LV And GUCCI Luxury Self Help List

This session

Ring seems particularly bad, whether it is the luxury of the past cold, luxury brand, or people's money cheap brand, each performance decline is not news any more, from time to time also jump out of a CEO to step down, the "low price to save the market" news provoke the next nerve.

The reality is not very good, but no one is willing to sit still. In fact, the brands in the two camps are actively trying and changing.

Today we are going to be a luxury.

"Big environment" for

The card seems to have not been very beautiful since 2012. Every time in the financial season, every pcript is issued. The vague and general explanation of "luxury environment is bad" has become the standard statement of CEO. It is more detailed than the "overall economic downturn", "China's anti-corruption begins to affect the market", "the euro continues to decline", "tourism shock" and so on.

Bain consulted the 2015 Global Luxury Market Research Report, showing that the personal luxury market including accessories, clothing, jewelry, perfume and cosmetics reached 253 billion euros this year, an increase of 13% over the same period in 2014. However, there are many exchange rate factors that bring about "1%-2%", but the actual growth is only about 1%-2%.

What have the big names done in order to save bad performance under the cold wind?

Price adjustment, narrowing global market spreads

In previous years, habitual price rises. In 2014, there were reports quoted by the US labor department that the price of luxury goods rose by 60% over the past ten years. The rise in costs was not the main reason, but to maintain the brand's high-profile image and cater to consumers' psychology of "you are dishonest, I have no feelings", which is tacitly seen by the brand as a conventional protective pricing strategy.

Today, Chanel, which never discounts, announced a wave of price adjustment in April this year. The price of handbags, leather goods and garments sold in the Chinese market has been reduced by 20%. Not long ago, the German luxury brand Hugo Boss also carried out the second price reduction for the Greater China region this year, reducing the proportion between 30%-50%.

In the price adjustment army, GUCCI, Prada, Dior and other famous brands you are familiar with have entered their ranks.

However, as the Hugo Boss price report says, the price of these big brands in China is still higher than that of foreign countries even if prices drop again and again, but the trend is obvious: everyone is trying to narrow the price gap between different markets in the world.

In the world, luxury brands usually set retail prices based on three different regions in Europe, the United States and Asia. The price of the Chinese mainland market has always been more eye-catching, but the high price can not be attributed entirely to high tariffs.

First financial news has reported that luxury brands in the global pricing strategy based on value pricing, the value of luxury lies in their exclusiveness, that is to say, always let the market in a semi starved state.

The main reason for the high price difference is that "brand is the result of conscious promotion of the primary market's overestimation of product prices".

The high price difference not only stimulated the enthusiasm of Chinese people to buy and sell abroad, but also gave birth to professional purchasing directly, and in the meantime, it was difficult to distinguish the true from the false. As Chanel President Bruno Pavlovsky announced when the price adjustment was announced, the price difference between Europe and China caused great distress on the brand image.

Now that the global market is becoming more open and more closely linked, the brand's global price is highly pparent, and the information asymmetry has not been drilled. Insisting on the high price difference between regions is meaningless. Waiting for the price adjustment system to attack the purchasing market, stimulating the next market and improving the shopping experience of customers in boutiques are also a way.

As for the effect... After 4 months' implementation of the Hugo Boss's price reduction strategy, its sales performance did not significantly rise, while Chanel's mainland Chinese boutiques welcomed double digit growth in sales.

Obviously, it is unrealistic to want to return to spring only by reducing the price, so in addition to the price adjustment, they also - the product adjustment.

Cut off the sub card and adjust the product line.

Although the deputy "originator" Armani is still on the road of the fader brand -- counting the new women's clothing accessory brand "New Normal" launched in early 2015, the Italy luxury brand already owns 8 garment lines, and has authorized the cooperation of 8 lifestyle lines including cosmetics, hotels, restaurants, home appliances, etc.

However, the vast majority of imitators can not act as they do, separate and orderly serve different groups of people.

Therefore, we can see that when the auxiliary line has become a quick acting drug for short-term interests, but it will damage the long-term value of the brand, and at the same time, it will also take a large cost of operation. Most of the big ones will start cutting off their sub cards, such as Burberry, MarcJacobs and Dolce&Gabbana.

However, on the one hand, the big players show rationality and restraint on the brand line. On the other hand, there are more and more brand choices in product category, seeking new profit growth points.

During this period, perfume seems to be a good choice relative to the weak performance of garments, shoes and bags. Apart from the considerable profits, the price of single products is much more democratized than clothing and other categories. It can help brands reach some users who can not be touched by core products, so as to expand the target audience.

The latest news is that Louis Vuitton announced the start of the development of perfume business, first acquired the ownership of Glass town in the fragrance capital, and set up a new perfume headquarters, and said that it will launch new products in September this year. Shoe brand Jimmy Choo can not sit back and watch the rich perfume profits. Last year, the new perfume Illicit was introduced. The direct result of this is that the new perfume only helped the brand earn $4000-5000 in the Christmas season.

For other brands which already had perfume business, this category has become the general existence of their "warm baby" in the cold wind. LVMH group recently released the first half of the year's earnings report. It can be seen that, thanks to the success of Christian Dior three perfume (Sauvage, J'adore and MissDior), LVMH group's perfume beauty makeup business revenue increased 9% compared with the same period in 2015. However, Christian Dior's high fashion business (Christian Dior) was not very beautiful: the operating profit was 74 million euros, down 30.2% from the same period last year.

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In addition to similar perfume, which aims at pursuing profit as the core demand, many brands try to expand their "lifestyle".

For example, household items.

Hermes, Lssey Miyake, Oscar de la Renta and other luxury brands have launched the kitchen style furniture, porcelain, pillows and so on.

Besides, catering is one of the most popular ones.

Yes, you may have noticed that in the past two years, luxury brands have gone through many restaurants and cafes. In July last year, GUCCI opened the world's first restaurant in Shanghai, and LV, Prada, Hermes, Armani, RalphLauren and other brands all entered the food and beverage business in the form of self purchase or merger or merger.

And behind this is not just trying to contact consumers, drawing on popularity and creating topics, but more importantly, looking forward to selling a full set of lifestyles by creating visible life scenes that are visible to the naked eye.

After all, the establishment of a space that can afford the brand value should be an effective way to drive the brand lifestyle in good condition.

RET Rui Yide has commented that this practice "uses the huge energy of brand precipitation to extend to more scenes of life, further locking consumer groups, from a single category of brand to serving a service brand of a certain type of person."

This also seems to provide new ideas for the development of brand shop.

To change products, first change, no design is useless.

People's concussion has not been settled in the fashion circle recently. No, CEO Christopher Bailey, who has served two years in Burberry, is finally called by the shareholders to be his creative director.

If we can conclude from the rare top student GUCCI in this fashion circle, the first point is that the creative director is really too important.

GUCCI's parent company Kering reported in the first half of the year that the brand has successfully been out of the haze for many years under the leadership of the new creative director Alessandro Michele. Its sales in the second quarter increased by 7.4% over the same period last year, exceeding the previous forecast of 2%~3%, which is also higher than that in the first quarter (3.1%).

The most direct reason for the surge in sales is, of course, the popularity of product design.

I don't know if you still remember the GUCCI of crazy mom and dad in 2013 or 14. Thanks to the creative director Frida Gianninni at that time, GUCCI was really ugly and spicy at that time, and sales volume was also very touching.

And when the company finally decided to change people, GUCCI's turnaround also followed.

At the beginning of the appointment, the Alessandro Michele, which was not regarded as a promising circle, finally managed to turn GUCCI into a successful design.

Back to Burberry, though many ways go hand in hand, CEO seems to be working hard, but the effect is not obvious. The most important reason is not that it is "cater to the young consumer groups in the way of publicity and promotion, but at the same time, it does not really bring the younger generation to the consumer." the designer is the important role to grasp the trend of brand style. Sometimes, changing the designer and the overall style will also take on a new look.

Channel adjustment, lighter and faster

Reduce offline investment and force online business

The sense of distance, once considered to be one of the indispensable elements of luxuries as a luxury, has made it somewhat less reasonable for luxury brands to be "touting the net". However, when the so-called Internet wave hits, the pressure of inventory and profit making is reduced, and it seems to be a good option to turn to online for more growth.

Although walking cautiously, it does not prevent the online channel from bringing about a rare bright eye.

According to Bain consulting data, online sales of personal luxury goods amounted to 168 billion euros in 2015, accounting for 7% of the total, which is two times that of 2012, and this figure is expected to change to 18% in 2025.

There are three kinds of retail outlets on the luxury line: brand online official online stores, online authorized online stores, and online unauthorized online stores.

In 2015, Net-a-Porter, a luxury electric supplier of the world's second largest luxury group, merged with Yoox, founded in Milan, and became a giant with more than 1 billion 300 million euros in revenue.

In April of the same year, Chanel, who once claimed to be "dead without electricity", took the first step in the test of water electric business on Net-a-Porter, selling high-end jewellery Coco Crush, and sold out within a few hours. After having tasted the sweetness, CEO Pavlovsky announced a series of online initiatives.

In addition to leveraging the third party business platform, Burberry, GUCCI and others have already established their own direct website, which can not only help enterprises get full retail profits, but also provide users with additional services and experience through online and offline linking.

Not long ago (August 1st), Dior even sold its core handbag Lady Dior Small series on its official WeChat public platform.

A data report shows that although 3/4 of luxury purchases still occur in physical stores, consumers actually see or hear product information on the Internet before they are affected, and then buy them offline.

In other words, digital channels have become a leader in luxury shopping.

In other words, the number of stores on the line is opposite to that on online data. The number of new outlets under the line has been reduced from 750 in 2014 to 600 in 2015.

According to data from ruiyide commercial real estate research center, in the Asia Pacific region in 2015, 11 luxury brands, including LV, GUCCI and Prada, had 34 stores.

Of course, this is not an ideal performance and a cost cutting consideration. It is also a little bit too much for the overreliance on the Chinese market and the blind expansion of the market.

Of course, we should also see that in addition to closing stores, the brand is also doing some renovation of the storefront, trying to create more exciting shopping space for consumers, providing more experience of brand tonality, because it is worth noticing that stores are gradually changing from distribution channels to media channels.

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Changing new ways to reach consumers faster

In the past, luxury goods were in strict accordance with a timetable like this in the fashion world.

First of all, designers want to visit cloth manufacturers in Paris and Italy and choose their next series of colors and textures. In order to ensure uniqueness, the number of these looms can not be too large. Then they go back to the studio development version, then hand in their assignments at the fashion show, display designs to the media and buyers from all over the world, then buyers buy products according to their budget according to the budget, and then according to the order, the manufacturers begin to make garments and pport them all over the country.

From the above timetable, we can see that a clothing from you in the fashion week's photos of the stage to you can really buy in the store for more than 6 months, and in those days, fast fashion brands such as Zara are likely to have made full use of the new design to learn from their products, and consumers may have lost interest when they finally arrive at the store.

Obviously, this traditional mode of thankless effort to dress for others is not very popular with luxury brands.

So what can be seen is that from the end of last year to the beginning of this year, brands such as Burberry, Tom Ford and Mulberry have indicated that they should take the new way of "show is buying, women and men are on the same stage", and tie up the bondage of fashion week. Online stores and physical stores will synchronously sell the same products, shorten the cycle and enhance the connection with terminal consumers.

Above.

Although many families are making efforts in these three aspects, their effects are quite different. They have already welcomed the second spring, such as GUCCI, and have been stuck to the core of the earth, such as Prada.

In the same environment, despite the fact that "everyone understands", finally, we need to see the real chapter in practice and details.