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    What Is The Direction Of Luxury Brand Spanformation?

    2017/1/6 12:19:00 38

    LuxuryClothingBurberry

     Why luxury companies are reluctant to embrace the electricity supplier in China?

    According to the world clothing and shoe net, if we regard the consumer goods category in the domestic digitalization process as a class competition, then books, clothing 3C must be an active and diligent "top student" in the class. Fresh and home decoration is a "backward student" that worries people. Luxury goods But because of being satisfied with the status quo, although there are occasional masterpieces, it is still a modest "medium student".

    This is only in China.

    In the mature European and American luxury industry, the explorers, led by Burberry and Gucci, are full of courage, and have rampage on Instagram, Line and Snapchat. They are thoroughly familiar with the "live show" and "side by side shopping". Compared with the luxury companies exploring the Internet in China, they are cautious, but they can not be aggressive, but do not want to do so.

     Why luxury companies are reluctant to embrace the electricity supplier in China?

       Burberry As early as in 2015, I tried to broadcast fashion week on social software Line and Snapchat, and tried to buy it on the London Fashion week last year.

    Luxury goods have become less luxurious. When we are used to talking about the new WeChat advertising launched by Gucci in the new quarter for young consumers, Jaeger Le Coulter cartoon and Jaeger Le Coulter sauce, or the YSL star lip gloss on the circle of friends, it is hard to recall the predecessor of these brands. It was originally a symbol of identity created by craftsmen in eighteenth Century to please the royal family.

    "Luxury is an element of life belonging to the upper class. It is desirable to join a senior club or to have a famous family name. Moreover, they are always produced in small quantities - usually custom-made, only to a small number of customers who are really good. DanaThomas, an American writer who wrote the column, wrote in her book "luxury" revealing the luxury industry's book, Thomas.

    Such identities have been integrated into the blood of luxury brands. Although they are now largely reduced to mass consumer goods, the "nobility" that once existed in every key node of their spanformation will jump out to hinder the compromise between the mainstream and the reality. Once the shift from customization to mass production, from high standard clothing to watches, perfume and make-up, to the current digital spanformation, it takes longer to prepare than ordinary consumer goods, or to accept such a spanformation.

    So what is the direction of luxury brand spanformation? What do they want in the complex and changeable Chinese market?

    Data is a gold mine in the mobile Internet era, the same for luxury companies.

    Yang Jingyi is the CMO (Chief Marketing Officer) of the luxury goods business Temple library. At the beginning of this year, she ended her post as a professional manager in Unilever and Procter & Gamble and joined the Internet. She also led the Tencent Inc white paper on Chinese luxury online consumption CO produced by the temple library. At the press conference held in early December, Yang Jingyi discovered that once the "high cold" luxury brand has become a lot more active in the stage of brand invitation.

     Why luxury companies are reluctant to embrace the electricity supplier in China?

    Last December, Tencent jointly published the white paper on China's luxury online consumption, explaining the purchase of luxury goods in China's emerging consumer class.

    "A company responsible for digital marketing first declined our invitation, but the next day I talked for four hours in the cafe." Yang Jingyi told reporters.

    This also reflects the attitude of luxury companies to the domestic Internet Environment: refusing full integration and covetating the possible dividends.

    In this white paper, the temple database takes 15 million member data on the platform as a sample, and links up the behavioral data of Tencent in the product system, and generates labels for the consumers by reverse trajectories, that is, to sum up those people who already have luxury buying behavior, which cities are distributed, what brands they like, or even refine their interest labels such as "what kind of information they like to browse and what kind of video programs they will see in their leisure time".

     Why luxury companies are reluctant to embrace the electricity supplier in China?

    In the white paper, the temple library takes 15 million members' data on the platform as samples, and draws a lot of unexpected conclusions, such as the luxury consumers' preference for video information, and the "life, comedy" category is bigger than "news and sports", which can guide the brand into the advertising.

    These data are of great value to luxury brands. Temple library CEO Li Xue describes the data in the white paper, which sees "sweating". Because most brands do not live online business in China, the feedback that can be obtained is only the experience of shopping guide. When the Internet has data precipitation, analysis and even prediction ability, luxury companies can no longer wait for their changes, even if they do not take the initiative to impact, they also need to be prepared.

    KittyChu, the Italy brand RobertoCavalli Asia Pacific regional retail director, is also one of the audience at the white paper. She saw "life" and "funny" in the top two in the "luxury consumer watching video preference analysis". The host on the stage said, "aren't you rich people watching finance and sports?" KittyChu laughed with the audience, then took out his cell phone and took the PPT on the big screen.

    "Temple library is our first cooperative e-commerce platform in China, but we do not understand domestic consumers, temple library can help us sell products to the right consumers." KittyChu told reporters.

    The same choice of temple library as the first official online sales channel in China, as well as Italy luxury brand Versace (Versace), the group's public relations staff also told reporters that compared to sales, Versace and temple library cooperation more with a test nature, "I heard that several brands sell well in Temple library, but we did not expect too much in this regard, want to see how the response first."

     Why luxury companies are reluctant to embrace the electricity supplier in China?

    After the cooperation with Versace, the temple was kept in sync with Versace stores, and the official authorization was also attached.

    For Versace, this test is based on the safety of the temple library system. Prior to Versace, temple library had been officially co operated with Tod, s, RogerVivier, Martha Lahti, Martell and other brands, and the temple database also contributed to Versace's sales level, brand supervision, and the most critical user analysis data.

    "Data" has become the core value point of all parties. Temple database contribution data is to attract more luxury brands to enter, the brand gets data to guide products and business decisions, Tencent uses data to be more competent for advertisers.

    {page_break}

    "Tencent can learn luxury consumers' preferences for using Internet products, and strengthen their advertising ability to these people." Li Xiaoke, director of the Tencent effectiveness advertising center, told reporters.

     Why luxury companies are reluctant to embrace the electricity supplier in China?

    The luxury advertisements appearing in WeChat's friends circle, as advertisers, need to find suitable people for the brand.

    Although artificial intelligence and cloud computing are progresses by leaps and bounds, the ability of data mining can only be called "beginners", but in the luxury industry, this spanformation has been rare.

    Stepping on Tmall's pit and harvesting WeChat bonuses, luxury companies want to keep the bottom line.

    Compared with the marketing digitalization of luxury goods in China, the "electricity supplier" is the important source of luxury spanaction data. Generally speaking, luxury goods are only willing to open goods to some distributors or parallel channel providers, and will not directly supply to an electronic commerce platform. Therefore, it is even more difficult for them to get through the online and offline spanactions. For eight years, the temple has gradually won the trust of luxury brands.

    "At the beginning, luxury companies must let us first buy goods, but we want to be platforms, and we can only refuse. Later, we want to make special offers and consignments around some products, and luxury companies do not allow them; sometimes, even a poster requires luxury groups to examine." Talking about the past eight years and the luxury group's "killing each other in love", temple library CEO Li has some feelings.

    But with the change of consumption pattern in China, luxury companies begin to understand reality.

    In 2015, 83% of the luxury brands in China related store behavior, of which Prada closed 16 stores in China, Chanel closed 11, and Burberry closed 3. According to the data released by Bain consulting, China's mainland luxury consumer market in 2015 showed a negative growth of 2%, and the market size dropped to 115 billion yuan from 113 billion yuan in the previous year.

    The downturn in the offline retail industry has led luxury goods to turn their eyes to the Internet. Especially in China, they fantasized that perhaps Alibaba's traffic could bring some surprises to the ugly earnings figures. Coach and Burberry, who took the lead, quickly used their experience. Their experience shows that the ideal is very plentiful, but the reality is very skinny.

    Both Burberry and Coach opened flagship stores in Tmall, but sales were unsatisfactory. Coach was described by the media as "opening 5 days, selling 11 pieces", and Burberry was exposed to a return rate of 26.4%. Among them, the performance of Coach was more dramatic: in 2011, when joining Tmall (also known as Taobao mall), it withdrew after a month, re entered in 2015, and disappeared from Tmall after a year.

     Why luxury companies are reluctant to embrace the electricity supplier in China?

    Earlier, Coach Tmall official flagship store screenshot, now on Tmall has not found Coach flagship store trail.

    So far, neither Burberry nor Coach has ever made any comments on the bleak performance and the distinction between Tmall and Tmall. However, there are indications that the cooperation between the two brands and Tmall is not a pleasant cooperation experience, which makes this cautious luxury company more cautious.

    They also gradually realized some experiences: in the complex Chinese Internet world, it is urgent to expect a breakthrough in the sales figures through the electricity supplier. Compared with performance, these hundred year old group enterprises need to care for their own feathers -- to implement the global price system and brand image.

    Coach, MichaelKors, and KateSpade have caused consumers not willing to buy their positive products because of too many Outlet (Ott Laws) shops. Chanel also adjusted the global price system in April last year, and reduced the selling price of some products by 20%.

     Why luxury companies are reluctant to embrace the electricity supplier in China?

    Discounted stores that have opened up everywhere have damaged their original price system, and consumers are increasingly reluctant to buy the positive products of these brands instead of going to outlets or factory stores to buy brand discounts.

    Therefore, luxury companies must not tolerate the Internet destroying their brand premium, which is also the last line of luxury companies.

    Brand image is another luxury company's obsession. They put offline stores on the first floor of boutique department stores, with elaborate windows and well educated service staff. Naturally, they can't tolerate online shops and Taobao stores. This explains why Coach quit Tmall. Which luxury company will open stores to WAL-MART?

    But this logic is put on WeChat, but there are exceptions. In August this year, Dior sold the restricted handbags through the public account and the official website during the Tanabata Festival. The more than 200 average price of the pink goat skin can be sold at twenty-five thousand yuan in less than two days.

     Why luxury companies are reluctant to embrace the electricity supplier in China?

    Dior first tried to sell limited handbags on WeChat on the 7th of last year, and it sold out in less than two days.

    "Unlike Tmall's thousand stores, WeChat can achieve richer functions, and the relevant design styles can be controlled by the luxury brands themselves, so Tmall is more like a hypermarket, WeChat is a pop-up-store (flash shop)." A practitioner in the Electronics Department of luxury goods company told reporters.

    So we went on to see Chanel (Chanel) will be held in Beijing, "Paris in Rome" handball show, guests, show clothing, merchandise purchases are placed on WeChat; Cartire (Cartier) and Tiffany (Tiffany) tireless in the friends circle and QQ music boot screen advertising; Longchamp also for fashion magazine editors and artists brokers provided by the sampling clothes of the WeChat public number.

    "Finding the right platform, luxury companies will be very open, for the wrong platform will only die more." Li RI theory.

    Whether it is H5, public number, or friends circle advertising, WeChat's flexibility and control have given the luxury companies a sense of security. They have gained the fame of "digital innovation" in the limited attempt, and have maintained the brand image. If they can sell several handbags, it will be a pleasant surprise.

    But you can't take this attempt as a sign of luxury spanformation. According to the world clothing and shoe net, electricity business accounts for only 6% of the total turnover of luxury goods. Therefore, in the limited future, it is still too early to see that luxury goods make a full embrace of the Internet. The so-called digitization is more like the guessing game of the nobles in their spare time. After the game is over, they will still face their faces and face the world with an overlooking attitude.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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