What'S The Impact Of The Big Show Being Postponed On Luxury Business?

The fashion show, which is the most important part of the luxury brand business chain, has also been hit hard in the most important market.
The pneumonia epidemic is like a huge stone, blocking most of China's supermodels, fashion bloggers and designers to participate in the four international fashion week. Many luxury brands are forced to stop their olive branches stretching to China. This is in sharp contrast to the spectacular fashion show held by Fendi, Chlo and Prada in Shanghai last week.
Following the cancellation of the Hongkong grand show in November last year, the French luxury brand Chanel issued a statement on Monday, saying that taking into account the current situation and under the guidance of relevant Chinese departments, it will postpone the grand exhibition of the advanced manual workshop of 2019/20 "Paris Kang Peng Street 31" which was originally planned for May in Beijing. The series was first released in The Grand Palace in Paris in December 2019, and is the first advanced workshop series since the incumbent creative director Virginie Viard took office.

Originally, it was better to expand its influence in the Chinese market, but less than half a year, Chanel two degrees passively changed the grand show plan, causing great concern to the industry and consumers. Chanel is famous for hosting the fashion show with heavy gold. From computer room to rocket launch center to the virgin forest, Chanel insists on moving various landscapes to the show every season. The late creative director Karl Lagerfeld once built a whole beach in Paris's The Grand Palace, and the undulating waves are especially realistic.
From the computer room to the rocket launch center, to the virgin forest, the railway station and the library, Chanel celebrated the fashion show with a lot of money.
Even more surprising to the industry is that Italy's luxury brand Prada also said on Monday that the uncertainty of the new crown pneumonia epidemic will delay the first holiday series to be held in Japan in May 21st, becoming the first luxury brand to delay the holiday series. At the moment, no new time and place has been announced, but Prada said the event will still be held in Japan. In June last year, the brand held 2020 spring and summer men's wear show in Shanghai, China.
In addition to the two seasonal series of spring, summer, autumn and winter, vacation series is also very important for luxury brands, not only to meet the clothing needs of the world's affluent people for holiday enjoyment, but also a key part of brand image building. As a result, luxury brands usually begin preparations six months in advance. They are more careful in the theme, location and venue settings than the regular fashion show. They have more than 100 models and spend money to create a luxury dream for the audience.
In view of the significance of the fashion show to the luxury brand marketing, the luxury brand Chanel, Louis Vuitton, Dior and Gucci holiday Series in Europe and the United States have not been affected. The Armani show to be held in Dubai has not yet been adjusted.
The British luxury brand Burberry also decided last week to cancel the 2020 autumn and winter Burberry men and women fashion show, which was originally planned in April 23rd. The exclusive retail Tencent in Shanghai will delay the opening of the Shenzhen social retail store.
The brand creative director Riccardo Tisci once regarded Shanghai as one of the most innovative and enlightening cities in the world. Chief executive Marco Gobbetti has said earlier that China has become one of the most important brands, and the brand is also planning to launch some single products which are only sold in China in the series.
Meanwhile, in recent weeks, hundreds of trade exhibitions and other major activities scheduled to be held in China have also been cancelled due to the outbreak of pneumonia. The office of Shanghai Fashion Week Organizing Committee has announced that the 2020 autumn winter Shanghai fashion week which was scheduled to be held in March 26th was postponed. However, no specific time and format were held. The exhibition and order meeting held during the period will also be postponed.
As China's designer brand is dominated by wholesale channels and is affected by the delay of fashion week and order, Chinese designer brands, local buyer shops and department stores will face corresponding planning adjustments, and time hall has issued a statement announcing its new autumn and winter exhibition schedule in from April 10th to 13th. In addition to the Shanghai fashion week schedule, the China International Fashion Week, which was originally planned for from March 25th to 31st in Beijing, was also postponed. The new date was not disclosed.
In addition, a number of Chinese designer brands are unable to attend the fashion week of Milan and Paris due to the new crown pneumonia outbreak. The French Advanced Custom and Fashion Federation FHCM has said that the schedule of 2020/21 autumn winter Paris fashion week will be changed from February 24th to March 3rd, and MASHAMA, Shiatzy Chen, Uma Wang, Jarel Zhang, CALVIN LUO and CALVIN will be held. 6 Chinese brands have cancelled their scheduled activities in Paris. FHCM said it would provide all viable platforms to enable these brands to continue to share their works.
Prada became the first luxury brand to delay a series of holiday shows.
The Italy Fashion Association revealed that about 80% of Chinese Editors, buyers and designers were unable to attend the Milan fashion week in from February 18th to 24th, just before the outbreak.
In view of this situation, Milan fashion week will use technology to build a bridge between Italy and China, synchronize Chinese show on the Internet, interview and backstage images, so that the absent can still participate in Milan fashion week in virtual fashion. 8 young Chinese designers will have the opportunity to participate in Fashion Hub activities with pre recorded videos and pictures.
However, the domestic fashion giant Bosideng is an exception. The London Fashion Week of the brand was held in February 16th, with 350 guests attending the show.
The success of the show is undoubtedly of great significance in the present era. Li Chuang, director of Bosideng brand, said in an interview with the media that after deliberation, they decided to hold the show, aiming to make the whole world see China's solidarity and strength. "On the stage of international fashion, China will never be absent." As of last Friday's close, Bosideng's stock price has risen 74% in the past year, and its market value is about HK $27 billion 800 million.
When the big show is in hand, luxury brands have to choose to stop, and the loss is not limited to the income level.
In the face of increasingly picky consumers, fashion shows, though expensive, still constitute an important part of the luxury brand's "arms war". The sense of form is becoming more important than ever before. "Fashion is not only a garment itself, but also a unique experience."
In October 19th last year, Dior hosted another 2020 spring summer clothing series fashion show in Shanghai.
No matter the brand is pursuing more realistic, magnificent, immersive, more space-time transformation experience, through various forms of sense to enhance the audience's sense of impression, the past minimalist brand also began to deliberately make a sense of form. The fashion show as a large-scale event brand further increased investment, and threw more budget, manpower and creativity in fashion show.
So a fashion show needs to be prepared at least three months in advance. Behind the cancellation of a show, the hard work of countless workers has been burned. The venues and scenery production can only be abolished. Take the Shanghai Dolce show, which is temporarily cancelled by the company of Dolce & Gabbana, for example, the industry estimates that the loss of the brand is at least more than a million dollars.
And traced back to the source, fashion show is the platform for buyers to buy goods and exchange latest information. It also indirectly protects the high-end VIP customers and media relations invited to the fashion show every season, and is closely related to business.
In the early twentieth Century, high fashion designers began to hire models in small salons to show their latest works to customers. As a social activity, fashion show initially helped Paul Poiret and other first fashion designers to lay the foundation in the circle. Then the scale of the fashion show grew from small to large, and the date was gradually fixed. Since the 50 year of twentieth Century, fashion shows have changed from social activities to media, playing an important catalytic role in the transformation of fashion from advanced customization to ready-made garments.
With the advent of the Internet and social media era, the fashion show's one to one communication mode and designers, fashion shows, fashion editors, and consumers of fashion magazines have broken the long chain of fashion information. Viewers can watch the fashion show synchronously through live broadcast and high-definition pictures. That is to say, buying will become a brand to satisfy consumers' need for timely purchase. A great weapon for seeking.
However, the Internet is not omnipotent. Different screens can cause poor vision. Network blockage can lead to poor communication. With the influence of time difference, many buyers in China have revealed to the fashion business express that this year's purchase is obviously more difficult than before. Susan Fang, a Chinese fashion designer, told us that because the handicraft workers could not arrive in time, or plan to reduce the scale of the new series, adjust the overall plan for 2020. Designer Chen Xuzhi admitted in an interview with BBC that the factory may not be able to deliver the goods on time or postpone two to three weeks.
On the surface, though the impact will not appear immediately, it will be related to the whole year's planning of the brand. With the limited attention of consumers, competition is becoming more and more intense. It is becoming increasingly difficult for brands to effectively touch consumers in special times.
Chanel said earlier that it was an opportunity for them to communicate and connect with the global consumers. The 2017 brand's early spring replay in Chengdu was mentioned 560 million times on micro-blog, which was held in Shanghai last year, "Mademoiselle". Priv ye also produced nearly 4 billion digital contact points, and in 2018, when Seoul reproduced the advanced hand-made workshop series, the sales of garment sales in Korea in that year were very high.
In October last year, the 2020 spring and summer clothing series in Shanghai was first adopted by 360 degree VR technology, and was broadcast live at the four platforms of Tencent, Sina micro-blog, HUAWEI and Jo four. As of 3 p.m. on October 20th, the total number of visitors reached 28 million 900 thousand, breaking the record of luxury brands in recent years.
In the current uncertain retail environment, there are people in the industry who believe that with the suspension of the fashion show, the brand will develop the "Plan B" to save. After all, the business logic of luxury goods has not changed, and the brand that will carry out the brand marketing will gain more performance growth.
Luxury brands are very clear that emotion is the most suitable currency for social media dissemination. This also reveals the changing nature of fashion with the evolution of the times, that is, fashion is no longer just clothes, but a cultural atmosphere and lifestyle.
For the poor fashion brands, the higher rate of digital marketing is the first choice. Luxury brands with adequate marketing budget tend to transform fashion show into a comprehensive marketing activity to stimulate guests' senses. By leveraging the social influence of the head KOL, they can get more room for the brand in terms of topic and goodwill, while extending the postponed activity. Dynamic heat.
It is reported that Chanel is actively promoting the early June show in London, including a series of activities such as show parties, contacts with local celebrities and celebrities, so as to cater for more international consumers. The brand will also cooperate with Farfetch, a luxury electric provider, to launch the first digital innovation project, "Boutique of Tomorrow". It launched two App models to consumers and sales assistants, and further optimized the product booking and service experience. It has been conducted for 7 months in Chanel's largest flagship store in Paris.
Burberry's 2020 autumn and winter show in London Fashion Week was also released on Monday, which was synchronized live on the Internet. It announced that it would adopt a series of environmental protection measures such as the establishment of a "renewable fund", a fashion show in a certified environmental protection site, and a Pur plan to reduce carbon emissions and achieve carbon neutralization to make up for the devastating ecological damage caused by forest fires in NSW.
As one of the most popular luxury brands in China, Burberry is undoubtedly one of the biggest industry victims of the pneumonia epidemic. 40% of its annual revenue comes from Chinese consumers around the world, and now the brand has closed 24 of 64 stores in mainland China. Morgan Stanley predicts that Burberry's performance in the 2019 fiscal year will fall by 5%.
However, the launch of Riccardo Tisci's "B Series" was launched on sale at the WeChat Mini program yesterday, and the small leather bag priced at about 11 thousand and 200 was sold out in less than an hour.
In the eyes of investors, the Prada situation after the big show is not optimistic. The brand has temporarily closed some of its brands in mainland China and Macao. The flagship store of Russell street in Hongkong has also been closed down, which is 4 months ahead of the lease term, which is rare in the industry.
Rogerio Fujimori, an analyst at Royal Bank of Canada, said last year that Prada's massive reform and the abolition of seasonal price cuts might be a constraint on the market's average expectations for the next 6 to 12 months.
In contrast, LVMH, the world's largest luxury group, was slightly calm in the face of the epidemic. Under the guidance of businessmen's mind, the giant was well prepared to deal with the sudden impact. In addition to its nearly 80 luxury fashion brands, the group also launched a new luxury brand with pop singer Rihanna last year, and succeeded in winning the US luxury jewelry brand Tif for $16 billion 200 million. Fany has a wide range of choices in terms of location and product range.
Bernard Arnault, chief executive of LVMH, once said that luxury industry should not despise marketing, and if it does not do marketing, it will not be able to base itself on the luxury market. Last year, the group's investment in marketing and sales was 20 billion 200 million euros, an increase of 14% over the same period last year.
Bernard Arnault revealed that after the outbreak, he had passed the gas with the Chinese team. "Our first response is not to panic and calm down. We think it is too early to predict growth.
In a recent report, Bain pointed out that the alternative consumption areas, including clothing, cosmetics and luxury goods, may rebound rapidly due to retaliatory consumption after the resumption of public travel. Online retailing and other related industries will also generate lasting benefits due to the rising consumer acquisition and transformation during the epidemic.
The agency stressed that in order to better cope with the impact of the epidemic, it is suggested that enterprises stop waiting and wait and see that action should be taken in time to formulate goals and plans for the outbreak and to implement them quickly.
In the short span of 30 years, luxury brands have been carefully exploring into the Chinese market to get together in China to run shows. Behind this is a sharp rise in the strategic position of the Chinese market. The brutal fact of the industry is that when a door closes, another window will be opened immediately. In this field of "dreaming", the real risk is never enough momentum to compete in the market competition. In front.