Global Luxury Enterprise Consensus: Win The Chinese Market

With the revival of the industry, the luxury market is generally on the rise. The Chinese market has become the most attractive piece of luxury brands that can not be ignored.

Under the line open shop, online actively cooperate with the major electricity supplier platform, become the current luxury entry.

The normal state.

It is a new consensus for the global luxury enterprises to win the Chinese market.

Mixed performance is still in the throes of pformation

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The resurgence of the brand continues to seek pformation, from the first half of the luxury earnings report, performance generally welcomed the positive.

In the first half of the fiscal year, the total sales of Kai Yun group rose 26.8% to 6 billion 432 million euros, and the sales of core brand Gucci rose 44% to 3 billion 853 million euros, more than 43% of the same period last year.

LVMH Group sales increased by 10% to 21 billion 750 million euros, net profit recorded a significant increase of 41% to 3 billion euros. During the period, the strong growth of the group's core brand Louis Vuitton promoted the sales of leather goods sector to rise 15% to 8 billion 590 million euros.

In June, 108 years after its establishment, Chanel launched the first initiative to publish the data of last year's earnings, which attracted the attention of the industry and consumers. Its total sales rose 11% to 9 billion 620 million US dollars, and its operating profit amounted to US $2 billion 690 million.

In the three months ended June 30th, Burberry sales increased by 3% to 479 million, compared with fixed exchange rates.

The median brand growth in the Asia Pacific region during the period was mainly due to the increase in the consumption of luxury goods by Chinese consumers.

After a series of innovative measures, Italy's luxury brand Prada, which has been silent for a long time, has improved its performance. In the 6 months ended June 30th, group sales increased by 3.3% to 1 billion 535 million euros, and net profit rose 10.7% to 106 million euros.

Belong to Italy

Salvatore Ferragamo and Tods are still in the critical period of pformation and reorganization.

Both happiness and excellence.

Some luxury brands are still in the throes of pformation.

In the 6 months ended June 30th, Salvatore Ferragamo sales decreased by 6.2% to 674 million euros, while net profit plunged 23.1% to 59 million euros.

In the 6 months ended June 30th, Tods Group sales fell 1.3% to 477 million euros, up 1.8% from fixed exchange rates, while net profit decreased 2.8% to 33 million 700 thousand euro from 34 million 700 thousand euros a year earlier.

Among them, Tods brand sales fell 3.4% to 256 million euros, Hogan sales increased 6.5% to 105 million 200 thousand euros, Roger Vivier sales fell 2.3% to 90 million 400 thousand euros, Fay's revenue fell 4.7% to 24 million 700 thousand euros.

But whether the performance is up or down, luxury brands are changing to cater to the appetite of the Millennials.

LV marries with Chao brand Supreme, Burberry from a highly cold brand, takes the street breeze for sale design, Celine changes designer and changes brand LOGO, Salvatore Ferragamo appointed Gucci veteran Micaela Le Divelec as the new CEO.

The series of luxuries shows that luxury days are not as good as they seem.

The return of consumption to the Chinese market

According to statistics, Chinese consumers contributed to the world in 2017.

32% sales, and the growth rate of China's luxury consumption is 3 times the international average growth rate. That is to say, the importance of Chinese market in the field of luxury goods is accelerating.

Especially the millennial generation of China, their average education and income are much higher than those of the previous generations, and the demand for high-end lifestyle is stronger and stronger.

As the millennial generation is becoming the backbone of the society, the consumption trend of Chinese luxury goods is also on the way.

It is a new consensus for the global luxury enterprises to win the Chinese market.

The emergence of some favorable policies in 2018 aggravated the phenomenon of luxury consumption reflux.

According to the statement issued by the State Council, from July 1st this year, the average tariff rate of import duty on clothing, shoes, hats, kitchens and sports fitness products will be reduced from 15.9% to 7.1%. The average tariff rate of imported products such as skin care, hairdressing and other health products will be reduced from 8.4% to 2.9%.

It is noteworthy that this is the second tariff reduction announced by the State Council in the past six months.

Some people believe that tariff reduction is not only in line with the direction of domestic consumption upgrading, but also conducive to attracting the return of consumption and better keeping consumption in China.

According to McKinsey, the income growth of China's luxury goods industry is between 15% and 20% in the first half of this year.

In the context of favorable policies, mainstream luxury brands such as Gucci, Louis Vuitton and Prada have begun to increase investment in the Chinese market in recent years, and disclosed that 30% of the revenue in the Chinese market comes from young consumers.

According to a research report on luxury consumers released by Rogerio Fujimori, a global luxury research analyst at RBC, a market research firm, it was found that among the 643 luxury consumers who were 18 to 65 years old, the purchase intention of Chanel in the luxury handbag category was the highest, reaching 20%, followed by Gucci 16%, Hermes 12%, Prada 9%, LV and Dior 8%.

The report also found that Chinese consumers are more interested in buying clothing, footwear and beauty products than handbags, watches and jewellery.

China has more than a billion people. By 2030, more than 900 million of the middle class will emerge. This will be the largest rise of the middle class in the history of the world. It is also a big market that every luxury enterprise can not get around.

E-commerce platform is hot, quality and resources is the key.

Although the luxury consumption of Chinese consumers has been in a period of rapid growth in recent years, the traditional luxury brands are hard to cover the cities below three lines.

Data show that 80% of luxury stores are concentrated in the top 15 cities in China's GDP. However, only 25% of the wealthy people who live in luxury goods live in these cities. The mismatch between supply and demand makes the luxury brands that once lived in the temple put down their positions and turn around the line.

From the first half of this year, luxury brands actively embrace e-commerce platform in China is the trend of the times.

The major brands have been settled in China's Jingdong TOPLIFE, Tmall's LuxuryPavilion, temple library and other electronic business platforms.

On the one hand, luxury electric providers can directly cooperate with brands, eliminating intermediate links, and thus giving domestic consumers more favorable prices.

On the other hand, the electronic business platform can make up for the predicament of luxury goods in the channel sinking, and through big data insight, it can not only help the brand enhance the service ability of the city which can not be covered by the store, but also help the brand to provide decision-making reference in the location selection of the new store.

Investigation and statistics confirm that price benefit and genuine guarantee are two issues that consumers are most concerned about in luxury consumption.

In addition, the electronic business platform has more choices than the physical retail stores. Therefore, in the field of luxury goods, the electricity supplier almost has the advantage of sweeping, just like the retail sale in the domestic battlefield.

Therefore, it is not just domestic electric power platforms that are working hard, overseas luxury goods.

NET-A-PORTER has also made a big push into the Chinese market in order to get a slice of it.

Data show that in 2018, the domestic luxury business pactions will reach 120 billion yuan, while its growth ceiling is about 600000000000 yuan of the total luxury consumption of the whole country.

But for online platforms, there are opportunities and challenges.

If we want to create phenomenal luxury consumption, we must rely on our own quality and brand resources.