Net Red Drives Luxury Consumption Recovery?

According to the world clothing shoes and hats net, whether at home or abroad, Internet celebrities have received great attention. Their fans in social media are millions to tens of millions, and their appeal can not be underestimated. More importantly, they are becoming new high-income groups in recent years.

The narrowing of the gap is taking China.

Consumers are pulling back to China, but the overall revival of China's Luxury Retailing may also be attributed to changes in consumer groups. The luxury consumption driven by net red has also become a force that can not be underestimated.

On the current domestic luxury goods

For consumers, they fall into 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

Enthusiasts, this part of consumers want to give people the appearance of fashion, keep up with the trend of the image, consumption frequency slightly higher.

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

The size of consumer groups at every level is shrinking.

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.

So the future of luxury consumption is not on these people. Luxury brands need more power from the bottom of the demand for Pyramid.

At present, net red belongs to the third and the fourth category.

Most of the fashion red net has higher economic strength, and has gained popularity through purchasing luxury goods and sharing experience.

There are more net red in other fields, such as beauty bloggers and short video bloggers, who have gained a lot of wealth after gathering their popularity.

With the improvement of status and wealth, they began to have demand and ability to consume luxury goods.

China's net red economy has increased rapidly, with an analysis of the market size of 100 billion in 2018.

Xiang Kun, a media columnist, told reporters that "in the short term that technology and quality can not be fundamentally improved, net red actually gives more soft value to products."

Therefore, more and more funds are flowing to this group.

According to reports, global marketing consulting firm Greg Paull, head of R3 consulting agency, said that China net red and KOL have been leading the rest of the world and become the real media carriers in three.

KOL marketing is gradually replacing traditional marketing methods such as television and print advertising.

Luxury brands such as Burberry, Dior and Jaeger Le Coulter watches have been competing to hire influential stars such as Wu Yifan, Lu Han, angelababy and Papi sauce to publicize their products.

As multinationals will employ KOL as a means of selling goods to consumers eager to succeed in China, the group's demands for compensation are rising.

According to the Kevin Gentle of digital Brand Company Madjor, Jaeger Le Coulter paid 5 million yuan for the 30 second video of "Papi sauce" at least.

Since last year, venture capital has begun to pay close attention to the net red content entrepreneurship field. Papi sauce has received 12 million yuan of financing. According to earlier reports, China net red Zhang Da Yi earned more than Kardashian, at least 46 million dollars.

More and more sub sectors of net red have begun to get rid of the single source of advertising revenue and establish a sustainable profit model.

It can be predicted that in the future, net red people will continue to earn high income.

It is noteworthy that the net red is scaling up, and this population is expanding at a rate of over 50% per year.

According to analysis and estimation, there are at least 5000 bloggers who have more than 100 thousand fans on Sina micro-blog alone.

According to the "China net red economic development insight report" released by Eri consulting, at present, the number of red net people who sit on the "100 thousand +" fans above is 57.3% higher than that of last year. The total number of net red fans reaches 470 million, an increase of 20.6% over the same period last year.

Net red number and fans scale both increased.

The high-income net red group has also become an important part of Alibaba's APASS members.

APASS is the most mysterious and most consuming group in China. According to incomplete statistics, at least 600 of Martha Lahti's 10 thousand members in China are APASS.

According to an Internet high-end consumption orange book published by Alibaba in 2016, APASS members are made up of net red, senior Taobao people, new middle tide mom, business elite and generation four groups. The amount of consumption is 5.5 times the median of Internet consumption in the province.

APASS was launched about two years ago. It helps Alibaba attract high-end consumers to continuously consume their two online shopping platforms, Tmall and Taobao.

In October of this year, Dong Benhong, chief marketing officer of Alibaba group, disclosed that the consumption scale of APASS members was at least 30 billion yuan a year. According to the data, APASS black card members are about 1/10000 of the active members of the entire Alibaba, with an average annual black card consumption up to 600 thousand.

This brings second levels of luxury consumption, namely the luxury consumption of fans under the influence of net red.

Alibaba's latest release of "net red Internet consumption influence list" directly reflects the influence of net red on fans.

The list is based on the massive consumer behavior data of Ali data team based on the Alibaba Internet retail platform, from the impact of consumers' interest in net red, the impact of net red on consumer goods consumption, and the trading situation around net red and its associated commodities and shops, and quantifies the influence of the net red people in the network consumption field in the live jump, and obtains the Internet consumption influence index of the 50 bit net red.

According to the report, Sydney, the three most comprehensive index, has become the most influential network leader in 2017. Zhang Dayi ranked second in the ICT index of 94.8. The top 10 of net red is also included in Momo, Lin Shanshan, ANNA, Zhao Daxi, ash, mushroom, Lin and American summer Xia.

A study jointly published by R3 and data analysis firms Bomoda showed that the participation of luxury brands and their net red and opinion leaders were all good, mainly because bloggers and Chinese and Western stars were very active on micro-blog and WeChat.

Among them, Dior, Gucci and Chanel have received excellent returns on the investment of opinion leaders in China. Louis Vuitton, Givenchy and Estee Lauder are catching up.

In fact, the influence of net red on fans is infiltrating into every field of life. When they publish images and texts in social media, they always intentionally or unintentionally lead the fans' luxury consumption behavior.

DDT's earlier report showed that the interaction of digitalization on consumer buying behavior was aggravated, and consumers had 56 cents per $1 spent digitally.

The first generation of fashion red Choi Choi in China was invited to participate in luxury brand activities. In recent years, the net red population has exploded and incomes have risen.

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Although Taobao is still leading fans to buy their own Taobao store's own products, taking Zhang Dayi as an example, its Taobao business, which is now in a large scale, mainly sells for 100 yuan or so.

But the luxury of Taobao's own shopper still brings powerful consumption influence to fans through everyday pictures.

Especially in the Instagram dominated by visual pictures, the luxury of net red often plays a role in promoting luxury products and "net red money".

Dior's white laced cat heel shoes, Bally's Square shoes, foot shoes, Alexander Wang and ankle boots, Balenciaga's colored gunny bags and so on, the emergence of bursting money, many times should be attributed to the constant exposure of net red.

Many consumers have such experience, the original dislike of luxury style, in a lot of net red after the use of suddenly become "eye".

This "imitation effect" is increasingly occurring in today's luxury consumption.

Chinese consumers who are more popular in social media are more sensitive to the guidance of net red. Some analysts point out that Chinese luxury consumers are still at the stage of follow suit.

As a result, the new luxury consumer groups include not only the Internet red, which is already very large, but also the fans who influence their fans are becoming consumers of luxury goods, or at least potential consumers.

That is to say, the influence of net red on the structure of luxury consumption crowd is also changing many consumers who do not buy luxury goods into potential luxury consumers.

Among the fans affected by net red, there are third types of "fashion enthusiasts with economic strength", such as consumers who buy BMW MINI limited in Rebecca fans, including the first category of consumers who dream of luxury goods, and the second category "consumers who save money to buy luxury goods".

Although the two groups of people are not yet able to buy luxury goods, they are still influenced by luxury goods. They are more convenient for the brand to shape the public image, and they also have the potential to become real luxury consumers.

However, some analysts questioned whether the use of net red is genuine or not, which is open to question.

However, with the structural change of the affluent class in China, buying genuine luxury goods is becoming a trend for people who really get high income through the net red economy.

Don't forget, luxury consumption is not only for fashion, but also a symbol of status.

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