Fu Yu: Why Can't We Build A World Famous Brand?

"How can we build a brand, especially a luxury brand? Why can we make such exquisite leather products and why it has not been able to create an internationally renowned world brand?" Fu Yu, deputy director of the Cheung Kei luxury Research Centre, University of International Business and Economics, presented this series of questions to the participants at the eighth leather industry forum.

Fu Yu said, the reason is that our enterprises do not pay attention to and will not build their own brand. Foreign enterprises not only attach great importance to brand building at the ideological level, but also gain the popularity and reputation of the brand through the accumulation of many years of practical experience, and have achieved today's luxury brands.

　　 It is an inevitable trend to open up O2O's "all channel" marketing mode.

LVMH group is expanding its brand by constantly buying its own brand, while the 20% growth of Hermes and Prada's strategy is to build large flagship stores in the first tier cities or choose to occupy three levels of location in the shopping center. Although this is not necessarily the best way to make profits, the buildings themselves are advertisements aimed at attracting Chinese consumers to spend overseas. So on the whole, the profits of luxury goods companies are still growing at a high level.

At the same time, the channel mode of luxury goods entering China is also intriguing.

Fu Yu introduced that most international brands enter China in three modes: the first is the full agency mode, the second is the full direct camp mode, and the third is the direct and franchise mode. In the operation system of luxury brands, the choice of market entry mode and path is the key to the success of brand business mode, which is related to positioning.

With the full agent mode, China can achieve the purpose of rapid expansion, and there is no risk of inventory, but its disadvantage is that it is easy to have insufficient control over the brand. Valentino's Valentino failed because of its channel strategy. The men's clothing that first entered China failed. But Valentino changed its strategy, restarted its momentum, began to enter China with the Valentino dress brand, and entered the camp directly, thus controlling the market well. At present, Valentino women's clothing sells very well in China and even in Asia.

Direct battalion is the popular way of line brands nowadays, such as GUCCI and LVMH, which are well known, are managed directly.

The choice of direct battalion and franchisee mode is that all of them are controlled by themselves, making investment more effective, expanding faster, flexible, and at the same time sharing risks with partners. The drawback is that it is relatively complex in management. In the traditional marketing way, the experience of customers in Direct stores and franchisees is different. The franchisee transferred the risk stock to the distributor. But in the future, whether direct or franchised, it should be controlled by brands so as to achieve a win-win situation.

Fu Yu said that the most effective way of international luxury brands in China is direct marketing and franchise. In particular, if the expansion speed is relatively fast, it is more appropriate to choose direct and franchisees. While building a good brand image, we must also provide quality services. To open up O2O's "all channel" marketing mode is the inevitable trend in the future.

Fu Yu explained that the future sales channel is no longer the traditional dominant sales, but an interactive channel like maps, which is determined by the renewal and development of technology. Taking the example of COSTCO in the US, its main feature is that the whole channel of online shopping is very successful. However, on its website, it will always remind customers to go directly to the offline store to experience the experience. When doing Internet sales, it will pay attention to elaborate product introductions, such as introducing its products with video.

It is worth mentioning that not all brands are sold on specialized B2C websites. For example, luxury brands have their own websites because their products are characterized by selective retailing. The biggest feature of selective retailing is to let customers experience luxury and luxury in a physical store. Among all luxuries, shoes need experience most. Experience shop It's hard to succeed.

　　 All channels User experience is the core business concept of successful brand.

How to create luxury brands? To understand the characteristics of luxury brands is the first. Usually, luxury brands have 6 basic characteristics: absolutely excellent quality, absolutely high price, scarcity and uniqueness, advanced aesthetic feeling and multi-level emotion, long history tradition and legendary brand story, which are non functional.

Pricing is one of the compulsory courses for luxury goods, and high prices are typical characteristics of luxury brands. Fu Yu emphasized that the pricing of luxury goods generally follows 4 principles: first, price strategies based on consumer psychology to create a sense of mystery in the minds of consumers. Second, high prices satisfy consumers' pursuit of status, status and taste, and create such a feeling for consumers. Third, high prices should rely on other factors to effectively shift consumers' attention. Fourth, the secret of luxury goods pricing is not to arbitrarily reduce prices, but it is always a discount.

Fu Yu said that the core concept of luxury brands is in fact paying great attention to the operation of retail outlets. Therefore, its primary energy is in product strategy, such as product design, merchandise management, global brand strategy, independent product design and marketing, luxurious store design and merchandise display, luxury goods pay much attention to these contents.

Secondly, luxury companies also attach great importance to the performance of stores. They especially focus on sales and standardized services, sales etiquette, staff and store KPI evaluation indicators, as well as passenger and sales tracking. However, the key is to reduce the backstage operation standards. Many luxury stores are very beautiful at the front end when they first enter China, but the back-end offices are very simple. When they made money in China, they began to rent large offices. China's business philosophy is just the opposite. Usually the boss's office is particularly large, decorated luxuriously, but the store can not afford to throw money.

Again, Luxury goods Companies are very concerned about customers. Collecting customers' consumer behavior is a very important tool for them. They refined statistical data to record the number of customers walking in the store, calculate how much time each step took, and the success rate of statistical transactions and the success rate in various countries, the proportion of no sales, the proportion of sales, the number of returns to buy, and so on in Japan, France and the United States. From these reports, we can see that the sales rate in Asia is the highest, reaching 78%.

　 　 Big data Application is an important means of brand development in China.

As for the future development of China's luxury brands, Fu Yu gave three strategies.

First, the strategy of supply chain reorganization. Retailers in China are playing the role of "two landlords", and now all retailers want to change. Take Beijing City department store as an example, they are changing their minds and negotiating with suppliers again. Now it is not a traditional way. There will not be so many middlemen selling and pressing stocks in it.

Now is a very good opportunity to take the initiative to come to cooperate with department stores and share this inventory together to monitor the consumers of the market together to see what the market demand is. This is the strategy of supply chain reorganization.

Second, practice O2O. Through online and offline, we can achieve unified management of members, information, services and resources to provide customers with a full channel integration service experience.

Third, strengthen the service functions of Direct stores and franchisees, and improve the customer experience.

After finishing the first two points, we can build O2O, open up the online and offline businesses, and make integrated marketing of all channels. In terms of brand building, Messi stores in the United States have made joint efforts with brands, and have more than a dozen brands of their own, creating a comprehensive retail end. And how to create experience stores, IKEA IKEA is the best case.

Only when we build O2O platform and apply new technology can we achieve the same experience. Some foreign brands, some direct stores and franchisees began to have unified management. When developing franchisees, they usually support only on capital, but in management, they are co managed. All information and maintenance of customer information are all maintained by the brand side and shared with investors at the same time, so as to achieve win-win thinking.

Therefore, in the application technology, big data is a very important way in the future. Recently, jumei.com and other enterprises that have done very successfully on the Internet are ready to shop offline. It is very important to build a big data platform. There are also some Italy brands. The offline stores are very mature. If they want to open a shop on the Internet, Fu Yu suggests that enterprises should establish a cloud platform. Only in this way can all information be shared.

Fu Yu also cited the example of Adidas. She said that past channels were distributors' channels, and in the future, all channels in China should be added to the "experience". Using technology to import shoes into a touch-screen library, users can customize them on their own. The company set up a fine product library, and put the content of the shoe's function, technology, or which star the shoes are wearing, and social media's evaluation of the shoes into the product characteristics. This way will bring a good user experience.

Finally, when consumers decide to buy this pair of shoes, enter the membership password directly, register information, and make use of palm equipment to complete the order very conveniently. And when a salesperson gets a mobile device, he can immediately give feedback on the Internet. In the future, Adidas will build such an experience in the global franchise stores and outlets.