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    Luxury Brands Are Strange To Cope With The Winter Of The Industry.

    2015/2/9 15:46:00 23

    Luxury GoodsIndustry DevelopmentMarket Quotation

    As the world's largest luxury group, net profit in the first half of the LVMH 2014 fell 4.3% in the first half of the fiscal year, and sales growth in China could barely remain at 3%-5%'s low level. Due to the deceleration of exchange rate and sales in China, Burberry's profit before tax dropped by 12%; the profit of Kai Yun group of Prada group and Gucci group fell 20.6% and 4.7% in the first half of 2014; in the first three quarters of 2014, the sales of Tod's group fell 6% in China; while the peak of Richemont group successfully blocked its decline in China in 2014, however, it did not achieve profitability.

    Italy Luxury Association believes that although China's economic development slowed down in 2014, its contribution to global luxury goods sales still stands at 29%. In the face of changing market conditions, luxury brands do not know much about Chinese consumers. Taking Louis Vuitton as an example, despite the vigorous innovation of products and the elimination of LOGO campaign, Chinese consumers still can not fully accept its transformation. Some analysts believe that this "go to the vulgar" brand image transformation campaign has made LV lose its wolf character in marketing and embarked on a thankless alternative road.

    Obviously, there are still many problems left in the Chinese market for luxury brands. Because of the anti-corruption policy, the demand for gift giving is reduced, and self consumption is more, and consumers' habits have changed. Luxury means more quality of life, instead of face saving. Julius Baer Luxury Brands Fund, head of the Swiss luxury speculation fund, told Reuters in an interview that some brands had been saturated in the Asian market and produced an aesthetic fatigue. How to make Chinese consumers who have changed and have a brand new understanding of brand image is what the luxury group urgently needs to do in 2015.

    Simon Tye, executive director of ipso Market Research Group, told successful marketing: "we see that consumers in mainland China, especially consumers from the first tier cities, still have strong demand for luxury goods. They want to see a new brand of luxury brand, buy creative products and get better service. They will continue to increase their consumption demand for the unique custom products that inherit the brand spirit.

    According to the "2015 China luxury goods report" released by Thorpe group and Rhodes's public relations, Chinese consumers will have equal or increased consumption of luxury goods in the future. Among them, watches, Handbag And the attractiveness of jewelry gradually decreases, and high-end cosmetics category has the greatest attraction for China's growing luxury consumption group.

    When the high-end image of luxury brand is built up, it is different from expensive clothing or handbag. Beauty makeup products can go to the people in the price and circulation channels. This can not only expand brand influence, but also increase revenue. According to the statistics of 2013, perfume and cosmetics have developed into a market of 43 billion euros in the luxury retail category, accounting for 20% of the total retail market of luxury goods, only 23% of jewelry and watches.

    Gucci former designer Tom Ford has said that the core of the luxury brand's "popular" strategy is: "the average consumer can't afford a $200 thousand dress, but can afford a $25 lipstick or $65 bottle of perfume, so they also have their own little luxury dreams." In order to achieve the expected profit target, increasing sales volume is a key step. To this end, luxury brands will introduce cheaper and cheaper sub line products and extend the product line of perfume and beauty products. When all these products reach a considerable volume, they will bring substantial profits and make the brand easier to penetrate into the life of consumers.

    On the road to success, all the big brands are advancing. In August 2013, designer Marc Jacobs, the first beauty product series Marc Jacobs Beauty of the same name, was officially launched and planned to be put on the shelves in China. In 2014, there were two big luxury goods giants, Burberry and Gucci, to announce their entry into the beauty dressing industry. In 2015, the cosmetic products promoted by Tom Ford for their own brand also became one of the strongest product lines of its brand, and opened more than 100 stores.

    Luxury brand implants have long been a novelty, but luxury brands are more and more frequently associated with TV shows. In the hit Japanese dramas and Korean dramas, there is no lack of luxury brand sponsorship. The Korean drama "you from the stars" and "Japanese First Class" are dazzling. And since 2014, Hermes , Prada, Bvlgari, Givenchy, Ferragamo, Gucci, LV, more and more luxury goods appear in domestic TV dramas.

    On the other hand, the shooting cycle of domestic TV plays is getting shorter and shorter. Luxury goods More and more willing to put their products in the middle of domestic TV drama, in the main season to promote clothing synchronized. In the final analysis, luxury brands realize that in the Chinese market, the base dispersion of luxury consumers is only implanted in films with big directors and stars, and can not be fully covered. TV plays become a new content marketing market.

    According to McKinsey statistics, 20% of luxury consumption is done under the influence of digital media. At least 70% of luxury consumers use smart phones to log on to the luxury brand's clients or touchscreen to find their favorite products. More than half of the luxury consumers reach the physical store before using the mobile Internet to complete the merchandise search, inquire the address and the lowest price. The advent of the Internet age has made all kinds of online media occupy people's daily life, forcing luxury brands to pay attention to digital marketing, and achieve online communication to attract offline experience.

    The digital marketing of luxury goods mainly builds up the brand image through a wide range of dissemination, deepening the understanding of the target consumers' brand and products, attracting the consumers who are interested in buying, and turning them into long-term consumers. Most of the luxury brands currently operating in China own their official micro-blog and WeChat public accounts. In the second half of 2014, Hermes and Chanel also launched official WeChat accounts to push information about brands and products.

    In the digital transformation of luxury brand marketing, the British brand Burberry has a lot of action. In the internal team, Burberry set up a creative team, specializing in e-commerce and digital strategy. In the shop experience, there is a retail theater with retail and digital sensory experience. At present, two retail theaters in China are located in Beijing and Shanghai. Without a cashier's desk, the clerk records the purchase records of users through iPad, so as to serve more targeted. By putting chips into specific clothing, they turn the mirror into a screen, watch clothes, videos and details.


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