How To Make The Brand Return To The Essence Of Luxury Goods?

2014 for Luxury brand It is a year of evolution. From the vigorous anti-corruption policy to the sales of many luxury brands, from the turbulence of various luxury brands to the confusion of apple and other technology companies, the traditional fashion and luxury industry has faced major challenges. Look at the Chinese market alone. Almost the media's wording is "slowing" or "declining sales", all of which point to anti-corruption policies.

The challenges facing the Chinese market are not just anti-corruption policies. People will often ignore subjective reasons after having strong objective reasons. Another reason that can not be ignored is the excessive commercialization that has been realized. Yes, it is because we walk too fast, ignoring the quality that we should have as a luxury.

First of all, when it comes to the quality of luxury goods, we must first understand what the foundation of luxury value is. Alessandro Balossini Volpe, a former marketing director of Ferragamo, used the "28 rule" to explain luxury in my chat with me: for a commodity, 20% of the time can produce 80% goods, that is, mass goods, but if you want to make the goods the best, that is, the quality and function will be increased from 80% to 100%, it will take another 80% time and labor force.

When I heard this sentence, I immediately drew this picture in my book.

The products here can also be understood as quality, function and so on, depending on the product itself. Effort stands for working hours, and labor skills are directly reflected in costs.

Just as athletes practice running, 100 meters running into 13 seconds can be done by proper exercise, but if you run from 10 seconds to 13 seconds, you will need extra long training time and overloaded exercise, or even strive to reach the limit. Only talent can be run into 10 seconds. The confrontation of the best players is often in 0.001 seconds. In order to make up for the 0.001 second gap, athletes do not know how much effort and talent they have to pay. This means that when a commodity is excellent enough, every little bit of quality or function needs extra strength of labor and technology, or even some talent that depends only on craftsmen. Therefore, from a product point of view, luxury comes from superb technology, long working hours and even talent.

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The function of the watch is to display the time, and now the electronic watch and quartz watch are more accurate than the mechanical watches, because the average error of the mechanical watch is 45 seconds a day, but the price of the mechanical watch is much higher than that of the electronic watch and quartz watch. The difference is in technology and technology: there are more than 70 parts inside the tourbillon of the mechanical watch, and the total weight of the more than 70 parts can not be more than 0.3 grams, that is, the weight of a swan feather. At the same time, all these parts are made by hand. And such meticulous production is just to counteract the effect of gravity on the internal parts of the mechanical table, resulting in a few seconds of error.

Fortunately, people who understand watches always appreciate the spirit of this craftsman and pursue the ultimate function and technology, even if it is just to improve the accuracy of one second. This is the difference between popular brands and luxury brands. Electronic watches and quartz watches can provide the most accurate time to meet the daily needs of the public, but they are cold products on the production line.

As he said when he interviewed Hublot CEO beaver, "time is the least important function of watches."

At the same time, we should see a few days ago that some products can exist in the world and have fulfilled their mission. It exists to prove to the world: Yes, we can!

That explains why so many people are asking, "is it not a bag? Why is it so expensive? There is no better quality than some cheap goods." Yes, because the pursuit of efficiency is maximizing the average price. Generally, it takes only 20% of the time to make the function and quality reach 80% packs, which can satisfy everyday life. It is not necessary to make 100% perfect, but luxury goods are infinitely approaching 100%, while only 20% of the quality can be increased by 80% time.

Therefore, the core value of luxury goods is based on the relentless pursuit of excellence, and the quality that can be achieved by spending too much time and efforts of superhuman beings. Therefore, the so-called intangible value of luxury is actually built on tangible labor and working hours. These additional labor costs will also derive value, which is directly reflected in the price, resulting in the so-called brand premium. It is just that the value of most labor force is just as difficult to detect as the 1 second degree of the ascension of the tourbillon, but it is real.

For now brand image For the gradually losing brands, excessive commercialization also makes luxury goods gradually become popular products, because excessive commercialization makes the strategy of luxury brands become market oriented. From the "28 principles", luxury goods are out of the circle of maximizing efficiency in the pursuit of mass goods.

With 20% of the time and labor force to produce products that can achieve 80% functions and utilities, and a large number of sales, this is the maximum efficiency (see chart). And the part of efficiency maximization is a very long and slowly rising process. The value of this process is mainly reflected in the horizontal axis. That is to say, the value of the product distributed on this curve is not practical, but is mainly caused by Effort in the production process. The value generated in this respect requires active communication with customers, reaching the end consumers through marketing, and finally being recognized and appreciated by consumers. Therefore, the marketing methods of luxury goods are basically centered on brand story, brand history, product technology, origin and so on. This is the ideal state of luxury marketing and consumption.

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The function of the watch is to display the time, and now the electronic watch and quartz watch are more accurate than the mechanical watches, because the average error of the mechanical watch is 45 seconds a day, but the price of the mechanical watch is much higher than that of the electronic watch and quartz watch. The difference is in technology and technology: there are more than 70 parts inside the tourbillon of the mechanical watch, and the total weight of the more than 70 parts can not be more than 0.3 grams, that is, the weight of a swan feather. At the same time, all these parts are made by hand. And such meticulous production is just to counteract the effect of gravity on the internal parts of the mechanical table, resulting in a few seconds of error.

Fortunately, people who understand watches always appreciate the spirit of this craftsman and pursue the ultimate function and technology, even if it is just to improve the accuracy of one second. This is the difference between popular brands and luxury brands. Electronic watches and quartz watches can provide the most accurate time to meet the daily needs of the public, but they are cold products on the production line.

As he said when he interviewed Hublot CEO beaver, "time is the least important function of watches."

At the same time, we should see a few days ago that some products can exist in the world and have fulfilled their mission. It exists to prove to the world: Yes, we can!

That explains why so many people are asking, "is it not a bag? Why is it so expensive? There is no better quality than some cheap goods." Yes, because the pursuit of efficiency is maximizing the average price. Generally, it takes only 20% of the time to make the function and quality reach 80% packs, which can satisfy everyday life. It is not necessary to make 100% perfect, but luxury goods are infinitely approaching 100%, while only 20% of the quality can be increased by 80% time.

Therefore, the core value of luxury goods is based on the relentless pursuit of excellence, and the quality that can be achieved by spending too much time and efforts of superhuman beings. Therefore, the so-called intangible value of luxury is actually built on tangible labor and working hours. These additional labor costs will also derive value, which is directly reflected in the price, resulting in the so-called brand premium. It is just that the value of most labor force is just as difficult to detect as the 1 second degree of the ascension of the tourbillon, but it is real.

For those brands who are losing brand image, excessive commercialization also makes luxury goods gradually become popular products, because excessive commercialization makes the strategy of luxury brands become market oriented. From the "28 principles", luxury goods are out of the circle of maximizing efficiency in the pursuit of mass goods.

With 20% of the time and labor force to produce products that can achieve 80% functions and utilities, and a large number of sales, this is the maximum efficiency (see chart). And the part of efficiency maximization is a very long and slowly rising process. The value of this process is mainly reflected in the horizontal axis. That is to say, the value of the product distributed on this curve is not practical, but is mainly caused by Effort in the production process. The value generated in this respect requires active communication with customers, reaching the end consumers through marketing, and finally being recognized and appreciated by consumers. Therefore, the marketing methods of luxury goods are basically centered on brand stories. Brand history Product technology, production areas and other aspects. This is the ideal state of luxury marketing and consumption.