The Transformation Of Luxury Brand Mode Is The Two Or Three Most Profitable Market.

The development mode of luxury brands in the Chinese market is quietly changing. In May 10th, DDT, one of the world's four largest accounting firms, released a survey report. luxury goods market Profits far below two or three line cities. The report also shows that high-end products have a certain consumption scale at all levels of the domestic market, with an average of over 25%.

According to the report analysis, at present, in the domestic first-line market, because of the earlier arrival of luxury brands and the increase in the number of people who own the same product, their attractiveness to consumers gradually decreases, and sales growth shows weakness. At the same time, many luxury brands have slowed the pace of expansion in the first tier cities and turned them into platform for image display. Therefore, the advertising and marketing investment of luxury brands in the first-line market is much higher than that of the two or three line market, which has squeezed the profit margins of luxury brands.

Although the operating costs of first tier cities such as rentals and manpower are rising, it is a major reason to limit the profits of luxury brands, but in fact, the decline in purchasing power of consumers in the first tier cities is the main reason.

Zhou Ting, an expert on luxury goods analysis, believes that the main force of consumer luxury goods in the first tier cities is the middle class. But since last year, the cost of living has continued to rise, making consumers in the first tier cities start tightening money.

The China luxury report also shows that the budget of white collar and middle class luxury goods has declined this year.

Compared with the prudent consumption in the first tier market, the invisible rich group carried on the two or three tier cities. Luxury consumption The banner. Although they are small in number, their spending power is considerable. Moreover, this group of people is still at the initial stage of luxury brand pursuit, and their lack of concern about their core concepts, origin and so on. This kind of consumption concept makes commodity price the main factor to decide whether the brand is good or bad.

A luxury brand salesperson has also verified the above point of view. It shows that consumers in tier one cities prefer to choose basic or even discounted purchases; consumers in the two or three tier cities prefer to buy new, limited and classic versions of higher prices. Moreover, the number of purchases is relatively large.

The new consumption trend in the domestic market has long been grasped by smart luxury brands. As early as two years ago, Gucci began to sink the layout of China's stores. It is reported that 8 of its 9 branches are located in two or three cities, such as Shijiazhuang, Xiamen and Changsha, and only one of them is settled in Shanghai. Last year, Gucci still loves to set up shop in the two or three tier city.

In fact, the "perseverance" of the two or three line market has also given back to these luxury brands. It is reported that Gucci's sales in Zhengzhou's store opened on the first day and exceeded another million yuan. Luxury brand LV The store in Urumqi has been the national sales champion for some time. A well-known Swiss watch brand also said its Huludao store is among the best in the Asian market.