Second Tier Luxury Brands Are Hard To Survive.

Second tier luxury brand has no comparable historical and cultural details, and lacks the "feelings" that consumers want. Today, when the luxury market is sluggish, it can only survive in the cracks between luxury brands and light luxury brands.

Past times,

Consumers are disgusted with the overly publicity of brand labels, and prefer luxury brands with unique, high quality and low profile.

But as time goes on, consumer habits change. The advantage of second tier luxury brands has become a weakness of consumers.

Second tier luxury brands are having a hard time.

Second tier luxury brands are located.

The brands that are light and luxurious are characterized by their long history but flexible design styles, while prices are similar to those of the first tier luxury brands.

For Chinese consumers, the most typical second tier luxury brand is Hugo Bos (Hugo Boss).

Hugo Bos used to be very popular with Chinese consumers, and in 2011 he achieved a 57% growth in China.

But now,

The days seemed not too easy.

Hugo Boss group released its three quarter earnings report as of September 30, 2015, showing that group sales fell 1% to 744 million euros, and net profit plunged 22.8% to 88 million 500 thousand euros.

Hugo Boss group's sales in the three quarter increased by 4%, accounting for 60%.

Sales in the Asia Pacific region and the Americas declined sharply.

Among them, the Chinese market sales increased from 6% in the two quarter to negative growth, or two digits.

Sales in the United States also fell from positive to negative, reaching 10%.

It is also a second tier luxury brand, and the days are not too good as well as Donna Karan (Donna Karan).

In July, not only did Donna Karan, founder, announce his departure from the creative director, but he also laid off 70 people at the company's headquarters.

In addition, DKI will close its independent brand store located in New York Manhasset, California Costa Mesa, London and Las Vegas.

"These stores will be closed down from the end of this year to early spring next year," DKI spokesman said.

The main reason for this series is that the parent company LVMH has been lacking resources for the Donna Karan brand, and the brand development is slow. The founder Donna Karan also lost confidence in the brand.

Second tier luxury brands no longer have advantages

A luxury consumption report released this year by Lux Hub shows that 32% of consumers will choose some luxury brands in order to "look" fashionable.

All consumers are very concerned about fashion trends, hoping to get their own age, identity and taste of "classic" or "season must lose" recommendation.

In addition, the survey also shows that Chinese consumers will particularly value brand stories and love consumption. Chinese consumers are most likely to be moved by luxury brands with historical stories.

The consumption habits of luxury consumers have changed, and the Hugo Boss and Donna Karan as second-line luxury brands have lost the attraction to these consumers. On the one hand, compared with the first-line brands, the second-line luxury brand brands have no comparable historical and cultural details, and lack the "feelings" that consumers want. On the other hand, compared with light luxury brands, the second-line luxury brand design is aging, the price is high and the attractiveness of young consumers is not enough.

Today, when the luxury market is sluggish, these second-class luxury brands are more than enough. Most of them can only survive in the cracks between luxury brands and light luxury brands.