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    Luxury Is Rotten All Over The Street. Explore The Development Path Of Big Brands

    2013/11/10 17:35:00 256

    LuxuryHigh-End ConsumptionMarketing

    Luxury is defined in the dictionary as "a kind of consumer goods beyond the scope of people's survival and development needs, with unique, scarce, rare and other characteristics", also known as non necessities. These commodities, whose intangible value is far greater than the tangible value, are favored not only because of their excellent performance, but also because of the virtual meaning of too many brands. It is through these additional values beyond practical significance that buyers can meet the unlimited desire for life. Therefore, when the ability is rich and there are enough choices, the connotation represented by luxury goods is actually an important factor that determines whether consumers buy or not.


       The image is frustrated and goes down from the altar Luxury brand


    With the increasingly mature ecology of the global high-end consumer market, the luxury industry has begun to take the path of industrialization and collectivization, and the pursuit of profits has become the primary purpose of many brands. Many famous luxury brands have gradually reduced their "brand weight" due to the failure of business strategies while expanding their market capacity. When the big brands leave the shrine, they lose the original luxury and noble brand connotation, as well as the virtual added value that brings "glory" and "satisfaction" to consumers.


    LV - because of its rapid expansion, it has become a synonym for "fast digestion" of luxury goods. Since 2010, LV has made a high-profile announcement that it will break through the layout strategy of China's first and second tier cities, and plans to enter third and fourth tier cities to gain a higher market share. However, LV is losing its brand value in the face of the challenges of too many stores, products everywhere, weak sales and customers fleeing. In violation of the rule that only "top niche customized brands" can be called luxury goods, LV, which is popular, high street and has a wide range of fake sales channels, is losing high-end customers.


       Cartier ——Cartier, which has more stores than LV, has lost its brand value due to a large number of advertisements and stores. Among the top 10 international luxury brands in China, Cartier, which ranked first, has 224 stores in China, far ahead of the second BOSS, 142 stores. Its high-end jewelry lacks recognition, while the LOVE series worth about 10000 yuan was once regarded as a symbol of upstart due to its booming sales. It is also reported that the service attitude of many Cartier store staff in China is quite cold, which is detrimental to the brand image.


    Chanel - Chanel, always noble and cool, has also been criticized for over commercialization due to the production of yoga mats. A famous fashion critic once said, "If even Chanel's manufacturers start to focus on hot spots and produce whatever products are popular, then the luxury industry is really degenerated." Most people expressed great regret that Chanel produced yoga mats and even dabbled in yacht production, and felt that the current successor deviated from Miss Coco's original intention of setting up the brand, The confusion of the product line is bound to lead to the ambiguity of brand positioning.


       Skillfully operate and maintain the high-end connotation of luxury products


    If all the existing diamonds in the world are put on the market, their value will plummet. Just like diamond dealers who know how to refuse and also carefully develop the market, as a special product such as luxury goods, how to handle and balance the scarcity and commercialization of its brand is particularly important. This is really a technical job. It is obvious that some people have fallen into the trap, while others have gained both fame and wealth.


       Calatrava Ref The balance technique of Patek Philippe - the reason why Patek Philippe can continue to maintain the advantages and height of the brand is directly related to its balance ability. We will increase production on the premise that quality is not affected, that is, we will increase production without flooding products and reducing brand value. Patek Philippe generally controls the proportion of production capacity and demand between 1:1.2 and 1.5. Under the current circumstances, Patek Philippe only increases its output by less than 2% each time. Prudent expansion has maintained the high-end image and won the high-end consumer market pursuing rare experience.


    LV, Gucci, Burberry de logo - handbags without logo, men's bags with hidden patterns, women's bags covered with fur, women's bags without special signs, windbreaker without classic patterns... become the new trend pursued by LV, Gucci, Burberry with the most "eye-catching" logo. Good market returns indicate that low-key and cautious luxury has become the new attitude of multi cash buyers towards luxury goods. Perhaps, as the comment said, in the increasingly changing economic environment, "calm emotional expression" is more important. The big brands seem to be working towards the goal of "Muji".


    Hermes high-end customization - high-end customization of luxury goods is not only rare, but also unique to you. Hermes has always insisted on customization, and its world-renowned customization level has well explained the words "customization wins in technical design". Japanese customers once wanted to make a HELLO KITTY style Hermes bag, and Hermes also made customized products that made them proud according to their needs. High level customized luxury goods can hardly find the brand logo from the appearance, but users have special preference for their uniqueness.


    After all, luxury goods are not fast moving consumer goods. When you save enough capital and have the courage to expand, you should also take into account the brand temperament and connotation. The altar is high, not everyone can sit still. Fortunately, these frustrated brands already have high popularity. It is not difficult to regain popularity with the help of new operation strategies and product positioning. In the final analysis, the gold owners do not laugh at price gimmicks and taste, but interpret that low-key luxury with connotation is the ultimate essence.

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