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    Why Are Those Classic Luxury Brands Left Behind?

    2017/9/21 11:03:00 63

    Luxury GoodsPradaBurberry

    According to the world clothing shoes and hats net, in recent years, consumers are familiar with several high-end.

    Luxury goods

    The brands began to complain that Chinese consumers had gradually lost their powerful consumption power. The most obvious experience was the big cards that had been made full of money in the Chinese market ten to twenty years ago.

     Luxury goods

    For example, recent

    Prada

    In the first half of the year, the net income and net profit were declining. The company attributed the decline in some sales to the weakness of China's luxury consumption.

    Besides,

    Burberry

    And the peak group has also said that because of China's economic slowdown and the government's anti-corruption policy, mainland Chinese consumers are spending less and less on luxury goods.

    However, the fact is not what brands see from their own perspective.

    According to reports, the Reuters recently released a report that the number of Mercedes Benz Maybach cars ordered by Chinese consumers is more than 500 per month, with an average price of nearly US $170 thousand, which means that China has become the largest market in the world of Mercedes Benz.

    Hubertus Troska, Daimler board member of Mercedes Benz, said that this trend has been going on for many years, and it also shows that the consumption power of Chinese consumers in luxury brands has never weakened.

    More interestingly, Troska said at the Frankfurt auto show last week: "we sell more than 500 cars per month, and if you look at the price tag, especially those cars that we do not control the ceiling price, we will find that some customers will pay more than the price."

    Such a phenomenon seems to presage that the focus of consumption in China is beginning to change.

    Last year, McKinsey, a consultancy, published a report on consumer trends, saying that Chinese consumers began to buy high-end products from mass products, compared with the previous few years, and even 50% of consumers spend money on the most expensive and best products.

    In such a big environment, why are those classic luxury brands left behind?

    There must be many factors behind this, but the intensification of competition is only one aspect.

    About 20 years ago, a large number of luxury brands such as Louis Vuitton, Gucci, Chanel and Hermes entered the Chinese market. At that time, China's luxury market was still in the developing state.

    However, in the next twenty years, Chinese consumers have been exposed to all kinds of Western brands at an unprecedented speed, whether from the electronic business platform or the physical store.

    According to the New York Times, Tina Zhou of Fortune Character Institute, a luxury consultancy in Shanghai, has said that Chinese consumers used to buy branded products as a symbol of status, but the newly growing consumer group was very cautious about the status symbol. It was too obvious for them to declare their direct status.

    Therefore, the so-called niche high-end brands and customized products have become the latest drivers of luxury goods market.

    But niche brands are not equal to unknown brands, and Nick Cakebread, general manager of BBDO, a marketing communications company, told the Fashion Law that the so-called niche brands also include the non flagship brands of luxury goods giants, such as LVMH group, which is trying to develop several brands that are relatively small at that time, such as Loro Piana, Givenchy and Celine.

    In addition, Chinese designer brand is another camp in this game.

    Ten years ago, in the concept of Chinese consumers, only overseas brands could be equated with high quality products. However, this is not the same. According to a recent study published by Millward Brown, a British multi brand consultancy firm, contemporary Chinese consumers are showing unprecedented interest in local brands.

    Perhaps everyone's joking "low-key luxury connotation" happens to be the demand of Chinese consumers now.

    Of course, this does not affect Chinese consumers continue to buy Maybach, but in fashion and accessories, they no longer show too much publicity.

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

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