Luxury Goods Can'T Be Relied On Single Market.

In 2015, it was an extraordinary year for the luxury industry. Recently, influenced by the fluctuation of the RMB exchange rate, the share prices of many luxury goods groups such as LVMH, Li Feng, Kai Yun and Burberry have all fallen.

Before the exchange rate fluctuations, many brands have just adjusted the price strategy to the Chinese market.

Liu Yuan, an investor in cultural and creative industries, believes that the fluctuation of the RMB exchange rate is mainly due to the current depreciation of the overseas market, which, to a certain extent, will reduce the enthusiasm of Chinese consumers to buy abroad and bring back the consumption. However, it will also bring the price rise of imported products.

No luxury company no longer attaches importance to the Chinese market. In 2014, the Chinese almost bought nearly half of the world's luxury goods (47%).

Pull.

However, the loyalty of Chinese consumers is much lower than that of them. In today's increasingly diversified brand competition, relying too much on the single market is one of the main factors leading to the decline of brand performance.

Almost every luxury research expert and scholar compares the Chinese market with the Japanese market, and thinks that the development path of Chinese luxury goods is strikingly similar to that of Japan in the 80s of last century, and even thinks that the international luxury goods can be today, we must thank Japan.

"The Japanese market has achieved the brand name. Chinese consumers do not know luxury brands from Europeans, but from Japanese consumers what luxury brands are."

Zhou Ting said.

Japanese consumers are uncritical of the quality of their products. It is their discerning eyes that make luxury goods the ultimate quality.

Told reporters that the company's internal training, often cited the example of Chanel Japan branch: one day a Japanese consumer took a piece of clothing to Chanel store to ask for return, the reason is that the quality is wrong.

The clerk repeatedly found a two cm thread hidden in the ruffle of the dress, which had to let the clerk change a new and repeated bow, and sent a handful of flowers.

And the dress returned to the French headquarters, France.

After trying it out, it is OK to cut off the thread, and the American consumer never saw the thread.

The overly persistent pursuit of quality has forced luxury brands to improve their product quality. The rapid growth of Japanese economy has brought luxury brands to the Japanese market. Until now, the Japanese market has been separately counted in many brands but not in the Asia Pacific region.

More than 20 years later, the decline of Japanese economy has led to the rapid growth of the brand in Japan, and the outstanding performance of the Chinese market in the past few years has led to the over reliance of many brands on China's single market.

A statistic shows that Chinese consumers contribute more than 50% to OMEGA brand sales and Cartire is also close to 50%, while nearly half of Swatch's total sales are contributed by Chinese consumers.

Prada, Gucci, Bottega Veneta, Burberry and other brands, the contribution rate of Chinese consumers is also quite high.

The core problem of this series of chain reactions is that the global luxury industry is not strong enough to resist risks.

Globalization does not mean that we simply do business globally, open stores in all parts of the world, but have global integration strategy and different regional strategies. In this regard, IBM, CISCO and other companies have set an example for other companies.

Many luxury companies are more like "upstarts" who get rich overnight than IBM, and lack of globalization strategy and single market anti risk capability are more prominent.