65% Luxury Brands Failed To Complete China'S Expansion Target In 2013

Spring, which climax in 2014, can not hide the darkness of the past year.

Since September 2012, it has been accompanied by China.

The global luxury group is facing the most difficult 6 quarters.

The retail report released jointly by property consultants Knight Frank and construction firm Woods Bagot showed that 65% of luxury brands failed to achieve their goal of expanding in China in 2013.

If you want to be conservative, you need to change first.

In the past "

"The marketing mode begins to reverse, and the output of the brand's history and culture to the Chinese audiences in a short distance, with a view to get the favor of Chinese consumers in frequent intercontinental tourism, is a new" easterly and westward "mode.

Even though the Chinese market has had the worst year and the prospect is bleak, the Chinese are huge.

Consumption power has not wavered.

The luxury market has been writing the Chinese story for nearly 10 years. The financial crisis has hit the European and American markets and the rapid growth of China's economy has made Chinese consumers quickly become the Savior of the luxury market.

Before the 2008 Olympic Games, Louis Vuitton China also made a comment on online protests that "netizens are not the main consumer group". Today, European luxury electric providers such as Net-a-Porter and Yoox have landed in China earlier, not to mention that Burberry unexpectedly opened flagship stores on Tmall in the real mass market.

However, such changes are mostly passive changes of "tree moving", just as they become the targets of the capital market from the bankrupt family businesses. Their Chinese trajectory is similar to that of the US Department Store in the late 70s of last century and the Japanese Road in the middle and late 80s of the last century.

Now, there is no economic aurora in the world.

Research advisory body Bain & Co.

The 2014 spring edition of the global luxury market surveillance report, jointly released by Fondazione Altagamma of Italy luxury goods association, published in mid May, is even more pessimistic: according to the fixed exchange rate, the growth rate of the luxury market in 2014 will be reduced from 6.5% in 2013 to 4%~6%, which will gradually become the norm.

The lament of industry can not hide sporadic laughter.

No one can begin to think of the chemical reactions that can be brought to Affordable (affordable) in front of the Luxury (luxury goods). Even the concept of Affordable is not intentionally given by the American lifestyle brand such as Michael Kors or Kate Spade, but Affordable Luxury is already recognized as the "blue ocean" by the luxury goods industry.

People do not calculate well.

The change in the luxury industry is more sensitive to the economic response. The consumption of non essential goods is a reward in the good times, and bad times are burdens.

The retail industry has been advocating the innovation of fast fashion brand Zara, such as product update, logistics and warehousing, but has ignored its price positioning.

The development of the capital market, the financial industry and the extreme greed of human nature make the living space of the public more cramped.

Even brands like UNIQLO say they will consider making cheaper costumes to satisfy consumers in low-level cities.

So it is not hard to imagine how the pattern of the luxury market will change.