Luxury Brand, The Next Outlet Is Found To Target High-Income Groups.

In the era of rapid development of science and technology, the high value of high tech parks for social development needs no more words. The rising income level of technical talents has not only stimulated the consumption level of their area, but also promoted the consumption level of their regions. However, few of them are around the world's high-tech parks. Luxury goods Brand stores enter. It is observed that there is no centralized luxury business district in the world famous high-tech parks such as the Silicon Valley, Munich Science Park, Grenoble Science Park and Beijing Zhongguancun.

　 In the past, why are these high-income groups not luxury brands?

1. in the past, living and working habits reduced their awareness of luxury consumption.

Unlike the financial district, the trading area and other business areas, the high-tech elites do not need to dress in suits, but most of them wear casual casual clothes. T-shirt and Jeans 。 Compared with the refined pursuit of consumers in the core business area, they are more pragmatic. It can be seen that many high tech talents are very simple even if their incomes increase. In addition, the living and working environment make them have high degree of contact and recognition for real estate, automobiles, high-tech products, charities, and so on. As a result, their investment is great, but they lack the cognitive opportunity for luxury brands, so their interest is low.

2. its overall age is low.

Generally speaking, the main consumption group of luxury goods is a relatively high income group with relatively rich social experience, and the average age of this group of consumers is relatively high. In high-tech zones, the average age of people is younger. Take the US Silicon Valley as an example. The average age of Apple employees is 31 years old, PayScale and Google are 30 years old, while Facebook and LinkedIn are 29 years old. In the past, this is not the main consumer group of luxury brands.

3., the proportion of women is low.

Because of the female consumer groups fashion In the past, women's groups have been regarded as more important targets of luxury brands. However, in high-tech zones, the proportion of women is very low. In most of the technology companies, male workers account for a high proportion of the demand for talents because of their job nature, which is not entirely consistent with the gender positioning of luxury goods in the past.

To sum up, technology talents in high-tech zones seem to be the "insulating groups" of luxury brands, which has long been a commercial business. Real estate industry The default rule. However, in recent years, changes in people's consumption habits and brand operation strategies have changed this situation. For example, we have shared it. In May of 2018, Hermes opened thirty-fourth American stores in the Standford shopping center in Silicon Valley. At the same time, LV and Cartier also set up flagship stores in their area, indicating that luxury goods are entering the global "technology heart".

Now, why do luxury brands enter high-tech parks?

1. high income level meets the price positioning of luxury goods

High and new technology talents are high income groups themselves. Hi-Tech Park has hatched a large number of billionaires, and in this era of Internet and hi-tech development, the income level and consumption ability of this group are increasing. Taking Silicon Valley as an example, the relevant data show that the average annual salary of high-tech talents in Silicon Valley ranks the first in the US, nearly 150 thousand dollars, and the GDP of Silicon Valley accounts for 5% of the total GDP of the United States, while the population is less than 1% of the whole country. Therefore, the high consumption ability of high tech people has great potential for developing luxury goods in hi-tech parks.

2. brand implementation of youth strategy

In recent years, Gucci, LV, Chanel, Dior and other traditional luxury brands have launched a series of younger activities to attack younger consumer groups, and the consumption age structure of luxury goods is changing gradually. In 2017, 50% of China's luxury online consumers were 25-35 years old, nearly 30% of them were 25-30 years old. Therefore, the establishment of retail stores in the hi-tech areas with a relatively high degree of youth is not only in line with the strategy of luxury but also in line with the consumption trend of the luxury goods market.

3. the proportion of luxury male consumers has risen sharply.

Nowadays, the elite men in the workplace are more and more sophisticated about their dress quality to satisfy their temperament and identity. Therefore, the luxury market has gradually entered the era of male elite consumption, and the layout of luxury brands in the male market has begun to expand. In China, the proportion of luxury men's consumption in 2017 was 51%, slightly higher than that of women, while a large number of male employees in high-tech companies conformed to this trend.

4. luxury enterprises "cultivate seeds" and nurture consumers.

Because of the above objective reasons, high-tech people are still not the main consumers of luxury goods. But with the above trend, they are potential consumers. Even if it is not possible to have excellent performance in the short term after opening a shop, the luxury brand headed by Hermes will have a great potential in the future through the brand itself's careful nurturing of potential consumers, which is also the first opportunity for top luxury enterprises.

Under such a trend, how to cultivate this potential group?

1. guide the understanding of luxury goods

Because most of the group spends most of their time in work, they seldom have the opportunity to contact and understand fashion. Luxury goods The concept lacks understanding and even has some negative understanding of luxury goods, such as "unpractical" and "exaggerated". Therefore, it is the first step to enhance the image and perception of luxury goods.

For example, after visiting Silicon Valley in 2017, the French luxury goods trade association Comit Colbert invited 50 Silicon Valley entrepreneurs and venture capitalists to invite them to visit Paris in December 2018. Luxury industry Workshop, and I want to show them professional knowledge in French perfume, leather goods, wine and automobile. In addition, the symposium organised by several brands has made Silicon Valley's technology founders interested in understanding the history and culture of luxury brands and providing them with unique experiences.

2. take deep interest and consumption habits as the breakthrough point.

Just like this group's high investment in automobile, real estate and high-tech products, they are more willing to consume for "interest". Their interest is also related to their work and living environment and habits. Therefore, it is a direct factor to stimulate their purchase to dig deep into the interest of high-tech people and stick to their work habits and habits.

Hermes stores, for example, combine luxury cultural heritage with the high-tech reputation of Silicon Valley to integrate into the surrounding landscape and architecture. A series of works of art are displayed in the space, including the digital devices of Eric Vernhes. In this way, Hermes is able to provide a proper and meticulous experience from the retail environment.

At the same time, this is a group highly loved and put into work, and is also interested in the development process and business mode of the enterprise. During the conversation between the French luxury goods trade association Comit & Colbert and Silicon Valley entrepreneurs, they discovered that they were very interested in luxury brands' longevity tips. Compared with many hundred years of luxury brands, most hi-tech companies are developing rapidly but have a short history. So these young entrepreneurs are interested in the history of business development and hope to exchange and discuss. Comit E. Colbert will organize seminars in this area.

3. adjust product planning according to regional demand characteristics.

Although Hermes's branch store in Silicon Valley has a large area of 600 square meters, it has not selected all its product categories, but selected it carefully. Women's wear Men's wear and home series, and Hermes's harness series. Among them, the selection of harness series shows that Hermes has had a deep insight into the consumer preferences and daily life of local customers, because Palo Alto, a city in Silicon Valley, has a long tradition of equestrian and its localized thinking.

While completing the accumulation of wealth, scientific and technological talents have further cognitions with the overall change of social consumption habits, and the new market has appeared in the market of luxury goods. Among them, the luxury brand represented by Hermes is targeting the high-tech elite through the display of luxury image and concept, the interest and habits, and the in-depth localization strategy, so as to cultivate them as the next target group.

It is equally important to seize the present opportunity and develop the future consciousness. Some seemingly simple measures actually contain profound insight and bold anticipation for the future society, and the seeds planted can also grow into towering trees and continue the next "hundred years".