The Potential Of China'S Luggage Market Has Become A Trend Of Explosive Development.

Money is not a problem?

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 said in March 31st that luxury goods will rise 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.

Uphold and enhance value

It's not China if you want to worry.

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

Purchasing makes the brand passively compete with itself (among regions), resulting in the loss of interests, and even the brand "value" derogation.

When a more than 20 thousand - RMB handbag is not sold from a boutique, it is shipped back in a crumpled paper box for luggage, so what is the so-called elegance and quality of the face? LOUIS VUITTON, in its first quarter income analysis conference, was bothering the brand, but it said it was not interested in cutting down the price.

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: from the brand new icons and the LOGO series, LOUIS VUITTON has shown a rebound in 2014, 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.

Cost effective?

At present, LOUIS VUITTON and other top luggage giants in Pyramid, apart from being partitioned by medium-sized warships such as GIVENCHY and BALENCIAGA, are more aggressive brands such as Michael Kors and Tory Bruch attack from the bottom.

Between China's middle class and the younger generation, "cost performance" has become a hot topic in the field of luggage and bags.

But the meaning of "cost performance" is not only "low price", or "explosive money" that is easily copied.

Through production, the way to profit only to capture the best selling position or become a fast followers at a lower price is vulnerable.

Take Michael Kors as an example, Michael Kors has enjoyed a very substantial growth in China in the past few years.

However, according to the analysis of Business insider website, the brand has begun to face enormous problems.

In 2014, the company's share price fell 37%, and announced its reservations about future growth prospects.

"When it becomes universal, it will no longer be sought after."

After all, a short-lived trend and a business without loyalty can not last.

Chinese brand participation in competition

"China

The industry is developing rapidly, which sounds like a cliche. But after so many years of "starting", it is now beginning to mature. The designers and brands in China are showing market competitiveness. BoF editor in chief Imran Amed pointed out after visiting Shanghai fashion week that "people are talking about LOUIS, VUITTON, GUCCI, BURBERRY, PRADA and other luxury brands." but now, people are paying more and more attention to young local designers.

At the same time, along with the change of consumer composition caused by anti-corruption, China's fashion industry is undergoing great changes from both production and consumption.

People begin to know what good things are and what they are willing to pay.

In the category of bags, take DISSONA as an example.

Founded in Shenzhen, China, it is the best original leather goods brand in China. It has become the best in China. Its development fully reflects the Chinese brand's ability and the needs of the Chinese market.

DISSONA has spent more than 10 years trying to build a "good" and "worth" Chinese brand.

In design, they are never satisfied with the pplant of the trend, but stick to cooperate with the top professional team to keep the originality and uniqueness.

Its "secret seal" and "strong magnetic field" series are all made by international design masters with the concept of Chinese culture. Their styles really conform to the global aesthetic standards, and at the same time arouse the resonance of the Chinese market.

At the same time, the brand's pursuit of quality is also meticulous. The introduction of the European century Centennial leather goods processing technology, and even looking for the top leather products in Eurasia, makes every product possess the strength of inheritance.

What's more, DISSONA has the emotional value that can penetrate into the soul of women. "The next bag will be better, the next man is not necessarily", "behind a successful woman, there must be countless bags".

Every year, advertising slogans strike the heart of Chinese contemporary urban women in a unique and real way.

Therefore, whether the economic crisis in 2008 or the economic Waterloo in 2013 did not waver.

At the forefront of the market.

It is reported that since 2009, the brand has maintained a compound growth rate of 30% for 5 consecutive years. This legendary performance has not only made it the first, the most successful and valuable Chinese self created brand, even the international giants have to envy.

At the end of March, the first Shenzhen fashion week in 2015, the DISSONA "time gift" 2015 autumn and winter new product conference has undoubtedly become the most popular show.

This release is a startling phenomenon: many Chinese fashion women who have always used the big international handbags, no matter when they come to the scene watching show or through social media, all have the same idea of buying DISSONA.

The so-called "Qin lost their deer, the world is a total of them."

After the unbroken process, the competition in the Chinese handbag Market is going to be very exciting.