The Future Trend Of Light Luxury Brands? May Be In Danger.

A few days ago, two new brands were born in China's women's clothing. They were all located in "light luxury", one is the MYALL of the autumn water family, and the other is the "Lara's pledge" under the Korean family's house.

CEO Zhao Yingguang said in micro-blog that the core customers of the new brand are 25 - to 40 - year-old urban white-collar women who not only try European and American styles, but also break past parity routes.

A few years ago, under the impact of ZARA and H&M, domestic clothing brands built up their own local fast fashion.

But the good times are not long. The fast fashion market and the fast updating feature bring a lot of inventory.

Then the word "light luxury" is heating up rapidly, for example, the stock market myth of Michael Kors (MK), which seems to make many clothing brands have new goals.

But today, is it true that light extravagance is an opportunity?

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Luxury goods slump, let light luxury red, Tory Burch opened 9 stores in China in four years

"I bought 3 things, Kate Spade's bag, this time.

The slippers, Love Leather's skirt, are waiting for the us to deliver the goods.

Shopaholic path has never been bought since Shopbop bought it.

"We are not luxury electric providers, but extravagance is our speciality.

Such as Tory Burch, Michael Kors and so on.

Shopbop responsible person said so.

In light of the extravagance, the English explanation is "affordable luxury". The price of 300 dollars is popular, and there are specialized shops in some high-end shopping malls.

For example, we are familiar with Coach, which is the originator of light luxury.

As the "king of 300 dollars" in the North American market, it sells more than 5 billion dollars this year.

And Tory Burch, Michael Kors and so on are all recently popular fried chickens.

Many people know the American luxury brand Tory Burch from gossip girl. It began to enter the Chinese market as early as 2005, but it was 5 years after it opened its first store.

This extravagant wind began to blow almost in 2010.

Michael Kors was already a $1 billion brand before listing. In 2011, it issued IPO at a price of $20, and its share price increased by 4 times in a year and a half, and the highest price reached $101.

If COACH is the originator of light luxury, Michael Kors has led to the rise of the new category of light luxury.

At present, the light luxury wind has blown to China.

Tory Burch entered Hangzhou Tower D block. About 1 months later, MK also settled on the edge of Tory Burch, and a pair of New York partners began their business in Hangzhou.

In 2013, MK even opened 2 stores in Chengdu in 1 months.

Just in the past 2014, the extravagant crowd became even more lively: Michael Kors moved the big show to China; while Tory Burch, which opened 9 stores in China in 4 years, put the global flagship store in Shanghai, and when family Burch Tory also flew to join in.

Behind the boom of luxury goods in China, some analysts are the result of the downturn in luxury goods. The financial crisis in 2008 and the anti-corruption measures in recent years have brought luxury goods into a slump. These prices are not very high, but they still give people a fashionable sense of luxury. They can not satisfy the mindset of people who have the luxury of being unable to consume.

Therefore, FURLA, Kate Spade (also the American brand, the price and Coach are almost the same) and so on.

And some domestic brands are also unable to restrain themselves and rush into the light luxury market.

For a time, mud and sand are all coming down.

The reporter saw in a Tmall domestic clothing store, known as light luxury, that a woolen coat was less than 2000 yuan, and the nine shirt shirt was less than 200 yuan.

For some domestic enterprises, today's "light luxury" is actually more like a popular language, taking advantage of the heat.

On the other hand, discounting the dots, showing a crisis behind the luxury and bustle.

"I bought a Coach in oorlies in New York, less than 1000 yuan, and four thousand or five thousand yuan for domestic counters.

Just under the plane, the bag was robbed by a friend of 1200 yuan.

The path said, "I finally understand why there are always so many Chinese people at the door of Coach discount shop."

But that was 2010.

In recent years, Coach has fallen from the clouds.

Some people analyzed the disaster from the discount.

It is understood that the number of Coach discount stores has a direct price trend.

Kate Spade has the lowest discount in the US for some specific holidays. In 2012, Michael Kors, which said "100 shops in China in the next 3~5 year", also had a lower discount last year, for example, 50 percent off.

On the other hand, in order to digest the production capacity and have to go through the discount, it seems to be a way for light luxury consumers to expand.

It is reported that Coach has decided to close some discount stores because customers have been used to buying discounted Coach over the years.

MK also began to play down the discount so as to avoid possible future slippage.

"Messi's department store MK before a lady's handbag saw 238 dollars before, black Friday sold 178 dollars, I took it."

One consumer said.

25% off, it's a very slow shopping day for black Friday.

Michael Kors also said that before the black Friday, no discount, to show the determination.

Reporters also saw in Hangzhou Tower's MK store that the discount was very low-key, and there were two red "Sale" on the shop window. There was only a small black "Sale" on the wall of the shop. If you didn't ask the salesperson voluntarily, no one would tell you that there were 30 percent off advantages at present.

Herb Greenberg, a financial investment columnist, quoted her friend's comments from her famous blogger Reality Check. "Discount is a discount. Once you need to sell products through discount, it is even harder to sell without discount."

This sentence has already explained the embarrassing situation faced by the light extravagant.

John Idol, chief executive of MK, said: "after the implementation of the strategy of" no discount ", customer demand has been shrinking and sales have been reduced for a short time.

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The brand image is higher than the quality, but the luxury has entered the "fast down" stage.

Light extravagance has been called the blue ocean of luxury goods. They can create benefits in a downturn, but some big guys do not recognize their status.

"Do people still use iPhone in 20 years? Maybe not. Maybe we will use other more innovative products, but I believe people will also drink Dom P rignon (Don Peri Nong, the brand of champagne under LVMH)."

LVMH CEO Bernard Arnault accepted the CNBC live broadcast "Squawk on the Street" interview, saying that light luxury is not a luxury. He believes that LVMH and "light luxury" belong to two industries.

it is thought that

Maybe he was jealous, because he had sold the shares of Michael Kors, and obviously did not foresee his later big purple big red, but his viewpoint is also without reason.

The core of luxury lies in its culture and history, as well as the technology that has been going on for many years. It is a commercial way of existence to reduce the price and let the product have the appearance of a similar luxury. But the word "luxury" may not be enough for two words.

In a sense, light extravagance is a product of a special economic period. The positioning of "high and low is not low" is easy to attract consumers who want to save money while they are in the economic downturn.

Zhou Ting, President of Qian Bao think tank and President of the Institute of wealth and quality research, said in an interview with reporters that at present, light luxury has entered a "fast down" stage. Although the market capacity is large, there is still room in the short term, but it will not be so swift and violent.

"Light luxury is faster than fast luxury goods. Expansion is too fast and too many buckles are part of the reason. The key is the maturity of consumers.

We will realize that light luxury is more of a kind of positioning packaging, and then we will divert, some follow the real luxury, and the purchase of parity products.

Zhou Ting said, and too much emphasis on brand image, and ignore the quality of products, is fatal.

Some extravagant wants to raise the price to the high end. For example, Mulberry increased the supply of handbags to more than 1000 pounds in the first two years to 40% of the total supply. The effect can be imagined: the high-end consumer groups do not accept it for the time being, but the original target customers can not afford it, and the decline of business is inevitable.

What should we do when we are in a dilemma? Maybe what Tory Burch said in an interview with reporters will inspire us: improving the quality of products and ensuring the trend is the right way to live.

The big guys are so, not to mention the small extravagant.