The Growth Of Luxury Goods In The Future Will Be Realized In The Two Major Markets Of China And The United States.

According to the world clothing and shoe net, recently, McKinsey Consultancy (McKinsey) Luxury goods Global industry leader, Antonio Achille Achille, a senior partner in the Mediterranean region, has published the latest analysis of the luxury industry. He believes that the main driving force of the industry will focus on the geographical combination of the two major markets in the US and predict that by the year 2025, half of the global luxury industry growth will be in the top two. market Realization. At the same time, he also concluded that by the year 2025, the 20% of global luxury products sales will be obtained through online sales channels, when global luxury online sales will reach 74 billion euros.

"To this day, luxury goods brand Various strategies adopted by luxury retailers and retailers have been successful. However, it is time to question and reflect on it. " Antonio Achille said in an interview with Italy fashion luxury media MF Fashion.

As a senior partner of McKinsey (mkinsey) in the Mediterranean region, as well as the global director, consumer and retail business leader of the luxury industry, a well-known management consulting firm, Antonio Achille has always had in-depth research and unique insights into the global luxury industry.

Antonio Achille said that the future luxury market will face greater challenges and slower profit growth. He explained: "at the present stage, the growth of the luxury market is mainly achieved in organic form: on the one hand, the number of new stores is decreasing (in some cases it may also be the closure of some stores), and on the other hand, more attention should be paid to the improvement of passenger traffic."

The gap between the leader of luxury goods industry and other two brands is increasing. Antonio Achille said: "the gap between the two camps has increased from 1985-1995 years to 4% in the first half of 2016." If we refer to the profitability of the two camps, the trend will be even more obvious: the top 20% of the industry will earn most of the profits from the luxury industry, and the last 20% of the industry will even drag the industry back.

The performance of leading enterprises has continued to grow, while others are lagging far behind. This is a major reality of the luxury industry. "This is why we are now discussing more about individual enterprise cases rather than the trend of the luxury industry." He added.

For Achille, if the enterprise wants to find its own position in the new luxury market, it must follow the following two key points.

Regional combination

By 2025, about half of the growth in luxury and fashion personal consumption (about 190 billion euros) will be achieved in two major markets in China and the United States.

The growth driving forces of the two major markets in China and the United States are quite different. The growth of China's luxury market will mainly be driven by the new "upper class crowd", and the emergence of the new "millionaire" will become the main driving force for the growth of the luxury industry in the United States. Against this background, emerging markets will continue to expand their share of the global luxury market, especially in the fashion industry. Europe can only play a limited role in the growth of the whole industry. In terms of regional market positioning, enterprises should take more active and bold measures to achieve the most important competitive position in the most strategic regional market.

Of course, big cities and emerging cities are also important parts of the argument of geographical composition. According to McKinsey analysis, 60% of global wealth is produced by 600 major cities in the world, and it is in these cities that 60%'s global clothing consumption expenditure has been generated.

Online channel

Online sales are another driving force behind the development of luxury goods industry. It is not only a simple communication channel, but a "pressure tester" that the enterprise must apply in the whole process to evaluate the supply time, product design plan and store layout plan. The luxury industry is only looking at online sales data.

The electricity supplier channel continued to grow. As of 2016, the e-commerce channel has reached 20 billion euros in sales, occupying 8% of the entire luxury personal consumption market (about 250 billion euros). McKinsey statistical analysis shows that by 2025, this proportion will further expand to 20%, or about 74 billion euros sales.

Antonio Achille said: "in today's society, more and more offline consumption is affected by online channels, and consumers' purchasing channels are becoming more diversified, so ensuring consistency among different channels will be the key."

Another major change in online channels is that smart phones have replaced computers and become new consumer terminals. 98% of luxury consumers have smart phones. By 2018, people will spend 4 times more time on mobile devices than computers. This trend not only affects the millennial generation, but also affects the post-80s, 70 and even 60 and 50.

Achille explains this trend. "Luxury brands must know how to put their ads on a small 10 X 6 cm smart phone screen instead of passing the brand idea in magazines or putting 45 seconds of brand advertising on TV to tell the brand story." The diversity of technology and the broadness of the platform have led to the reduction of the dependence of luxury enterprises on traditional forms of advertising. Luxury brands should be clear about whether they want to fight alone or cooperate with others in order to achieve better advertising results.

For online channels, another reality that luxury enterprises have to understand and accept is the rise of C2C economy, and consumers themselves are the communication channels of consumer behavior. Taking Chanel as an example, only in May of May, the number of official images released by Chanel on Instagram was 700, but the number of consumers using Instagram Chanel tags on Instagram reached 49 million times. "This trend reveals a great opportunity to win brand fever. Luxury brands should make good use of" brand ambassadors "to get more potential consumers. Online channels have become increasingly C2C oriented, and consumers are not only consumers but also the role of salesmen. Achille explains.

In the above industry trend, what kind of future will retail face? Antonio Achille said: "optimizing retail channels and consumer experience will still be a key way to achieve sustainable sales growth. However, luxury companies must take a comprehensive reconsideration of retail channels and consider and solve various problems, including how many stores, where they are open, what role they play in the sales (sales, display or online shopping Logistics Port), and the scale of stores.

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