Why Do We Use The Word Gambling To Describe The Pformation Of Luxury Goods?

According to the world clothing shoes and hats net, we now control luxury.

The unexpected changes have taken place among the consumer groups. The millennial generation is becoming a new fashion consumer force.

The brand now ignores the existence of this group of people, and it will be hard to arouse the attention of the crowd in the future, thereby losing the market and even marginalization of the brand.

The millennial generation refers to the group born during the period from 1983 to 2000. English is the Millennials and synonym Y generation. The growth of this generation coincides with the rapid development of Internet and smart phones.

Some analysts pointed out that the world's richest population is getting younger and younger, and the consumption power of this generation is expanding rapidly. The degree of brand digitalization has become an important factor in attracting them to buy.

Now, the luxury brands are passing through

Digital, product diversity and Creative Story marketing are attracting new generation consumers, but they are becoming more anxious and impatient.

Over the past year, the highly consistent movement of luxury brands in the domestic market is to compete for young people, including inviting young idols to become brand spokesmen and developing online shopping.

For example, Wu Yifan, the first Chinese brand ambassador hired by Burberry, whose performance is still in the doldrums, is a popular singer and actor in China. He has about 20000000 fans on micro-blog. In view of his strong influence in the millennial generation, Burberry decided to launch a Wu Yifan selection series with Wu Yifan to promote sales growth.

In addition, in August this year, luxury brands finally came to the electricity supplier to attract the attention of young people. Dior became the first luxury brand to sell handbags on WeChat platform.

Building a luxury brand takes time, resources and patience, but luxury brand shareholders are impatient. They focus on performance improvement and profit rise.

Cartire, once disdain to join the digital high-end jewelry brand, has released several Rom-com videos recently, promoting its wedding and engagement series, and leading viewers to the online virtual tour of the brand in the newly renovated flagship store in New York.

Cartire marketing director Pierre Rainero told the media that the prevalence of social media platforms changed the traditional situation of brand marketing. Digitalization allowed brands to communicate with more consumer groups, so as to better understand the shopping habits and preferences of target customers.

At the end of last year, Cartire suddenly opened an electronic business platform. In July this year, as a jewelry brand of more than 160 years, Cartire invited the 90's domestic idol Lu Han as spokesperson. This means that luxury brands have begun to realize that they must try boldly in the domestic market and capture the market of young people.

For the current domestic luxury market consumers, there are roughly four categories.

The first category is those who dream of having luxury goods. Most of these groups want to have a luxury item, but their consumption is not about those top luxury items, but some of the entry level brands of luxury brands, such as beauty perfume series and shoe series.

The second category is consumers who save money to buy luxury goods. This part of consumers is not a loyal consumer of luxury goods, and the frequency of purchase is small. It is often a luxury item that needs to be saved to buy.

The third category is fashion lovers. This part of consumers want to give people the appearance of fashion, keep up with the trend of the image, consumption frequency slightly higher.

Generally speaking, those who dream of buying luxury goods are always younger, consume less, but have more people. They can easily change into second and third types of consumers through age and work.

The total number of consumers at each level is decreasing.

The last category is rich consumers or public money consumers. This category is originally the most favorite and most loyal consumer of luxury brands, but now these consumers are more rational, and the size and total consumption of people are decreasing year by year.

This leads to the fact that the future of luxury consumption is not on these people. Luxury brands need more power from the bottom of the demand for Pyramid.

Nowadays, the millennial generation in China is becoming a new growth point of luxury brand performance.

According to one study, 56% of China's millennial generation belongs to the high-income class. It is expected that the income will increase further in the next few years. The growth of the number and wealth of the millennial generation in China will make it a profitable consumer potential for the brand.

Compared with their predecessors, these young people love social media more and are more willing to consume themselves.

Nowadays, social media and word of mouth have replaced the traditional media which have been occupying the high opinion level and become the main position of the dissemination of luxury brands.

A media survey of the millennial generation has been conducted by the media. It turns out that more than 25% of the 90's have bought luxuries.

It is noteworthy that marketing for millennial consumers will not necessarily be rewarded.

Earlier, the Swiss Union Bank's survey of 2109 millennial consumers from China and the United States showed that the millennials were also concerned about the luxury of products. But in the future, the competition of luxury brands for young people is competition among products. This is exactly the comparison between Burberry and Gucci.

Burberry is the first luxury shopping conference to cater for young people to take action in September this year. In order to boost the Chinese market this year, Burberry has invited stars Wu Yifan and Zhao Wei in the front row to watch the show, to release flowers in social media and to increase interaction with potential consumers through live broadcast. This seems to be a good thing. In essence, the buying mode is also to arouse the attention of millennial consumers. Through Instagram, Twitter and Facebook, domestic micro-blog and WeChat are the social media platforms for digital media. Clothing and products on fashion show can be presented to consumers in the first place.

The digital platform is playing an important role in fashion brands, but there are also great risks.

In order to cater to young people and adopt new technologies, Burberry has turned itself into a media company.

There are few foreign media questioned the brand's good products, what kind of products the Millennium generation really like is the biggest challenge for Burberry.

Burberry has been rated as the most digitalized luxury brand, but this year it was first overtaken by Gucci.

Unlike Burberry, in the past few years, Gucci has been caught in the bottom line of its performance. Now its products are welcomed by the millennial generation.

{page_break} in January 2015, Alessandro Michele made a sensation by giving male models a gimmick to wear bow tie short sleeved shirts to attract more diversified young consumers. The new men's clothing category will also include various styles such as college style and street breeze to meet diversified market demands.

Gucci's new image has been proven to be in line with the millennial aesthetic. According to fashion headline data, Gucci's new products in spring this year increased by 50% over the same period last year, compared with the same period last year.

In the third quarter of this year, Gucci beat all competitors, compared with 7.4% growth in the second quarter. Gucci's third quarter business income surged 17% over the same period last year, the highest quarterly increase since 2011, while direct sales of the stores were recorded in the 19% increase which shocked the industry, including the sales growth in China's Asia Pacific region was as high as 24%.

Young consumers are willing to pay for the new Gucci, directly showing that their online sales have skyrocketed by 50%.

According to a recent study, Millennial consumers are for personality cool rather than show off. They are confident, skeptical and unconventional. They do not bode well for traditional luxury and fashion brands.

Now, more and more people do not understand the preferences of young people. In terms of consumption trends, this is perhaps the biggest concern of luxury and fashion brands.

In the underwear market, Wei has always been in a leading position, leaving other brands' underwear market far behind.

The brand has accumulated more than US $6 billion 100 million in sales this year.

However, some analysts have pointed out that behind the endless luxury, the underwear Empire has gone from bad to worse, and it has been selling for 27 consecutive quarters of growth. It also experienced a 2% decline in sales in the third quarter of this year.

Nikki Baird, a retail analyst at RSR, a market research firm, wrote in a magazine that she believed that it might become the next brand that was eventually deposed by the Millennials.

The millennial generation likes to highlight the authenticity of the brand. Nikki Baird believes that it does not show any clear value.

You may ask why the word "gambling" is used to describe the pformation of Gucci brand. In fact, it also tells the discomfort of luxury brands. Now the preferences of the millennials are too difficult to fathom, especially the young consumer groups in China are more happy and old, and the brand loyalty has been greatly reduced. They are reluctant to listen to luxury brands, and are changing to their personal interests and cool ways. This pformation of the industry environment has led to a result that the trend of a luxury brand will be shorter and shorter.

With the slogan of Vetements, how long can the Hoodie and Gucci Fur Lined Slippers last long after they become best sellers? Maybe they already have the answer.

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