Luxury Market Downturn Must Be Strategic Contraction

Actually, it wasn't just Gucci. At the end of last year, Dior closed the Chengdu Renheng landmark Plaza.

According to the 2015 report of global luxury market surveillance, the luxury goods market in Asia Pacific region will be at a standstill in recent years, and luxury income in the mainland will be reduced by 2% to 4%.

According to incomplete statistics, in the 2013~2015 years, BURBERRY closed 4 mainland stores, COACH closed two, Hermes closed one, Armani was 5, and PRADA turned from 49 to 33.

According to the financial times, LV has shut down 3 Chinese branches last year, and LV will cut 20% of its branches in China in 2016, equivalent to about 10 stores.

According to other sources, the early luxury stores in Chengdu, such as Renheng landmark, Mei Mei department store, Renhe Spring Department store and so on, may also usher in problems such as brand withdrawal and adjustment.

In the face of the rise of IFS+, the old luxury stores are getting worse.

As early as last October 16th, because of the pressure of operation, the Renhe Spring people's East department store and Guanghua Department store of Chengdu's high-end retail department store were bought by the Shang group group at a price of 2 billion 600 million yuan.

For many luxury brands including Gucci, with the completion of migration, upgrading and pformation of stores, reshaping the brand image and bringing the "outflow" consumers back to the local market, it is imperative to raise sales of stores in today's increasingly competitive market.

Famous brand marketing expert Yu Lei said in an interview with reporters, "in fact, luxury stores have started since 2012, and jewelry stores, high-end luxury stores and other stores have started.

Closing profits were bad and gradually extended to the West.

One result is that consumption shrinks, and the second is the rise of high-end luxury brands.

Although many international luxury brands claim to be channel sinking, none of them has done well.

The industry believes that in the past few years, the rise of Chinese consumers has led to the blind expansion of many luxury brands such as Gucci and LV. However, as China's anti-corruption campaign has intensified and the domestic economy has slowed down, consumers will prefer low-key non famous luxury brands.

However, Gucci stakeholders told reporters, "Gucci has no plans to close stores or open stores.

The store is for market layout adjustment, and the new design concept will also appear in mainland China from 2016.

Continuous optimization of market layout has always been a regular item in Gucci retail business.

These projects cover the opening, modification, relocation, termination and adjustment of the retail market.

A senior observer from the local commercial department store in Chengdu told reporters that in the past two years, the first luxury brand has been hit hard in mainland China.

They have been blind expansion. Now, because of the large shrinkage of the purchasing power and the price difference, the consumption has shifted a lot, and the resources allocation of the shops has to be re optimized.

Shops that are less crowded will only get weaker and weaker.

And where the popularity converge, it will become stronger and stronger later.

In fact, behind the "marketing strategy adjustment" of luxury goods,

There is no relationship between "metabolism".

According to the reporter, after the opening of Chengdu IFS and oceanic taiguli, many international first-line brands have been gathered here. According to the relevant agencies, the sales volume of IFS in 2015 is expected to exceed 4 billion yuan.

The cluster effect of luxury goods business is becoming more and more obvious. The coincidence degree of brand VIP and the viscosity of customers are also increasing. For luxury goods, the international brand is respecting the commercial treasure of choosing neighbors. The platform of high-end customer resource sharing can obviously bring more profits and value.

The above Chengdu local commercial department store senior observers pointed out that "some of the early high-end shopping centers in Chengdu gradually lost their attraction in the renewal of business circles. With the rise of Chengdu IFS" and "Ocean Pacific", the change of business pattern in Chengdu is an indisputable fact.

As luxury brands continue to abandon other poorly profitable stores, the role of Taigi Li and IFS stores will be enhanced.

After all, the crowd is surging here.

Out of print CBD is also one of the top luxury and fast fashion restaurants in China.

The staff who worked in Renhe Spring Gucci store told the "China business newspaper" that "Gucci is closing the shop, and it is also intended to close its traffic in the largest Taigu flagship store and IFS store in the West."

In fact, in order to concentrate on the flow and viscosity of customers, Hermes withdrew from Chengdu Meimei department a year ago and moved to oceanic Taigu, and then opened the flagship store in Asia.

Meanwhile, in January 12th, PRADA held the 2016 Spring Festival series global launch conference in Chengdu IFS store.

It is obvious that they have decided to focus on the IFS+ Pacific.