The European luxury goods seek diversity

The simple design of the brand's classic internal injuries and single sales channels can no longer cope with the ever-changing market changes. From prada's financial report, one can see that a "simple" brand has begun to be squeezed in the Chinese market, and if there is no change in the future, there may be no future. It is reported that Prada, an Italian old company, recently released its financial report. The financial report shows that Prada’s net profit rose by only 0.3% year-on-year in the fiscal year ended January 31, 2014, which was the worst result since its listing.

According to industry insiders, the global macroeconomic weakness led to a certain degree of impact on the brand's consumer home European market. At the same time, the relevant policies of the Chinese government have also hindered the development of the brand in the domestic market. In response, Zhou Ting, president of the Fortune Quality Institute, holds the opposite view. He said that the external economic environment does lead to relatively slow development of luxury goods, but the initiator of the decline in prada's performance is the internal injury of its brand. From a product structure point of view, prada sales for its classic and basic models lack a sense of freshness, the concept of consumers is changing, but the brand and design are the same, it is naturally difficult to attract the attention of consumers.

It is understood that with the advent of the logo era, many brands have begun to break the classic models, in order to meet the needs of consumers and continue to innovate. Louis Vuitton (lv), fendi (fendi) and gucci have successively introduced products and series of weakened logos. The attitude of the brand to lower its attitude and conform to the psychology of consumers' shopping is obvious to all. Turning to prada's design, however, it has stalled and is tagged by many high-end consumers as lacking in new ideas.

Diversification of the road to diversification has become a fashionable vocabulary of today's companies and brands, how to compete in a fierce competition to kill a blue ocean, many brands are pinned on product, market, promotion of diversification strategy. Lv Group vigorously developed the watch business, bv began to plan the development of jewelry, fragrance and other categories, the brand began to seek more diversified development process is intensifying, but prada is like a bystander, a wait-and-see attitude.

It is reported that on the road of diversified development, the British luxury brand burberry is considered a successful model. Children's clothing, home furnishing, and bags cover a wide range of diversified product lines, allowing the brand to meet a variety of consumer needs. At the same time, the brand's e-commerce channel in the country has also been very successful, and recently it has also set up customized services for Chinese consumers. Consumers can choose and match their materials and colors according to their preferences.

For burberry's diversified sales channels, prada appears to be too conservative. In its earnings report, it mentioned that the brand plan for 2014-2016 opened 120 stores worldwide. In this regard, Zhou Ting analyzed that opening stores for a long time to promote performance is a routine strategy for luxury goods, and many times it will achieve remarkable results. However, in the face of ever-changing market changes, the blind expansion of the store may lead to tight brand finances, and ultimately short-term performance is just a flash in the pan.

The last romantic echo report in Europe once wrote in October 2013 that luxury goods are the last romance in Europe. For a long time, there have been many world-renowned brands in Europe, London, Brazil, Milan and other places, making the luxury market always Strong, in the eyes of ordinary people, regardless of which country, the concept of the brand is synonymous with the luxury luxury goods sweeping the mainland, especially the rise of emerging market countries, promoting the luxury brand of European luxury brand consumption.

According to ipsos data research, many Europeans are disappointed with the economic crisis in luxury goods and Europe. Consumers feel that prices are rising. The southern region is strongly affected by the financial crisis. Spanish, Italian and Portuguese consumers no longer buy luxury goods from Germany and the United Kingdom, and Europe Luxury goods have largely shifted to emerging market countries, promoting the sales of local brand promoters and customers to start learning Arabic, Chinese, etc., luxury leather prices have risen, and quality products have declined, and foreign tourists have become one of the sales targets. , especially Asian countries.

Emerging Market Countries New Wealth Is “Savior” The French Echo News reported that the European luxury goods market has been successful in emerging markets, European brands account for two-thirds of global luxury goods exports, and since the European debt crisis, many industrial entities have weakened, even unable to hold off. Market share, while luxury goods companies have been hugely successful due to exports. According to a study conducted by the Paris School of Economics, first, the power of the brand, such as Louis Vuitton, Hermès, Chanel, and Gucci, is a world-renowned brand. Second, emerging markets are the major consumers.

It is reported that in the past year, the European luxury goods market turnover exceeded 67%, and the newly rich countries in emerging markets are one of the major consumers of luxury brands, such as Louis Vuitton (LV).

It can thus be seen that the growth rate of luxury goods has fallen, and the European market and the Chinese market have failed. The luxury goods groups have to work hard to promote their products to emerging market countries. According to consulting firm Bain, from 1995 to 2015, the global luxury goods market will multiply by more than 25 billion, France has about 1.7 billion, handbags, perfumes, clothing, jewelry, leather, spirits, tableware, etc., France, Italy, Switzerland, etc. are major European luxury competitors. The emerging market countries are one of the major export destinations.

Of course, to enter the emerging markets, it is also facing challenges: due to the growth of consumption in the emerging market luxury goods market, especially some major brands in Europe, in order to meet consumers' desire to purchase luxury goods, the European luxury goods group will not hesitate to raise the prices of high-grade products, and The resulting limited number.