Development Of Luxury Brand

LV, Gucci,

There is no doubt that China is becoming the fastest growing luxury consumer market in the world.

As early as 2009, China surpassed the United States with the total consumption of 9 billion 400 million dollars, becoming the world's second largest consumer of luxury goods.

According to experts, it is also just around the corner to get ahead of Japan and sit on the top of the table, short for three years and long for five years.

In the face of this clearer signal, how can Chinese entrepreneurs who follow the policy and market demand follow the concept of luxury after the reform and opening up? And how should we start such a business?

The value of "a handful"

What is luxury? It seems that there has never been a definition that is convincing to all.

Literally, luxury is the cost of anything beyond the necessary expenses.

But this is obviously a relative concept, because we need to define what is "necessary expenditure" first.

In other words, Yang Bailao can buy a red rope for the joy of joy, and it can also be called luxury, and the suitcase used by Napoleon III can also be called the necessary expenses.

From this point of view, the real formation of the concept of "luxury" should be after the industrial revolution.

When the mass production of industrial products gradually meets the basic requirements of people's Daily "food, clothing, housing and use", the concept of "industrial revolution", such as "manual", "customized" and "superior material selection", has been further upgraded to a "luxury".

In the face of hundreds of thousands, millions of watches, bags and costumes, the high price is only the most direct external token of people's identification of luxury brands. It is also one of the means for luxury brands to block the masses of consumers from the handful of "Pyramid cusp" customers they serve.

Behind the high price, the luxury brand establishes or maintains a privileged class, or is the privilege itself.

The author of "leisure class theory" explains that in luxury consumption, the value of goods is not the practicality but the prestige associated with goods.

"Our love for it is, fundamentally speaking, a love for the superiority and honor implied by them, rather than an objective appreciation of beauty."

So, from the perspective of starting a business and finding out the original target consumer group, what is this tiny "Pyramid customer"?

This is exactly why luxury brands will generate a wave of consumption in Asia, especially in China.

Compared with the rest of the world, the hierarchy of Asian society was first born and lasted for the longest time.

When this traditional hierarchy is broken by the storm of globalization, all the people, especially the younger generation (according to statistics, the average age of luxury goods consumers in China is 15 years below the global level), will strive to find a higher status in the new order with the economic strength as the primary criterion.

Luxury is the most direct and convenient way to achieve this self identification.

But to them, these brands and products have become "extravagant" because they are still following the "handful of real privileges" in Pyramid.

Craftsman spirit and control

In the process of finding suitable local cases for this topic, we find that to truly achieve the core of a Chinese luxury brand is not whether you deliberately choose the product category or design elements of China, but whether you can reshape the craftsman spirit before the industrial revolution in modern society.

Looking outward, the origin of LV's brand is to make flat topped suitcase for Napoleon III. Hermes is a sophisticated ornamental harness shop specially built for horse drawn carriages in Paris.

Inward looking, Shanghai, which was founded in 1994, was originally based on the concept of "top Shanghai tailor", although the design team has never seen such "top tailors".

"Craftsmen" is different from "workers", because they are not a closed loop, but they can sit on the assembly line at any time.

Imagine that the core of a pre shop, suitcase suitcase shop or harness shop is that they can find the innovation that makes them feel overwhelmed by the needs of their customers. At the same time, they use the expression of enough authority in their field to create this idea in the product and present it to the customers.

To this day, it is still considered one of the most important abilities of a luxury brand entrepreneurial team.

Lei Fuyi, the current executive chairman of Shanghai, told reporters that the essence of luxury brands lies in "creating a lifetime shopping experience for consumers".

To achieve this, apart from having enough creativity and expressive power, we also need to have comprehensive control from product to brand connotation, from promotion mode to terminal service.

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At this point, N E Tiger quit the department store channel in 1997, set up a direct store, and the caution of Jahwa double sister in exploring the new store address, all of which show the local brand's control over brand, product, channel and the rhythm of pushing into the market.

It will take a while to establish a clear brand DNA and then instilling it into the consumer, but in the end, you will find it works.

Lei Fuyi's experience, which seems to be a "stupid" way of doing business, has always been relied on the blowout of domestic market demand, which is the most important lesson for Chinese entrepreneurs who are eager to upgrade their brands or even become a local luxury brand.

Aside

Luxury "slow" Kung Fu

[dictator]

Angel investor / capital general manager Li Lu

[industry]

First serve the "handful".

At present, I think Shanghai is the only luxury brand in China.

Besides, we often see some local brands which are not very famous but sell very expensive, which can not be called luxury brands.

Why do I say this? Because, as an angel investor in this field, I think the most important criterion for measuring luxury is whether it can be internationalized.

There is no denying that the Chinese market has a strong consumption capacity for luxury goods, but the understanding and aesthetic perspective of luxury goods, including the understanding of materials, and so on, have a low starting point.

In foreign countries, the international luxury brand, taking Armani as an example, actually has two big businesses.

One is the core of high-end customization. The membership system that adopts the initiative invitation is not what you want to buy, but what you want to buy is bought. It only faces people who really can recognize its value.

The other is to extend the kernel to form an international brand to attract a lower tier of consumers who only recognize the brand or just like the LO G O.

That is to say, you need to spend a lot of time in that small number of customers, to achieve the true luxury level of products and services, and get their recognition and reputation.

So, what kind of consumers are these?

According to our observation, this small group does not refer to the top consumer group. The brand that serves the group does not need to be market-oriented and internationalized, but mainly refers to Hollywood stars and celebrities from all over the world.

The interesting feature of this group of people is that ordinary people buy things. If they are good, they may tell three people. If they are not good, they may tell ten people. And if they buy something, if it is not good enough to let three people know it, then they may tell twenty people.

Based on these characteristics and their extreme fastidious nature, to be a local luxury brand, first of all, you must find an innovative point with details, brand tension and value and continuous passion.

It can be the resources you already have, or the resources you can integrate.

Then, constantly inject passion.

Luxury is a very strong expression, because the more high-end people, the more good things you see, you have to have a special personality, with a strong expression of expression.

Strong expression of value is the core ability of a luxury brand entrepreneurial team.

The "cultural" turn in fashion circles

So, what kind of entrepreneur is the right thing to do?

We have observed some entrepreneurs, I summed up myself, such a person's core feature is that he can endure.

Luxury is not fashion.

This "boil" means that the brand is imperceptible in people's mind.

In China, once a newly established brand has a good idea and good product, it will immediately have a channel to come. If the entrepreneur pushes the brand to the market, it will be very popular. But the height of the brand is also established. It is very difficult to go up and become a luxury brand.

Secondly, it is necessary to have faith and feelings to put this sentiment into the brand and products and services.

Why do people say that "luxury brands are intertwined by faith" because they are generated by the tastes and beliefs of founders or founding teams.

That's why a top designer like Jiang Qionger will be seen by Hermes, asking her to be the managing director and artistic director.

Because she is talented in value performance, Hermes can tell her exactly where the international standard is.

Third, he must be a perfectionist and a critical person.

Fourth, he is also a very expressive person, at least in his field, he will be called a godfather, he said, others will be convinced.

But whether Shanghai or Chiang Qiong ear, their development path does not have the 100% reference.

Take Shanghai for example, it chose a very clear concept, made the product well, and then desperately broke money in the channel, forcing the formation of coverage and reputation. The next step is to be seen by the international luxury group, and use it to create an international high-end brand with their international marketing capabilities and influence.

Jiang Qionger is even more special. Her artistic talent is beyond the reach of most Chinese designers. Even so, she has been in a long time before being seen by Hermes.

Entrepreneurs should understand that such opportunities are not available.

However, to make a local luxury brand now, a positive factor is that the western fashion circle is also experiencing a process of ebb and flow. The design elements they use are also from the glitz, exaggeration, crystal decoration to the high-end expressive force acceptable to the Western upper class to express the more valuable and cultural values.

In any case, China's cultural heritage is the best in the world.