Is The Wolf "A Real Luxury" Really Coming?

From 2.7% (Hugo Boss group) to 5.5% (Ferragamo group) - not an increase, but a series of stock price declines, from European and American luxury listed companies.

This is seen as a collective "cold" after a "sneeze" of luxury goods: after a two day devaluation in August 11th and 12, such a fall is especially notable in the Chinese market, which has a larger share of sales. In addition to the above mentioned mention list, the list of players from the LVMH group, Kai Yun group (Gucci parent company), the peak group to Hermes, Tod 's, Swatch, lay a large gun.

The falling share price is only the first tornado that the butterfly wings vibrate, or the most promising one. Follow suit and need big ones. Luxury goods The group's positive response is the challenge facing the price system, which may not be seen by ordinary consumers at a glance, but it is more closely related to stock prices than that of our stock market. Just six months ago, Chanel launched the global coordinated pricing strategy of "European price increase and China's price reduction", which led a large number of luxury brands to follow up quickly. Gucci and Prada launched an unprecedented price adjustment or promotion. Even when cosmetics were also involved in this campaign to spare no effort to narrow the price difference between China and the global market, the renminbi was suddenly caught in a devaluation. Has the price been lowered enough to cover up the heat?

To see this, as consumers, are you also trying to imagine a "top of the top" brand of luxury brand, depicting a wolf in the brain and roaring past and rolling the picture of your heart?

Is there a gap in price?

In fact, there are three less pleasant news, which is indeed caused by this sneeze, which is no exaggeration.

The first thing to do is to cut prices in vain. This does not need to go into details, but the factors that make big financial statements unattractive are more than stock prices. Their sales in the Chinese market are converted into dollars and Euros according to their usual practice. After the depreciation of the renminbi, the same amount can only be exchanged for less US dollars and euros, equivalent to that of the US dollar. Chinese Market Sales declined in disguise.

We should all remember that when the euro and yen went down, "China's aunt" was a luxury store that swept the European and Japanese markets. Today, the depreciation of the renminbi means that the renminbi will no longer have such a significant advantage in the exchange of foreign currencies. As a result, the overseas consumption enthusiasm of Chinese tourists is like cold water, and even the sea and the purchase are also affected. It is no wonder that those businesses that have been on fire for a long time on Taobao have seen that the continuous depreciation of the renminbi is not crying out that "the heart is going to collapse". It is calling for "partners to rush to stockpile". Otherwise, consumers will be able to pay much more yuan if they clearly figure out the same thing.

But are these bad news enough to constitute the size and destructiveness of wolves? The answer is not necessarily true.

It is probably the move of a large number of big names to move ahead with the spread of the price difference, so that many people have the illusion that the gap between the spreads has been filled. As a matter of fact, it is not cold for a day, but luxury goods still have a clear price competitiveness abroad. A domestic electronic business platform, known as "the lowest price in the country", has a large package of 1980 yuan, but in Europe it only needs 1/3 yuan less than RMB 600 yuan. This is not the old news, but it is the real novelty after the big price adjustment. Therefore, people who feel that overseas shopping is not worthwhile will be comforted by the news?

Moreover, I am afraid that the "chopper" family, who focuses on buying, buying and buying, is afraid. Currency exchange rate Common sense doesn't mean much. The depreciation of the renminbi is close to 2%, but in the field of exchange rate, this is only a slight depreciation. In the view of many investment banks and analysts, only the "10% or more, including 10%" will make China's consumption change significantly like leverage.

To put it another way, the Chinese market is so changeable that luxury brands are not the first to see. Since 2013, the demand for gift giving caused by anti-corruption has dropped sharply, which has slowed down the speed of sales growth and the speed of shop opening, pushing the logo products to no end. Therefore, there is no thief in the world who only eats meat but doesn't get beaten. "How much interest the luxuries once gained in the Chinese market may also pay for the current Chinese market."

Top down

Looking at the market trend and discussing the issue from the perspective of brand building of luxury goods, more interesting conclusions can be drawn.

In 2014, when the number of overseas tourists from China reached 117 million, the total consumption of luxury goods consumed by overseas Chinese consumers amounted to 810 billion, or even accounted for 1/3 of the luxury consumption in the European market. The consumption of luxury goods in China dropped by 11% over the same period last year. This group from Fortune CharacterInstitute "China luxury report 2014", the contrast number is not enough to make people ponder: "not bad money" part of the Chinese people do not want to shop in the country, only with price factors can explain all the problems?

It's time to talk about the difference between luxury and service at home and abroad. Another Chinese luxury report from Rhodes public relations and Ipsos market research shows that up to 92% of Chinese consumers are not satisfied with the brand's services in the local market. One of the most important reasons why they choose overseas shopping is the lack of knowledge and unsatisfactory customer service in sales staff in China's local market. Being criticized for a long time, "high above and unreasonable" is just one of the manifestations of the lack of services and shallow problems. Many large scale shops have expanded to two or three line cities, but the local salesmen's abilities and qualities are uneven. In the face of customers who have enough money but do not understand what they want, they do not know how to suggest, and let alone explore and guide. If the service professionalism and experience perfection is short, then does the sensitive nerve of the big brand need to be tighter and tighter with the price?

On the other hand, it is also more important. Internet With the rapid development of technology and the younger generation of consumers, more and more attention has been paid to both brand and customer from the price beyond the price. Develop new fabrics, work with wearable smart accessories, and make good use of social media. It is luxury that is out of the price limit. It is the most effective killer in today's times to capture the user's mind and enhance the brand's gold content and attractiveness.

Google Glass appeared on T von of Diane von Furstenberg. Burberry first moved the show to social media, and recently introduced a high-tech virtual trial in its makeup shop. Any nail polish that wants any color can be easily tested. The famous "Red Shoe" brand Christian Louboutin even launched a brand based red photo filter App - "Louboutinize", which can be downloaded at App Store for free, and has a photo editing function that is comparable to mini fashion magazines. The Rouge filter can render all your shots into Louboutin red. It feels like an image under the infrared light. The leg function can change legs for the photos, like Dita Von Teese, soccer stars, ballet dancers and even horses' "beautiful legs". The brand not only encourages users to upload "Louboutin" photos to social networks to share with more people, but also plans to launch new filters every month or every two months.

At that time, there were more and more interesting and meaningful cross-border products. The interaction between the new media platform and fans became more and more personalized. All of these showed that the brand had paid unprecedented attention to providing "unique experience" to consumers, instead of using the price tag to blink the eyes of Tu Hao.

The sneezing of the renminbi has hit the biggest decline in more than twenty years. It is impossible for all luxury brands to have no vigilance and movement. But if you think big cards need to cry in the toilet, that's not necessary. It is said that there is still room for maneuver in crisis, and this is neither a "diving" nor a "currency war".