Why Luxury Brands Can't Afford To Hurt Themselves?

Here world Clothing and shoes The Xiaobian of the network tells us that Chinese consumers are returning to reason, and luxury brands are "not hurt".

Is the luxury industry really flagging? The opening ceremony of the 2015 spring and summer fashion week in Milan has been attended by distinguished guests from China, but no clothes and bags have been robbed. Once known as "buying 1/3 of the world's luxury goods and fashion apparel," Chinese consumers now call western consumer brands "not hurt." What is the reason?

Flaunting consumption was suppressed, and young consumers were labeled as "mother class", Gucci (Gucci) and Louis Vuitton ( LV) Recent performance has also declined significantly.

Including LVMH (France MOET & CHANDON Hennessy LV) group and Gucci (Gucci) brand owner Kering (Kai Yun) group, and even the "devil's head" are highly respected Prada (Prada), these luxury magnate's earnings are disappointing one by one, they even even attributed it to the weakness of China's luxury market: after the 30% increase in 2011, China's market growth has slipped to 2%.

"China is everyone's dream, but winning it is more difficult than imagined." HSBC analyst Ivan Langborg said. He is also the author of the new book "luxury Dynasty: why China's luxury war is just beginning".

The consumption concept and main force of Chinese consumers are changing. Berg stressed that quality is more important than brand and design. "They are not only younger, but also have higher requirements. They also know fashion very well."

Even if more and more Chinese travel abroad, they will be more smart and choose different shopping places. In 2012, the number of tax rebates applied by Chinese tourists in Europe increased by 57%, while last year, the tax rebate application from Chinese tourists increased by only 18%.

There are also beneficiaries of the shift in China's consumer attitudes, such as Burberry (Bo Baili). Randberg believes that "in a pile of French and Italy brands, it is the only British made global brand, emitting rock and roll unruly British children."

China can also develop an international brand of luxury goods with Chinese characteristics. 2014-10-08

Guide: Hainan's offshore duty-free policy has been placed high hopes and can be regarded as the touchstone for building a new high level of domestic consumption. However, the industry believes that due to the limited amount of existing offshore duty-free policy, the price advantage is not obvious, the sales of duty-free goods and the quality and level of related services are not high, the enthusiasm of Chinese keen on overseas consumption has been decreasing, and the trend of consumption capital outflow is serious.

Hainan's offshore duty-free policy is highly regarded as a touchstone for building a new high level of domestic consumption. However, the industry believes that due to the limited amount of existing offshore duty-free policy, the price advantage is not obvious, the sales of duty-free goods and the quality and level of related services are not high, the enthusiasm of Chinese keen on overseas consumption has been decreasing, and the trend of consumption capital outflow is serious. There is still a long way to go to achieve the goal of "global purchase" at home.

Offshore duty-free policy aims to retain the increasing consumption of luxury goods. From the implementation effect, it has played a certain role, attracting some people to enter the island to buy luxury goods. However, it is also necessary to admit that the final effect of this policy remains to be seen due to the inherent flaws in the design implementation of Islands tax-free and the competition of foreign duty-free shops. At present, the effect is limited. For the issue of luxury consumption capital outflow, offshore duty-free policy is only a temporary solution rather than a permanent cure.

China is the world's largest producer of luxury goods. China's cheap labor force is attractive to any type of manufacturing enterprise, and luxury goods manufacturers can not resist this temptation. As early as 2009, there were reports that 60% of the international luxury brands own their own production lines in China. China is also a big consumer country in the world. China's newly rich group, its thirst for luxury goods, has greatly improved China's luxury consumption. Data show that as of December 2011, China's total annual consumption of luxury goods has reached 12 billion 600 million yuan (excluding private aircraft, yachts and luxury cars), becoming the world's largest consumer of luxury goods.

Unfortunately, such a luxury brand, which has both luxury production capacity and luxury consumption capacity, has almost no world influence. Look at the luxury brands that have been rounded off by the Chinese people. Which brand is China? The domestic Moutai and Wuliangye are looked up at high prices. But who will admit that they are luxury goods? A country that needs luxuries from my promotion and self certification does not have a real luxury brand, which is an embarrassment and a pity.

Without luxury brands, even if these luxury goods are being OEM by domestic manufacturers, even if they are all consumed by Chinese people in China, how much processing fees can we earn? How can we get "spoons of soup" from sales revenue? The radical solution to the outflow of luxury consumption funds is to cultivate luxury brands with international influence, and design, manufacture and sell as much as possible in the country.

The biggest difficulty in developing international influence luxury brands is the lack of confidence in Chinese luxury goods. "Made in China" seems to be a low quality and cheap term. Some of the luxury goods purchased are not recognized by international brands in China, let alone the recognition of domestic brands. But this does not mean that China has no ability to cultivate its luxury brand.

　　 Luxury goods It is a symbol of improving the quality of life and improving the taste of life. It is backed by thick cultural accumulation and cultural confidence. 5000 years of Chinese civilization, there is no lack of deep cultural accumulation. The lack of confidence in domestic luxury goods reflects the lack of confidence in Chinese culture. If we go out of the sense of national inferiority, we will go out of material worship, boldly publicize the individuality of Chinese culture, respect the rich spirit, and dig deep into the connotation of national culture. We may not cultivate an international brand of luxury with Chinese characteristics.