The Conceptual Marketing Logic Of Luxury Goods: Brand Effect + Classic Eternity

Vincent Bastien once pointed out that ordinary marketing is not suitable for luxury goods. Luxury goods follow the anti traditional marketing rule: the higher the price, the more sales.

Luxury decides price, not price determines luxury.

What kind of picture is the passage of an antique timepiece crossing the time with the contemporary art installations created by the popular artists? Recently, the opening ceremony of "instant eternal Cartire time art exhibition" was solemnly held at the Museum of contemporary art in Shanghai as one of the 50th anniversary activities to commemorate the establishment of diplomatic relations between China and France.

Every weekend, the Museum of contemporary art is full of people.

In fact, both Dior exhibition and Chanel coco show can attract a large number of visitors.

The more expensive, the more fire.

On the boutique shopping website Net-a-Porter, more than 1000 dollars (6120 yuan) have nearly 200 pairs of shoes, of which Christian Louboutin's crystal high heels are priced at US $6395 (about 40 thousand yuan); another one.

On the website Luisa Via Roma, Dolce &Gabbana embroidered dress sells for more than 80 thousand yuan, while Chanel's famous 2.55 package in Hongkong has sold over HK $40 thousand (about 30 thousand yuan).

Carrie in sex and the city tells us that she spent $485 (about 3000 yuan) to buy Manolo Blahnik. After 10 years, the price of the same pair of shoes on the Bergdorf Goodman website was 775 yuan (about 4620 yuan), and the price increase of more than 50%, even in the era of CPI's popularity, was incredible.

And Celine, Bottega Veneta, Gucci and many other major brands have made many price increases in the past one or two years, each time around 10%.

Why is luxury more and more expensive? The answer is nothing more than a commonplace economic principle: the profit plus cost of a designer's product is too high, about 60% of the selling price.

This means that a 30 thousand yuan handbag cost more than 10000 yuan. It is used to design manpower, raw materials, logistics, advertising, shop assistants and so on.

Over the past ten years, especially after 2008, these costs have risen sharply, leading to a surge in the luxury sector.

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When ordinary materials such as cotton continue to rise in price, the rare leather that luxury goods rely on is also scarce. Louis Vuitton and Hermes are willing to buy the crocodile farm in Australia to ensure the supply.

Manpower costs are also rising. According to OECD data, the average wage of French workers has reached a record high this year.

In addition, although some of the brands are never discounted, most of them will still participate in the promotion of major department stores so as to facilitate inventory clearance and consumers are well aware of this.

Recently, brand discount has become more and more attractive. Two months ago, the sale of new products at thirty percent off is also very common.

But in the final analysis, wool comes out on sheep. In order not to lose too much in the coming price cuts, the brand can advance the price in advance of pricing, and it can also be regarded as a good sales strategy.

"Luxury" is always one of the glamour to attract buyers. Luxury buys luxury goods just to highlight its status and naturally does not care about prices. While ordinary fashion enthusiasts can "appreciate" when buying a bag or a pair of shoes, it is often a good reason to convince themselves.

When people buy their brands or items to appreciate, people often have more expectations and preferences for the brand.

"Just like a brand that you like, although the original price is very high, but it is always discounted, it will feel that the essence of the brand is cheap.

If a brand is not expensive, but it will not be discounted all year round, and occasionally grab a discount product, you will be excited.

This is also true of luxury brands.

Today, Cao Ying, who runs a luxury goods store, tells international financial daily.

Brand effect

Vincent Bastien, the former head of LV, has pointed out that ordinary marketing is not suitable for luxury goods, and luxury goods follow the anti traditional marketing rule, that is, "the effect of the van Helen": the higher the price, the more sales.

Forget positioning, do not cater to consumers, luxury determines price, not price determines luxury.

It can be seen that your charm has also been accumulated for decades or even hundreds of years.

But why do people accept this kind of price for no reason? First, you must be recognized as a luxury, which is the brand effect.

What is the brand effect of luxury goods? In fact, when giving a product a brand image, design, technology, origin and so on are the key factors.

For example, a large number of studies have shown that marketers and consumer behavior researchers generally agree that the origin of products is very important in consumer decision making.

We often hear such an assessment: "Japanese cars are more fuel-efficient", or Germany's industrial technology is very advanced, or Italy's handicraft is very exquisite. Therefore, the origin view will help customers form a general attitude towards certain product characteristics, and will also affect the customer's evaluation of the product's performance.

Although today's globalization of purchasing and production, many brands will produce and process at low labor costs, but most luxury brands will still insist that the country of origin is the country of origin, and that they want to bring their customers a fine technology and trust.

Italy, for example, has been proud of the world since 50s of last century, with its innovative fabrics and exquisite handwork and tailoring.

Luxury brands that used to beat the world were proud of their "made in Italy".

And every brand that is called luxury has almost a very long history and stories. Some of them are even made into films.

Another important factor that constitutes a brand effect is the power of celebrities and nobles.

Most luxury brands are originated from Europe. In this place of Royal royalty, what the princess or queen wears will immediately cause a sensation and instantly make a brand famous.

This will also make the rich class more addicted to the brands favored by the royalty, so as to embody their nobility.

Compared with the rich class in the royal family, ordinary people prefer to see what stars wear.

The awarding activities have become fashion T, where viewers can see the new products of all fashion brands. These fashion or jewellery also let the stars take the lead.

There is no doubt that stars wearing brand sponsored clothing and jewellery runway red carpet is a way for fashion brands to publicize themselves, and the process of star show will also give consumers a strong inducement.

Celebrity endorsement is a cultural atmosphere carefully constructed by businessmen. It enables consumers to find themselves in commodity consumption, find comfort, get spiritual sustenance and psychological balance.

Vincent Bastien believes that the publicity of luxury goods should not try to find celebrities to shoot advertisements, but convey the information that stars use in the brand.

Artistic fusion

The combination of luxury brands and art is always right.

For example, as one of the 50th anniversary activities to commemorate the establishment of diplomatic relations between China and France, "instant, eternity -- Cartire time art exhibition" brings people a journey across time. A shuttle's experience of space and time leads visitors to explore Cartire's rich history and legend.

It is reported that through a series of selected works, the exhibition presents the artistic creativity of the public in seconds.

Gong Yan, curator of the Museum of contemporary art in Shanghai, commented: "when we look into the universe, we are looking at its past.

This is the world that time lets us feel.

So when we face a timer, what do we see? This is the mystery of "time art" exhibition.

Over the past century, more than 180 pieces of masterpieces of precious time have been passed through the exhibition, reflecting the development of Cartire from the beginning of the beginning to the present day. It combines aesthetic creativity, design innovation and exquisite workmanship perfectly, and has witnessed the profound historical pmission of the brand in the tabulation field. It also provides a valuable opportunity for visitors to enrich their creativity and outstanding outstanding professional tabulation technology through various shapes, designs, functions and skills.

In addition, the exhibition also presents the most contemporary works and long history collections. Visitors can enjoy many contemporary masterpieces.

As a matter of fact, since its establishment in 1983, Cartire has been invited to exhibit its valuable collections in the world's most famous museums.

Since its first exhibition in 1989, the footprint of Cartire's collection has been spread across 27 authoritative cultural and art institutions in the world. It has been invited to exhibit at the Metropolitan Museum of art in New York, British Museum in London and The Grand Palace in Paris. It has played an important role in promoting the dissemination and dissemination of French art and culture in the world.

Classic eternity

No matter what the story is and how the price goes back to the root, it must be the design of the merchandise that really attracts the customers.

Why do we still have to spend 3 months' salary on a Chanel tweed coat when we can buy exquisite small coats, soft cashmere sweaters, light Chiffon skirts and all kinds of elegant handbags when we buy 1000 yuan?

As an expert in purchasing luxury goods, Cao Ying has no doubt that luxury is like a drug. "If you have tasted it, it will be very difficult if you don't want to eat it again."

Cao Ying told reporters that she had been buying for many years, but before she got the real Chanel coat, she did not feel much about luxury goods.

"When I hung up my Chanel coat and the tweed coat that looked very classic, but the price was only genuine 1/10, the latter was so dim that I had a taste of it."

In jemznjewels.com's online retail store, the price of Birkin handbags is between $7000 and $11 thousand.

"On these precious items, your investment will always be preserved.

This is something that can never be achieved without any reputation. "

Rachel White, founder of the website said.

Nowadays, a classic luxury has become synonymous with "wise investment". Shopping desire and financial management have become the unity of fashion life.

More importantly, if the price of these luxuries is divided by the number of times you use them, you will find that the initial investment does not seem to be "astronomical" anymore.

For example, a Hermes Constance handbag is worth 4100 US dollars. If you use it every day for 5 years, then you only spend 2.25 dollars a day. Similarly, Cartire's 18KTank Francaise