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    Seven Major Changes In Luxury Goods In China

    2015/3/27 22:17:00 24

    LuxuryChinaChange

    Perhaps in order to restore consumers in the Chinese market, many brands began to implement price adjustment measures slowly. Recently, the news of Chanel's global price adjustment is a signal. Some analysts believe that Chanel's price adjustment will lead to a downward trend in the entire luxury sector. In addition to Chanel, other brands have been stimulating consumption through price adjustment. For example, in 2014, LVMH's high-end watch brand, Yu Bo, Zhen Li Shi and Hoya, had launched the banner of Hongkong and the mainland.

    In addition to many brands' price adjustment strategies, Marc Jacobs's sub line brand Marc by Marc Jacobs also came to the news a few days ago. The establishment of sub line is originally a strategy made by the brand in order to segment the market and adapt to the needs of different consumers. However, from the point of view of the off line brands that have been closed down these years, it will be found that in the ever-changing market of consumption, only by relying on the original raise price, the two or three line brand strategy has been unable to adapt to the present market.

    Foreign luxury brands have made many efforts for the Chinese market. Besides price adjustment, they also hold art activities, brand exhibitions or awards with social significance. They educate consumers from the perspective of brand culture and interact with consumers at a spiritual level. In addition, in order to adapt to the various changes brought about by the development of China's Internet, many brands have also tried to make electricity providers and increase new media investment.

       1 push people's products.

    Luxury brands want to occupy a larger market, can no longer maintain a high attitude, the introduction of sub line brand, or low price close to the people, entry level products, so that more consumers are willing to pocket money, is also an important way to improve sales performance of the brand. Recently, however, the news of the closure of Marc Jacobs's Marc by Marc Jacobs has also led many brands to reconsider the development strategy of the sub line. Compared with the big moves such as the introduction of the sub line brand, several low-priced accessories and entry-level products in the product series are more secure.

       2 the price adjustment strategy is effective.

    The news of Chanel's global price adjustment has caused a lot of shock in the fashion circle. Besides Chanel, last year, the brand of Yu Bo, Zhen Li Shi, tiger Heya and other brands had launched the banner of the same price between Hongkong and the mainland. The price of luxury goods was originally formulated by considering various factors such as consumer market, tariff and so on. However, with the increasing proportion of Chinese consumers' outbound shopping and purchasing, fashion brands in order to stimulate the Chinese consumer market, there is an analysis that Chanel's price adjustment will lead to a downward trend in the whole luxury goods industry.

    At the end of the 2015 Baselworld, Patek Philippe made a brief statement after the introduction of new products: the price of the Chinese market was reduced by 18%, and before the beginning of Baselworld, the price of Tigo was completely reduced, and the difference between the tables was 5%-35%.

       3 pay attention to arts and humanities.

    Holding art exhibitions and activities has always been the way to brand image and to close the emotional connection with consumers. In recent years, more and more luxury brands have been held in China to hold exhibitions of various kinds, or to play the art crossover, or to display the classic technology of the brand. Today, with the ever-changing sales performance, we can educate consumers well to grasp the future. Last year's Balenciaga special exhibition in China reviewed the classic series of brands to show the brand development process. At the beginning of this year, the Dior theatre exhibition was held in SKP, Beijing. It reviewed the grand occasion of the brand Mini theater 1945, and showed the skill of Dior Dior's advanced customization workshop.

    Besides, luxury brands also hope to contribute more to the Chinese market by awarding awards with social significance. Last year, the young talent who won the grand award of Rolex talent came to Shanghai, China. He called on and encouraged Chinese youth to pay attention to their creativity and social service consciousness, and participated in this award evaluation. In 2006, the "Cartire spirit surge Female Entrepreneur Award" has been closed. The award, founded in 2006, concerns and supports female entrepreneurs.

       4 depth Second-tier cities

    The first tier cities such as North Shang Guang are the first battleground for luxury brands to enter China. However, as the consumer market is becoming more and more saturated, the market potential of Chengdu, Shenyang, Nanjing and other second tier cities is increasing. How to go deep into the two or three tier cities has become an important development strategy for Chinese luxury brands. In order to adapt to this trend, luxury brands have been stationed in these cities. The traditional opening of shops is on the one hand, and providing consumers with a comprehensive experience is a new attempt of many brands. Last year, for example, Johnnie Walker went to Chengdu to become the first Scotch Whisky experience center in Southwest China. In addition, the brand has also moved the exhibition to these cities. Cartire's "Bo Cui Zheng Yi - Chinese and Western treasures Art Exhibition" was held in Shenyang. The Dior Mini theater exhibition also held Chengdu as the first exhibition city.

      5 follow closely Online retailers pace

    In recent years, with the development of the Internet and the change of consumption habits, great changes have taken place in the sales channels of China's market. China has surpassed the United States to become the largest e-commerce market in the world. Luxury brands also see this change and slowly try to take a place in the e-commerce platform. Last year, the Bank of Paris released the "luxury Digital Competition map" report. It made a digital ranking of the brands belonging to LVMH, Kai Yun, and Li Feng, and integrated the 14 indicators such as e-commerce level, website experience, and online and offline channel integration. Burberry's performance is almost the best. As in April last year, Burberry's flagship store opened in Tmall created a precedent for luxury brands to enter the third party online shopping platform. Of course, in addition to the third party shopping platform, many brands such as Alexander McQueen, Balenciaga and Saint Laurent have their own official websites. They can also buy products as brand image display.

      6 conform to mobile Internet and Trend of science and technology

    In recent two years, the change of mobile Internet and technology has changed the way of communication between brand and consumer, and also changed the product form of brand. Complying with the rapid development of mobile Internet in Chinese market, many brands will devote more effort to developing APP and new media. Hermes has developed a Herm phone s Silk Knots smart phone software for its representative scarves, specially teaching consumers "silk scarves". These trend oriented technology means not only promoting brand, but also promoting the relationship between brand and consumers.

    Since the advent of Google glasses, wearable equipment has not been reduced, and luxury brands have joined the technological innovation. Some time ago, the Ralph Lauren Ricky series was launched, which launched a high-tech intelligent version for mobile phone charging. Previously, according to media reports, Heuer will also unite Google and Intel to build Android Wear smart watches. On this year's Baselworld, the GUCCI watches show their wearable smart watches with I.AM+, which can operate independently of smart phones, including sending and receiving text messages and e-mail, or even acting as voice activated portable personal computers.

       7 create a lifestyle concept store

    According to Bain Consulting's report, Chinese luxury consumers will be younger, mature and specialized, and are committed to redefining luxury goods, and more and more consumers will like to seek a full range of experiential luxury goods. Paying attention to the consumer experience is not only to provide customers with exclusive services and VIP treatment, but also to create a concept store that matches the brand image and taste. We have seen many luxury brands have made this attempt. Giorgio Armani, dunhill and Roberto Cavalli all have their own catering brands. Recently, even Burberry has also set up coffee areas in its flagship store in Regent Street, London.

    Of course, apart from opening restaurants, opening bookstores is also an important way for many brands and designers to convey ideas and culture. Karl Lagerfeld opened a bookstore in Paris as early as 1999. Before Marc Jacobs opened BookMarc bookstore next door to its store, in addition to selling books, selling various accessories, notebooks and rare art and fashion thematic album. It seems that in order to retain the hearts of consumers, we must first retain the stomach and time of consumers.


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