Why Luxury Goods Can Grow At A Continuous Rate Of 20%, But Designer Brands Are Frequently Sold.

According to Bain's 2018 research on luxury goods market in China, the overall sales of China's luxury goods market in 2018 continued to record a record growth in 2017, reaching a 20% growth rate for second consecutive years.

At the same time, when the independent designer brand has entered the international market in a large volume, it has also ushered in the financing crisis, and is undergoing a pformation from independent design to market.

Luxury is also a brand created by designer's personal charm many years ago. It has gradually become the luxury magnate now through the polishing of time.

Today we will study and compare these two similar and completely different fashion categories, and analyze from price, quality, technology and material aspects to see what we can learn from.

Price angle

Luxury goods:

The higher price is one of the typical characteristics of luxury brands. The price of traditional luxury goods is high because the materials, workmanship, technology and design are all very expensive and the output is small.

Nowadays, driven by commercialization, although the process is mature and the cost of new materials is rising, the brand premium gradually takes the place of the cost of goods itself, becoming the main value recognized by luxury brands, and can still remain at the high-end price.

Designer brand:

Designer brand pricing is relatively high, and even a lot of more than a big price.

New designer brands are not counted every year, but few can be seen. Even more and more designer brands begin to seek capital help by selling shares. A large number of reasons are designer brand "only design".

Because there is no commercial foundation, the cost of production, supply and sale is very high, and even the mode of operation is very traditional. The corresponding cost is high and the price is high.

The market is not open, nor does it attract consumers' preferences.

With the development of new media and information channels, it is no longer limited to the aesthetic output of TV and fashion magazines. Consumers have begun to have relatively high aesthetic and demand, but there are no cheap and cheap brands / products.

In this case, cheap materials and plagiarized imitation products begin to run rampant. Whether it is packaged fast fashion or directly copied pirated pirates, it is a heavy blow to the original designer brand.

While luxury products are also following suit, but consumers are already gradually graded on the basis of the imbalance between purchasing power and aesthetics.

From the high and low end market,

With the promotion of aesthetics, consumers are not accustomed to pursuing professional edition and workmanship. They tend to buy similar products at a lower price.

Among the consumers with higher pursuit, most of the designer brands are not well known, and the luxury brands with high brand premium and high topic heat are not so big. In the high-end market, consumers are more likely to choose luxury brands or other front-line commercial brands.

Quality angle

Luxury brands:

Despite the fact that luxury brands have been exploded in recent years is not a case in point, such as the LV package fading in the past few years, the overall process quality of brand heritage is assured.

However, it is worth noting that many factories have moved out of the country due to the market expansion of luxury goods.

With the definition of luxury concept, quality is not the only factor, nor even the main factor.

Designer brand:

Designer brand quality is more differentiated than the growth and differentiation of luxury goods industry. More and more overseas students set up personal brand.

Due to the lack of experience, the quality of the different designer brands is very large due to the uneven control and practicality of the market and the uncontrollable production process.

A common feature of luxury brand and designer brand is that the price performance of quality and brand is generally low, but the quality of luxury products is relatively stable in general.

Of course, there are good designer brands, but because of the bad mix, especially the mismatch between design and market recognition, people's impression of this category has declined.

Most of the luxury brands are still acceptable to the market. When they are launched, they shout ugly but can't help buying it.

It's about the meaning of fashion.

Process material

Luxury brands:

Because of the loss of ingenuity and the change of modern aesthetics, the material and technology of luxury brands are "yielding" to popularity, but the technology and quality fabric design still exist.

Designer brand:

As an independent designer who has gone all over the past two years, there is no denying that there are many brands that are so dedicated. But at the beginning, there are design and raw materials, the cost is high, and sales and cost can not run through those brands with mature industrial chains, but it may be a luxury brand with the same skills. The cards are really uncomfortable in the middle. This is also the reason why the original design is so difficult.

People do not care about materials, but now the society is not "wine is not afraid of alley", but topic and enthusiasm. People will see you first before they notice you. There is no mature industrial chain operating cost is high, there is no small audience caused by propaganda and goods. Apart from it, there are still many problems.

Paying attention to material and texture is a process of gradually increasing with age and stratum. When the economy continues to develop, there are plenty of money to support many luxuries, and when the age begins to pay attention to the value of decoration, many young people and ordinary people do not care about "material", but they prefer to keep or buy necessities.

Not enough to buy luxury goods, and even to the public, the designer brand with lower value and new and less well-known brand.

Perhaps these brands are really sophisticated, highly selective, and unique, but first of all, they can't say that all luxuries have no technological value, though perhaps they are pleased because consumers are becoming more and more fond of "cheap" things, such as PVC and T+ logo.

But this is just a fashion, and the fashion will end.

The advantage of luxury lies in their long history, so that they can be "light" now, and can return to the "heavy" angle after this popular past.

Most designers and new brands that follow suit can't do this.

A lot of people will just say: you see, they are not nearly the same as me now, but the Logo with hundreds of decades of history can sell thousands of pieces of white T.

And this sense of historical precipitation is what is lacking in impetuous and unaware "design brand".

When dealing with the problem of originality, it is not possible to vent the pressure on the luxury brand that is also forced to become "popular". It should be formally deficient in its own shortcomings and seeking to face the impact of low cost piracy.

Many consumers really do not care about "material", but times have been changing, and the demand for original and unique design has been increasing. This is reflected in the myth of rapid increase in search volume and fast fashion.

According to the 2018 China original design, entrepreneurship and consumption report jointly published by CBNData and Taobao, the number of search original / design keywords has increased significantly.

This also means that the attention of designer brands continues to improve.

The designer brand based on original design is also facing opportunities and challenges.

From a gender perspective, women account for a little more than men. At the same time, fans who pay for original designs are mainly women, with millennial generation as the main group, and most of them after 80 and 90, of which 90 and 95 are better.

It is worth noting that this is also one of the main groups promoting 0 luxury goods nowadays.

The frequent acquisition of designer brands is not a bad thing. Any kind of category will inevitably need to introduce fresh blood to a certain extent.

For the designer brand that is badly in need of development, the capital attracting and selling shares is one of the driving factors of pformation.