"Luxury" Color Is Gradually Reducing The Price Wave.

The core competitiveness of luxury goods is still brand value, and the means to maintain brand value, such as high price control capacity, no pursuit of sales volume and so on, can not be easily abandoned.

Although the discount of brand value can indeed be full of money in the short term, if we want to play this game, it is a luxury that we must do to control short-term impulse.

Although the discount of brand value can indeed be full of money in the short term, if we want to play this game, it is a luxury that we must do to control short-term impulse.

"Most people dream of having a few people."

People in the industry used to define luxury goods.

Similarly, when luxury goods become available to everyone, luxury goods will lose their luxury connotation and brand value will depreciate rapidly.

We can see that some of the luxury brands that were originally high above began to sink and extended their tentacles to second tier cities.

Under such circumstances, the sale of luxury goods will become an ordinary commodity within the reach of the first tier cities.

Some of the more radical brands extend to the electronic business platform, luxury goods.

It is also developing towards fast food products.

The original sale of luxury goods should be in the luxurious shops or the private houses of wealthy families. But after being moved to the Internet, they first lost the "luxury" environment, and because of the pursuit of precision marketing and high proportion pformation, the business lost the opportunity of brand building and cultural pmission.

Some brands began to resort to price tactics, such as the 50 percent off major promotions that GUCCI launched not long ago.

Money is earned, inventory is also cleared, but brand image is also discounted, and ultimately hurt the brand itself.

However, some luxury goods are still adhering to the "old" business.

The typical case is Hermes.

Although the company is also facing many difficulties in the luxury sector, they are still controlling the growth rate of stores, while sales and profits continue to grow.

We can see a clear path of development for the company.

From 2008 to 2011, China's luxury market is developing at a high speed. At this stage, the development of Hermes in China is much lower than that of many luxury brands, and the sales volume of single stores is much lower than that of LV and CHANEL.

But in 2014, Hermes only kept 311 stores and returned to the level before 2008, but sales and profit margins were not affected.

As experts from the Institute of wealth studies say,

Consumers are divided into core consumers and marginal consumers.

20% of the core consumers provided 80% of the sales and affected 80% of the marginal consumers, while 80% of the marginal consumers provided 20% of the sales performance.

If the value of a luxury brand is constantly being damaged along with the rapid growth of sales volume, the first consumer to escape from the brand must be the core consumer. When the opinion leaders of this luxury consumption Department abandon the brand, the 80% marginal consumers will also be separated after some time.

The departure of core consumers is the result of luxury digestion.

Theoretically, the escape of core consumers can be filled by a large number of new marginal consumers, and the influx of such consumers can also very well modify the financial statements of luxury companies.

More and more luxury brands begin to approach the "market critical point", that is, the newly entered consumers are the same as the consumers who are out of the market. The consumers will then lose far more than the new consumers, and the speed of the loss will be astonishing.