Luxury Stores Reduce, Will Traditional Electricity Providers Be The Best Choice?

The flow spokesperson, online purchase, WeChat Mini program, luxury goods abandoned the stereotype of the past, turned to the new retail head, and showed the young people who represent the new strength.

How will "younger" change the luxury brand?

Luxury goods show to young people

When it comes to luxury consumption, if your impression is only on the scene of Chinese mothers buying and buying all over the world, it's already OUT! According to the white paper on China's luxury online consumption, in 2016, China's luxury goods sales ranked second in the world, just behind the US.

The domestic luxury online consumer group is showing a trend of becoming younger and younger. Among them, the millennial generation born in 1985-1995 years is becoming the main consumer of China's luxury jewelry network, and the proportion of male accounts for 51%.

With the gradual entry of "post-90s" young people into the society, the consumption power of this generation is expanding rapidly.

In an analysis of the analysis of luxury consumption behavior of Chinese young people, it shows that the main consumption groups are concentrated in the age of 23-37, occupying more than half of the total luxury consumers.

The world's richest population is getting younger.

The customers who are not big enough and logo are not big enough are less and less, while younger consumers pay more attention to product innovation and longing for exquisite and high quality of life rather than buying big logo on brand.

According to the world clothing shoes and hats net, "post-90s" consumers have changed from blindly following the trend of "big card" to pursuing product quality and personality design.

The feeling is not enough quality, too luxurious big cards feel too high profile and have a sense of distance. Young people's fashion consumption needs pay more and more attention to the unique personalized display of their feelings.

What I bought in the past was display and symbol. Now I think more about quality and comfort. I do not blindly pursue big logo. I buy good products within the limited consumption ability.

Luxury goods bow to traffic

Looking back on the luxury goods more than a decade ago, sales will be driven by a small number of rich people. Now, the major luxury goods are targeting the mass consumer and young consumer market.

Therefore, LV, Chanel, GUCCI and other luxury brands began to change strategies, replacing the likes of spokesmen after 90, trying to get close to the young consumers after the 1990s, and get the sympathy of young people.

More and more young faces appear in their various official activities and promotional photos. As "brand spokesperson", "brand ambassador", "China Brand Ambassadors" and "China brand friends", you can see that Italy luxury brand Dolce& Gabbana invites Wang Junkai and Di Ali Gerba to be the opening guests; Lu Han takes the LV smart watch as the global spokesperson; Angelababy and Zhao Liying have become the brand ambassadors of Dior and cause a great stir; Wu Yifan has become the global spokesperson for Burberry, and Ni Ni has become the global endorsement of Gucci ink glasses.

It doesn't matter whether the spokesperson is high or not. What's more, their popularity in the Chinese market is not high enough, and the traffic is not enough.

In the past, luxury brands only had to worry about the rich. After all, they contributed 80% or even 90% of their sales. Nowadays, nearly half of the consumers who pay for luxury goods are rising middle class consumers and mass consumers.

The gradual loss of young consumer groups has forced consistently arrogant luxury players to bow to traffic.

For the brand side, China's traffic stars, tens of millions of micro-blog fans, each micro-blog's forwarding commentary points can achieve up to six digits, with the star's express train, can greatly enhance the brand's exposure and popularity.

Luxury stores entities shrink, online efforts, but the traditional electricity supplier will be the best choice?

However, "star goods" can not effectively activate luxury brands. Since 2015, the global luxury brands have been spreading.

LV closed nearly 20% of its stores in China. From the end of 15 to 2016, LV has gradually closed 7 brand stores in Guangzhou, Harbin, Urumqi, Shanghai, Taiyuan, Tianjin and Suzhou.

In 2016, Dior, Gucci and other 11 luxury brands had 34 stores, and luxury goods encountered unprecedented winter in China.

Under the "high pressure" of the global brands, such as the spread of "closing shop tides", the rising rents on the line, the increasing operating costs and the serious loss of consumer groups, luxury brands have been strategically adjusting and gradually moving to online.

Burberry is the first to join the ranks of the electricity supplier war. Not only has its official website already opened online shopping platform, but also entered Tmall in April 2014.

In July 5th this year, Gucci officially opened the official online shopping mall in China. Consumers can pay online by WeChat, Alipay, etc. to enjoy free standard distribution service across the country.

On Christmas Eve, he also played tricks on WeChat applet, designed his own Gucci dynamic expression, thereby increasing interaction with young consumer groups.

In July 20th, LV also announced the official launch of the official online shopping service in China. All online payments will be paid through the third party payment platform.

And Hermes has also said: "in 2018, we will start the business channel in China."

And in the front-end time in the WeChat public number WeChat Limited shop, the sale of Hermes and Apple cooperation series smart watch Apple Watch Herm s Series 3.

Celine, a high-profile luxury brand, has also abandoned the Chanel under the line, opened the WeChat public number and launched a small program.

As the market sales growth is weak, the industry revenue is slowing down, and the current young consumer groups are more and more inclined to the digital platform in acquiring brand information and shopping channels, leading to the corresponding adjustment in the retail and marketing mode of the luxury goods industry.

Luxury brands must be digitalized or they will face impasse.

Although the form of digitalization of luxury brands has yet to be explored, it is undeniable that digital marketing has brought unprecedented publicity to luxury goods, and online sales have become the biggest boost to the growth of luxury brand sales.

In the next few years, sales driven by digital platforms will continue to grow, and digital marketing will occupy an increasing proportion in the luxury retail industry.

But will traditional e-commerce be the best choice for luxury brands?

For the time being, the luxury merchants who have settled in the traditional e-commerce platform are only Burberry and Coach, but both have little effect.

Burberry has entered Tmall since April 23, 2014, and its sales performance is so bleak that it can not be seen directly: it only sells 132 items on the 18 day, including 32 pieces of unconditional return from customers, the return rate is as high as 26.4%, which is 7.21% higher than that of Tmall's similar products, and the exclusive custom is no sales achievement.

Now, after more than 3 years of development, the fans are 849 thousand, but they are still not up to the general net red shop.

As for Coach, the road of the electricity supplier is even more miserable. The two time to go to Tmall has all failed.

The first entry was in 2011. After maintaining the sales volume of one month, Coach ended the first test of the brand in China.

The second time was 2015, but only a year later, it withdrew from Tmall again.

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Facts have proved that the traditional electricity supplier is not suitable for luxury brands, but why?

Online promotion + offline experience joint development

For luxury brands, why is it not suitable to enter the electronic business platform? The problem of counterfeit goods is a big resistance for luxury goods to enter the electricity supplier.

China's e-commerce platform is flooded with counterfeit goods. In May this year, the media broke the news that many cross-border electricity providers and Hai Tao joint courier company were suspected of selling fake products by making fake courier documents.

Therefore, despite the huge investment in self built electricity providers, and the Chinese market is also difficult to obtain the Taobao level traffic advantage in a short time, but it is still a consistent choice of luxury brands.

The author believes that, in fact, online sales is not suitable for luxury goods, because luxury brands, whether they are self built e-commerce channels or cooperate with the third party e-commerce platform, the biggest pain is how to defuse consumers' doubts about the supply of luxury goods on e-commerce platforms. Tens of thousands of dollars are not carefully selected, inspected in person, and commissioned by third parties. How can we ensure that the goods delivered to consumers are genuine?

This problem can not be solved. As with Tmall platform of Burberry, the return rate is much higher than the average value.

From another point of view, what do consumers want to buy luxury goods? It is "luxury". Without the luxury experience of luxury stores and the shopping experience of VIP guests, the luxury purchase of consumers is greatly reduced. Online shopping in the advanced shopping mall is a part of luxury shoppers' shopping experience, and this sense of experience can not be realized by the electronic commerce platform.

Because the consumption value of luxury goods lies not only in the high price of the product itself, but also in the shopping atmosphere scene and service experience, and these additional contents are very real enjoyment.

In view of the category characteristics of luxury goods, it is difficult for consumers to generate consumption impulses and shopping behaviors directly on the website.

No experience of unique shopping experience, enjoying the perfect shopping environment, personalized communication and experience of first-class customer service, after 90 consumers how enthusiastic about online shopping, it is difficult to place orders.

First of all, the Chinese market is fake. Even if the luxury brands choose to build their own e-commerce platform, the tens of thousands of products from the logistics system will not reach the consumers' hands.

If online channels are used as a tool for promotion and dissemination, rather than a place for sale, this will ensure the popularity and reputation of luxury goods.

Through the promotion of information channels, such as WeChat, micro-blog and other young consumers, it can be more effective to open up the "post-90s" market and enhance the interaction stickiness with potential customers.

The second step is to return the operation focus to the physical store itself, giving consumers a stronger sense of experience and better service.

Shopping experience is the difference between luxury brands and other brands.

Today's consumers no longer focus on the big logo on the product, but pay more attention to the experience and service of the purchase process.

If luxury brands do not attach importance to the maintenance and promotion of physical shops, instead of focusing on online channels, the most important core of brand loss is unsustainable.

The third step is to achieve online and offline linkage, online promotion and dissemination + offline experience purchase, and form a closed loop of consumer interaction.

Luxury brands must be based on stores, empowerment terminals to enhance consumer shopping experience, plus online promotion of channels, to maximize the attraction of people to store consumption, and ultimately achieve brand sustainable development.

Luxury brands in the new retail era, both in the electricity supplier and offline stores, are becoming inevitable.

We can provide customers with the best quality service experience, efficient digital and intelligent management, and continuously give customers fresh feeling, so as to keep the brand enduring.

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