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    Is The Business Of Light Luxury Brand Really Bad?

    2016/8/30 19:02:00 59

    ShoppingLuxuryBrand

     Light luxury brand

    "Affordable Luxury" appeared in the form of fixed phrases only for a few years. The concept of "light luxury" was rapidly popularized by Kate Spade, Michael Kors and Agnes.b.

    The most obvious is Michael Kors.

    Since its launch in 2011, Michael Kors has launched a worldwide expansion of high speed Stores - the number of stores in 2011 has almost doubled, plus the strategy of the outlets that were quite effective at that time.

    Shopping

    The village opens discount stores, sells special contributions, further reduces purchase entry threshold; style is clever -- you can always see one in its handbag.

    Luxury goods

    The shadow of the handbag, but the price is only 1/3 of the latter.

    The above strategies have greatly stimulated the sales of brands.

    In 2012,

    brand

    The gross profit growth is as high as 73.4%.

     Light luxury brand

    But now you pay more attention to Michael Kors, there are not many positive news. You can find the answer from the chart above.

    Coupled with the completion of the Kate Spade's Kate Spade Saturday in 2015, gross profit growth dropped from 46% in 2012 to 10.8% in 2014.

    Because of the representativeness of Michael Kors and Kate Spade, we sometimes hear a question: is the luxury brand not enough?

    The answer is probably negative.

    I asked a Chinese executive of a luxury public relations firm about the matter. He thought the brand at the middle price still had vast space in the global market.

    1000 yuan to several thousand yuan of handbags and fashions are in line with the consumption level of most city companies. Because of this, these independent designer brands, high street brands and more commercial fashion brands that seek the middle price market these years will be more and more.

    When we went back to 2011, we wondered why the "light luxury" category could quickly open the market, which may be related to the global economic downturn and the freshness of this category to customers.

    However, due to the further slowdown of the luxury market, there is not much recovery in Europe and the United States, and China, which acted as an emerging market player, has fallen into a downturn or even a negative growth.

    But even in China, the luxury environment is still very popular with shopping centers.

    Beijing's great joy city has recently adjusted its brand portfolio, which is still dominated by medium priced brands, but they become Korean jewelry brand J.ESTINA, which is due to the sun's descendants, and French fashion brands such as Sandro and maje.

    More fairly, Michael Kors and Kate Spade now face more problems from their own strategies.

    First is the store, and too many ograph discount stores make the product too handy.

    For high-end consumer goods, scarcity and aura will affect buyers' thirst for them, the less they want, the more they want to get.

    Luxury brands do not want to be as high as they are, but they do not mean that too many discount stores do not bring risks.

     Light luxury brand

    The second is products.

    Recently, friends circle has been popular with a piece of "Wen Wen", saying that Michael Kors was folded in the luxury sector Guo Jingming because it copied the money very well.

    In fact, I doubt the accuracy of this statement, not that plagiarism is right, but for Michael Kors's targeted customer groups, this is exactly the selling point.

    If we only discuss income and do not discuss law and morality, "copying" is a shortcut to make quick money.

    However, in addition to the bag bags like Prada and Valentino, can you think of any other bags today when you mention Michael Kors?

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