Marketing Survey Of Luxury Brand "Sunken"

Lack of hardware condition, shortage of talents and access to information channels failed to stop the explosive growth of luxury goods in the two or three tier cities.

In 2009~2010,

First tier city tree image two or three line city sales volume

In 2009, Wang Di returned to China from New Zealand, after which she worked as an operation manager in DFS global duty free shop.

With the overseas renowned academic background and many years of experience in Luxury Retailing industry, he has become the "big cake" that all luxury goods companies compete for in China.

After returning home, she went to a luxury company as a marketing manager. "I didn't expect the luxury market in China to be so popular."

In New Zealand, locals are not so keen on luxury goods. There are not many customers visiting luxury stores every day, most of them are tours from different countries.

Wang Di's Chinese company is located in Oriental Plaza, which is much more lively than the shops in New Zealand. In addition to the daily flow of the Wangfujing business circle, many white-collar workers in office buildings carry their Coach bags around Burberry scarves.

A brand-name fashion seems to be a must for them.

Wang Di's main job in Chinese companies is to coordinate the operation of two or three line cities.

"The target set by our headquarters is to increase the single store operating rate (editor's note: increasing the single store operating rate, referring to reducing costs and increasing sales). This indicator seems easy to complete."

Wang Di told reporters that "the first tier cities set up the image, the two or three line cities deep ploughing the market, increase sales volume, this is the China area president repeatedly stressed."

But when Wang Di and his colleagues went to the two or three line city to guide their work, they encountered many problems. Among them, the most difficult thing for them was the overall environmental problems of the two or three storefront cities.

"Store display indicators, the staff will strictly comply with the standards issued by the headquarters to carry out, but many stores are located inside the mall, and the property environment of the mall is very different from what we expect."

Wang Di said.

For example, in a store in Taiyuan, one side door leads to the plaza outside the mall, and one side door leads to the mall.

Every half an hour, there will be cleaning staff in the exclusive stores, but those areas leading to the mall do not belong to the store site.

Wang Di said: "mall property also has cleaning staff regularly cleaning and maintenance, but the cleaning standard is different from ours, they ask for no debris on the ground, but every day the ground will always leave dark footprints.

Such an impact is indirect, but the feeling of customers can not be different. "

However, Wang Di said that although the hardware environment is not up to standard, it has not affected the single store sales of the store.

Reporters walked into several large luxury stores in Beijing Xinguang world, and found that many fashionable young people came to the store. However, they were mostly "spectators". Many of them were looking at several products on the Internet, looking at the actual products in the shop, joting down the number and preparing to go to Hongkong or abroad to sweep the goods by the end of the year.

Reporters found in Dalian that some luxury goods are mostly concentrated near the Shangri-La Hotel of Renmin Road. Wang Di has made a statistics. In luxury stores in the two or three tier cities, the ratio of visitors to customers is much higher than that of the first tier cities.

"The mentality of front-line consumers can not afford to buy and appreciate it? But two or three line cities, especially some inland cities, are affected by the income gap. Many people do not have the courage to enter these stores.

Customers who enter the shop often buy products for various reasons.

Walk into the LV store in Dalian, the shopping guide lady will greet you enthusiastically and accompany you in the store. If you listen to your accent, you will immediately introduce the product from Mandarin to northeast, and help you with the product.

The deep ploughing of luxury enterprises in the two or three line cities has also been verified by Bain's research. The result shows that the consumers' brand awareness and consumption intention of many second tier cities are quite close to those of the super cities such as Shanghai and Beijing, and some luxury enterprises have shifted the emphasis of consumption to these areas.

Yu set up its first independent direct store in Hang Lung Plaza in Shanghai in January 1, 2009. Jean Claude Bif, the company's global CEO, told reporters that China is almost an overseas market which Yu Po finally entered after being influenced by language, culture and other factors. His aim is to make China the top 5 market in the next 3 years.

It is worth mentioning that after Yu's first shop in Shanghai, the second stop did not choose Beijing, but went straight to Dalian. "I am very surprised to see that Dalian customers have an extraordinary appreciation and mastery of watches and fashion."

Beaver said.

Chinese attach importance to style, foreigners value history.

"The bag you saw is new this year. It was just released in Paris in September, made of pure cowhide."

Wang Ditong reporter visited several luxury stores together. She told reporters that in foreign countries, the way of introducing products to customers is very different from that in China. The domestic shopping guide is more inclined to introduce the style, Advertising Spokesperson and other factors to customers. However, in foreign countries, shopping guides often introduce the history of the brand to customers, who is the designer of this product, its past design style, and the uniqueness of the style.

These changes are directed against the Chinese market.

"Luxury goods abroad have been around for hundreds of years. What they emphasize is a kind of inheritance. For example, many young people buy jewelry, they will consider their brand of diamond ring when they are married, and they will buy it themselves."

Bain's consultant Wang Xuan said, but luxury goods entered China for twenty or thirty years, but now the parents of young people do not use too much precipitation.

This is why the competition for luxury goods in the Chinese market is more intense than in any market.

"Luxury goods are concentrated in China in recent years. It is a period of information explosion for Chinese consumers, and can not even self judge which brands are their favorite and which are suitable for themselves."

Wang Xuan said.

Hard advertisement supports brand diversification and spreads audiences.

In the past, the main channel for consumers to get luxury information is through fashion magazines.

Yang Fang once worked as editor in chief of a fashion magazine. She told reporters that in the early years, magazines had been spending money to invite photographers and models to give free publicity to new luxury goods to attract readers.

Now, the luxury department of public relations will regularly send new promotional pages, CDs and so on, and luxury magazines will be put into magazines for over a year.

Magazine advertising has limited influence. These fashion magazines are mainly found in the first tier cities. The two or three tier cities are rare and can not cover the eyes of the new crowd.

Many luxury enterprises have begun to try to diversify marketing mode to cultivate new consumer groups.

Wei Kai, general manager of triumph public relations consultant (Shanghai) Co., Ltd., Beijing branch, said.

Not long ago, the pioneer pioneered a "online game" for a luxury eyewear company. Users chose different colors, plates, materials and styles according to their preferences, and designed their own glasses, which greatly enhanced the popularity of the brand in the user group.

According to Bain's survey, Prada ranked second among the top three brands most likely to be purchased by consumers in 2010, which is the top 3 of Prada's new entry into the category in 2010.

Zhou Libing, general manager of Beijing silver base one bond Culture Development Co., Ltd., believes that the diversified marketing efforts of Prada this year are very strong. In the early year's hit movie "Du Lala's promotion", there are a large number of the brand's placement advertisements, which are deeply influenced by white-collar workers.

Similarly, there are so many words and products about Prada in drama, books and movies this year, to some extent, which affect their status in the minds of consumers.

"You will see clearly that the marketing strategy of some luxury enterprises this year has gradually approached the marketing strategy of fast selling products, increased the investment of TV advertising, and tried to use the new media means such as Internet, video, social networking sites for marketing."

Zhou Libing said.

Another obvious difference from foreign luxury consumption is that the average age of Chinese consumers is significantly lower than that of foreign consumers. 25~44 years old is the main group of Chinese luxury consumers. Zhou Libing believes that "young consumers are more likely to have impulse buying behavior, and a certain amount of brand image advertising is very necessary.

The lifestyle of young people is gradually tilting towards the Internet, and the online advertising of luxury goods will explode in the future.

Various diversified marketing methods are more conducive to luxury enterprises to dig deep into the two or three tier cities, because various online marketing methods can often break the geographical constraints, quickly and effectively lock the target customers in these areas.

But Zhou Libing is also worried that the excessive emphasis on luxury goods in China's market growth, especially for the two or three tier cities, will mislead consumers to understand the true meaning of luxury goods and make them a high-end consumer goods.

The counterfeiting problem has been difficult to eradicate in the Chinese market. It is likely that the "Shanzhai" market in the two or three tier cities will be more influential, affecting the overall image of the brand.

Mr. Bain, partner of Mr. Bruno Lanna, also said that the growth of the luxury market in China continued to be strong. In the process of further expansion of the major brands in China, the focus of the work should be gradually shifted from the enclosure to the upgrading of the customer experience pfer.

Bain's proposal for China's luxury market

1. with the increasing number of luxury brands on the Chinese market and low brand recognition, luxury brands should increase investment in brand equity in order to gain competitive advantage, and enhance the relevance of brand to Chinese market through creative local marketing activities, create distinctive brand image and convey unique brand connotation.

2. at present, there is still a gap between the actual service capability of the brand and the consumer's expectation of the luxury brand, especially in the two or three tier cities.

Therefore, luxury brands should solve the hidden problems of talents that will continue to exist in the future through personnel training and investment.

3. in the face of consumer demand for after-sales service, luxury brands should establish more after-sales service facilities in the Chinese market and enhance their service capabilities, and should not only be limited to products purchased domestically, but also provide after-sales support to Chinese consumers at a uniform level of service.

4. more and more mature Chinese consumers hope to get the same level of honorable service in stores all over the world. This requires luxury brands to establish a unified customer management system and share customer information worldwide to enhance customer loyalty.