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    The Latest Outlook Of Global Luxury Brands On China Market

    2022/9/13 15:57:00 0

    Luxury Goods

    ?

    ?

    Obviously, the Chinese market and Chinese consumers have become an important part of the luxury industry in the past 20 years, with the largest contribution of sales.

    In the second quarter, the implementation of the new epidemic situation and its control measures had an impact on the Chinese market, but with the lifting of these restrictions, the demand in the Chinese market will return. In fact, there is a strong demand for luxury goods all over the world, and China, Europe and America are strong supports for the luxury market.

    These can be attributed to the following reasons:

    During the period of the epidemic, consumers can't afford to spend a lot of money on high-end travel, so they can't afford to travel without a lot of money.

    Second, the new epidemic makes everyone realize that they are just a member of the public. Therefore, more people feel that they only live once, which also makes high-end consumers' Consumption Willingness higher than before. Just like after World War II, Europeans were happy to survive and wanted to live as wonderful and happy as possible.

    When China ends control and enters the second half of the year, consumers will behave as described above, unless unexpected negative developments occur.

    It turns out that the recovery of the luxury industry today is much better than expected in 2020. It was expected that sales would decline sharply and this situation would last for some time, but now there is a booming environment, so that many luxury brands have to raise prices and increase production and supply capacity to achieve supply and demand balance again.

    In 2021 and the first half of 2022, the operating profit margin of luxury brands has reached an unprecedented high level.

    Luxury brands need to respect the local residents and society, or not only respect, but also have a deep understanding. Only in-depth understanding can luxury brands set goals and implement plans in combination with specific (DNA) elements of brands, especially in China, or in a large market such as Chinese consumers.

    Chinese consumers and Chinese society are quite complex. They are composed of many different groups and circles, and each person has his own needs and wishes. Luxury brands need to have an understanding of this complex environment and adopt flexible strategies. Especially with rich media, brands can reach consumers through different social media channels, more frequent communication and two-way dialogue. If they do not have a deep understanding of the social environment and local consumers in the market, they will face great risks, The probability of failure is also high.

    China is at the forefront of digital development, so China has the potential to become the center of excellence in digital execution. The new methods born here have certain potential to be applied in other markets, such as how to use opinion leaders and social media, how to manage customers, how to expand the two-way dialogue with consumers. As luxury companies become more aware of their consumers, this area will become more important.

    Chinese consumers will eventually resume overseas travel. How to integrate Chinese market experience with global strategy and implementation will become an important pillar for luxury companies to receive global consumers and attract Chinese consumers to shop overseas. For a long time, Western stores, especially those in Europe, were packed with tourists and Chinese consumers, and this will change as luxury companies open more stores in China.

    In fact, the top brands are ready. When they come to the flagship store in Hainan and other flagship stores, they need to focus on the history of the brand when they come out of the headquarters. So to be sure, the threshold is getting higher and higher, and Chinese consumers are one of the main drivers behind this.

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