Luxury Brands Need To Adjust Their Original Strategy In Time.

In fact, the real reason for the weak consumption in China's luxury market is that more and more consumers want to cross border purchase in various ways. When the emerging consumer groups in China are gradually mature, their demand for fashion and luxury goods will become more personalized and idealized.

In an interview with Caixin reporter, an industry insider who has served in a number of world-renowned luxury goods groups said, "it is inappropriate for many luxury brands to attribute their weak performance list to China's anti-corruption.

Every downturn has its own problems, such as design, management, strategy, channel and so on.

Taking Prada as an example, he analyzed that Prada's "killer pack" was very popular in China, but later the style stuck to the classic and basic funds, and the design remained the same.

"For the main group of luxury consumers in China, Prada lacks a sense of intimacy."

He said.

The China luxury report issued by the Institute of wealth quality has proposed that the LOGO consumption of luxury goods in the Chinese market will become a past tense. Personalized product and service needs will become the focus of consumers' attention in the future.

In other words, China's emerging consumer groups are gradually maturing, and their demand for fashionable consumer goods has become more rational.

Youth is another trend.

Zhang Mengxia's survey of consumption behavior of Chinese consumer groups shows that China's luxury goods consumption group is also a target consumer of luxury goods between the age of 18-45.

"And younger people account for 75% of the age below 35. Some of these consumer groups have become the first step to enter luxury consumption when their income is limited."

This is also reflected in the performance of light luxury brands.

The US luxury light brand Michael Kors recently released the third quarter of the 2014/2015 fiscal year (October 2104 -12) sales increased by 29.9% over the same period last year, reaching US $1 billion 310 million, and net profit of US $304 million, up 32.3% over the same period last year.

Another lightweight luxury brand Coach maintained more than 25% sales growth in the Chinese market in fiscal year 2014.

KateSpade&Co. (KATE.NYSE) did well in its first financial year after becoming an independent Brand Company.

In 2014, KateSpade sales increased by US $1 billion 139 million, up 41.7% from US $803 million 400 thousand in the same period last year.

"

The design is more consistent with young people, and has advantages in cost performance.

For many young girls, if you can't afford Prada killer bag, spend 1/10 of their price on a similar style.

Killer bag is also a good choice. "

The people in the industry say.

Global

The better French luxury group Hermes has a net profit of 1 billion 140 million US dollars (7 billion 100 million yuan) in 2014, up 8.7% from last year.

But its watch business has seen a negative growth, and Hermes said, "the sales of watch business in China's large-scale anti-corruption activities in 2014 have also deteriorated from a mere 1% growth in the previous year to a negative growth of 10.6%."

According to the statistics released by Bain consulting company at the beginning of last year, the overall sales of luxury goods in China decreased by 1% year-on-year.

But it can not be attributed to the slowdown in luxury sales attributable to China's economic slowdown and government anti-corruption actions.

Zhang Mengxia, a professor at the China luxury research center of the University of foreign trade and economics, said in an interview with Caixin reporter that luxury consumption, which was suppressed by anti-corruption itself, belonged to the "abnormal" part.