Partially eliminated European luxury brands continue to sell at high prices in China

For some brands that have already been eliminated from the luxury industry in Europe, this is the hope for the continuation of the brand's survival.

This is a market that can make the luxury goods industry crazy - 200 million consumers, and there are predictions that the annual growth of 25%.

This is another unique market. Some people buy luxury goods to prove that they own "luxury goods" and do not care about the design concept and cultural background of the luxury goods themselves. Some people choose the brand's most important standard. It is whether the brand is expensive and well-known. As for the design concept of this product, it seems irrelevant.

For some brands that have already been eliminated from the luxury industry in Europe, this is the hope for the continuation of the brand's survival.

Here is China's hot market.

Rich people and young people, "The World Luxury Association 2010-2011 China's Luxury Behavior Psychology Trends Report," said that the mainstream luxury consumer groups in mainland China have reached 16% of the total population, about 200 million people, and are still at 25% per year The speed of growth. These people mainly live in China's first- and second-tier cities, with monthly income between 20,000 yuan and 50,000 yuan.

Inside the luxury goods industry, as a whole, China's luxury consumer groups are divided into: rich people and young people.

This is a globally unique division. In the European and American markets, the luxury consumer population is 1% or less. They are basically over 40 years old. But in China, if this is divided, it may be a mistake. Because China's luxury consumer groups are distributed between the ages of 18 and 50.

The "World Luxury Goods Association Official Report 2010-2011" predicts that in the next three to five years, 25 to 30-year-old consumers will become the main force for China to purchase luxury goods. Youthfulness is becoming the most important feature of China's luxury consumer groups.

In 2007, the mainstream consumers of urban luxury goods were between 35 and 45 years old. In 2008, the mainstream consumers of urban luxury goods were between 32 and 45 years old, with an average age of 3 years younger. In 2009, the mainstream consumers of urban luxury goods were between the ages of 29 and 45, and their average age was younger than 3 years old. In 2010, the mainstream consumers of urban luxury goods were between the ages of 25 and 45, and the average age was once again 4 years younger. In 2011, the mainstream consumers of urban luxury goods were between the ages of 22 and 45, and their average age was further toward their young age of 3.

“If you only see Beijing and Shanghai Mancheng, you can understand this trend.” Ouyang Kun, CEO of the China Office of the World Luxury Goods Association, told Oriental Weekly that differences in age levels directly led to Different ways of consumption. It is not difficult to understand the psychological motives for young people in China to chase luxury goods: “Life pressure and economic pressure cannot be reduced. They want to get rid of the status quo and show their own differences, but they don’t have enough economic strength. At this time, some People will find that tens of thousands of pieces of luxury clothing and bags just meet their requirements for 'being different.'

The outbreak of second- and third-tier cities “takes the example of the LV store in Beijing’s StarWorld”, and its fixed-client turnover rate reaches 5% to 10% per year,” said Ouyang Kun, but the overall sales of LV in China have increased rapidly. Almost all luxury brands in China are facing a problem.

In 2010, about 67% of the growth in the luxury goods market in mainland China came from new consumers. The data reflects two major trends. One is that mature consumer groups continue to lose to foreign markets, and the other is a sharp increase in consumer spending in second and third-tier cities.

“The new luxury products first appeared in fashion capitals such as Paris and Milan. Three months later, new products will enter Asia, first Japan and then China. After entering China, it will be the first-tier cities and second-tier and third-tier cities. In this process, the freshness of the products and the richness of the product lines are constantly attenuated.” Ouyang Kun said that in some luxury brand stores in second- and third-tier cities, it is often possible to see the old European and American markets a year or two ago. Some products have been sold as discounts at discount stores in Europe, but they have also been promoted as "new products" in China.

"Mature consumers' attitudes towards luxury goods are no longer just as expensive as they are. Therefore, more and more mature consumers begin to spend on the European market on a regular basis every year because they are cheaper and choose more." Ouyang Kun said that in the first-tier cities, sales of many luxury brand stores are falling at a rate of 5% to 10% per year.

In the survey of consumer groups in second-tier cities, Ouyang Kun found that “the attitude of second-tier cities to luxury goods is: Needs do not need to be unimportant, but the key point is whether they can reflect their status and can not keep up with the level of the circle they are in”.

In addition, luxury goods consumption in second- and third-tier cities is also "remunerative," meaning that luxury goods are bought for gifts rather than for personal use. "In second-tier cities, the proportion of luxury gifts purchased is 36%, compared with about 28% in first-tier cities."

The immature consumption patterns of the second- and third-tier cities in life-saving straw have become the straws for many declining luxury brands.

Ouyang Kun said that among the consumer groups with monthly household income of 50,000 to 100,000 yuan and more than 100,000 yuan, consumers in second and third tier cities consume almost the same amount of luxury goods as those in first-tier cities. 54.6% of consumers in second-tier cities believe that the price level will not affect their purchase of luxury brands. In high-end clothing accessories, 74.9% of people in second-tier cities spent less than 20,000 yuan each year, 23.5% of people spend 20,000 to 100,000 yuan each year, and the number of people spending 100,000 to 200,000 yuan per year is basically the same as first-tier cities. .

Second and third tier cities have consumer groups, but there is no mature consumer environment. “The second and third tier cities rarely see advertisements of overwhelming luxury goods, and it is difficult to get enough information from fashion magazines. The most important way for them to recognize luxury goods is to look at the people around them who are using them.” said Ouyang Kun. In the second and third tier cities, some people began to use what kind of luxury goods to determine whether the other party belongs to their own circle.

This is good news for some declining luxury brands. “The higher the degree of popularization, the higher the awareness in the second and third tier cities is.” Lu Qiang, CEO of Shanghai Focus Group, told Oriental Weekly that there is a time lag between the perception of brands in the second and third tier cities and first-tier cities. "The first-tier cities have been squeezed out of the luxury brands, and they can continue to flourish in second and third-tier cities. This is not known to some brands abroad, but it is a reason to be sought after in China."

The younger age and the signification Now, the trend of younger age and marking is still deepening.

“We conducted a survey at Beijing 101 Middle School and found that 80% of children feel that their parents have given them material conditions, and whether they can study hard and whether they can be classed with their classmates. There is a very important relationship.” said Ouyang Kun, luxury The product has been attached with a signatory function in China, and some parents have adopted the child as their own spokesperson. "So the child must use the Montblanc pen to write, and he must go back to GUCCI's schoolbag."

This consumption structure has also spawned a new industry, the luxury e-commerce platform.

Since 2010, e-commerce platforms that focus on luxury goods have emerged. “In foreign countries, luxury e-commerce platforms are mostly time-limited and limited-buying formats. Most of these websites have high thresholds. For example, a certain brand of VIP customers must qualify as a website customer.” Yang Peifeng, president of Jiapin.com, told the website "Oriental Weekly", China's luxury e-commerce platform, most of the classic season of luxury brand sales, mainly to 3 to 5 percent off the price, directly to the public long-term sales.

For consumers, it is those “more than college-level, price-sensitive customers.” Yang Peifeng said that this consumer group structure is in line with the characteristics of the Chinese market. “In Europe and the United States, people decide to spend a lot of luxury goods often spend a lot of time. For example, the average time for Europeans to buy a luxury brand watch is 4 hours. They should appreciate it carefully to see if the watch meets their style and taste. They don't want to place orders based on just a few photos on the internet."

The Chinese market is somewhat different. “On the e-commerce platform, Cartier and Patek Philippe are worth a few tens of thousands of yuan, and Patek Philippe is selling well.” Yang Peifeng said that he had met a Chinese customer. “More than 30 orders were placed in two months. I also I thought she was buying back and going out for wholesale. I called myself for customer follow-up and found that she was using herself and giving it away. She was most satisfied with the brand on the site and she knew it and it was cheap."

Yang Peifeng said that it is precisely the mentality of Chinese consumers that Jiapin.com has achieved a 40% monthly repurchase rate. This is a figure that will be envied by foreign peers.