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    Economic Downturn, Luxury Consumption Return To Reason

    2014/12/5 14:49:00 25

    Luxury Goods MarketLuxury ClothingLuxury Brands

      

    The global economic downturn is on sale.

    Luxury clothing

    Unable to return to heaven

    Global economic downturn

    At present, the global economy is in the doldrums, the recovery in Europe and the United States is slow, the concept of BRICs has been shattered, and Andouble economics has said that it is a matter of drinking poison and quench thirst. Moreover, the geopolitical instability in Russia and the South China Sea is a specific and accidental factor that affects the growth of the overall luxury market.

    The wolf of Wall Street has not learned anything from the financial crisis, and its greedy nature has intensified. In recent years, investment banks and the US Department of justice and SEC (US Securities and Exchange Commission) have seen hundreds of millions of dollars in high settlement cases, indicating that the illegal pactions involved are linked to politics and corruption. As a result, a lot of wealth has gathered in the hands of a few people, and the Gini index of the world has risen.

    5% of the rich accounted for 50% of the total.

    Luxury consumption

    Although the overall consumption of luxury goods is increasing, the increase is mostly the "pursuit of luxury" consumption crowd. This part of the consumer group's purchasing power is actually limited.

    Beijing, China

    Big luxury half off sales remain unanswered.

    Affected by the economic downturn in recent years, luxury brands have to put their weight down and join the discount.

    According to reports, in the new light world, YSL old bag is being sold at 6-7 discount, while Furla new bag has a 5-7 discount promotion.

    At the same time, Chloe parts of Beijing's Lafayette department store are 5-7 fold, and Furla also has a discount with Xinguang world.

    Luxury brands are holding high discounts in Beijing, and so are other markets.

    In the two phase of Kerry Center in Shanghai, Mulberry also began to enter the 50 percent off promotion in summer. One of the original 12 thousand and 300 yuan leather trumpet single shoulder bag was priced at 6300 yuan after the discount.

    There are many kinds and quantities of discount goods in the shop. About 60% of the products participate in the discount promotion with different discounts.

    Chloe sales personnel said in an interview that although there were not many commodities to participate in the promotion, they included shoes, bags, small leather goods and so on, and there were few such promotional activities before the brand.

    some

    Luxury brand

    Sales staff said that the previous discount season was between two weeks to a month, and the number of goods was very small. The basic discount season had not yet been sold out, but this year has not yet seen such a situation.

    In this regard, the industry said that luxury brands such promotion in China, and the market environment is weak, weak consumption power has an important relationship.

    The brand has to choose to reduce its price to attract consumers to pay. To a certain extent, discount has a certain effect on promoting sales volume.

    The industry said that although the discount is strong, but still choose to buy luxury goods in Hongkong or abroad, in addition to the existence of a certain price advantage, sometimes some foreign new or classic money will participate in the discount.

    If we buy more goods, we must go to Europe to get goods more efficiently.

    Zhou Ting, President of the Institute of wealth and quality, said discount sales could effectively stimulate consumer desire, but it could be counterproductive for the long-term development of the brand.

    Long time and low discount will inevitably lead to the decline of its brand value, which will directly lead to high-end customers away or even abandon.

    brand

    The price sensitive consumers who are attracted by promotion are not the core consumer groups of the brand.

    How can luxury brands achieve short-term benefits on the way of discount sales, and at the same time, maintain the long-term value of brands?

      

    Textile and clothing

    Luxury goods

    Unchanged traditional product strategy loses attraction.

    A recent survey by Bain showed that the sales of luxury goods in China increased by only 2% last year, compared with 30% in previous years.

    At the same time, the world's three largest luxury group has slowed down its expansion in China and adjusted its business strategy.

    Apart from the fact that the data is not happy, the concept of business network and the withdrawal of physical stores are the most intuitive industries. Shanghai is the metropolis most directly affected by this wave of cold current.

    GiorgioArmani flagship store, which was held in the Bund for 10 years, was closed last year, while the Bund six DolceGabbana and the Bund eighteen Patek Philippe and Boucheron were also evacuated.

    The seemingly luxurious luxury merchants have closed down. This signal also tells us that for the luxury brands, the most profitable year for Chinese market is over.

    High-end luxury card pformation

    Lower your body and make fast fashion.

    Armani group, Italy's most famous luxury group, announced its March.

    Fast fashion

    Field.

    5% of the rich people occupy 50% of the luxury consumption. Although the overall consumption of luxury goods is increasing, the increase is mostly the "pursuit of luxury" consumption crowd. This part of the consumer group's purchasing power is actually limited.

    The seemingly luxurious luxury merchants have closed down. This signal also tells us that for the luxury brands, the most profitable year for Chinese market is over.

    Although AXArmaniExchange has broad consensus as a low-end brand with the same name as GiorgioArmani, it is still a challenge for the industry to firmly and directly issue this strategic plan.

    Armani's blatant learning of Zara and HM has puzzled many luxury goods fans. After all, their French counterparts LouisVuitton and Hermes have long been known as high-end strategies.

    The Armani group's middle and low end strategy was led by LivioProli, the group's general manager, while the former vice chairman of the group, JohnHooks, publicly admitted that she was dissatisfied with the strategy in an interview in 2012. In 2014, AndreaCamerana, who had been regarded as the successor of the Armani Kingdom, suddenly left the company, and the market rumors also disagreed with LivioProli.

    Africa and India are expecting too much.

    Zero new market to open up

    In the era of financial crisis after the economic downturn and mass consumption expenditure, luxury consumption will gradually return to reason. In 80s, Japan's economic take-off and the rapid development of China in the 00 era made Europe.

    Luxury goods

    Seeing broad international prospects, there are few new markets to be opened up nowadays. Africa and India have long been favored, but in fact they are expecting too much. The luxury industry must continue to cultivate in the three inherent regions of North America, Europe and Asia Pacific, so their vision can only be directed toward the deeper market.

      

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