What Does China'S Luggage Market Take From The Market?

Last year, China's luxury sales fell 1% from 2013 to 115 billion yuan due to slowing economic growth and anti-corruption policies.

From Europe to the United States, the number of major luxury brands has been varying in this 1% share.

The more tragic one is PRADA. According to its latest 2015 financial year (January 31, 2015 deadline) performance bulletin, its 2014 profit plunged 28%, and its total sales amounted to 3 billion 552 million euros, down 1% compared with the same period last year.

In February, PRADA announced that the decline in the performance of 1% was mainly due to the decline of China's market share.

However, FORTUNE magazine issued in March 31st that

It will make a comeback in China.

They believe that according to a new study commissioned by Citigroup, the Chinese rich will have two times the assets of the American rich in five years. That is to say, in 2020, the total assets of the Chinese with 100 thousand to 2 million US dollars will reach US $53 trillion, compared with us $27 trillion.

This means that more and more Chinese people can and will be high-end consumer goods.

If it's not the Chinese market,

Then we need to see what the value of the brand is for Chinese consumers to pay.

In the field of luxury or light luxury, brand premium is the fundamental mechanism of the game.

Take a look at CHANEL. Since April 8th this year, CHANEL has adjusted the global market pricing of 2.55, 11.12 and le Boy three classic handbags: the European price has increased by 20%, and the Chinese market price has dropped 22%.

A major reason for the move is to crack down on purchasing agents.

It makes the brand passively compete with itself (among regions), resulting in the loss of interests, and even causes the brand "value" to be derogatory.

When a handbag, priced at more than 20 thousand yuan, was not sold from boutique but shipped in a crumpled carton, it was pported back by luggage. What is the so-called elegance and quality? LOUIS VUITTON mentioned in its first quarter revenue analysis conference that the brand was suffering the same trouble, but it said it was not interested in following the price cut.

LOUIS VUITTON is worried that the price adjustment will lead to a reduction in the brand premium in China. "When everyone can afford your product, the real high-end buyer will go to someone else's store."

To be sure, no matter which brand has been the top, it needs to keep and enhance its value.

If we can not create new products and tie loyalty with the brand spirit of keeping pace with the times, no one can be invincible in the new world of luggage and bags.

The most obvious example is the contrast between LOUIS VUITTON and PRADA: benefit from the new icons and LOGO series, LOUIS VUITTON 2014 has shown a rebound in performance, and has maintained growth in the first quarter of 2015.

But PRADA, which has always relied on several classic styles, continues to suffer disaster in 2015.