Luxury Brands Are Changing To Retailers

For a long time, the growth of the luxury market has been achieved through the expansion of the retail network.

Armando Branchini Branchini, vice president of Altagamma, said: "in the past forty years, the investment in retail channels is the most important to all brands."

But now franchised stores are not the preferred channel of sale, shopping experience has outdated risks.

In the future, they may play more and more roles in logistics terminals.

Luca Solca, director of global luxury department at Paris bank, said:

Sales in the same store is a key indicator, because it determines the rate of return on investment (ROI), and is closely related to the fluctuation of the stock price of the brand.

Sales per square foot is also an important indicator.

The brand must make a careful analysis of the same store sales before investing in the retail network.

With the rise of rental costs and the rise of electricity providers, new stores need more sales to ensure profitability.

In the past few years, Hermes and the peak group have performed best, while Burberry, Salvatore Ferragamo and Moncler are the most potential brands in this area.

The combination of e-commerce and physical retailing can improve the efficiency and ROI of physical storefronts, and increase the possibility of brand listing.

Many luxury brands are accelerating their digital process.

In the last quarter of last year, 28 brands increased their digital experience by 8%.

Gucci, LV, Cartier and Tiffany are even better than Burberry in terms of electricity providers.

Competition in some areas is becoming increasingly fierce.

Brand tends to be conservative in the expansion of new stores.

Prada and Hugo Boss are all in strict control of the opening of new stores.

Popular fashion retailers and mid-range specialized brands are producing designer products.

Luxury brands such as Dior, Chanel, Valentino and so on are all in fashion.

The development of the field has made the handbag market more crowded.

More and more luxury brands emerge, such as Michael Kors, Kate Spade, Tory Burch, Furla and Longchamp.

Branchini also said the latest quantification of the European Central Bank.

Europe can get out of the predicament of economic stagnation and get a breathing space.

The European economy may rebound growth to avoid the risk of continued deflation.

Related links:

Luxury consumers are becoming more and more knowledgeable. They are more concerned about the intrinsic value of products, such as process and quality, and especially on the place of origin.

80% of consumers chose Italy as the preferred place for luxury goods, followed by the preferred place of origin for cars, Germany and the first choice of watches in Switzerland.

25% of luxury brands lose the risk of exclusivity. Luxury is no longer a matter of course.

Consumers are more and more sensitive to word of mouth. The reputation of social media and bloggers is stronger than traditional media such as magazines.

75% of consumers thirst for full channel retail services, such as integrated delivery service, enjoying the same promotional efforts and customer feedback in all channels.

Brand's official website is the first choice for online consumers.

The buying behavior of consumers around the world has become increasingly complex and difficult to predict.

Ferragamo's CEO Michele Norsa says, "the real challenge is to conquer new customers in different geographical and age groups, and provide them with tools to communicate with brands."

He believes that attracting customers in emerging markets is more important than developing new customers in mature markets.

The added value of the brand is becoming more important.

Simone Dominic, general manager of Coin and Excelsior, a retail chain, advocates the use of new methods to differentiate brands, such as brand stories.