Luxury brand landing in China's two or three-line city

Absrtact: The World Luxury Goods association's latest special report shows that Japan's luxury goods market after the earthquake has been a severe contraction, Tokyo's main luxury goods business sales fell at least 50%, 49% of luxury brand stores temporarily closed or suspended. The industry has speculated that

The World Luxury Goods association's latest special report shows that Japan's luxury goods market after the earthquake has been a severe contraction, Tokyo's main luxury goods business sales fell at least 50%, 49% of luxury brand stores temporarily closed or suspended. The industry has speculated that  predictions that China will surpass Japan as the world's largest luxury market in 2015 years may be ahead of schedule.

Two or three-line city

Since 2010, luxury brands have moved inland, frantically "go to the countryside". Only two months into the second quarter of last year, Gucci (Gucci) opened 5 stores in two or three line cities such as Zhengzhou, Jinan, Guiyang and Taiyuan, and Louis Vuitton (LV) sped up its stores in Changsha, Qingdao and Xiamen. The two or three-line city is increasingly becoming an important battleground for luxury goods giants.

This is closely related to the growing consumption ability of small and medium-sized cities in China. The Economist magazine predicts that by 2020, 66% of China's middle-income consumers will come from a large number of small and medium-sized cities. In the future, the two or three-tier city's consumer disposable income may be higher than that of a first-tier city, and thus has a more powerful potential purchasing power.

In fact, the high cost of stores in Beijing, Shanghai and Guangzhou is one of the reasons why luxury brands have moved abroad. As the first-line market has become saturated and competition between brands is fierce, sales growth is slowing. At this time, luxury goods need to look for a broader space.

Water Test Network Marketing

In addition to landing China's two or three-line cities, luxury brands are also marketing tentacles to the Internet. At the end of November last year, Giorgio Armani announced that it would launch an E-commerce channel emporioarmani.cn in China as the first high-end fashion brand to launch online stores in China.

Big brand Shop Test water China market, largely from the Chinese luxury consumers younger trend, traditional media is no longer the main channel for young consumers to access information. "The strategy of luxury brands in the Chinese market must be different from other markets, they should focus more on the value of new media, especially social networks, and brands can use social networks 

In the country's most influential social networking site on Happy Net, quietly appeared Dior and Burberry figure-they have opened the agency homepage, the number of fans has reached hundreds of thousands of. Compared with the paper media, the organization's homepage is more expressive, with text, pictures and videos combined to provide the same wonderful shopping experience. More crucially, enhanced the interaction between the brand and consumers, more conducive to the brand to collect and guide consumer behavior. In addition, on the ipad, users can download Gucci, Valentino and other brands of app software, LV also appeared on the enthusiastic Sina Weibo, all this seems to suggest that the luxury of the huge enclosure movement, has been developed from the offline to the line.

Data show that some luxury brands have set up a new media department to deal with the upcoming trends.

He Qiu