Why Is "Light Luxury" Brand Born In This Country?

According to the world clothing shoes and hats net, "Affordable Luxury"

In these years

There has been a great wave in the world. The well-known brands include Michael Kors, Tory Burch, Kate Spade and so on. In addition, some products of Coach and Ralph Lauren will be included in it.

Roughly speaking, the most common feature of these brands is not only that the prices are more approachable, but also that they are all from the United States. Then why is the "light luxury" brand born in this country?

The history of the United States is not long, and there is no royal family and aristocratic tradition that has been extended in Europe.

Beyond the concept.

The most important thing is that the United States has a huge domestic market. The growth rate of Tory Burch was set up in 2004, and it was founded in 2007. It reached a small target in 2007. Sales exceeded 100 million dollars, and in 2008 exceeded 200 million dollars. In 2011, it was over 500 million dollars, and joined the 1 billion dollar club in 2014.

At this price, only the size of the US market can carry such growth. Only a small piece of the big cake can be cut off.

The chain store system and mature business system in the United States enable the brand to quickly spread out and achieve terminal sales, of course, the premise is that the brand is also willing to invest in it.

The business model of the United States always advocates "3M", that is, Mass Marketing (mass marketing), Mass Production (mass production) and Mass Sales (mass sales). In the final analysis, there must be quantity. As for how to present to consumers, the brand will certainly not mention the word "Mass".

Ralph Lauren is oriented to the Anglo Saxon (Anglo-Saxon) people in the United States, to bring a little British aristocratic fan, Michael Kors advocates Jet Set life on the brand image, and travels by private aircraft, which is the standard of Hollywood's first line stars, so that the public can also aspire to the life of the upper middle class.

Sales are not difficult. As long as we can sell the sales outlets and add storytelling, marketing is not difficult. The difficulty is that the correct positioning of the market when the brand is launched makes the brand not subject to any restrictions when it develops to a certain stage, that is, it can touch the most consumer groups while ensuring the brand image.

The target customers of RalphLauren are typical WASP (Anglo Saxon Americans) who constitute the vast majority of the upper class and upper middle class in the United States. The American dream makes most people in the world want to copy their way of life.

Michael Kors and Tory Burch brand launch time is not long, for light luxury brand analysis is more representative.

The former advertising blockbuster Jet Set theme has never changed in the past more than 10 years. Instead of scenes, models and costumes each season, the expression is straightforward and easy to understand, but it will not feel exaggerated or even look at advertisements ten years ago.

The designers' grasp of the trend can withstand the test of time and market.

Tory Burch is more likely to be a winner in life. Her main Preppy Boho style is universally applicable, and the TorySport launched over the past two years is also going to cut into the blue ocean of women's fitness.

Looking at the experience of the two brand founders, they have been immersed in the American fashion industry for many years, and are familiar with its operation mode.

Michael Kors founded its brand in 1997, and also served as Celine's women's designer from the same year to 2003. From 1981 to 1993, Michael Kors sold its own clothing series of the same name in the major high-end chain stores in the United States.

Tory Burch has worked in Vera Wang, Polo Ralph Lauren and Loewe before, and has been promoted as a public relations promoter.

The most difficult part of building a "light luxury" brand is mass production. The market positioning of "light luxury" makes the product quality as close as possible to the luxury brand, but the price should be more close to the people. So it is necessary to manage the retail channel itself, so as to raise the gross margin space and keep enough cost to the production. The gross profit margin of several "light luxury" brands is basically around 60%, of which Coach is relatively high, which can reach 70%.

Compared to the mass market price segment brand, such as Nike is 45%, Gap is 35%, the former takes the wholesale channel, the gross margin is too high will affect the retail market pricing, the latter is self run, the market competition encourages, also cannot increase the price too much.

The retail price of the general light luxury handbags is $300. According to the 60% gross profit mentioned above, the cost price of 40% is 120 dollars.

At this price segment, you will find that mass production seems to be achieved only in China, including bread supply, design and development capabilities, production, quality, capital and so on.

120 US dollars are produced in Europe. It seems possible that the current US dollar exchange rate with the euro will not be achieved.

In other developing countries, raw materials and quality are all problems, and there are more matching problems.

Michael Kors has been relying on Hongkong tycoon Cao Qifeng (Silas Chou) investment, bringing not only funds, but also supply chain, making it possible to break through the biggest problem of mass production.

Cao Qifeng has successfully won the Tommy Hilfiger before. The rise of the last generation of legendary designer brands including Ralph Lauren and Calvin Klein can not be separated from the East Asian supply chain.

How to explain the importance of the supply chain? Just look at Cao Qifeng's next investment target Karl Lagerfeld brand, then enter the shop. Although it has the reputation of "Lord of Buddha", it also carefully adjusts the design, but it will still find that the product has a sense of "light luxury" brand, which is difficult to change in a short time. Of course, consumers will not care, or even like it.

Why don't people usually classify the French brands of Longchamp and Agnes.b into light luxury categories? I think it is easy to explain the use of "3M". Longchamp is a French national package, but it is not a brand of whole category lifestyle, but also mainly produced in France.

Agnes.b is more niche, although the product is not small, but the consumers are some people who have small French and fresh literary feelings.

"3M" does not include a M, which is not typical "light luxury" brand.

For European brands that occupy high-end luxury and high street fashion, it is really difficult to make "3M" at the luxury price segment.

"Light extravagance" is supposed to be a false proposition. Now it creates a market that does not exist. It is a revolution to the market. Only when the United States and China will emerge, a large market and a potential market will produce "light luxury" brand.

This shows that although the "light luxury" brand of the United States has several volts, but for China, "light extravagance" is still a topic worthy of excavation. So how will the same advantage China produce the light luxury brand that affects the fashion world in the future? What is the difference between it and its predecessors? This is a problem we need to consider.

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