Excessive Expansion Of Luxury Goods, Lack Of Stamina?

There are also many "helplessness" in the large-scale expansion of luxury brands in the two or three tier cities.

The marketing strategy of luxury goods in China has always been dominated by high-end fashion magazines, but consumers in the two or three tier cities have no habit of reading magazines on the one hand. On the other hand, these printed high-end high-end fashion magazines have not covered the consumers in these areas.

The past few years have been the fastest growing years of economic growth. Luxury goods are expanding rapidly in the two or three tier cities. The growth rate of many brand stores is exponentially increasing.

"In some cities, including Beijing and Shanghai, luxury stores are no longer a luxury item, they are catching up with fast fashion brands."

Liu Yuan said.

Although at present, Chengdu's achievements in the field of luxury goods are obvious to all, the industry is also making a sweat for the future development of luxury goods in Chengdu.

For luxury brands, the next priority should be placed on the study of China's regional economy and the differentiation of consumption characteristics, and the overall strategic layout for opening stores and brands in different cities will determine the success or failure of the future development of brands in China.

Liu Yuan, an investor in cultural and creative industries, believes that the sensitivity of the luxury goods industry will be higher than that of the fast moving industry. When the economy develops, the growth rate of the industry will be significantly higher than that of other industries, and the growth rate will slow down if the economy fluctuates slightly, so it can be said that the industry itself is weak in resisting risks.

Local people, whether they are small business owners or ordinary white-collar workers, have the habit of reading local metropolis newspapers, but luxury brands rarely advertise in such media and do marketing propaganda.

The high-end business forum and the VIP sale with bank institutions have become another important means of brand marketing in the two or three tier cities.

It can be said that in the field of marketing communication, the two or three line city is a "blind spot" so far.

But the brand sniffed the business opportunities of the two or three tier cities early. So opening stores is not only for sale, but also a form of effective marketing, which is one of the main factors for the expansion of luxury brands.

However, Liu Yuan reminded the responsible person of luxury brands that he believes the biggest problem with this approach is

If the economy slows down and consumption decreases, the sales volume of these luxury stores will be significantly reduced, and there will be a lot of problems like luxury stores, which will be much more damaging to luxury brands than closing a fast fashion store.

"Insufficient consumption power" is the biggest worry for Zhou Ting to luxury consumption in the two or three tier cities.

Chengdu is still an example. According to its observation, Chengdu has obvious agglomeration effect and pulling effect on the surrounding provinces and cities. As a city with exhibitions and tourism as its main, the advantage of the crowd is there, but a large part of this passenger flow is mainly the middle and low end consumers.

and

The main group of consumers is the rich and middle class.

The consumption of luxury goods mainly comes from the rich, but the consumption of the middle class is far from being excavated.

In the first tier cities, many luxury goods are white collar or golden collar, which is an important supplement to the consumption of the rich.

Even if the economy falls, this part of consumers can still make some contribution.

However, the two or three tier cities are different, the number of middle class is not large, and they are the most sensitive people to economic growth. Once the economy slows down, they will first cut off this part of consumption.

Liu Yuan said.