Luxury Brands Show Good Business Channel

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The days of fire and water seem to be turning around as Dior sells limited edition handbags at a limited time.

Not only that, Prada has also begun to pform its marketing mode with the luxury electric business Net-a-porter and Mytheresa.com to cooperate in online product sales.

The world's largest luxury group

Its 92% brand has also launched WeChat public address in China, hoping to draw online consumers.

Under the pressure of performance, the luxury brand has changed its past high and cold attitude, and has been complying with the economic environment and changing the business mode to channel the electricity supplier.

Luxury brands in depth

A few days ago, a Dior in the eve of the eve of the official sale of micro package message in the circle of friends caused heated debate.

It is reported that Dior sells its core product at WeChat boutique Limited - specially designed for the Lady Dior Small limited edition handbag built on Tanabata, and the entire purchase link is completed online.

The reporter learned that the handbag was snapped up after being sold, and it sold out completely in only half a day.

In this regard, the industry analysis, Dior in luxury goods for the first time to test the road of micro business, such a score can be a good start.

As a luxury brand, Prada, an old cadre with high cold and high profile, has started a "young style" pformation because of the pressure of performance.

According to foreign media reports, the luxury brand Prada, who has been cautious about online sales, has recently taken the first step in the business.

Its products will be sold on European e-commerce sites Net-a-porter and Mytheresa.com.

From July 15th onwards, Prada autumn T products, bags, shoes and small leather items will be launched in Net-a-porter.

And the Prada autumn advanced garment fashion also started selling on the Mytheresa.com store.

In September, Mr Porter, the same as luxury goods business men's wear website, will also start selling Prada products.

In the Internet era, the commercial operation of luxury brand O2O has become a trend.

According to the research report released by L2 of luxury Digital Research Institute this year, as early as November 2012, when WeChat launched the WeChat public number, other luxury brands also opened WeChat service number and subscription number. Among the 107 luxury brands in China, WeChat public account number accounted for 92%, an increase of 87% over 2014, and the overall explosive growth.

Decline in performance, brand search for growth

It is worth mentioning that the expensive luxury brands in the past have been highly proud of the market in the past. They absolutely disdain all kinds of marketing activities on WeChat platform, and will not sell products on WeChat.

But in the current Internet age, luxury brands can hardly be distinguished from the market by their customers.

It is reported that as of the fourth quarter of June 30th, Dior fashion department revenue fell 2.9% to 464 million euros, compared with the three quarter 1% decline, the business revenue decline further expanded in the quarter.

Prada is also a list of the top luxury goods. According to the 2015 fiscal year report released by Prada, the operating income in the 12 months ended January was 3 billion 548 million euros, down 0.1% compared with the same period last year, reducing 7.7% by fixed exchange rate.

The group's net profit was 330 million euros, a sharp decline of 26.6% over the same period last year.

In the same way, Hugo Boss, which has been hit hard by the slow pace of luxury consumption, will also close 20 stores in the big China market in order to save the losses. Hugo Boss will shut down the stores in the Greater China market.

Louis Weedon also closed down two stores in Shanghai, China and Shanxi in late March, under the pressure of a weak Chinese market.

The sale of luxury brands is facing a threat, and the sharp decline in their performance has prompted them to find new sales channels to help themselves. At this point, the electricity supplier has become a breakthrough for growth under the background of the times.

Today, WeChat, as the mobile Internet gold master in China, has 700 million users and powerful traffic entry. It has also become the object of luxury brands to bow to. It can not help but sigh that the economic environment is changing rapidly and the situation is making heroes.

Luxury DNA hard to fall on the ground

Foreign luxury electric business is developing rapidly, while domestic luxury electric business has not been able to develop. The source of goods, fakes, prices and other issues have been a fatal problem that plagued the development of domestic e-commerce.

Especially for brand licensing, foreign big cards seem to have reservations about domestic electric providers.

Why is there so much difference in luxury goods business between China and abroad?

Zhou Ting, President of the Institute of wealth and quality analysis, said that foreign luxury electric providers belong to a luxury group, so they have integrity in the brand layout. A brand belonging to one group can quickly enter the electronic business platform, which is an incomparable advantage of luxury electric business in China.

According to relevant information, 2015 is the first year of luxury brand business. With the increasingly mobile lifestyle of consumers, brands must adapt to the pformation of business mode and do O2O.

Zhou Ting agreed with this strategy, taking luxury brand strategy stores as an example, adjusting global layout and closing bad profitable shops, which has certain advantages for online development.

At the same time, the global pricing strategy, strengthen online construction, increase lifestyle service formats, try WeChat end circle sales mode.

"But luxury brands may encounter new obstacles in changing their business models.

For example, the customer can not effectively guide the flow. That is to say, the rate of big customer churn is very high.

Therefore, in the short term, luxury brands can only cooperate with platforms rich in high net worth customer resources to solve this business pformation problem relatively positively.

Zhou Ting added.