Four Major Trends Of Luxury Electric Business In The Future

Recently, the news about luxury goods to develop electricity supplier business has been bubbling with excitement. Cohen and McKinsey two consulting companies respectively analyze the report of luxury electric providers. We summarize four trends from them. Let's take a look together.

Amazon will become the number one online apparel retailer in the US.

For online sales

Amason has always been ambitious.

Not only did they show off all the luxury brands, but Broolyn also set up a studio for shooting blockbusters.

This initiative seems to have attracted the attention of luxury brands. Amazon has so far failed to reach immediate cooperation with any high-end brand.

But Amazon's attempt has proved to be correct.

Recently, Cohen consulting company has released an analysis report that although consumers often associate Amazon shopping platform with books, household products and electronic products, it is predicted that Amazon's clothing business will increase from 5% of the total market share of the US apparel market to 14% in 2015.

By 2020, Amazon will surpass Messi's department store and become the number one online clothing retailer in the United States.

Luxury brands: it will be too late to develop electricity suppliers.

The negative attitude of luxury brands to electricity providers does not stop at Amazon

"Because our group's attitude towards the electricity supplier is basically trying water, and it does not exert too much pressure on the employees in the business."

The interface reporter interviewed the head of the LVMH group's electricity supplier business. The other side said, "this attitude has made our work relatively relaxed."

However, from McKinsey's recent analysis report on the consumption habits of 7000 luxury consumers in the world, this test attitude can only be temporary. For luxury brands, the development of electricity providers should be done as early as possible.

When consumers pick up their phones and rush to the Internet, retailers' prejudices against channels are doomed to be reversed by reality.

Chanel, once sniffed at the electricity supplier, has quietly launched a set of jewellery on Net-a-porter this year. Celine, a French luxury brand, has publicly said "do not have anything to do with the electricity supplier". Now it has also joined the online branding camp.

In McKinsey's report, we can see that so far, the sales of luxury goods accounted for 6% of total sales, about 15 billion 500 million US dollars, which will change to 77 billion 600 million US dollars in 2025, and the proportion of electricity supplier sales will rise to 28%.

This means that sales performance on e-commerce channels will directly affect the annual total sales of luxury goods.

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However, the measures and progress of luxury goods to the electricity supplier are still quite prudent at the moment.

For example, after Celine authorized Net-a-porter, it seems to be a big sale.

A new channel has been opened up, but the Celine package with a price of more than 3600 US dollars can only be purchased from physical stores.

Burberry, which has always attached importance to the Internet technology, is more sensitive to the electricity supplier. Even so, Burberry has closed the Tmall mall store that it had authorized before this year.

Other luxury brands, such as Hermes and Louis Weedon, have a tighter view of their own bags. They not only refuse to authorize any electronic business platform, nor do they have the meaning of developing vertical retail online.

This means that if you want to buy a LV or Hermes bag on the Internet, you will have to risk buying fake products.

Social media will expand the role of e-commerce providers.

The McKinsey report is a direct reflection of the reality that if luxury brands want beautiful sales pcripts, they have to lay down their shelves and make more contact with Internet users because social software is not just a toy for young people.

Analysts at McKinsey told the financial times Luxury Summit that the United States and China will be the two largest providers of luxury goods and electricity providers.

The two countries have relatively high activity in social media.

McKinsey also found that the baby boomers (1945-1965 years of birth) and the millennial generation (1984-1995 years born) use almost the same mobile devices. In other words, the younger wealthy, like the younger generation and the post-90s generation, are also the most important customers of luxury electric providers.

"Luxury consumers are now more mobile and digitalized than others."

Nathalie Remy, a partner in McKinsey, Paris, said: "therefore, brands must be ubiquitous, while ensuring continuity of brand promotion in mobile digital areas."

In the report, 95% of the luxury buyers use cell phones, of which 2/3 use social media every week.

This means that the higher the frequency of brand presence in front of consumers, the more online pactions are achieved, and the loyalty of users is easier to upgrade.

This seems to be contrary to the basic strategy of luxury control exposure.

According to the report, luxury consumers usually have about 5 target brands in the brain when they browse the web.

Luxury goods

The goal that merchants should set is to become one of the 5 brands.

Cosmetics and clothing will still be the main force of e-commerce sales.

The most active categories of electricity suppliers are cosmetics and clothing. Their online sales account for about 7.2% of the total sales. Followed by handbags and accessories, online sales account for about 6.2% of the total sales, while watches and jewellery online sales are only about 4.1%.

Although the proportion seems to be very low, the sales volume of China's online cosmetics market is not counted.

According to the China industry research network, in 2012, the amount of online shopping of cosmetics in China reached 58 billion 140 million yuan, an increase of 20 billion 580 million yuan over the previous year.

Taobao is the most concentrated place in the cosmetics industry, with more than 25 cosmetics business.

On Taobao, cosmetics sales rank the third largest, second only to women's wear and men's wear.

According to Taobao's cosmetics brand turnover ranking, luxury brands such as Chanel and Dior cosmetics are among the top.

The sales prospect of luxury brand cosmetics in e-commerce channels is enormous.

These differences are, of course, related to the nature of prices and products.

In fact, cosmetics and fashion itself will start several years earlier than watches and accessories in the field of e-commerce retail.

McKinsey sums up for us that in the future, moderately priced cosmetics and fashion will continue to dominate the online sales of luxury brands for a long time.