Is "Light Luxury" A Luxury Product?

The rise of light extravagant consumption is related to social formation. Japanese management scholar Kenichi Ohmae said in his book "M society" that after globalization, the "middle class" will disappear and many people fall into the middle and lower class. These people also ask for more "luxury", so the "affordable luxury" is the mainstream of future consumption.

Usually, the price of around 300 dollars is considered appropriate.

The originator is Coach, who used to be the "king of 300 dollars" in the North American market.

Luxury is internationally defined as "a consumer product that is unique, scarce and rare beyond the needs of people's survival and development". It is also called non life necessities.

In terms of economics, luxury goods refer to products with the highest value / quality relationship ratio.

From another point of view, luxury goods also refer to the products with the highest ratio of intangible value to tangible value.

Luxury consumption is a high-end consumption behavior.

After last year's debut of the luxury luxury brands, they expanded rapidly and grew rapidly, but over exposure seemed to cause their sales to begin to slack.

According to statistics from China luxury network database, in addition to the collapse of Michael Kors stock, similar luxury brands Coach and Kate Spade are also facing the worry of falling share prices.

Coach fell $5% to $34.61 in early trading in May 27th.

Kate Spade shares fell 4.7% to $25.39 a share.

And from

Herm s group released the first quarter of 2015

China's revenue grew 19% from last year to 1 billion 200 million US dollars.

Hermes's core and most competitive leather product accounts for 44% of its total revenue. Sales in the first quarter of 2015 remained high, up 12% compared to the same period last year. The supply of classic leather handbags in short supply has made Herm s excellent in the luxury industry.

Obviously, compared with light luxury, the market is more interested in pure luxury brands.

In order to maximize profits,

Enter endless promotions.

Kate Spade 60 percent off free shipping, special items including bags, clothing, shoes and so on.

Rapid expansion led to slower growth.

In the past 12 months, Michael Kors has added 121 new stores worldwide, and now has 4133 stores worldwide, and is expected to continue to open more new stores. If the company is not fully prepared, it will face an overexposure crisis.

The function of light luxury brand official website covers new product releases, store enquiries, and the most important function is online shopping.

Nowadays, thousands of dollars on all kinds of light luxury brands can buy a bag of rotten streets, and it may be cheaper than buying them exclusively.

Hunger marketing strategy: the commercial promotion of luxury goods refers to the marketing strategy of luxury goods providers aiming to reduce production, in order to achieve regulation of supply and demand, to create insufficient supply, to maintain product image and to maintain higher commodity prices and profit margins.

CEOAxel Dumas, a Hermes group, joked at a conference this year: "the company hopes that the products of Herm s will be hard to find, even on the website."

"A bag may take 7 to 10 years. If you want a bag of lizard skin or crocodile skin, it will take longer," said CEO Chavez, Herm s.