Luxury Brand Two Or Three Line City Expansion Prospect Is Worrying

Consumption outflow is the biggest pain of luxury brands in the past two years. "China business newspaper" many friends bought luxury goods in recent years, either when they travel abroad, or to invite friends to buy overseas, and rarely buy in domestic stores.

Large price differences and styles at home and abroad are the main factors to choose overseas purchase.

Luxury stores in the first tier cities can be described as "cool doors and thin horses". Only when Chanel prices or Gucci discounts this year did it become "crowded".

At this moment, the second line city, represented by Chengdu, is getting more and more valued by luxury brands. The Chinese district leader told reporters that the "gathering effect" of the second line city is becoming more and more obvious.

The rise of the industry has created a group of affluent people with consumer power, coupled with the local mature commercial real estate projects in Chengdu and the localization and deep ploughing of luxury brands for many years, so that luxury brands have tasted the sweetness in Chengdu.

Single stores, the largest and flagship in the country, these characteristic stores originally belong to the first tier cities of Beijing and Shanghai, and many of them are now in the second tier cities.

Obviously, the brand side sees the strong demand of the second tier cities, and continues to sink the channel.

In the past, this kind of "gathering effect" only existed in Beijing and Shanghai. For example, the rich in Northeast China and Shanxi would drive to Beijing to buy luxury goods, while Shanghai concentrated on the rich in the Yangtze River Delta region.

Although luxury brands have already opened stores in these cities, locals still choose to buy luxury goods in first tier cities.

A real estate developer in Shanxi told reporters that businessmen tend to be more cautious in their work, and are afraid to show their wealth locally. Luxury goods in second tier city stores do not seem to be as good as those in Beijing and Shanghai.

Today, this "gathering effect" extends to the west, and the Chengdu region has successfully attracted the wealth of Hunan, Hubei, Yunnan, Guizhou, Shaanxi and other surrounding provinces.

"The two cities of Beijing and Shanghai, despite the obvious agglomeration effect, are obviously" outflow markets ", and many of their consumption flows to overseas markets.

But Chengdu is a typical closed city, where consumers can easily spend their money on the local market.

It is true that all luxury brands are concentrated.

Expand, even feature stores.

Take RIMOWA as an example. The opening strategy of the first tier cities is "convenience". Almost all commercial real estate in China World Trade Center, Beijing, and RIMOWA have to open a store.

But the strategy of second tier cities is different. In Chengdu, RIMOWA has opened the first coffee shop in the world.

Guo Guangshuo, President of China, told reporters that compared with consumers in the first tier cities, consumers in Chengdu have more time to stay in stores. With the help of coffee culture, consumers and potential consumers can leave more time to understand the culture of the brand.

Reporter survey found that, as early as several years ago, luxury brands have begun large-scale channel sinking work, expanding to the two or three tier cities.

But the head of the luxury China region told reporters that in the expansion of the two or three tier cities,

It can be said to be a "model", "this is closely related to the local industrial drive and the maturity of business."

Zhou Ting, the dean of the Institute of wealth and quality, believes that the geographical position of Chengdu is obvious. It is a major town in the southwest and the best economic development in the southwest region.

In terms of commercial development, hotels, real estate and commercial real estate have been developing rapidly in recent years, and a group of developers of quality and quality have brought the experience of mature commercial real estate development in first tier cities to Chengdu.

At the same time, Chengdu is a tourist city with large traffic volume and large local population.

The cultural environment in Chengdu is good. The lifestyle of local people is more casual, and the pursuit of high quality of life is very beneficial to the growth of consumption and the rise of consumer culture.

It is precisely for this reason that Chengdu has become a "battleground" for the second tier cities of luxury brands.

In fact, Wuhan, Changsha and other provincial capitals have many similarities with Chengdu, but at present, the development is slightly inferior, and the driving of regional characteristic economy is the internal driving force for the rapid growth of the luxury goods industry in Chengdu.

When reporters interviewed in Chengdu, at the time of the Chengdu International Motor Show, its significance was far greater than that of other regional car shows, representing the vane of the southwest auto industry.

In addition, the annual rum, air show and so on are also held here. It can be said that the exhibition economy is more developed, supporting the overall economic development speed.