Luxury Brands Aim For Two Or Three Line Cities In China

"Luxury goods are frozen in China" and "luxury stores first tier cities are frequently closed". These words are full of major news in 2014.

Indeed, the Bund's luxury brands were largely evacuated, from 3, 6 to 18 in the Bund, where the luxury goods were once empty.

As early as the beginning of this year, the Chengdu international financial centre (Chengdu IFS) of Kowloon warehouse has been opened.

On the other side, Chengdu's Ocean Pacific Taigu, which is under Sun Hung Kai property, is also ready to go.

People can not help but wonder that when Li Jiacheng and other real estate tycoons have been selling mainland commercial real estate and luxury sales in China, why are there so many Hongkong commercial developers entering the mainland? What is more remarkable is that the second tier cities are replacing the first tier cities to become the investment focus of these real estate giants.

It is our important task to excavate potential areas. How to excavate potential commercial areas and build it into a local fashion landmark is the direction of our efforts.

In an interview with reporters, Hou Xun, general manager of Kowloon warehouse China Real Estate Co., said that at present, the company plans to build 5 national gold Centre (IFS) projects in the mainland, which are located in Chengdu, Changsha, Chongqing, Wuxi and Suzhou.

Among them, the total investment of Chengdu IFS is more than 16 billion yuan.

As for luxury shopping centers targeting two or three line cities, Jonas Hoffmann, an associate professor of marketing at SKEMA business school in France, told reporters that luxury markets such as Shanghai and Beijing were already saturated, compared with quasi tier or second-tier cities such as Chengdu, which had great potential. This is why some brands began to set up "regional centers" in these cities to achieve further development in the Chinese market.

New battlefield for luxury goods

Chun Xi Street is the busiest pedestrian street in Chengdu. Now on this busy street, we can see a giant panda lying on a skyscraper. This giant panda is the symbolic sculpture of the newly opened Chengdu IFS at the beginning of this year.

The national treasure panda is of great significance to Chengdu, so such a lovely panda sculpture is naturally loved.

"Now the young people in Chengdu meet and meet each other when they meet."

Chengdu guy Xie Lin (alias) excitedly told reporters.

Prior to the opening of IFS in Chengdu, Parkson and yishdan of Chun Xi Street can be regarded as a favorite place for young people in Chengdu. Not far away, the department stores such as America and America have gathered luxury goods such as LV. It is one of the few shopping malls that Chengdu people can buy luxury goods.

However, when Chengdu IFS rises, it has become Chengdu's new fashion landmark.

"The most important thing is that it combines entertainment, shopping and eating as a whole, with distinctive restaurants and brand names. It's very convenient to travel directly to the shopping mall by subway."

Xie Lin said.

Of course, Chengdu IFS is more eye-catching is its full range of luxury brand shops.

It is worth mentioning that most luxury brands in Chengdu IFS are two facades.

In the IFS street of Chengdu, Taigu, which belongs to Sun Hung Kai estate, has also gathered all kinds of big names.

What is more interesting is that luxury brands in the two shopping centres are not duplicated.

Despite the great battle, people can't help wondering if luxury brands are so concentrated in Chengdu when they are hit hard by luxury sales in the first tier cities.

People in Chengdu will enjoy life. People all over the world know that this is also reflected in their quality of life.

"Many luxury brands in Chengdu even surpassed those in Beijing, Shanghai and other first tier cities. On the day of opening, Chanel (Chanel) was short of 2.55."

Hou Xunru said.

It can be seen that Chengdu people love luxury goods very much.

It is understood that there are 80% of the international first-line brand layout here.

Data show that Chengdu's consumption index has been among the best in the western cities of Forbes's list of best business cities in recent years.

The consumption of luxury goods will reach ten billion yuan.

In fact, the pfer of luxury brands to the two or three tier cities is no longer a novelty.

At present, the consumption momentum of women in the two or three tier cities is increasingly strong.

Ouyang Kun, China's chief executive of the World Luxury Association, said that the polarization of China's luxury consumer market will accelerate the growth of the luxury consumption market in the two or three tier cities.

"Global luxury goods look at China, while luxury goods in China depend on two or three line cities, which has changed from luxury to reality in the luxury sector."

A luxury industry source told reporters that the acceleration of China's urbanization process and the growth of wealth outside big cities have led to the consumption demand of luxury goods in a large number of two or three line cities.

At present, luxury stores in Hangzhou, Wenzhou, Qingdao, Dalian and other two or three northeastern and southeastern cities have been unable to meet the local consumer demand. Besides Chengdu, Xi'an, Changsha, Urumqi and other places, they have become a new city for the layout of luxury goods enterprises.

Among them, Xi'an is the most worth mentioning.

Because Xi'an is located in the hinterland of the Central Plains, and is the leader of the five provinces in Northwest China, its regional advantages are obvious, attracting tourists from all sides.

As a second tier city for luxury consumption in China, Xi'an has gained the international reputation.

In this city, since 2007,

Large scale entry has already included brands such as Versace, Emporio Armani and Vertu in just a few years, and brands such as Chloe, Dior and Prada have been settled earlier.

Since 2007, the speed of LV's opening in China has been speeded up obviously. Most of its new stores are distributed in two or three line cities, such as Changsha, Xi'an, Qingdao, Xiamen, Wuxi, Wenzhou, Nanning, Kunming and so on.

Besides LV, Gucci, another luxury leader, began to sink the layout of Chinese stores a few years ago.

In fact, the "perseverance" of the two or three line market has also given back to these luxury brands.

Gucci's store opened in Zhengzhou on the first day, and sales exceeded 100 million yuan, while LV was located in Urumqi's store, and for a period of time, it was the national sales champion.

Vincent Bastien, a professor of luxury marketing and strategy at HEC business school in Paris, told reporters that in fact, luxury goods are the same in every country's development mode, first in the capital, then quickly extended to major cities (such as Shanghai and Guangzhou), followed by two tier cities.

This is the criterion for the popularization of luxury goods.

However, compared with front-line urban consumers, consumers in the two or three tier cities have different consumption characteristics.

With the grand strategy of "sinking channels, quickly sitting on the two or three line and watching the four or five line cities", luxury brands also conduct separate market surveys on these cities, aiming at different consumer characteristics of these cities and launching marketing accordingly.

In China, 80% of the consumption decisions come from women. There are obvious differences between consumers in different cities, consumption habits and consumption behaviors.

The two tier trend of consumption in the first tier cities is increasingly obvious. Fast fashion and luxury goods occupy the first tier business circle, while the middle end brands are marginalized.

Female consumption shows the characteristics of refined life and interesting consumption.

The frequency of female consumers shopping in the two or three tier cities is much higher than that in the first tier cities, almost two times that of the first tier cities, and is growing.

In addition, Yang Qingshan, a luxury researcher at the University of foreign trade and economics, said in a media interview before that before the commercial rent itself, the central and Western businesses did not have the strength to enter the flagship luxury brand, but now commercial real estate developers follow the eastern developed areas, or increase the selling price of the property through the introduction of luxury brands, or the introduction of luxury brands to raise the overall rental price, and the introduction of the cost of luxury brands to domestic brands.

It is worth mentioning that, like luxury goods, luxury hotels in recent years are also making full efforts to open up China's two or three tier city market.

Sheraton, Sofit, intercontinental, Wenstin, and even Ritz Carlton all appeared in Tianjin, Zhengzhou, Wuhan, Changsha and Urumqi.