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    Luxury Market: Slow Down Opportunities And Persistence In Downturn

    2015/10/31 20:59:00 35

    Luxury GoodsSales MarketMarket Quotation

    From the beginning of the first quarter of this year, the number of year-on-year retail sales and same store sales in the western traditional luxury goods market has increased to varying degrees, especially with the rise of niche brands and designer brands.

    However, the latest quarterly earnings report released by various groups and brands shows that this vision is not optimistic, and the blame for the disease is once again attributed to the sharp decline in the Asia Pacific market.

    After a concentrated round of price cuts against the mainland market in luxury brands, its decline in the Chinese mainland market has been significantly curbed, but China

    Hongkong area

    The sudden collapse made many brands unanticipated, such as Burberry's sales in Hongkong, China, fell by more than 20% year-on-year.

    The proportion of the Asia Pacific region in the luxury market in recent years is increasing. The growth rate of the western traditional luxury market is not yet able to whitewash the overall market.

    In the hard and luxurious representative timepiece industry, the Swiss watches and clocks in the third quarter hit the biggest quarterly decline since 2009, combined with the two decline of nearly 10% in July and September, and the 8.5% quarter of the third quarter export dropped to 8.5%, due to the sharp decline in sales in Hongkong and the mainland of China in September, which spread to other Asian markets in September.

    In contrast to the decline in exports, sales of Swiss watches and clocks fell in Asia, up to 21.4% in July 2015.

    Watch sales at all prices were affected at this stage, but the impact of low and medium price clocks was more pronounced.

    About 1300 yuan to 3300 yuan of Swiss watches and clocks dropped overseas by 14.5%, which prompted the industry to start worrying whether the Apple Watch finally began to affect the Swiss watch industry.

    For consumers, they spent the initial stage of obsessed with brand Logo, instead of simply lowering their enthusiasm for consumption. Instead, they began to pay attention to the connotations of brand connotation and their own, and develop more mature buying habits.

    Therefore, the opportunity at this stage also comes from the brand's pmission of product value and brand positioning.

    In this year's

    Hongkong Exhibition

    As we can see, more brands are choosing to build a brand culture and product framework with a distinct theme, such as Jaeger Le Coulter's tribute astronomy year, Robert Pierre Du's star clearance and the count's fantasy tour, so as to convey the brand value.

    "As a luxury brand, we are positioning ourselves to use classic design to create works that can accompany all important moments of the consumer.

    And for different product lines, the brand is

    Design

    It will operate according to the independent product type when it is produced, but will be placed in the same theme framework according to the common characteristics. For example, this year's exploration, the writing tool is to explore new designs, leather goods are exploring new processes, and watches are brand-new works.

    Jens Henning Koch, executive vice president of MontBlanc's marketing department, said.

    After double digit sales growth from 2010 to 2012, the growth rate of the Swiss watch industry is slowing down, and it is also a manifestation of overall market maturity and consumption maturity as well as economic factors.

    As a matter of fact, under the condition of overall calm market, it has more advantages for brands in steady development.

    The brand has more time to adjust the development process and experience the subtle market changes, so as to seize the opportunity of attack.

    "Because the brand is on the trend of development and growth, we are not at the same level in terms of popularity and exposure, compared with some big brands, and the criteria for determining some of the results are not the same."

    Sandrine Donguy, director of marketing and communications at Baume & amp; Mercier, said: "the market will undergo dramatic changes, and celebrities will be aware of it.

    The reason why the impact on brand is not obvious is that we have some reliable and familiar with the market experienced partners and distributors. Secondly, celebrities are in the process of development in the Asia Pacific market, and the market space is not saturated. We are investing more in the market at this time to improve brand awareness, build a sound sales network and expand channel sinks.

    In order to reverse the market data which are not optimistic, luxury brands based on leather goods and clothing are more diversified than those of hard luxury and jewellery brands.

    Limited to the production cycle, output and raw material prices, there is not much left to the hard way. Therefore, the first strategy to reduce the price of Chinese products began with the timepiece brand.

    "In May this year, the brand adjusted the product price of the Chinese market, and maintained the global price unification within the controllable range. The result also made us more firm in this market. In September, the retail sales in China increased by 45% compared with the same period last year."

    Daniel, global president of Jaeger Le Coulter (Jaeger-LeCoultre), said Riedo.

    In fact, Jaeger Le Coulter's growth in sales data is not only due to price adjustment, but also from the brand's insistence on product innovation, which has not changed due to the downturn in the market.

    This Daniel Riedo said that the latest brand new watch can see that from the design to the core of the device, the whole work is brand new, so as to confirm the brand's concept of "opening a new world" this year.

    At the same time, Jaeger Le Coulter also has more different categories of products to launch, and strive to give consumers more choices.


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