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    Luxury Goods Are High Hopes For Young People. Data Show That Fathers Are Wealth Gatherers.

    2019/1/29 13:10:00 24

    Luxury Goods

    All consumer goods companies love young people, because to seize their needs is to seize the future.

    Luxury goods owners obviously think so.

    It is almost one or two years since the young people had no words to their full pursuit.

    In particular, the new generation of "millennial generation", which has attracted much attention in consulting companies and agencies, has been attached great importance to.

    For a while, looking for the net red, beat the jitter, and play flash, all young people's favorite channels have become the first choice.

    The ideal is plump, but it is hard to resist the reality.

    The latest survey of market data seems to be tearing up the good idea.

    If you want to analyze the influence of the consumer group, you have to sort out which group of people the "millennial generation" refers to.

    Bain consulting, a market research firm, has given a concrete section: "millennial generation" generally refers to the adult population after 2000, that is, the consumer group with the age of about 20-34 years old.

    Although other market organizations do not fully refer to this standard, they are almost the same.

    This group's luxury consumption characteristics are more popular in fashion, street recreation, fashion and seasonal products.

    They want to show their unique personalities through different appearances, so they are willing to try more and more fresh products and channels.

    But these characteristics do not mean that they can bring more share to the growth of big business.

    As we all know, luxury brands belong to the "spire class" in the field of retail consumption. The products are usually "three high" products with higher unit price, higher quality and higher brand value, which have certain "identification" function.

    And the core user group of big names is also a special group that can continue to afford high consumption for a long time.

    In the latest 2018 China luxury report, Zhou Ting, the famous luxury research fellow and Dean of the Research Institute of guest wealth Research Institute, divided the current luxury consumers into three categories: core consumers, marginal consumers and potential consumers.

    In her view, core consumers refer to those who have a certain wealth base and regard luxuries as necessities and have strong luxury consumption ability.

    Based on the data compiled by China's market research in 2018, this group of customers has about 4000000 people in China and assets over 10 million RMB. This group contributes about 60% of the luxury market consumption, and will continue to be the dominant force in the luxury market in the future.

    Marginal consumers refer to having a certain ability to consume, but luxury goods are still luxury for them. This group has about 70000000 people in China. They may buy one or several luxuries a year, or they may not buy a luxury item for a few years.

    In fact, they are still quite a distance from the international standard of middle class.

    With the intensification of China's "go middle" process, a small number of people in this group will enter the group through entrepreneurship and become the core consumers of luxury brands. Most of them will be faced with a sharp decline in consumption, an inactive marginal consumer, or a potential consumer of luxury goods.

    The potential consumers of luxury goods refer to those who are unable to consume luxury goods or consume luxury goods, which is a burden and pressure to them, but it does not mean that they are absolutely impossible to buy luxury goods.

    This group of consumers may be the white-collar workers in big cities. They may become a luxury consumer group, but they are temporarily unable to provide long-term and continuous purchasing power.

    In the view of Zhou Ting, nowadays, all the consumers of "millennial generation" consumers who have high hopes for luxury brands are mostly marginal consumers. They are large, flexible, minded, easy to accept new things, and dare to spend ahead of time.

    But they also have very strong instability, the purchasing power may not be able to continue for a long time, the brand loyalty of big brands is not high.

    And this idea is not the Zhou Ting family. Rhodes public relations recently released the "2019 China luxury goods report" for future luxury consumer confidence research, there are also corroborated findings.

    According to the survey, in the mainland of China, people who are more than 46 years old show the strongest confidence in luxury purchases in the next 12 months. They have more confidence in most luxury goods categories. In contrast, the "millennial generation" group has a relatively high interest in buying high-end brand shoes and high-end cosmetics and cosmetics products. The purchase confidence in other categories is less than that of the so-called "parent" wealth over 46 years old.

    Thus, the saying that "the millennial generation is equal to embracing the future" is to be discussed at least in the next one or two years.

    And too superstition young, it may also lead to the loss of luxury brand core consumers.

    After all, developing low-priced products, disguised discounts, and so on, are mainly marketing schemes that attract marginal consumers and potential consumers.

    "Assuming that at the cost of losing a core customer, the big card gets three marginal customers and potential customers to maintain sales growth. On the short term, the number of customers is increasing and sales are not decreasing, but in the long run, it may make the brand face great risks, because the core consumers who lose are not only likely to be" long-term continuous purchasing power "holders, but also used as the opinion leaders for the other two categories of consumers.

    Zhou Ting is not sharp enough to point out.

    Based on this, we can see that the "millennial generation" is not the future of luxury goods. How should they go ahead? Brand researchers believe that first of all, they need to identify with "slow growth" mentality.

    Cheng Weixiong, general manager of clothing industry observers and Shanghai Liang Qi Brand Management Co., Ltd. believes that luxury brands are "Mount Everest like heights" for the low cost products of mass consumption.

    For all brands that reach a certain height, "high and low is the problem". It is the right way to cooperate with brands, products, channels and consumers.

    All in all, there are two ways to face the luxury brand: at present, all luxury brands are faced with two choices in terms of customer positioning. One is to maintain the high profile of luxury goods, one is to actively or passively popularized the tide and become the high-end consumer goods for the few core consumer groups.

    And how to choose these two roads? That's what luxury CEO needs to worry about.

    Source: Zhou Hongyan, author of Beijing News

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