Luxury Goods To Adapt To The Trend Of Doing Business?

According to the world clothing and shoe net, in January 16, 2019, the world's top watch wind vane - Geneva watch and clock show went on the second day.

Invest in Xinyu group. The latter is a watch and retail giant in Greater China. Its annual sales volume is more than ten billion yuan. 30% of the sales of Swiss watches and clocks in China are contributed by Xinyu.

September 2018, the second largest in the world

Electricity supplier Farfetch is listed in New York. They sell more than 1 billion dollars a year.

Farfetch has a fashionable function of "map and search". You can see a passer back carrying a beautiful bag and upload it. Farfetch can find the product on the platform, or push it to you recently.

China's Jingdong, seven wolves and luxury goods giant Chanel are all shareholders of Farfetch.

A few years ago, as for luxury sales, people were still discussing how to fight online and offline. Now it seems that it is no longer a problem because they choose to play the game together.

Bain's report also pointed out that online sales of luxury goods grew by 22% in 2018 and sales reached 27 billion euros.

The Asian market has risen rapidly, surpassing Europe and becoming the engine of global luxury business.

In August 2018, Tiffany and Tmall co operated with the flash shop, including a series of "flower rhyme series of diamond studded garland necklace" priced at RMB 673 thousand yuan.

Even in the traditional sense of "jewellery", the mentality of jewellery has undergone subtle changes.

One or two years ago, they worried that the electricity supplier would destroy the steady style of "old east side money". Nowadays, they will not only contact the electricity supplier, but also try to turn it into a marketing event, thus creating an image of "pioneer in the digital age".

Under the torrent of times, the different roles in this industry chain are different.

China is undoubtedly the most dramatic and far-reaching market for luxury goods providers.

Hermes: the change took five years.

To study the trend of an industry, people often turn their attention to industry leaders.

In recent decades,

It has been playing a role in the luxury industry. Even during the big and small financial crisis, Hermes can maintain stability and even grow in performance.

Hermes is very cautious about the electricity supplier.

In 2012, Hermes CEO Patrick Thomas suddenly said in an interview: "80% of the Hermes sold online is fake, which is a disgrace."

How many "Hermes" are sold on the Internet, and how many of them are fakes, these statistics are simply impossible to count.

CEO's expression is that the fact is that he can't agree with the sale of luxury goods online. He is pmitting information to consumers: you should go to a real shop and buy a reassuring Hermes.

The comments also aroused great repercussions in China. At that time in 2012, the Chinese public had a strong interest in buying luxury online.

In fact, at that time, the domestic market was surging in the field of entrepreneurship in this field. Vip.com, temple library, Xiu Xiu net and Fifth Avenue were beginning to take shape.

Some of these names have gradually faded out of our vision.

At that time, they sold luxury goods and light extravagant products at an attractive discount.

Chinese consumers who yearn for luxury goods and are extremely sensitive to prices are fast becoming addicted to online oatrice.

But Hermes remained unmoved until 2017.

At this time, CEO, the Axel Dumas of the family descendants, said: "for us, 2017 will be a year of digital change."

He also pointed out that "as early as 2001, Hermes became the first luxury brand to launch e-commerce websites."

But this website has not received much attention.

Since CEO has made a public statement, Hermes has gone off the hook in the world of electronic commerce.

The e-commerce platform with sales function is online in mature markets such as Europe, the United States and Japan.

In China, Hermes opened a WeChat Limited store in October 2017 to sell a smart watch for Hermes.

In December, the sale of Hermes shoes was launched through WeChat.

Finally, in October 2018, Hermes Chinese official website officially opened the online shopping function, but like the physical store, you still can't buy Hermes platinum bags and Kylie bags.

When Hermes's advertisement appeared in WeChat's friends circle, everything seemed to have a conclusion. The industry leader spent at least five years to change his attitude towards luxury electric business.

Channel: competition between Jingdong and Tmall

In 2017, Jingdong and Tmall were very tight. Tmall launched Luxury Pavilion, a channel that specializes in luxury goods.

The idea is very special. A Tmall user can see this channel only when the amount of Alipay consumption reaches a certain level.

Tmall compares it to the nine and three fourths station in Harry Porter. Only those who master magic can see and enter. "Muggles" can't even touch the door.

The amount of money spent on Alipay is not comprehensive enough to measure the user's financial resources, which seems to be a trade-off decision made by Tmall: luxury nuisance is mixed with mass consumer goods, so the luxury channel must be separated from the hypermarket, not everyone can enter; on the other hand, even a channel that only sells luxury goods will eventually need to generate sales volume, and on line, it is directly expressed as demand traffic.

Therefore, this channel must be placed in the environment of Tmall, in order to use Tmall to accumulate large traffic volume, and promote luxury goods to have orders and volume in Luxury Pavilion.

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Jingdong almost synchronize, but made a more thorough trade-offs, in addition to the Jingdong system, from scratch to create a platform - TOPLIFE, this is an independent app, only for luxury goods.

Jingdong devoted their efforts to create TOPLIFE's sense of delicacy and isolation, and even introduced magazines, texts and videos to luxury goods for TOPLIFE like magazines.

Compared with the pages of Jingdong and Tmall, TOPLIFE has lower color saturation and better design, just like an online shopping mall.

Luxury Pavilion and TOPLIFE attract many luxury brands to enter, and the lineup is more and more not to be underestimated.

Luxury Pavilion has Tiffany, and TOPLIFE wins Paris, Saint Laurent and TOD S.

In October 2018, people noticed that in the official publicity materials, the top watch brand Patek Philippe was attached with the two-dimensional code of the WeChat public number. Although it had not pushed any content, table Wang had voted her first ballot in WeChat in the mobile digital world.

Over the past two years, the emergence of small programs has made people realize that competition between the "platform" of luxury goods providers has just begun.

The functions of small programs are ever-changing. For luxury goods, they can complete sales in WeChat's ecosystem.

More low-key than the smaller program is WeChat boutique, Louis Vuitton and many other luxury brands have opened boutiques on WeChat, just like a brand official website in WeChat environment.

"Online customer service is very warm and thoughtful.

They were very surprised and cautious about my visit. "

A Post-80 entrepreneur in Shanghai described her shopping experience at Dunhill WeChat boutique. "After the delivery, a handwritten blessing card was attached."

QQ advertising, which is considered to be the post 90 and 00, has also opened up the function of the electricity supplier. In 2018, Lancome launched Dongyu Zhou's advertisement on QQ and attached the purchase link of Lancome lipstick.

Francis Gouten, who lives in Hongkong, has been a senior executive in the Asia Pacific region of the peak group. Five or six years ago, he pointed out at a Shanghai forum that luxury goods in China really wanted to be an electric supplier, but they were more worried about the brand image. What they most concerned about was whether they could control every detail.

A Chinese luxury electric business executive also said that the cooperation between luxury goods and which platform is nothing but "face" and "Li Zi".

Whether we want the environment to be pure or to really "take the goods" depends on the brand's own situation.

Estee Lauder: luxury world from cosmetics

To say that the most concerned about "luxury" luxury goods, usually those independent luxury family businesses, lack of group backing, no small volume of small brands to help families, making money is a vital matter.

In addition, there is a large group of cosmetics, their entry price is not high, is the cornerstone of luxury consumption in Pyramid.

The world's largest luxury group LVMH's make-up brand includes Guerlain, Dior, Make Up Forever, and Chanel's cosmetics are also important cash cows.

In 2014, Estee Lauder entered Tmall. At that time, it was a bold decision. It was easy to see the tension between the two sides.

Triple Life Weekly reported that Estee Lauder's official flagship store on Tmall had spent 1 million dollars on decorating.

Before going online, it also prepared several programs at the same time to carry out real-time data monitoring. Once the effect is not good, adjust the material until the data prove to be the favorite page of the consumer.

Estee Lauder and Lancome are old rivals in the field of cosmetics. Both sides have been sinking into the mass market together in the long and fierce competition.

After Estee Lauder announced Yang Mi as spokesperson in 2017, there was no obvious difference in marketing practices with mass consumer goods.

Two years after Estee Lauder touches the net, LVMH group's cosmetics group is a cat.

Wu Yue, President of LVMH group Greater China, said at the press conference: "in today's information age, online and offline interaction has become an inevitable trend. For our luxury brands, it is no exception."

As for Chanel, which occupies the best place on the first floor in any shopping center, it also sends its perfume to the Internet.

In November 2016, Chanel released Hu Ge's No. five perfume video on official WeChat, featuring a monologue and ending with a purchase link.

Coach: get up early and catch up late.

Coach, a light luxury brand from the United States, was once the first workplace handbag for young girls in China.

Coach has gone through a curve and swing road in China.

Coach may be the luxury brand of Tmall in the morning. In 2012, it opened the shop on a grand scale. After a month's downline, it could be regarded as a month long flash shop.

Since then, Coach has maintained its high enthusiasm for digital media and e-commerce. It is almost the same as European peers and Burberry with a high price per unit price. It is a well-known Internet addict in the circle.

In social media, Coach uses various discounts to attract attention and accumulate fans.

Soon, Coach developed its own shopping function on its own official website, and the official website became an official online shop.

In September 2015, Coach returned to Tmall, which seems to be a long-term plan. But surprisingly, by 2016, the Coach flagship store disappeared quietly from Tmall.

I got up early in the morning and caught a late night collection.

The flash of 2012, Coach is like the first wave of luxury electric business.

But on the left and right sides, they lag behind others.

This is also related to the internal adjustment of the brand itself.

Coach opened the market in China in the early days with the "affordable fashion" image, and later realized the negative impact of over discount, instead of turning the slogan into "modern luxury".

Coach changed the Chinese head during this period.

The strategy for luxury goods to do business is determined by their own internal changes.

A digitally motivated boss may step up the net, while a relatively conservative successor may turn around and go back.

Brand: not simple yes or no

Farfetch, which we mentioned before, has also been invested in Chanel. Chanel emphasized at that time that investing does not mean that Chanel wants to sell bags in Farfetch, but to improve customers' experience in physical stores.

Chanel always seems to believe that online experience and physical stores can not be compared.

Chanel has multiple characteristics in the electricity business. On the one hand, it is extremely cautious about its own handbags and fashion. On the other hand, Chanel's perfume and watches are one of the most active roles in e-commerce and social media.

Chanel's approach tells us that the answer of a top brand to the "electricity supplier" is not simply a yes or no, but rather a complex set of solutions.

They work hard to maintain brand image for different product lines, different customers, different design practices, and do everything they can to maintain their brand image. At the same time, they will not let go of any potential opportunity and never fall behind.

LV and Hermes have not yet announced cooperation with the third party e-commerce platform. The network is limited to "official" channels, whether it is official website or official WeChat account.

They continue to cling to control and deliberate every step.

At the same time, some top jewellery and wrist watch brands are more constructive to the electricity supplier.

They no longer entangled the online shops and offline stores, but used smarter strategies to integrate online and offline businesses.

In 2015, Cartire launched a WeChat pre-sale campaign on a watch. The customer paid 888 yuan deposit on WeChat, then went to the boutique to try, pay and pick up the goods.

In 2017, Vacheron Constantin sent luxury cars to receive customers from online boutiques.

In 2018, Liu Qiangdong, the boss of Jingdong, and the owner of the watch brand Audemars Pigeut, together with a guest courier, sent the first online Audemars Pigeut watch to the guest's home.

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In overseas markets, Farfetch even tried to cooperate with Gucci to deliver customers' orders in 90 minutes.

Some leading domestic and foreign electricity supplier companies are still trying to use AR and VR technology to help users try online and imitate the feeling of coming to their surroundings.

In China, the attitude of luxury goods to the electricity supplier depends on its own price and the market situation.

Luxury electric business is the trend of the times. Business opportunities and risks are in the same place. The brand that dare to try and lay out has the chance to become an industry leader in this process.

Too conservative brands are experiencing the anxiety of falling behind.

Today, for luxury goods, the problem is not "do not do electricity supplier?" but "how to do electricity supplier?" do you do it yourself, or do you want to do it? "Do it yourself" is the official website to develop the function of electric business, and sell through official micro signals and WeChat boutiques. "Finding someone" is a choice between Tmall, Jingdong, vip.com and so on.

Now, these two main paths have a lot of luxury brand choices, and businesses want all the layout, no corner and hedge risk.

We seem to see such a picture of the classic Pyramid structure of the luxury world: the tower base is a gleaming, lively and passionate cosmetic, fashionable and leather, extending to the top with jewelry and wrist watches.

The electricity supplier is like a luxuriant green plant growing around Pyramid. It is luxuriant in the tower foundation, and the vine is still struggling to climb up.

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