New Luxury To Expand Brand New Consumption Space

Chairman of the French Art Federation, chairman of MATZOPARIS Mercure Paris Remy Aron

Li Kailuo, President of China's famous fashion industry economic research and President of Bi LAN International Investment Consulting Co., Ltd.

An expert in clothing brand investment, Cao Yitang, director of clothing strategy and director of Metersbonwe strategy, {page_break}

Dai Zhongwu, Ck, Tommyhilfiger, Esprit agent, deputy general manager of Wenzhou Jiale Garments Co., Ltd.

In 2002, the book "luxury brings prosperity" by Wolfgang Latzler, a reporter in the Der Spiegel, referred to the old luxury and the new luxury.

"The mobile phone with diamonds, the main function is to call, but with diamond and gold shell, the price will be frightening. Buying such a mobile phone is old-fashioned luxury.

For example, the LANDROVER off-road vehicle, a white-collar worker who works in the city, even if he only buys LANDROVER for commuting, it's a new luxury because he puts money in the use of one thing instead of showing off.

Don't talk about luxury in front of Valentino caravan.

He is the last founder of the world's top luxury brand, who is still at the helm of his own. His deep understanding of "luxury" is that today's luxury is suitable for his own life, surrounded by loved ones, enjoying the comforts you want, and having a treasure home.

With the coming of the new luxury consumption era, a new luxury concept of consumption is emerging at the same time.

At the same time, the impact of this new consumption concept on the garment industry can not be underestimated. We can see that in the world's major fashion week, this is good news for the global fashion industry and retail industry.

Fast reading

Portraying the past luxury brand as a necessities image that ordinary people can afford can be a marketing strategy of "de luxuries".

Now, the most popular saying in the global fashion world is "popular, fashionable". In Europe and America, this phenomenon is called "Masstige".

Masstige is a new word combination of Mass (mass) and Prestige (fame and charm), which refers to a new way of life of NewStyle. Two

Now, many people's ideas have changed. They will not blindly pursue famous brands to flaunt themselves through the brand LOGO, but pay more attention to the quality and collocation of clothing.

Luxury consumers need luxury instead of luxury.

Consumers have the desire, interest, vision and ability to upgrade their consumption and buy products and services that look beyond their income level.

"Vitoria's Secret" underwear is a good example. Although the price is several times higher than that of the same brand, it is the best gift that urban women love and give themselves.

China's luxury consumers are more and more professional and mature, and have a more refined demand for products. In store shopping experience and after-sales service will become another key factor of success.

The "middle class consumer group" tends to be rational and individualized in terms of brand consumption. They prefer to live frugally in some aspects of life, and spend most of their income on new luxury products that they consider worthwhile.

Once luxury is popularized, it becomes a necessity for life.

In fact, the pformation of luxury goods into necessities is the internal development rule of the luxury goods market, which plays an important role in the diversified development of the garment industry.

Another misconception of new luxury marketing is that consumers with "consumer escalation" mentality will be tempted by high prices, but in fact, customers of "consumption upgrading" are very rational, and they will not assume that the higher the price, the better the product.

In the new

According to the 2/8 principle, at least 20% of the luxury goods consumers will choose those products with quality, taste, style, stealthy and low-key luxury, or "small LOGO, big brands".

This is an era of consumption upgrading. The market needs a "middle zone" between luxury and fast fashion, or a "vacant person".

{page_break}

The concept of new luxury consumption emerges.

Zhou Zhou: an analyst at an investment bank in Wall Street is in the 2300 place.

RemyAron: I think luxury consumption can happen in any social class.

No matter what social class it is, consumers can express their ideal social status and identity through their luxury goods.

Based on the social stratum of consumers, some scholars divide the luxury goods into three categories: the social elite class consumes the top luxury goods, the white-collar class consumes the intermediate luxury goods, and the salaried class consumes the luxury goods.

Obviously, the new luxury consumers include white collar workers and salaried workers.

Portraying the past luxury brand as a necessities image that ordinary people can afford can be a marketing strategy of "de luxe".

For example, compared with the general brand, LV, GUCCI, ATZOPARIS and other brands are trying to show the popularity of the brand image in the luxury brand jungle, but in reality, they are implementing the "de luxe" marketing strategy.

Such a huge luxury market, love mash, LVMH, Armani,

Li Kailuo: at present, the most popular saying in the global fashion world is "popular and fashionable". In Europe and America, this phenomenon is called "Masstige".

Masstige is a new word combination of Mass (mass) and Prestige (fame and charm), which refers to a new way of life of NewStyle. Two

To sum up, it is "new luxury" to be extravagant and generous.

In today's consumer groups, the huge middle market is gradually disintegrating, and consumption is gradually polarized.

This is an important foundation for the popularity of new luxury brands.

In the past, consumers who bought luxury goods belonged to "more money and more leisure", mostly buying for buying. "Not seeking the best, but asking for the most expensive" consumption behavior occurred frequently. Many people blindly pursue luxury and pursuit of shopping satisfaction. They wear LOUISVUITTON and PRADA brands to tell others that they are rich and tasteful.

Now, many people's ideas have changed. Some luxury consumers belong to "more money than leisure." they do not need to satisfy the shopping process, they will not blindly pursue famous brands, flaunt themselves through the brand LOGO, but pay more attention to the quality and collocation of clothing.

I remember that 3 years ago, when I met a friend in Australia at a party, he didn't know the brand of his watch. At that time, he deliberately kept mysticism. He didn't publish the answer. After 2 years, we knew that it was an old European noble brand watch. It was all hand-made. The annual output is very low, and the price is higher than that of the first line brand.

This friend belongs to the "invisible show" luxury consumer, he tends to choose high-quality, cutting-edge, low-key luxury brands, rather than those who choose to express LOGO in the bright brand.

Luxury consumers need luxury instead of luxury.

In the process of consumption, they hope to find some commonness between their personality and brand and some labels representing their personal life quality. This is the arrival of the "post labelling" era and also creates a new consumption space.

Cao Yitang: the degree of spiritual culture determines the popularity of new luxury.

More and more "middle class consumers" tend to be rational and individualized in brand consumption. They prefer to live frugally in some aspects of their lives, and spend most of their income on new luxury products that they think are worth it.

However, China's middle class has yet to become a major force in the composition of social wealth.

New luxury consumption is the opportunity for consumers in the middle and lower reaches of wealth to have a chance to achieve a luxury purchase desire.

People who consume new luxury goods will not resist luxury goods to some extent, because they will also treat luxury goods sensibly.

If you want to get the favor of the new luxury consumers, the brand must know how to extend your brand to create a charming image that you want to possess. At the same time, it is also good at expanding downwards to make consumers feel that they are more accessible and competitive and create greater demand.

Consumers have the desire, interest, vision and ability to upgrade their consumption and buy products and services that look beyond their income level.

"Vitoria's Secret" underwear is a good example. Although the price is several times higher than that of the same brand, it is the best gift that urban women love and give themselves.

In addition, we must create several gradient benefits and values for consumers.

Do not fool consumers through some pointless innovations, nor do you want to sell high prices solely by their brand image.

The brand must truly provide technological, functional and emotional benefits and values for consumers through technological innovation, product design and brand image building.

We should gradually strengthen product and technological innovation, improve quality and provide a unique experience.

With the fierce competition in the market, the advantage of brand products in technology and function is getting shorter and shorter. But on the other hand, if the brand is not constantly innovating in function and technology, it is very difficult to maintain the brand's emotional orientation.

{page_break}

Finally, it is to customize the value chain of the brand, so as to provide consumers with more value, thereby organizing and arranging them to provide consumers with more emotional value.

Dai Zhongwu: China's luxury consumers are more and more professional and mature, and have more detailed requirements for products. In store shopping experience and after-sales service will become another key factor of success.

With a large number of international luxury brands entering the two or three tier cities in China, the new rich crowd has become fanatical about the brand.

This is especially common from a LV bag to a Herman belt.

But looking back at this phenomenon, it is not hard to see that the new rich class is blind to the consumption of such brands. It is hard to believe that the brand culture and atmosphere will continue to pass if such brands have been stimulating consumption for a long time.

Many of the new rich people in China are less bitter about wealth accumulation and acquisition than their predecessors, but they also need to flaunt themselves and need to pack themselves. Therefore, the consumption of luxury brands has become a symbol of their identity.

Opportunities and challenges brought by new luxury consumption

Zhou Zhou: the rising middle class is gradually becoming the mainstream of new luxury consumption with higher income level and higher education experience.

For new luxury goods, many of its characteristics coincide with the consumption demand of the middle class. The emergence and development of the middle class provide a broad market space for new luxury consumption, and the advantages of new luxury brands in brand culture and value fully meet the middle-level consumption demand of high level.

In fact, consumption tastes have become an important symbol to distinguish the modern social strata. Therefore, consumption of various new luxuries seems to be the inherent demand of the middle class.

Faced with the huge consumer market of the middle class, whether it is the extension of the old luxury brand or the cutting-edge brand, they are fighting for this cake. How do you view this new opportunity and challenge?

RemyAron: with this idea, the luxury of the clothing industry is gradually becoming popular.

In the United States and other western countries, consumers can buy top designer works everywhere.

Shopping malls in shopping malls, airports and main streets will sell the works of designers at the level of Isaac Meads Rashi or Karl Lagerfeld.

Anyone can purchase the first-line works designed by famous designers through the Internet.

Once luxury is popularized, it becomes a necessity.

In fact, the pformation of luxury goods into necessities is the internal development rule of the luxury goods market, which plays an important role in the diversified development of the garment industry.

But there are also some discordant notes in the change of the new luxury consumption in the garment industry. Because of the instability at the beginning of the pformation and the market shock, some clothing brands did not digest the concept of new luxury in a timely manner, so that some problems appeared in the product quality and sales methods. This is also the new requirements and challenges posed by the new luxury theory to the garment industry.

In fact, brand needs to be precipitated and accumulated, which contains quality, word-of-mouth, integrity, culture, value and many other factors.

The glittering names like Chanel, Paris Mercure, Prada and Barbara are not the world's "fashion tops" because of their gorgeous names.

Behind them is a thick and colorful fashion evolution history.

Li Kailuo: This is an era of consumption upgrading. The market needs a "middle zone" between luxury and fast fashion, or a "vacant person".

The impact of the Japanese earthquake on the Asian luxury pattern was very important, and it also led to the important "safety" demand in Maslow's psychology. This reminds me of the "Dior civilian incident" that happened in the United States. During the great depression, the people in the state of unemployment and poverty were very "abhorrent" to the people wearing Dior, and they ripped up the Dior clothes on their bodies. This event was later studied by the fashion industry, which led to the concept of "stealth" and "low key".

At the same time, the change of network technology to human cognition and the refinement of people's life style create the change of consumption concept and subvert people's aesthetic outlook.

Consumers themselves will think about what is fashion and publish their own life.

Hina Matiken, a girl in New York, has no fashion background. Her self styled fashion blog has attracted the attention of the ELLE and other fashion magazines.

Matiken said he only wore things that would make him feel happy and confident that he could walk out of his home.

Therefore, with the rise of the new generation, it has become the main force of consumption.

According to the 2/8 principle, at least 20% of the luxury goods consumers will choose those products with quality, taste, style, stealthy and low-key luxury, or "small LOGO, big brands".

I think this will be a new pattern for the global fashion industry and the era of the emergence of new luxury brands.

Cao Yitang: the new luxury brands can not be developed, produced and marketing by traditional thinking and means aimed at the middle class.

Many enterprises have fallen into a misunderstanding of marketing. They hope to make their original products look fresh, add some new functions, redesign and location, and create a new advertisement, so that the original products can be pformed into new luxury brands.

There is a case in point. In 1982, the Cimarron model launched by Cadillac brand in the United States was the classic case of creating a new luxury brand.

This car is actually the so-called "luxurious upgrade version" of ChevyCavalier. They sell the original models to the most powerful motors, use leather seats and high grade wood, and brush the brighter paint on the outside to sell for a high price.

Rational consumers are not fooled by this car. What they need is more realistic value and product differentiation.

Less than a year after its launch, Cimarron withdrew from the market.

Another misconception of new luxury marketing is that consumers with "consumer escalation" mentality will be tempted by high prices, but in fact, customers of "consumption upgrading" are very rational, and they will not assume that the higher the price, the better the product.

These consumers are very careful in thinking, although the marketing means of enterprises will have a certain effect on them, but they will carefully measure and evaluate the brand's technical and functional advantages. They believe their emotional responses to the brand very much.

Therefore, the creation of a successful new luxury brand can not only rely on the marketing strategy and marketing means of enterprises, but also should be carried out in all aspects and steps of enterprise management.

Dai Zhongwu: I have been engaged in the management of luxury goods. My Wenzhou Jiale Garments Co., Ltd. is an agent of CkcalvinKlein, Tommyhilfiger, Esprit and other international brands in Wenzhou.

Wenzhou is a regional city with unique business atmosphere. Although its size is limited, its consumption power is high, and its average retail business has a higher absolute value. In recent years, it has attracted a large number of luxury brands in the world.

In October 2010, GUCCI was stationed in Wenzhou; in April 2011, Starbucks entered Wenzhou; in June 2011, PRADA was about to open.

These brands and commercial complexes also played a certain role in promoting and guiding Wenzhou's fashion consumption and consumption.

However, due to the limited scale of Wenzhou's cities, the main consumer groups are mainly local customers in Wenzhou. The middle and high grade retail industry should pay more attention to their own quality construction and healthy development.

In the current era of new extravagance, for the retail industry, more efforts should be made to strengthen the practice of internal strength rather than to go back to the early stage of commodity trading, and to achieve the goal solely by price leverage. This unilateral effort is unrealistic.

To improve the image and atmosphere of retail stores, provide quality sales services, constantly satisfy customers' needs for quality of life, and further enhance the added value of brands, so that customers can feel satisfaction from physical and mental at the same time of consumption, that is the task that retailers must really grasp.

Therefore, for Jiale, this is the way to strive.

The trend of new luxury goods is the inevitable stage of economic development and people's spiritual and cultural progress. However, for the current psychological needs and wealth structure of Chinese consumers, I think it still can not impact on luxury consumption.

New luxury goods still need a long way to get more people to identify with them.

Extended reading

Three trends of new luxury brands

Trend 1: traditional luxury goods are going up or down. Many traditional luxury goods have adopted this new marketing strategy, and they can seize more market share by launching low price products.

For example, in order to achieve the goal of reducing cost, BMW motor chose to cooperate with the excellent domestic manufacturers. After the joint venture of the 3 and 5 series products, the market was listed in the same period of the whole world. The localization of some accessories, the relatively cheap labor force and the advantages of the local make the price of the products more reasonable.

At the same time, BMW has retained the characteristics of European origin for its top 7 tier products, retaining high pricing, thereby ensuring that the high-end image of the brand will not be damaged because of this extension.

Trend two: products with super high quality and emotional satisfaction to consumers are priced near the top of the same kind of products, far exceeding the price of other traditional goods, but still in the middle of the burden of middle-class consumers. Such products are usually fast moving consumer goods, with superior quality and exquisite packaging, and consumers often choose to buy because of impulsiveness or brand identity. These products can bring some emotional satisfaction and pleasure to consumers, and, as long as the product can maintain quality advantages, most consumers will maintain a considerable degree of brand loyalty because of this emotional intervention.

For example, some international brand cosmetics, if the price alone is much higher than the similar products on the market, there are many consumers, such as white-collar workers, who tend to buy such products. On the one hand, they are attracted by the charm of the brand because of the high quality of the products themselves.

Trend three: the products of classic and loyal users are not at the top of the same kind of products at the price level, nor are they related to the brand extension. They often occupy the classic position of a certain category of products by virtue of the brand effect that has been precipitated for many years.

For example, Starbucks coffee, which is very familiar with everyone, has created a "petty bourgeoisie" shop atmosphere. This coffee brand has a large number of loyal followers. They are used to many scenes of life with Starbucks's aroma of coffee, such as business talks, friends gathering, or a quiet time to enjoy broadband Internet access. It is precisely because of this close emotional connection with consumers that Starbucks has made such a classic coffee brand.

New dictionary

New luxury goods, which are new luxury goods, refer to such products or services. They are better quality, better taste and more attractive to consumers than other products or services of the same kind. They are expensive, but they are not too expensive to be expected.

This concept clearly defines the characteristics of the so-called new luxury goods, and also defines the difference between new luxury goods and traditional luxury goods and ordinary goods.

New luxury goods cover a wide range of goods and services, small to consumer goods, such as car, education and other bulk consumption. If you pay attention to it, you will find new luxury figures, such as Starbucks coffee, Levi cowboy, Shiseido, BMW 3 series, Global IELTS, France, Virgin Atlantic, SWAROVSKI, Haagen Dazs and so on.

In a sense, new luxury goods fill the gap between traditional luxury goods and ordinary goods. They occupy the most effective hitting point in the market between the public and the top. The quality is better than that of the public, but the price is lower than the traditional luxury goods, which meets the demand of a larger number of consumers for luxury goods.