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    Can Luxury Brands Accept The Test Of China'S Economic Storm?

    2015/9/22 16:17:00 36

    China'S EconomyLuxury GoodsE-CommerceBrandStrategyClothing IndustrySales Volume

    New York, the United States, may experience an unprecedented economic storm, but executives of the world's largest luxury goods companies have been working quietly to avoid any fire.

    Big groups are taking steps to ease the volatility of China's domestic luxury market, while taking the rise of China's outbound tourists shopping as a new growth point for revenue.

    Major luxury groups, including LVMH, Kering and Richemont, are reconsidering their pricing strategy and exploration.

    Electronic Commerce

    And shutting down or refurbishing poorly performing stores, they are starting to promote their smaller brands in China.

    It is wise for the big group to make its "big Logo" brand continue to rely on inertia in China, and the real Kung Fu is spent on the updated brand.

    In this way, they can save a lot of expensive marketing activities which are regarded as meaningless by some people in the industry, and reduce the expenditure on traditional advertising.

    {page_break}

    For the next six months to 2016, those groups with a wider brand portfolio will be better able to welcome the Chinese storm.

    But more importantly, the group should skillfully publicize its smaller brands in China to promote local sales, and also ensure that outbound travellers do not forget their presence abroad.

    Lu Wei Mo Xuan: Fendi, C e line and Loewe become new pillars.

    In the past few decades, Lu Wei Ming Xuan has benefited from China's new flagship brand Louis Vuitton, Christian Dior, Givenchy and Fendi.

    But as the star status of Louis Vuitton is disappearing in China, its parent company Lu Wei Ming Xuan has responded quickly and began to promote its other brands in the market.

    Recently, Fendi has proved to be the most powerful player in Lu Wei Hun Xuan, and its "Peekkaboo" series is popular among wealthy female consumers in China. The reason is that the promotion of micro-blog and WeChat fashion bloggers and its cute bag ornaments series make consumers excited.

    At the same time, C line and Loewe under Lu Wei Ming Xuan also grow steadily in the young consumer groups. This group of consumers is not affected by China's anti-corruption campaign. They are more flexible and flexible in choosing brands than the 70 generation.

    The jewellery and watch Department of Lu Wei Ming Xuan group has a relatively poor business, but its Bulgari (Bvlgari) brand has gained a lot from the consumption of Chinese tourists to Europe.

    The watch brand Hublot of Lu Wei Ming Xuan is occasionally eye-catching because of its celebrity endorsement, but this has little impact on the Greater China market and accounts for only about 7% of the company's revenue.

    The revival of the new brand Moynat is not strictly owned by Lu Wei Ming Xuan (the brand is privately owned by Bernard Arnault). The brand has always been popular among Chinese and overseas bloggers in Hongkong and Instagram users.

    Kai Yun group: hope for Gucci

    Kai Yun group has encountered a difficult situation of quicksand in China, but the group is still facing the current fluctuations.

    Although Gucci is facing difficulties in its pricing strategy in China, its new creative director, Alessandro Michele, may be able to use its brand new design to attract wealthy young consumers in China.

    Saint Laurent, another brand of Kai Yun group, is a successful case. Its successful pformation has made it a consumer brand pursued by Chinese consumers all over the world.

    Although the business of Kai Yun group, such as Brioni and Stella McCartney, has not fully taken off in China, Pomellato is likely to conquer the fortress of Chinese consumers.

    The jewelry brand is in China.

    Retail

    It's very small, but it's more honorable and makes it more attractive.

    At the same time, Balenciaga and Alexander McQueen are still very popular, especially among overseas Chinese consumers and outbound tourists. This means that Kai Yun group can fully isolate itself from the current economic environment in China.

    Summit group: Chlo AI brings dawn

    {page_break}

    As the largest group of jewellery watches in the "three giants" of the luxury group, the group will probably face the most severe challenges in the mainland market in the future.

    The male centred brands such as Vacheron Constantin (Vacheron Constantin), Dunhill and IWC (Wan Guobiao) have been the beneficiaries of the gift culture in China's luxury industry, and now may face difficulties.

    At the same time, the group will continue to benefit from evergreen brands such as Cartier (Cartire).

    In the past year, the Swiss watch brand has been hit hard. In July this year, the overall sales of watches dropped by 10%.

    But the group's Baume & Mercier (FAME list) is expected to grow.

    The reason is that China's male consumers are increasing, and they will buy themselves more affordable Swiss watches instead of gifts. This is an important new reference for brands.

    The price of Baume & Mercier is suitable, and it can be seen that it should be able to grow slowly and steadily in the future.

    There is another brand Lancel in the same situation. The brand seems to have all the right elements of success - affordable, brightly colored, and less retailing in China.

    Lancel may help the group to tap the greater consumption potential of Chinese young consumers.

    But Chlo is more able to help plex group out of difficulties in the near future with its stronger brand awareness and popularity.

    Its Drew handbag (small pig bag) has become a popular it Bag in China through mass media coverage, celebrities, bloggers and social media.

    These major luxury goods groups have a common feature and the same characteristics that can be drawn from these smaller brands, that is, they can be based on the current China.

    Luxury goods

    The market environment can react quickly and adjust different leverage.

    If Chinese consumers are unwilling to buy "big Logo" products or prefer shopping online or mobile phones, do not try to compete with this cultural trend. Instead, they should follow this trend and move on.

    There is no doubt that the old methods of entering the Chinese market, such as opening stores, magazines and outdoor advertising, are no longer effective because the young smart consumers in the digital age have already replaced the old group of customers who used to give gifts.


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    How Luxury Brands Adapt To China'S Luxury Market Environment

    Can luxury brands accept the test of China's storm? In the face of the worries of China's economy, luxury groups need to ingeniously position their brands to get a good performance.

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