Analysis Of The Development Trend Of Local Luxury Brands In Korea

Although local luxury brands are cheaper, many consumers will still buy imported luxury brands, because now the prices of imported luxury brands are becoming more affordable to consumers, and give consumers more rights to brag.

The reporter understands: Korea's four luxury brands MCM, LOUISQUATORZE (Rick silk), Daks and Metrocity sales this year showed a continuous decline.

According to the insiders, the sales volume of MCM decreased by 21.6% from January to February this year, which was two times faster than that of the other luxury brand LouisQuatorze, and the decline of LouisQuatorze was 9.7%.

The potential problem facing MCM is that it is getting farther and farther away from its original consumer groups.

At present, MCM is shifting its product focus to the Chinese market. Some people think that MCM's image as a luxury brand is weakening.

They call these luxury brands a common problem: the wrong pricing strategy.

The industry believes that the main problems faced by these luxury brands are pricing strategy and product design.

According to market watchers, two luxury brands are facing all kinds of troubles: first, the luxury products are cut down globally; secondly, more and more consumers are buying directly from the country of luxury goods.

GUCCI and Burberry, the three largest international

The price is cheaper now than before.

More and more consumers are buying luxury goods directly from overseas stores.

Large department stores say the four are native born.

The total sales volume of luxury brands fell 5.4% last year compared with 2013.

Between the first and February of this year, the sales volume of the four local luxury brands dropped by 8.2% over the same period.

Market watchers believe that too much pricing strategy has led to a reduction in sales of these luxury brands.

Its main products are priced at about one million won (US $906), or even higher, at a price similar to imported luxury handbags.

These local luxury brands adhere to the high pricing strategy, hoping to keep pace with the world's big luxury brands.

A fashionable girl says that the price difference between Korean luxury brands and international luxury brands is very small, but the degree of brand recognition is far from being recognized.

According to reports, in March this year, sales of foreign luxury brands rose sharply after the price cut reached 20%.

According to the current sales situation, the growth of foreign luxury brands in the Korean market this year will exceed two figures.

In terms of product design, Korean consumers do not like natural colored bags or trademark coated bags.

However, in recent years, MCM has been constantly violating this consumption trend, because the characteristics of these products are the most popular among Chinese consumers.

On the face of it, MCM has focused on developing products for Chinese consumers. For example, recently, MCM has increased the production of gold and red bags. These two colors are most popular among Chinese consumers.

For Korean consumers, the price of foreign luxury brands is increasingly affordable.

International luxury brands with low international reputation are now almost as expensive as foreign luxury brands.

Under such circumstances, the sales of international luxury brands with higher brand recognition in the Korean market are rising. In contrast, the sales of Korean luxury brands MCM, LOUISQUATORZE (Rick, Daks) and Metrocity, which are the four largest luxury brands in the country, have steadily declined, and they have to focus their sales on Chinese consumers.