoured the "foreign brands" that quickly poured into the Chinese market. Luxury goods were a symbol of status. However, with the gradual transition of consumption concept to the rational stage, the sales of familiar brands in the domestic market are showing signs of weakness, coupled with the increasing consumption of the domestic middle class and the consumption of consumers. clothing There has been a great change in brand choice.

Luxury brands are disgraced and luxury is showing good momentum.

If winter comes, can spring be far behind?

However, just as China's domestic high-end luxury goods consumption is in the doldrums, the international luxury brands such as Chanel, Cartier and so on have again started the global price rising trend. Chanel and other brands in the overseas market increased to 10%~15%, the domestic classic price increase of about 3%.

According to a study by Bain consulting, according to the fixed exchange rate, this year's global personal luxury sales are expected to increase by 4%~6%, up 6.5% in 2013. Sales of luxury goods slowed further in 2014. The weak demand in China, Russia and Europe offset the increase in global tourists' shopping and strong demand in the US and Japan. China's luxury market is caught in a cold wave.

Since 2012, sales of old luxury goods in China have been on the rocks. Data from Bain consulting show that the growth engine of the global luxury market is moving from the East represented by China to the West and the south.

In contrast, it is the strong rise of "light luxury" brand in China. From the fourth quarter of last year, the trend of the top niche luxury brands entering China is quite obvious. Zilli, JohnLobb and Lvanka Trump are concentrated in the Chinese market.

Small and low-key luxury brands have seen the maturity of Chinese consumers. The age of LOGO worship has passed, and the change from visible consumption to invisible consumption has given these luxury brands unlimited business opportunities. And why do Chinese consumers' consumption philosophy change so differently?

First of all, light extravagance is a derivative of rational consumption. Compared with the high price of traditional luxury goods, light luxury goods not only keep the ordinary consumers' good experience in product quality, but at the same time, the price of products is relatively approachable.

Secondly, Entry Lux Brand is easier to introduce new products in research and development, and can quickly fill the market gap left after the "luxury tide" of luxury brand. The industry's definition of "light luxury" is "affordable luxury". 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 Michael Kors, Coach, Kate Spade and some luxury products, such as MCQ, Giorgio Armani, Emporio Armani and so on.

These brands are characterized by having both the "gene" and the style characteristics of luxury goods, their own design sense and uniqueness, and the relatively young and changeable mentality of consumers. The most important thing is that the price of light luxury can be extended downward, so that more people can afford it. Zhou Ting, President of the Institute of wealth research, said that with the gradual growth of consumers and the improvement of information transparency, the premium space for luxury goods has been further reduced, and consumers have begun to pay attention to "cost performance" when purchasing luxury goods.

In addition, unique, scarce, and rare are the characteristics of luxury goods, which are reduced to the ordinary products of people's hands from the luxury of serving minorities. Of course, this is also full of many large imitation products, such as the current "popular goods" in the domestic market. For those consumers who pursue individuality and do not share public consumption, what can satisfy their luxury, fashion and consumption?

Light and luxurious young consumers to become the main force of consumption

Denis, manager of the Sales Department of people's business department of Zhengzhou Denis department store, believes that compared with the overseas consumer groups, the domestic luxury brands are facing a younger and more individualized group. The consumer group aged 25 and ~40 is most active. This consumer group has different goals in pursuit of light luxury. Some consumers have certain economic conditions and appreciation ability, have a certain understanding of the fashion industry, pursue high quality life and social status, some consumers are young white-collar workers, hope to reward themselves occasionally after busy hours, and also have housewives.

A statistics from Bain consulting firm showed that the main consumers of light luxury were the middle class, accounting for 50%, 30% of the new rich class, 15% of the top executives, two of the wealthy, and 5% of housewives. According to Zhai Xue, director general of Renhe Spring Department store marketing department, "if we divide the whole consumption market into 5 layers of Pyramid shape, according to the 28 law analysis, the consumers who are in the second tier and third tier are the most potential."

The luxury consumer group also has a notable consumption characteristic: it hopes to distinguish from "big money" and "local tyrant", and pursues low quality luxury with quality and culture.

Luxury brand positioning in the market 1% or less consumer groups, it seems more profitable, manufacturing scarcity, manufacturing distance, manufacturing symbol itself is the core of luxury marketing. But in the Chinese market, most of the luxury goods may be lost only by focusing on 1% of the consumers. The reason is that the consumption groups of Chinese luxury goods are quite different from those of Europe. In Europe and the United States, the main consumer groups of fashion luxury goods are basically over 40 years old. But in China, the fashionable luxury consumer groups are characterized by younger age, ranging from 18 to 50 years old. The small area is concentrated in 30 years old ~50 years old; the 18 year old ~39 year old crowd is still the main group of luxury consumption. This means that if the luxury goods are only sold to the rich and wealthy Chinese, the market space is very limited.

More importantly, Chinese consumers are in the chase stage for fashion. In a strict sense, the consumers of light luxury can not be clearly defined. On many occasions, consumers of light luxury and luxury goods exist together. In particular, some brands are interested in the business mode of operation: attracting consumers through multiple win strategies is more difficult to distinguish light luxury consumption groups, but in any case, one thing is clear: consumers of light luxury products continue to grow and tend to be subdivided, and their loyalty to their own luxury brands is getting higher and higher.

Shopping mall to increase the proportion of light luxury to alleviate homogeneity of criticism

In the domestic high-end high-end shopping centers or department stores, the international first-line luxury brands have become standard. In order to introduce these high-end brands, some shopping malls even want to reduce the average point of discount. Even more people are willing to pay for the decoration of these big brands from their own pockets. In addition to paying a lot of money to attract big brands to maintain their appearances, the mall itself needs to be promoted and managed, which is an open secret in the industry. However, because of the duplication and simplicity of the format, the major shopping malls are frequently criticized. Such commercial rules have led to the fact that the store finally had to give up the introduction of luxurious merchants and to extend the olive branch to the light luxury brand.

Nowadays, many department stores refuse to play the "losing game" with luxury goods, not because they are tired of traditional luxury products, but are the helpless choices made by department stores in considering their own interests. From the point of sale return, the buckles of domestic brands in shopping malls are usually 20% to 30%, and some luxury brands can be reduced to below 10%. The mall has lost a large part of its profits in sales rebates, and the shopping mall itself needs to be promoted and managed. In the end, it basically belongs to a big brand. Instead, it is a tide card that walks on a light luxury line. The bag rate and the channel business profit are higher, and at the same time, it has a strong ability to attract customers. Therefore, the luxury brand has gradually become the darling of the department store industry.

Data from people's stores of Denis department store in Zhengzhou in January this year showed that sales of light luxury goods increased by 23% over the same period last year, sales increased by 15%, passenger unit prices increased by 8%, accounting for 30% of the total performance of luxury goods, and light luxury consumer brands with a premium of 3000 yuan ~5000 yuan, Love Moschino, DKNY, Red Valentino and other international first-line brands led by ~4 were relatively better. At the same time, Beijing Han Guang Department store made a brand adjustment when renamed, and Wang Xiaoyu, chairman of Han Guang Department store, said it would increase the proportion of light luxury brands on its original basis.

The popularity of light luxury consumption has released China. Consumer The pursuit of luxury is no longer blindly following the trend, or buying a luxury item for a few months, but it is a lifestyle advocacy rather than a brand preference and purchase, so that consumers, brands or shopping malls will be more rational to accept light extravagant consumption.