Luxury Brands Accelerate The Electricity Supplier'S Water Test Strategy In The Chinese Market

In a sense, it must be called "exclusive".

Retailing is the last sticking point of the old fashioned way of consumption. Even those luxury brands with online sales will be cautious about exposure to Instagram or Facebook, with only the most innovative displays appearing in Madison's Boulevard or magazine advertisements.

But now the world has changed.

Recently,

With the US Department store boutique Bergdorf Goodman to test the water electricity supplier, although this cooperation is mainly based on shoes, it is still regarded as a symbol of the ultimate collectives falling into the competition between the traditional big name and the prevailing market environment of the electricity supplier.

In the context of the continued decline in the turnover of Hongkong and Macao, the group is accelerating the test of electricity suppliers in the Chinese market.

By the end of October,

Opened the electronic business platform, the key information of each product, such as series name, model, watchcase material, size and other main information, is clearly displayed on the page.

Chanel, a firm boycott of luxury electric business, is also planning to launch a global electricity supplier network at the end of 2016. At the beginning of the year, it has also worked with Net-a-Porter before the merger.

Fendi announced the launch of e-commerce website this year, hoping to expand its delivery service coverage from Europe to the United States and Japan.

Hugo Boss is investing in technology, plans to achieve online consumer purchases, and draws suits, ties and shoes under the line.

Price is still a sensitive word for local electricity providers.

According to McKinsey data, the global luxury market growth in 2014, except Oteri J, basically came from the electricity supplier.

In 2009, the growth rate of luxury goods business turnover was only 2%. Now this figure has climbed to 6%, amounting to 14 billion euros.

The 2015 China luxury industry trend report indicates that the number of Internet users in China has increased from 1.37 billion in 2006 to 668 million in 2015. About 90% of them use mobile client search; the search volume of luxury goods industry has been increasing steadily in double figures, among which the popularity of the search department is the highest; and the words related to fashion lifestyle such as "mix and match", "street pat" and "Fashion Week" have been gradually increased.

With the popularity of smart phones, people's consumption patterns have changed.

The high peak of the subway can become the highest volume of group buying website.

"Double eleven" turnover of 91 billion 200 million yuan of Ali became the object of many electric providers salivating.

Indeed, the main factor driving domestic online shopping is still discounts. It is difficult for Western luxury brands to develop a set of "emotional management" disciplines. In China, especially in the current e-commerce, consumers are most sensitive to "low price".

Luckily, 30% of the respondents in other reports bought luxury goods on the regular price net, which indicates that factors other than price affect people's buying behavior.

Luxury analysts believe that it is only a matter of time before brands enter the electricity supplier.

Mario Ortelli, a senior analyst at Bernstein Research, predicts that in the next 5 to 10 years, the business channel will occupy more than 15% of the total turnover of luxury goods, which is mainly driven by the promotion of emerging markets. Bernstein, Research

The electricity supplier has affected the way of inquiry and purchase of luxury consumers.

However, with the opening of e-commerce platform, the price of luxury goods will be more pparent. How to adjust the price and discount between different markets and channels, and how to switch the role of the entity store is the problem that the brand will soon face.

Experience breaking the boundaries of traditional sales

McKinsey has found that 3/4 of luxury consumers will be influenced by digital information, such as web browsing and social media, through the study of "shopping behavior" of 7000 luxury consumers worldwide.

This also makes luxury goods more and more importance to the "online" battleground.

Online channels will become an important part because it can record product trends.

Mobile network not only facilitates consumers' online consumption, but also facilitates consumers to systematically collect consumer interests and other information.

"The goal of setting up an electronic mall is not to expand sales, but to improve the quality of our customer service."

Pavlovsky, President of Chanel fashion department, told WWD.

Chanel began selling eyewear products online in the United States. The company said the final plan is to create more accessories and continue to expand the electricity supplier market.

"We hope to provide users with multi-channel buying methods."

The electricity supplier will become the bond between the brand, the boutique store and the customer. The boutique will become the place where consumers interact and experience.

Luca, director of the luxury Analysis Department of Paris bank, said: "although many duplicated stores have been unable to drive the growth of brand profits," Luca Solca said.

But when the brand starts to sell online, consumers will be active again.

On the "2015 luxuries digital seminar", executives from global publishing houses, media, advertising, IT and other industries conducted an in-depth discussion: can luxury consumer experience be completed online? Tatiana, head of customer relations at Harold department store, believes that consumers' demand for online services is no less than that of physical stores. Once they are disappointed, there will be no second chances.

Boyens, general manager of Paris Ritz Hotel, emphasized the balance between digitalization experience and tradition. After all, luxury brands should focus on historical heritage.

"The role of technology lies in improving customer experience rather than innovating.

But at the same time, it may also pose a threat to old cards. Therefore, how to make proper use of them is very important in improving the experience while not letting the brand go off. "

Net-a-Porter used to think of some ways to do so, just like the distribution of black van with brand logo, and all articles were packed in black boxes and tied with brand ribbons.

It even acts as a guide to online fashion shopping. Even so, Net-a-Porter has not escaped the bad luck of losing money.

As a luxury item, both the electricity supplier and the store must uphold a golden rule -- "enhancing the sense of belonging and VIP experience", but this does not seem to be the only thing.

The original intention of the electricity supplier is to provide a more convenient way, coupled with accurate data and relatively weak service. What the brand needs to find is how to build the network business into a part of luxury all-around services.