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    6 Major Pressures And 4 Market Opportunities For Luxury Brands

    2018/4/20 13:39:00 62

    LuxuryMarketDesigner

    With the development of China's economy, Chinese consumers (Chinese passports and non Chinese passports) consume nearly 46% of the world's luxury goods, of which overseas consumption dominates, accounting for about 77%.

    However, with the narrowing of the global price gap and the change of tariff policy, the customer research institute predicts that the proportion of domestic and foreign consumption in the future will be 40%: 60%.

    According to the world clothing shoes and hats net, in 2017, China

    Luxury goods

    The consumer market is gradually warming up.

    The main reasons include: continuous innovation of luxury brand products, attracting many Chinese consumers.

    China's consumers are more willing to buy luxury goods in China, thanks to the gradual reduction of the global price gap of luxury goods and the strict regulation of customs.

    Finally, because of narrowing of investment channels and strict supervision of foreign exchange exports, Chinese consumers are more willing to spend money on luxury goods for consumption.

    Although China's luxury consumption is getting warmer and warmer, luxury goods industry still faces six major pressures.

    At the same time, the customer research institute summed up the luxury.

    market

    There are four big opportunities.

    Source: guest Research Institute

    Six pressures faced by luxury brands in China

    01

    Brand consumption has become a product consumption, and has higher requirements for product innovation capability.

    Consumers' desire to pay for brand premium is reduced, and the cost performance of brands is changed into product cost performance. The competition between brands is changed from market competition and channel operation to product innovation and service quality competition.

    All along, the product homogenization, you copy me, I copy you are the biggest embarrassment faced by a large number of luxury goods, but the homogenization of products has been difficult to attract consumers, all luxury brand product innovation pressure increased.

    02

    Consumption individuation and diversification trend of brand multi polarization

    Luxury consumption is changing from brand personality to consumer personality, because brand personality is becoming more and more popular because of the purchase of brand suitable for its personality, and the consumption of products and services that are different from others become the core demand of many luxury consumers, leading to the trend of brand multi polarization and high-end niche.

    Designer

    The rapid rise of brand will impact the relative position of the traditional luxury brand market.

    03

    The loss of core consumers, marginal consumers are hard to sustain growth, and there is a risk of brand fall.

    Luxury consumers can be divided into two categories: luxury goods as necessities, luxury goods as luxury goods, the first category as luxury core consumers, about about 4000000 people in China, supporting more than 60% of luxury consumption, while core consumers are losing. Although a core consumer is losing an average of 2-3 marginal consumers, sales have not decreased or even increased, but marginal consumers' ability to follow up is weak, and at the same time, they will be affected by core consumers. When they realize that core consumers no longer consume, luxury brands will have a cliff like fall. At present, many brands are at a critical point.

    04

    The rise of electricity providers, traditional stores were hit

    The electricity supplier not only shunts the passenger flow of stores, but also enables consumers to get more choices, so that fake and new brands can get greater opportunities, especially those with limited number of stores, which further reduces the possibility of customers shopping.

    05

    The rise of new media

    The rise of new media, the decline of traditional media, the difficulty in the management of brand image, the reduction of the ratio of advertising input to output, the diversion of customer attention and the great reduction of customer loyalty.

    06

    Product and price differences narrowed

    Product differentiation and price differentials between luxury brands and mass consumer goods are shrinking, and high cost performance has forced luxury brands to compete directly with high quality consumer goods.

    Four opportunities for luxury goods market

    01

    Consumption upgrading

    Consumption upgrading is divided into three parts: concept upgrading (Why), content upgrading (What) and mode upgrading (How). The core is content upgrading. The core of content upgrading is good products and services. Luxury brands have product advantages.

    02

    Consumption Globalization

    At the same time of global economic integration, we are also accelerating the integration of consumption, especially the development of Internet media and Transnational E-commerce platform. Without leaving home, we can understand and buy good things all over the world, so that Chinese consumers' desire to consume international brands is greatly enhanced.

    03

    Planned consumption -C2B

    The luxury market is changing from a seller's market to a buyer's market. Before it is what the brand sells, what consumers want to buy, what consumers want in the future, what the luxury brand produces, and customize it on this basis. The customized industry will develop in scale and industrialization in the future. It is predicted that all products that will be provided to all customers by all luxury brands in the future will have a certain degree of customization elements, and everything can be customized to become a reality.

    04

    Internet plus

    With the help of the Internet, luxury brands can break the restrictions of time and space of traditional stores, so that consumers can have more dimensional contact with luxury brands in more time and space. At the same time, they will further enrich and enhance service forms and contents by means of Internet, and enhance consumer experience, especially by using Internet means to enhance offline service experience, such as customer demand.

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

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