Luxury Consumption To Two Or Three Line Cities Pfer Shop Expansion Needs Overall Layout

Many luxury goods in recent years have been dominated by second tier cities.

This year, Cartire settled the biggest flagship store in the ocean in Chengdu, and the flagship store in Rimowa, the first cafe in the world, is also located in Chengdu.

Single stores, the largest and flagship in the country, these characteristic stores originally belong to the first tier cities of Beijing and Shanghai, and many of them are now in the second tier cities.

Obviously, the brand side sees the strong demand of the second tier cities, and continues to sink the channel.

Aggregation effect

The outflow of consumption is the biggest pain of luxury brands in recent two years. Many of the luxury items bought by reporters in recent years are purchased by themselves when they travel abroad, or they are invited to buy overseas friends, and few are bought in domestic stores.

Large price differences and styles at home and abroad are the main factors to choose overseas purchase.

The stores in the first tier cities can be described as "cool doors and thin horses". Only when Chanel depreciate or Gucci discounts this year, will there be a "bustle".

At this moment, the second tier cities represented by Chengdu are getting more and more attention from luxury brands. The head of a luxury District in China told reporters that this is because the "agglomeration effect" of the second tier cities is becoming increasingly evident.

In the past, this kind of "gathering effect" only existed in Beijing and Shanghai. For example, the rich in Northeast China and Shanxi would drive to Beijing to buy luxury goods, while Shanghai concentrated on the rich in the Yangtze River Delta region.

Although luxury brands have already opened stores in these cities, locals still choose to buy luxury goods in first tier cities.

A real estate developer in Shanxi told reporters that businessmen tend to be more cautious in their work, and are afraid to show their wealth locally. Luxury goods in second tier city stores do not seem to be as good as those in Beijing and Shanghai.

Today, this "gathering effect" extends to the west, and the Chengdu region has successfully attracted the wealth of Hunan, Hubei, Yunnan, Guizhou, Shaanxi and other surrounding provinces.

"The two cities of Beijing and Shanghai, despite the obvious agglomeration effect, are obviously" outflow markets ", and many of their consumption flows to overseas markets.

But Chengdu is a typical closed city, where consumers can easily spend their money on the local market.

It is true that the major luxury brands are concentrated in the expansion of second tier cities, and even feature stores.

Take RIMOWA as an example. The opening strategy of the first tier cities is "convenience". Almost all commercial real estate in China World Trade Center, Beijing, and RIMOWA have to open a store.

But the strategy of second tier cities is different. In Chengdu, RIMOWA has opened the first coffee shop in the world.

Guo Guangshuo, President of China, told reporters that compared with consumers in the first tier cities, consumers in Chengdu have more time to stay in stores. With the help of coffee culture, consumers and potential consumers can leave more time to understand.

Culture.

Industry driving

Reporter survey found that, as early as several years ago, luxury brands have begun large-scale channel sinking work, expanding to the two or three tier cities.

But the director of the luxury China region told reporters that in the expansion of the two or three tier cities, Chengdu can be described as a "model", "this is closely related to the local industrial drive and the maturity of the business."

Zhou Ting, the dean of the Institute of wealth and quality, believes that the geographical position of Chengdu is obvious. It is a major town in the southwest and the best economic development in the southwest region.

In terms of commercial development, hotels, real estate and commercial real estate have been developing rapidly in recent years, and a group of developers of quality and quality have brought the experience of mature commercial real estate development in first tier cities to Chengdu.

At the same time, Chengdu is a tourist city with large traffic volume and large local population.

In terms of soft power, the humanistic environment in Chengdu is good. The lifestyle of local people is more casual, and the pursuit of high quality of life is very beneficial to the growth of consumption and the rise of consumer culture.

It is precisely for this reason that Chengdu has become a "battleground" for the second tier cities of luxury brands.

In fact, Wuhan, Changsha and other provincial capitals have many similarities with Chengdu, but at present, the development is slightly inferior, and the driving of regional characteristic economy is the internal driving force for the rapid growth of the luxury goods industry in Chengdu.

When reporters interviewed in Chengdu, at the time of the Chengdu International Motor Show, its significance was far greater than that of other regional car shows, representing the vane of the southwest auto industry.

In addition, the annual rum, air show and so on are also held here. It can be said that the exhibition economy is more developed, supporting the overall economic development speed.

The rise of the industry has created a group of affluent people with consumer power, coupled with the local mature commercial real estate projects in Chengdu and the localization and deep ploughing of luxury brands for many years, so that luxury brands have tasted the sweetness in Chengdu.

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Excessive expansion, lack of stamina?

Although at present, Chengdu's achievements in the field of luxury goods are obvious to all, the industry is also making a sweat for the future development of luxury goods in Chengdu.

Liu Yuan, an investor in cultural and creative industries, believes that the sensitivity of the luxury goods industry will be higher than that of the fast moving industry. When the economy develops, the growth rate of the industry will be significantly higher than that of other industries, and the growth rate will slow down if the economy fluctuates slightly, so it can be said that the industry itself is weak in resisting risks.

The past few years have been the fastest growing years of economic growth. Luxury goods are expanding rapidly in the two or three tier cities. The growth rate of many brand stores is exponentially increasing.

"In some cities, including Beijing and Shanghai, luxury stores are no longer a luxury item, they are catching up with fast fashion brands."

Liu Yuan said.

Zhou Ting believes that there are many "helplessness" in the large-scale expansion of luxury brands in the two or three tier cities.

All along, luxury goods in China are marketing strategies.

Magazines are the main ones, but consumers in the two or three tier cities do not read the magazines on the one hand. On the other hand, these printed high-end high-end fashion magazines have not covered the consumers in these areas.

Local people, whether they are small business owners or ordinary white-collar workers, have the habit of reading local metropolis newspapers, but luxury brands rarely advertise in such media and do marketing propaganda.

The high-end business forum and the VIP sale with bank institutions have become another important means of brand marketing in the two or three tier cities.

It can be said that in the field of marketing communication, the two or three line city is a "blind spot" so far.

But the brand sniffed the business opportunities of the two or three tier cities early. So opening stores is not only for sale, but also a form of effective marketing, which is one of the main factors for the expansion of luxury brands.

However, Liu Yuan reminded the person in charge of luxury brands that he believes that the biggest problem of this approach is the poor ability to resist risks. Once the economy slows down and consumption decreases, the sales volume of these luxury stores will be significantly reduced, and there will be a lot of shops, which will hurt the luxury brand far more than closing a fast fashion shop.

"Insufficient consumption power" is the biggest worry for Zhou Ting to luxury consumption in the two or three tier cities.

Chengdu is still an example. According to its observation, Chengdu has obvious agglomeration effect and pulling effect on the surrounding provinces and cities. As a city with exhibitions and tourism as its main, the advantage of the crowd is there, but a large part of this passenger flow is mainly the middle and low end consumers.

The main group of luxury goods is the rich and middle class. The luxury consumption of the second tier cities is mainly from the rich, but the consumption of the middle class is far from being discovered.

In the first tier cities, many luxury goods are white collar or golden collar, which is an important supplement to the consumption of the rich.

Even if the economy falls, this part of consumers can still make some contribution.

However, the two or three tier cities are different, the number of middle class is not large, and they are the most sensitive people to economic growth. Once the economy slows down, they will first cut off this part of consumption.

Liu Yuan said.

Zhou Ting believes that for luxury brands, the next priority should be placed on the study of China's regional economy and the differentiation of consumption characteristics, and the overall strategic layout for opening stores and brands in different cities will determine the success or failure of the future development of brands in China.