Luxury Brands Go Down The Altar And Local Designer Brands Become More And More Popular.

The era of luxury goods has ended, and Chinese fashion design has become a climate.

2015

It was stained green.

The luxury brands led by LVMH and Kai Yun invariably arm themselves with green green, from cotton planting, cloth dyeing, stretching to leather processing and store energy saving.

In addition to reputation return, there are also essential economic benefits.

But if we borrow the concept of stock, this color seems to be more suitable for China's luxury market.

Although the annual China luxury industry report of Bain consulting and Rhodes public relations has not yet been released, some of the existing indicators and figures can be deduced: this year is still a tough year for luxury brands in China.

The outbreak of the Chinese market has ended. The brand wants more solutions.

According to the 2015 global luxury market monitoring report released by Bain consulting company at the end of October this year, the global personal luxury market sales growth is expected to further decrease from 3% last year to 1%-2%, the lowest since the outbreak of the financial crisis (a decline in -11% in 2008).

If China's luxury market in 2008 is still a miracle, it will not happen again in 2015.

The slowdown in China's economic growth, the decline of stock market, the government's crackdown on corruption, and the rising purchasing power of overseas buyers have made it difficult for luxury brands to do business in China.

"The past ten years are actually a particularly crazy expansion period, almost any brand has made achievements, but today's market is different, only the comprehensive strength of the brand can develop well."

Rhodes, general manager of luxury business in China, told reporters.

No longer, some luxury brand stores open in two or three tier cities are hard to create enough profits to choose a simple store network.

In October, LVMH, the parent company of luxury brands such as LV, Givenchy and Bvlgari, announced that if there were more than two stores in individual second tier cities in China, one of them would be closed, or the rental area would be reduced.

While Dior chose to go to Korea and Japan for intensive cultivation, it not only opened the largest flagship store in Asia, but also released the 2016 holiday Series in Tokyo.

DKNY and Tommy Hilfiger are more active in developing two long neglected emerging markets in South America and Muslims.

How can the spread of the world become more pparent?

In the July and August stock market volatility, Chinese customers' desire to buy luxury goods was severely hit, for example, sales of LV in China declined significantly.

However, during the good months of the stock market, sales of some high value luxury goods increased significantly.

In fact, Chinese customers who have a strong desire for consumption are still "proud" of the industry, accounting for 31% of the total sales of the global industry, but only 80% of them are overseas.

In the past year, the euro, yen, and the most critical luxury price gap at home and abroad have made customers think of Chinese stores as showrooms, and choose overseas channels when buying real objects.

"We are in a pparent world. Consumers are not stupid. They travel and go to different countries to find the best prices."

Imran Amed, founder of BoF, a British fashion business news website, told reporters.

In order to save the outflow of consumers, Chanel first announced the balance of global prices in March - lowering the price of the Chinese market and raising the price of the European market.

The powerful bomb swept away the strong bunkers on the global gap of luxury goods, and the major brands also began to stand in line with the Tag Heuer, Dior, Cartier and other descending parties; the LV headed by the "no drop" faction; and the like Yu, Versace, Burberry and so on.

As for whether short-term profits will be damaged, Gao Ming thinks that it is not necessarily: "the brand is bound to give up part of its profit margin, which makes it possible for domestic and foreign prices to shorten their distance or consistency.

But if we can finally increase the sales volume, the total profit will go up. This is actually a dynamic accounting.

However, it may be that luxury brands have poured too much energy and hope into the Chinese market, resulting in the continuous loss of European tourists.

Bain partners D "Arpizio" observed in the survey: "(local) consumers have been overlooked negative emotions, even the rich Europeans and Americans will think," why should I buy the same goods, I should spend more money? "" the constantly strengthened us dollar makes the situation worse, and the outlets become the ultimate consumer places of European and American customers.

In addition to planes, cruise ships and trains, the Internet is the other thing that has completely leveled the world.

In this year's business double eleven, we see many new high-end fashion brands, including Coach, Tommy Hilfiger and Rimowa handbags.

The brand of luggage and bags, as well as Swarovski, Cartier, IWC jewelry watches brand.

Tmall official told reporters that compared with the habit of "carrying on", the high-end brands were much more active, and sales promotion also increased significantly. Some even reached the half off discount of platform top.

Luxury brands are turning more energy into online industry, which is almost their global strategic direction. McKinsey's latest report shows that luxury sales of e-commerce channels now account for 6% of total sales - that number will turn to 28% in 2025.

The report thinks that since online sales are the trend of the times, the development of luxury brands should be done as early as possible.

So, Chanel, who once resisted the electricity supplier, quietly launched a set of jewellery on Net-a-porter this year. C line, a luxury brand in France, has also rejected online marketing before, saying that "trying on clothes and feeling clothes is very important". Now it has also joined the online branding camp.

Luxury brands may be waiting for what they call "maturity opportunities".

"E-commerce is surnamed" Shang "instead of" electricity ".

This is the view expressed by Wu Yue, President of LVMH group Greater China, at the high-end forum of Forbes in November.

"Market embracing digitalization is the trend.

But what is more noteworthy is that the industry has gradually developed from a "flea market" with weeds and fish in its eyes to the trend of health.

From blindly seeking quantity to pursuing quality, this should be an important trend of electric business. "

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Where did the budget for luxury advertising disappear from magazines?

From "Ruili vanguard" to "the Bund pictorial" and then to "iLook", the number of fashion magazines in China stopped publication in 2015, and the situation of fashion magazines continued to deteriorate.

If we want to find out its reasons, I believe many people's first reaction is that advertising revenue has shrunk.

A number of websites that provide advertising monitoring data released in February this year's 2014 media report on clothing industry show that the proportion of magazine media accounts for a sharp decrease of 18.6% compared with the previous year.

Readers of traditional fashion magazines are losing to the Internet. Magazines are no longer the only authoritative channel for information distribution. Luxury companies are putting more budget into public numbers, KOL (key opinion leaders) and other online marketing. On the other hand, luxury goods companies are also shrinking the advertising budget in China.

Recently, the British Mint consulting company released a report on the Chinese market, "luxury marketing 2015". Nearly half of the respondents (45%) of consumers preferred watching videos to learn about new products.

And over the past year, we have seen more luxury brands in the advertising videos such as music streaming media and video websites.

But according to the British Mint report, the influence of fashion magazines on Chinese consumers to buy luxury goods is still not small. Nearly half (51%) of 20-24 year old female consumers and 46% of middle-income groups (family income of 16 thousand yuan -1.9999 yuan) prefer the marketing content of fashion magazines.

From Made in China to Design in China

China

We have never received so much attention, as it is now, not just from global influence, but also the status quo of the whole domestic fashion industry.

In the past, we interviewed Liu Min, Wang Zhi, Ban Xiaoxue, Shangguan Zhe, Chen Anqi, Wang Fengchen, Wang Tianmo and other young people spanning from 1970s to 1990s. Through various channels, they exposed themselves in the international show, and the media's publicity and publicity finally accumulated fame.

The Fashion Week held in Beijing, Shanghai, Shenzhen and Hangzhou suddenly makes you realize: Oh, the Chinese independent fashion design has become a climate.

Unlike the pure show in the early years, Showroom (Fashion sample showroom), which has emerged in recent years, is trying to connect T and retail world.

Reality is not always as good as it looks.

For independent designers without backstage support, the difficulty is often in the business sector.

Although many designers have attracted international buyers with excellent designs, they can not provide common data such as CIF, FOB and other international trade at Showroom.

Another real dilemma is that designers in the early days usually did not hire professional public relations companies, so they rarely had access to fashion magazines.

Fortunately, there are successively emerging designer selection competitions and blowout growth buyers.

In May, he held an open day in two cities in Hongkong and Shanghai. He sought the most promising design rookie in the form of audition and offered the opportunity to enter the store.

And the buyer shop makes more and more consumers contact and buy Chinese designer brands, including pillars, moss, and one door.

What is more interesting is that the buyers in the buying shop are getting younger. According to the observation of a shop in Guangzhou, the main consumer groups of Chinese designer brands, which are formed after 75 and 85, are indeed expanding, and new members are getting younger.

Whether it is the change in the market climate of luxury goods or the rise of local designers, fashion, a natural gleaming industry, is gradually shifting its barriers under the dual driving force of globalization and digitalization and even taking the initiative to approach the general public.

No matter how bad or bullish, the era of luxury goods is over.