Luxury Brand "Enclosure" Two Or Three Line City

A large number of China's two or three tier cities will become Chinese and foreign cities. brand The main battleground for hegemony

Judging from the consumption trend of luxury goods in China, it is impossible to describe the word "swift and violent" in two words. In a recent report, economists in HSBC predicted that the gold of the world's most luxurious brands will be in China. This prediction is obviously supported by data.

According to statistics, nearly 2/3 of the world's luxury brands have entered China. market From the end of February 2010 to the end of March 2011, the total consumption of China's luxury goods market had reached 10 billion 700 million dollars (excluding private aircraft, yachts and luxury cars), which exceeded 1/4 of the global total. Influenced by Japan's earthquake, China's domestic consumption growth and RMB appreciation, a report released by the World Luxury Association believes that China is expected to become the world's largest luxury trade and consumption center in 2012, with total consumption expected to reach $14 billion 600 million.

What a shocking figure it is, and how much the business is crazy about. Behind this figure, needless to say, we all know what it means.

In the face of such a huge consumer market, I believe no businessman is indifferent.

Let's first take a look at the movements of several old luxury goods in China. Gucci stores, which only appeared in Hongkong, Beijing, Shanghai and Shenzhen, have expanded to 32 stores in just over a year. Most of the new stores are located in two or three domestic cities. LV quickly opened 27 stores in 22 cities in China, including Changsha, Xiamen, Wuxi, Suzhou and so on. Wenzhou Wait for two or three line cities. Relative to the crazy expansion of Gucci and LV, Prada has eight stores in mainland China, such as Chengdu, Qingdao, Shenyang and Xi'an. But we all know that the expansion of Prada in the mainland is only a matter of time.

The expansion line seems to coincide, but in fact it confirms a long-standing saying: "the world's consumption support point in Asia, Asia's consumption support point in China, China's consumption support point in the two or three line city".

It is far from Gucci, LV and Prada that we aim at the Chinese market. Almost all the major international brands that we can name, such as D&G, Zegna, Marc Jacobs Accessories, Anna Sui, Fendi, Sui, and so on, all focus on China, and look forward to taking China as the next stop for them to dig for wealth. In the first tier cities of China, Beijing and Shanghai are becoming increasingly crowded and saturated, channel sinking has become the best choice. China's two or three tier cities have become the Xinjiang domain of luxury brands. If we look at the Chinese market as a sink for many famous international brands ten years ago, now they are sinking again, aiming at China's two or three tier cities.

In addition to these prestigious luxury brands, Zara, H&M, Uniqlo and many local clothing brands, which are familiar with the emerging brand of clothing brand, have extended their tentacles to China's two or three tier cities and even farther. For example, H&M2009 opened fourteen new stores in the Chinese market, and said that China will continue to become a place where H&M focuses on additional stores. Uniqlo, which entered China in 2002, has opened 64 stores in China as of May this year, mainly in Shanghai, Beijing and Shenzhen. The 64 stores are not small, but the goal of Uniqlo in the crazy expansion is far beyond our imagination. Ryui Masa, President of fast marketing, said publicly that the pace of opening stores in two or three cities in China will be accelerated in the future, and plans to open more than one thousand large stores in China in ten years, that is to say, every three days, it will open a store in China.

Think of the brand scenario of China's two or three tier cities in the future. If you use a word to describe it, what would you think of it?

No matter what words are used to describe, an undisputed fact is that the sinking of channels has become the strategic direction of many brands in the future. China's two or three tier cities and even lower market have become the focus of the next step for the brand to compete for the big cake of the Chinese market.

International brands have penetrated into the Chinese market with a brand new attitude. Behind the slogan of Uniqlo calling thousand shops is an urgent need for international brands to tap into China's emerging consumer market.

In this round of new enclosure movement, China's local brands do not seem to be lagging behind. Quite a number of local brands have long been rooted in China's 234 tier cities and even rural markets, and a few years ago, they began to call out thousands of shops and stores, and kept horses. {page_break}

There are basically two directions in the enclosure movement of China's local brands: one is to sink from the top, such as Metersbonwe, seven wolves, JEANSWEST and so on. These domestic casual wear brands first occupied the heights of the first tier cities, then gradually descended to the two or three line or even four or five line cities. Now, in many counties and towns, they can see these brand stores. The other is to move from bottom to top and adopt the strategy of "encircling the cities by the countryside", first occupy the 234 line cities with weaker international brands, and build the brand influence in the young consumer groups, and then gradually extend to the first tier cities. Such as Lining, Anta, 361 degrees, XTEP, Semir and so on, these brands are now everywhere in the market.

A set of data may give us a better understanding of this situation: Lining had 7249 stores in 2009, an increase of 1004 over the previous year, and the number of stores in 2009, which was 6600 in 2009, up 12% over the previous year; the number of shops in 2009 was 3511, an increase of 703 over the previous year.

This is only the data of 2009. At present, the number of these brands is increasing. In this way, it is not surprising that Uniqlo calls out the thousand store plan. After all, the cake in the Chinese market is so big that everyone wants to get a slice of it.

Someone has calculated such a group of data: there are about six hundred regional cities in China and 2800 in county-level cities. It is assumed that there are 1500 sales outlets in the National Mall, and five to eight shops are set up in the district level cities. A county-level city can be opened by a conservative calculation, so that the outlets of two or three cities across the country can reach 8500. This data is enough to make people hot blooded, also enough to explain the huge consumption capacity of China's market. It can be imagined that China's future consumer market is bound to become the arena of global commercial competition. A large number of China's 234 tier cities will become the main battleground of Chinese brands and world brands.

But whether the battlefield is an opportunity or a risk, whether it is delicious or chicken ribs, the results may be different for different enterprises and different brands. In the battle of this enclosure, a future that can be predicted is that whoever can become an international brand, a multinational company, a domestic brand, a local enterprise, and who can become the main prosecution of the Chinese style gourd market, will be able to create a new economic Mecca in the business ecosystem.