Tide Consumption Under Epidemic Situation: Digital Attack Of Luxury Trading Platform

The impact of the new crown is continuing, and the global luxury market has been hit hard.

Chanel closed some stores in Italy and Spain, and Hermes and the company have closed factories in France and Switzerland. Even in the Middle East, where high net worth accounts for the highest proportion in the world, it is hard to avoid the fact that luxury sales are falling.

According to Bain's latest report, the overall sales of the global luxury goods market dropped by 25%-30% in the first quarter, and the scale of the luxury goods market will shrink by 15% to 35%, and the loss is expected to reach 600 to 70 billion euros.

The factors that affect the decline in luxury sales include the closure of luxury sales outlets, the reduction of consumer spending during home closure, and the concern of the global economic contraction. The good news is that China's luxury market seems to be starting to recover.

Under the global epidemic, China's online luxury consumption is especially good. In the Spring Festival of the Spring Festival, the master of luxury platform package sales increased by 30% in January this year, and the sales volume of Valentine's day and goddess festival also hit a new high.

How can we understand the consumption psychology of the younger generation of luxury buyers in China? What will the new crown epidemic bring to China's luxury consumption? In April this year, the twenty-first Century economic report reporter interviewed the founder and CEO of the bag master.

"The epidemic will bring a great impact on luxury goods and even the entire market industry. In the short term, the sales volume of new products will decline, and the supply side of secondary market will be abundant. In the long run, the migration and change of brand layout will take place." Nilan Zheng believes that the new crown will accelerate the digital operation of the luxury goods industry in terms of users, products, channels and operations.

Please Chinese youth

When it comes to Chinese consumers' luxury purchasing power, it is widely known that more than 30% of global luxury goods sales are created by Chinese people. According to McKinsey's survey, over half of the global luxury market has grown from 2012-2018 in China in the past 65% years, and they predict that this figure will reach 65% by 2025.

If Chinese people are making up the global luxury consumer market, the main force that contributes half of China's luxury consumption is young consumers including 80 and 90.

Research shows that after 80 and 90 respectively contributed 56% and 23% of the total consumption of Chinese luxury goods; the "post-80s" luxury consumers spent 41 thousand yuan on the purchase of luxury goods every year, and the "post-90s" luxury purchase cost also reached 25 thousand yuan.

How to please the younger generation of luxury consumers in China is a topic before the luxury brands and platforms. Although LV's recent live broadcast of Xiao Hong's book has become a "car accident scene" in ridicule, its signal is clear enough: the big players are laying down their attitude to try to cater to the habits of young Chinese consumers.

No brand can ignore the trend, and the brand that changes in the fashion can be evergreen. Therefore, we see that the big players are highly interested in the transformation of business and technology, and the future of the market must evolve towards the electricity supplier and the new generation of users' consumption habits.

In fact, online luxury trading platform has become the beneficiary of digital development in the industry. The epidemic blocked the enthusiasm of consumers to go shopping, but it did not prevent consumers from opening their phones to grow grass and weeds.

A sharp contrast with the global luxury sector sales shrank by nearly 30%. In January of this year, C sales increased by 30%.

Digital strike

In the early days of the founding of the group, the business was luxury maintenance, and then expanded to second-hand luxury transaction. In 2017, after the transformation of luxury maintenance business from a proprietary mode to a platform mode, the team focused on the construction and operation of luxury supply chain management, and the business line also extended to new product sales and B2B transactions.

Despite the continuous expansion of business categories and the continuous upgrading of service methods, the master of package is consistent with the main line of change in the digitalization of luxury goods.

In a previous luxury industry report, Bain estimated that the number of luxury goods stores in the world will reach its highest level in 2020, one of the bases of judgement is the subversion of digital channels to physical channels. Nowadays, brands are obviously more active in embracing digitalization.

In September 2019, master Bao and Shanghai Waigaoqiao Free Trade Zone reached a joint venture to jointly establish the Shanghai Wai Gaoqiao luxury display and trading center, and take this opportunity to formally cut into new luxury goods and B2B transactions.

Shanghai Waigaoqiao Free Trade Area is one of the largest luxury goods import and export trade centers in China. According to the cooperation expectation, master Bao will provide support for the traffic products, content and operation of Shanghai Waigaoqiao watch and jewellery exhibition and exchange center, and set up a service platform for "B"'s "same frame" luxury goods industry.

Traffic, product and operation are all core competitiveness of master Bao for many years. One of the great expectations of 2020 is in content. It is reported that master Bao has been living in the form of live broadcast of Jingdong live broadcast, the focus of the year's work, including the creation of brand IP.

In 2019, the rapid rise of the live electronic business, second-hand luxury dealers also carry high price, non-standard good goods approach. The epidemic has hit the offline fashion retailing industry, but it has also brought opportunities for the development of luxury live broadcasting providers.

"Supply chain is the" deep box "of the luxury goods industry. What we are doing is to make the upstream and downstream businesses turn more efficiently through the service platform. Na LAN Zheng Xiu analysis said that live TV providers for second-hand luxury goods to provide a repackage of people's freight yard, "scarce goods industry is the supply chain is king, we are willing to live TV business energy."

Second hand luxury transaction in spring

The epidemic has a huge impact on the retail sector where luxury goods are located, and partners in luxury goods and clothing and cosmetics industries are preparing for possible retaliatory consumption after the outbreak.

Domestic second-hand luxury market has been ready to go: even according to conservative estimates, China's luxury goods stock has reached 2 trillion and 500 billion in the past three years. From the service chain perspective, in recent years, a large number of second-hand luxury goods business has sprung up in a second tier city in China, and there are tens of thousands of B merchants with stock of more than ten million.

The secondary market is a potential channel for luxury brands to reach new audiences and expand their customers. The data also corroborate this point: 20% of the users of the package master's luxury goods purchased new products on the platform.

The epidemic has pushed the global sales of luxury new products to a halt, but it may trigger an acceleration button for China's second hand luxury transaction.

"Young people have unique ideas, have an independent understanding of brand consumption, and are already the most consuming groups in China." In Nilan's show, a new generation of independent consumers has brought new possibilities to local brands. "Giving the market more time, we will be able to see the rise of local luxury brands."

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