Orter Profits To Reduce The Embrace Of E-Commerce Channels

This year, luxury brands also started to shut down inefficient outlets in addition to slow down.

Louis Weedon, the top luxury brand, has closed 3 stores in China, which has been completely evacuated in Urumqi; Tigo has closed its store in Tongluowan; coco closed its flagship store in central.

People in the industry expect that international luxury brands will be further closed in the future.

The era of widespread expansion is over. In the future, the number of stores will be reduced. At the same time, big stores and flagship stores will become the mainstream of luxury stores, and the functions of stores will be more diversified.

Luxury goods brands have been shutting down and adjusting their sub line brands because of the slowdown in global luxury products and the unexpected performance.

Boboli has renamed its subordinate line brand as Boboli; Kate Spade has shut down a total of 31 stores of its subordinate line brands.

In the future, the complex sub card has lost its meaning, and there will be more luxurious brands to adjust the secondary line.

In addition, Hermes and Chanel began to buy supply chain companies this year; LVMH Group continued to buy other brands to enrich their own product lines.

Brand sales will become the trend of the future, and more luxury brands will share or acquire other brands.

Luxury brands that only raise prices and not cut prices have been adjusted this year.

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Chanel, the first-line brand, has cut the price of China in an unprecedented way, and has cut the price of its three major bag products by 20%.

In addition, it also raised the price of the European line, the highest increase of 38%.

After Chanel's price cut, the luxury brand collectively reduced its price in China.

Dior, Patek Philippe, tiger Heuer and other luxury brands and top watch luxury brands have followed suit to join the price cuts. The highest price cut has reached 40%.

It is still a trend for luxury brands to reduce domestic and foreign price differentials through price cuts.

The price adjustment of luxury goods stores will squeeze profit margins from the price difference of the outlets.

Before the massive price reduction of Chanel in China, the luxury brand put its future strategy on the outlets.

And now the counters are cutting prices, which undoubtedly has a "crash" with the functions of outlets.

Industry analysis shows that Oteri J is already a sunset channel rather than a sunrise channel in the luxury goods industry. Luxury brands can not be sold at low price in the long term.

The power of luxury brands to the electronic business platform is particularly evident this year. Once, it said that the brand that did not set up the electricity supplier had opened shop online.

Chanel officially launched its online sales of eyewear products in the United States to enter the electricity supplier.

Online online boutique; Cox returned to Tmall this year.

The opening of e-commerce sales channels is actually related to the previous luxury brands' collective price cuts in China.

The premise of the online platform for luxury brands is online and offline prices, but the price of luxury brands before sale is not a dominant factor in online sales.

Luxury brands have chosen to cut prices in China this year, narrowing the difference between luxury goods at home and abroad.

This means that purchasing overseas and buying overseas luxury goods solely for overseas travel are no longer attractive.

In the context of the future luxury brands' further narrowing the price gap at home and abroad, more and more luxury brands have launched the online sales platform.

In addition, luxury brand O2O attempts will also become a trend.

Fifth Avenue luxury network has said that it will achieve the order of the network and the mode of picking up the brand stores.

This also provides more imagination for the future integration of luxury brands and the Internet.

In the future, more luxury brands will be sold synchronously online and offline, and online services will be enjoyed under the purchase line.

Consumers can enjoy the online and offline integration of O2O experience.