Chinese Luxury Goods Account For 1/4 Of Total Global Luxury Goods Sales.

< p > France PPR Group officially changed its name to Kai Yun group (Kering). There is also an owl pattern on top of the name. The meaning of the Chinese name "Kai Yun" after the change is "cloudless sky", which means good luck. < /p >
< p > for the luxury companies of the French group, it is far more important than luck to have a distinctive brand image and produce goods that are popular with Chinese consumers. The Bain Bain Company estimates for the Italy Industry Association Altagamma show that in 2012, luxury consumption accounts for 1/4 of global luxury goods sales both domestically and overseas. < /p >
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Jiang Jiongwen, a marketing professor at P, believes that China's luxury market is now at a critical node. "Ceibs" Front-line brands, such as Gucci (Gucci) and LVMH (Louis Vuitton), the French rival LVMH, have found that the relationship between "desirability" and "availability" (accessibility) is becoming more and more difficult after the rapid expansion into China's two or three tier cities. Jiang Jiongwen pointed out that when you find that every woman carries a Gucci handbag, the brand will quickly lose high-end customers. The government regulations prohibiting the gift of luxury gifts also cast a shadow on the sales prospects of luxury goods companies in the short term. < /p >
The joint action of the above P factors poses a challenge to the special decentralization management mode of Kai Yun. The CEO and family shareholder representative of the group is Francois Henry Pino (Fran ois-Henri Pin ault) -- this mode is often compared with the centralized management mode adopted by Bernard Arnaud (Bernard Arnault). < /p >
< p > nearly 1/3 of the annual sales of 6 billion 200 million euros contributed by the luxury group are from the Asia Pacific market other than Japan. Most of them came from the Chinese market. But the size of this holding group in China is very limited: in Hongkong and Mainland China, only 98 employees work directly for Kai Yun group, while its 14 luxury brands employ over 3300 employees. < /p >
< p > this structure reflects the characteristics of the operation autonomy of the group, which is called "freedom within the framework". But Pino clearly has the power to tighten the framework. Starting from 2011, Alexis Babeau, director of the luxury cloud department, said: "we are always asking ourselves," is there anything we need to do for the brand but not yet, or whether we are doing something that is damaging to the brand value? "/p Babeau.
P and academics, as well as managers of Kai Yun's company, say that opening up the cloud is of great value for carrying out detailed data analysis and sharing the best business practices of all brands in the Chinese market during the current period of rapid changes in Chinese consumers' tastes. < /p >
Less than P, Frederick McCartney, chief executive of Stella Mccartney (Stella McCartney), opened up half of the equity stake in the Frederick McCartney, and learned the sales situation in the Chinese market through regular meetings with other brand executives. When other executives reported that sales of leather goods and gifts, rather than women's ready-made garments, were on the rise, Lu's thought was "the Chinese market has great potential - but it doesn't fit us." But by the end of 2011, the timing of opening the cloud was ripe. Lukoff said: "I will not say that opening the cloud has pushed us into the Chinese market, but they really encouraged us to do so." He had just attended a celebration of a new flagship store in Beijing. < /p >
< p > Kai Yun also provides direct and practical support for its brand in the Chinese market. The property specialist is responsible for finding the best place to open shop: the flagship store of Gucci in Shanghai is located in Golden Eagle International Shopping Center, which helps to ensure the favorable position of Bottega Veneta store next to the sister brand. The media purchasing specialist of Kai Yun group promotes the promotion of smaller brands, while the group's lawyer team is responsible for protecting the intellectual property rights of the brand, which is particularly important in the Chinese market with a Shanzhai style. < /p >
< p > the indirect benefits of opening the cloud to its brand are equally important. Kai Yun bought a majority stake in Qeelin, a small jewellery maker in December last year, which is good at integrating Chinese characteristics with European traditions. Guillaume Brochard, co-founder of Unicorn, said it is not easy for companies to attract Chinese employees, because they tend to join larger companies or start their own businesses, Guillaume Brochard. But after being bought by the cloud, the number of people who came to the inquiry increased by 15 times. "The difference is as great as the difference between day and night." < /p >
< p > Gbagbo explained: "the responsibility of the brand management team is to propose a business strategy, and our responsibility is to discuss this plan and question it, and encourage the management team to make the best efforts." But the implementation of strategy is handed over to the brands themselves. This is especially important for the Chinese market, because the pace of change in the Chinese market is too fast. Patrizio di Marco, chief executive of Gucci, recalls how it took 10 to 15 years to replace the more sophisticated brand logo in the Japanese market: "in China, this process takes 3 to 5 years." < /p >
Antoine Belge, an analyst at P HSBC, compares the decentralized decision making mode with Anthony's more top-down decision making model. It points out that the balance between the "brand consistent mode and the local market specificity" must be balanced, especially considering that the consumption expenditure of wealthy Chinese abroad is no less than that of domestic HSBC. < /p >
Less than P, if we want to, we can take bigger strategic measures. Saviolo Saviolo, SDA Bocconi School of Management, SDA, Milan, said that the ability to turn excellent managers within the group is a "valuable asset". Kai Yun group has selected 200 senior managers, including the vast majority of business executives in China, who will be rotting among different brands. For example, Marco Bizzarri, the former chief executive of Stella Mccartney before Lu Ke Fu, is currently responsible for the management of Po Tejia; the other is the class of Di Marco, who was transferred from Gucci to Gucci in 2009. < /p >
< p > Kai Yun also pays close attention to the expansion speed of its brand. As Kai Yun once encouraged the Stella Mccartney brand to enter the Chinese market in 2011, the group also helped Po Ti Jia find the opportunity to push the high-end leather goods manufacturer to expand its number of stores in the mainland of China from 5 in 2008 to 35. In 2004, opening the cloud also promoted Gucci's management at the time to expand more vigorously, creating a sales network composed of 57 stores across the mainland. < /p >
< p > but Gucci's success in China may have become the biggest headache for Kai Yun group and di Marco. Sun Baohong and Cheung Kong Graduate School of Business said: "Gucci and Louis Weedon have become too popular to be abandoned by China's wealthy class." < /p >
"P", said Mark Marco, "in China, he must" work harder because the market regards us as a "industrialized production enterprise". For example, in order to transform a wealthy Chinese customer accustomed to buying a garment into a consumer of customized bags, Gucci invited her to fly to Florence to meet the craftsmen of the brand's "a target=" _blank "href=" //www.sjfzxm.com/ "leather" /a ". < /p >
< p > with the redevelopment of stores with relatively long store age, Gucci and Kai Yun have agreed that the expansion speed of shops in the Chinese market should be normalized. Gucci is now implementing zoning in the stores. Fans who love Gucci's famous GG logo can find obvious signs, and think that this logo, as a fashion declaration, is too high profile consumers to find suitable products in another display area. "The higher your level, the more sophisticated you have to do," Di Marco said. < /p >
< p > he believes that the success of "first-line brand" in China is "inevitable", because China's middle class is growing and growing. Gbagbo believes that the key to the problem is to balance the rarity and speed of growth. This is a good suggestion for all of the luxury brands that are open to development in the new stage of China's rise. < /p >