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    Luxury: The Era Of Rapid Growth By Opening Stores Is Over.

    2017/2/22 17:40:00 49

    ShopLuxuryBrand Strategy

    In the past two years, not only the domestic mass brands are facing great changes in the market, but also the old framework of the luxury goods industry is being disintegrated, and the new structure is being established.

    Bain Consulting's annual report on luxury goods Bain Luxury Study reported that since 2015, the personal luxury goods industry has developed to a new normal in many respects.

    For example, in 2016,

    Chinese consumers

    The number of luxury goods purchased declined again on the basis of last year, and its contribution to the global luxury market decreased by 1% to 30% (including domestic shopping and overseas tourism).

    For example, if the online market is regarded as a country, it is next to the United States and Japan, and the third largest market in the world.

    For example, the consumption of local luxury goods has exceeded tourist consumption for the first time since 2001, reaching 5%.

    Similarly, in China in 2016, the proportion of consumers buying luxury goods in China increased significantly.

    Reporters observed that the emergence of these new normal conditions made the practice of luxury goods in Chinese market quietly changed.

    Cai Yi, who attended the IF fashion conference earlier, said he believed that the entire Chinese luxury market is slowly entering a new starting point - it has begun to become a real business, and that the era of excellent performance over the past few years has passed.

    Cai Yi is top class.

    Luxury goods

    The "old man" who developed the Chinese market first entered the Louis Vuitton, started from the retail base to the senior executives, then became the head of Burberry China, and then joined the personal brand of Karl Lagerfeld, which is now the managing director of China's second largest luxury group, the famous British classic brand Dunhill China.

    "Especially in the past 2005~2012 years, many brands have opened five or eight stores a year, and have achieved explosive growth in different cities.

    In recent years, the market has not been so fast, and at the same time, most brands in China have reached a certain degree of network construction. The luxury market will no longer grow at an astonishing speed of 30% to 50%, and the brand business will enter the track of normal business.

    Compared to opening stores, Cai Yi believes that brand management is becoming more and more important, such as managing stores and employees well, and doing well in service. This is the key to brand growth in the future.

    According to Bain's research report, only 1/3 of Chinese consumers purchase luxury goods in domestic channels, and another 1/3 in Hong Kong and Macao, and 1/3 abroad.

    In this regard, Cai Yi judged that the proportion of luxury goods purchased by Chinese people in the future will increase.

    "This is not unique to the Chinese market. The Japanese market has also appeared. For example, the LV brand I worked for before, in 90s, most Japanese purchases were carried out in Europe.

    As the frequency of consumer purchase changes, the brand is in the whole.

    Market network

    The expansion, as well as the deepening of the relationship between the brand and the guests, coupled with the government's measures in some respects, narrowing the price gap at home and abroad, so that the purchase began to localize.

    I think the habit of buying luxury goods in China will also gradually adjust.

    Reporters learned that luxury brands are still opening new stores under the Chinese line, and they are becoming more and more familiar with and adapting to the Chinese market.

    Even a lot of brands have increased the proportion of full price goods, and began to expand to the two or three tier cities with "one city, one store" mode.

    Compared with the past, for high-end luxury goods, the opening of offline stores is still the first choice for entering the Chinese market, but the speed of some brand development will slow down.

    Take the French classic luxury brand Hermes as an example. In 2015, mainland China and Hongkong accounted for 13% and 14% of the total sales of Hermes, respectively. They will adopt a strategy of steady development in the mainland of China. The first consideration is to set up stores in the first tier cities.


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