The Epidemic Is Changing The Industrial Structure Of Luxury Brands In The Apparel Industry.

　 LV brand hand sanitizer, LV in hand sanitizer?

As the global new crown continues to rage, the protective equipment in various countries is starting to worry.

LVMH, the global luxury goods giant, announced the use of its 3 perfume production lines, Dior, Givenchy and Guerlain, to produce alcohol containing disinfectant hand sanitizers, and will produce 12 tons of hand sanitizers in the first week to ease the plight of the French hand sanitizer.

In order to save costs and quickly produce finished products, LVMH directly adopted the packaging bottle of Dior's protective products. Each bottle of hand washing liquid was pressed with Dior logo "CD" two letters on the pressing head.

Balenciaga and Yves Saint Laurent of Kering will also switch to medical masks after approval by relevant departments.

In the face of the phenomenon of luxury brands' "transforming production and epidemic prevention", netizens shouted, "finally, there are luxury items that can afford." the official website of DIOR Dior also took the opportunity to launch 8 fragrance cleaners, such as "Rose rhyme", "wild walk", "Royal noble orange" and so on. The price is 410 yuan.

In 2019, the global luxury industry research report (Autumn Edition) showed that Chinese consumers accounted for 35% of the total global luxury goods consumption in 2019, up 2 percentage points from 2018. China's luxury consumption has been holding up half the sky. But in recent years, the luxury brand has been insulting China constantly. The rise of the emerging consumer groups in the Z era, how to enhance the brand image of young consumers in the luxury brand has become a difficult point to overcome.

At the same time, luxury goods have always been on the sidelines in the era when everything can be delivered live. This undoubtedly widened the distance from China's consumer groups. Then, is the luxury brand "true fragrance law" in the face of the new outbreak of the epidemic crisis and is the luxury brand suitable for the direct broadcast of the electricity supplier?

Anti epidemic + fame and fortune?

LVMH group uses perfume production line to produce alcohol containing disinfectant hand sanitizer. Even if there are many ingredients in perfume that are the same as disinfectant hand sanitizer, it is inevitable that part of the profits must be abandoned. Under the difficult development situation of the whole industry, it is indeed praiseworthy that we can adjust the production line to produce hand washing liquid with no profit.

The outbreak of the epidemic is a test of corporate social responsibility. Many enterprises at home and abroad have consistently chosen the "transfer of production and epidemic prevention", and the purpose is not just to make joint efforts for public welfare, but also to establish a successful brand image in the minds of consumers and win social recognition and goodwill.

The virus is always merciless, according to Bain Consulting's report, the loss of the luxury industry in February may reach 300 to 40 billion euros (about 307 billion 600 million yuan), which means that the industry revenue will drop by about 15%, and the loss will be as high as 10 billion euros.

But when the bain consultation report was released, the epidemic had not spread to the whole world. That is to say, after eliminating the factors of China's consumer market, the loss of luxury stores and factory shutdowns will bring more losses to the global luxury industry.

More fatal is that the luxury industry is related to the European economic lifeline.

Take the serious epidemic in Italy as an example. Mediobanca, an early Italy investment bank, made a survey of Italy's fashion industry. In the overall manufacturing industry of Italy, the proportion of fashion industry was 18%, and fashion industry accounted for 1/4 of Italy's manufacturing exports.

France, which is also a fashionable country, is also hard to escape. The sales revenue of French fashion industry and fashion related industries is higher than that of the two major industrial sectors, the aerospace industry and the automotive industry.

The production of epidemic prevention products can not bring substantial gains, and the luxury brands who have no way to start have also begun to save themselves on the "cloud".

First, GiorgioArmani cancelled the planned autumn and winter fashion show in Milan, and temporarily invited the global media and viewers to watch it live by video.

Then, the DIOR autumn and winter clothing series was broadcast live on micro-blog. Other luxury brands also joined the Tencent video. They carried out 6 days, 6 nights, 24 hours' continuous rolling live broadcast of over 30 top shows, namely "cloud show".

In March 26th, Louis Vuitton launched the first online live broadcast on the social business platform Xiao Hong book. LV invited bloggers Cheng Xiaoyue and brand friend Zhong Chuxi to take a live broadcast of their new summer series, which took 1 hours and the total number of viewers was only 15 thousand.

However, the live broadcast of LV has been mockery, not only the blurred picture quality of live broadcast, but also a sharp contrast with the past high-end air image of LV. The content of live broadcast is like the application of all kinds of gold collocation on popular collocation, without brand personality.

It can be seen that the way to go down the altar and enter the luxury goods in the live room is not so easy. There are still many worries about the transformation of the luxury brand under the annual online sale.

　 Second hand luxury goods are more fragrant?

Interestingly, in the field of live broadcast, the luxury brand has long been the first to be replaced by its substitutes.

Second hand luxury live broadcast electric business "Fei Yu" has completed tens of millions of dollars A round of financing recently, and the sales volume of platform has reached 1 billion yuan in 2019. In addition, more red Brin, only two and other platforms play a blue sea in the live broadcast of e-commerce.

Insiders said: "second-hand luxury platform is still more suitable for live broadcast with goods, a product has only one inventory characteristics, so that the content of live broadcast is diverse, and second-hand goods in the lens can clearly see the new and old, details, so the direct viewing and attention will be relatively high. In addition, live broadcasts will also provide buyers and sellers with the opportunity to live barrage interaction.

At the same time, in the doldrums of large-scale unemployment, difficulty in resuming work and cash flow obstruction, people's disposable income is limited, and selling idle becomes the main solution.

According to reports, luxury goods sales in Hongkong have dropped by 42%, while luxury secondhand businesses are accelerating. A Financial Services Company called Yes Lady has launched a loan secured by luxury handbags. Loans in early March increased by nearly four times compared with the beginning of the year.

The number of luxury goods sold on the Internet during the epidemic was also on the rise. WP Diamonds, a multinational company specializing in second-hand diamond trading, said that in the first two months of 2020, the volume of consultation on jewellery and watches on the website increased by 70% over the same period last year. Apart from jitter, the identification of second-hand luxury goods on the fast track, and the reason why the short stories of short stories are hot, it is more likely that people spend more time at home to sort out personal belongings.

Affected by the overall economic situation, second hand luxury goods are expected to peak in the second half of this year and divide dividends from "retaliatory transfer".

　 Is digital marketing a breakthrough or a compromise?

Luxury goods once had such a passage: a dry cleaning shop in Japan once bought a Chanel coat with a price of 35000 yuan, which was washed and discolored by the customer and was complained by customers. The dry cleaners then contacted Chanel customer service to ask how the clothes should be washed. Chanel's reply is that we did not take into account the need for washing when we designed the product.

In fact, the meaning of luxury never lies in practicality, but in its unique and mysterious brand style.

Now facing the double attack of epidemic and second-hand market, luxury goods are in great danger. Should they be broadcast live?

Luxury brands have not dabbled in the form of live broadcast for a long time, for three reasons: first, low user experience and reduced brand tonal. Compared to the service of thousands of thousands of users, the personal experience of guided shopping is better. Secondly, luxury brands have a strict protection system for prices. Most of the goods displayed in the live broadcast are at a low price. Thirdly, there are numerous online channels and many fake products.

For a luxury retailer under the line, in order to embrace the Chinese market as much as possible, online technology is the way to go. So, what is the ideal opening position of digital marketing for luxury goods?

　 Online forms change, but invariance is style.

Take live broadcast as an example. Today's live room is a large environment, which is also equivalent to the store design of offline stores. The scenery and lighting play an auxiliary role in the whole live broadcast. As a luxury brand, we should pay more attention to the facade and maintain the image and positioning of the brand.

Integrating into the youth market

LV has done a good job in marketing for the younger generation: setting up a flash store to invite Wu Yifan to be a brand ambassador, a joint venture with LOL, skin and Supreme. In the face of the new consumption concept that the younger generation no longer pursue high-end luxury products with high atmosphere, the brands can start from the flow of fans, and then harvest young consumers through the new media.

But according to the current situation, the live room is still difficult to afford a place for luxury goods.

epilogue

It is not difficult to see that luxury brands try to live in the form of compromise psychology, but from the perspective of the big situation, luxury brands are still out of tune with live broadcast. When luxuries are no longer a luxury of high cooling, consumer psychology will also produce corresponding drops, and the mysterious brand style is not perceived.

Especially after the outbreak, people are less likely to have "retaliatory consumption" for luxury goods, and luxury goods are facing a sales crisis. How to find a suitable place to match the brand with the new form is a problem that luxury brands should consider when they stop production.