Weakness In Demand In Mainland China And Hongkong Has Led Luxury Goods Into A Predicament.

The declining trend of the international luxury market has been continuously fermented over the past year, and luxury brands are facing unprecedented challenges. The global luxury market monitoring report released by international management consulting firm Bain and Italy luxury trade association shows that demand in mainland China and Hongkong is weak. In 2015, global personal luxury market sales growth is expected to decline to 3% from last year's 1%~2% (at constant exchange rate) in 2015.

Emerging markets are the source of risk for luxury brands because they need to invest in retail and staff training, and many areas are not always political stability or exchange rate stability.

This increase has also become the lowest level of global luxury sales growth since the financial crisis triggered by the Lehman Brothers bankruptcy in 2008 (the lowest point of that year was -11% in 2008).

Turning to the development of the luxury industry, GachouchaG.Kretz, a professor of luxury brand management and marketing at HEC business school in Paris, told reporters that in terms of retailing, luxury brands seem to have come to a turning point. In the future, luxury brands need to be more aware of the balance between fashion and eternity.

GachouchaG.Kretz noted that if we talk about the four key points of the luxury market, "the challenge of technological change" is foremost. Luxury brands are facing rapid technological change. Digitalization is only one aspect of this change. The equipment, wearable devices, intelligent analysis, and product lifecycle management guided by technology have posed a challenge to luxury brands.

Although luxury brands have excellent traditions in handcraft, creativity, design and retailing, they can not fully keep pace with these changes, and usually need to supplement technology in these areas. They recruited many skilled personnel, or acquired acquisitions abroad, and sought Advisory advice (for example, consulting companies to provide corresponding advice and expertise).

Another key point is "further strengthening." Customer As the center. In recent years, luxury goods have begun to pay more attention to customers. Theoretically, pure luxury goods should avoid paying too much attention to customers, but in order to gain competitive advantage in this competitive market, luxury brands have to focus on customers and adopt a customer focused strategy.

This can also be interpreted as: more customer relationship management, more VIP special treatment, more customer experience in retail stores and websites, luxury brands paying attention to customers' shopping experience, all of which start with attracting consumers and communicating with them, and ultimately are for consumers to complete the purchase.

The third key point is that luxury brands "have more doubts about retail sales". Such doubts first let people pay attention to the rarity and desire. Retail allows brands to build brand capital, especially brand awareness and brand image. It can attract attention and new customers. It also enables consumers to get luxury products immediately, making products closer to customers, and retail outlets also contribute to the release of luxury products: but "publishing" is not equal to "selling", and confusion will weaken consumers' desire.

When luxury brands feel their image, dignity and Consumer When their desire is threatened, they usually reflect on their retail network, especially the number of retail outlets, the number of goods sold and the discount in stores. However, not all luxury brands are threatened by a wide range of sales. Many brands choose to close some stores, thereby reducing the brand's exposure rate and the convenience of product acquisition, which improves the brand's dignity.

On the other hand, luxury brands' concerns about retail industry also come from the new online / digital user habits. Luxury consumers use a lot of network and mobile technology to buy goods. But luxury can not use all the convenience features of e-commerce, because they will make the brand lower in dignity and distance. Although consumers still want more convenience, shopping experience becomes simpler, even in terms of luxury goods, not only for online shopping, but also for offline shopping. Therefore, Luxury Retailing needs to find ways to improve shopping experience and convenience.

Fourth, in the past two years, Luxury goods Tourism has been greatly developed. The first reason is cultural habits. The second is also the main reason, the fluctuation of exchange rate and the price gap, as well as the sensitivity of Chinese consumers to price.

In order to adapt to the luxury tourism of Chinese consumers, luxury brands should pay attention to the role of price differences and exchange rate in order to attract Chinese consumers and provide corresponding products: train their employees to understand the preferences of Chinese consumers, and launch a series of products that meet the needs and aspirations of Chinese consumers.