Compared to 2008, and 2009′s “bitterness” and now the rich people seem more willing to open their wallets, free to buy the Porsche and Dom Perignon champagne was.
With the end of the global financial crisis is becoming, increasingly robust economic recovery, starting from the first half of 2010, the international luxury goods giant entered the frenzied expansion, significant growth in sales of luxury goods, luxury style great comeback momentum. The first out of recession emerging market economies of Europe and the United States market, gradually replacing the traditional became the main force of luxury, luxury goods companies to operate physical stores, while also opening up the network to sell the new “battleground.”
Massive expansion – to sell not only brand
Luxury car maker Porsche has announced its new Cayenne sport utility vehicles than expected orders. Porsche CEO Point, said: “Nearly all market orders are shockingly high.” The French group Louis Vuitton Moet Hennessy (LVMH) is the world’s top luxury goods group sales, the company said 3 months by 2010, the production of Dom Perignon champagne and quality XO cognac sales “well above” last year.
Consulting firm Bain expects 2010 industry sales of luxury goods are up 4% to 158 billioneuros, higher than the company in October 2009 is expected to increase by 1%. “However, the financial turmoil sweeping through the world irrevocably changed the habits of consumers,” Bain said, “luxury goods companies need to prove the viability of its own and its products of high price is reasonable, alone ‘Shua Taipai’ has been not enough. ”
To regain market captured by the financial turmoil, first half of 2010, many international luxury goods company rapidly expand the scope of the new product after another.
The “Queen’s jewelry industry,” said the U.S. jeweler Tiffany & Co. (Tiffany) 7 announced a massive expansion strategy in the next 15 years to double the number of U.S. stores, is expected to home in Europe 27 the number of stores will double, and into the emerging business market. 2010, Tiffany plans to open 16 new stores, of which six will be located in the Americas, 8 in the Asia Pacific region, another two in Europe. Tiffany Chief Financial Officer Jim Fernandez said that while luxury retailers generally reduced spending in 2009, but Tiffany plans to expand sales accounted for 6-7% of capital expenditure.
In addition to Tiffany, the Prada (Prada), Louis Vuitton (Louis Vuitton), Armani (Armani), Gucci (Gucci), Vivienne Westwood (Vivienne Westwood), Kou Chi (Coach), Ferragamo (Ferragamo) and Burberry (Burberry) and other internationally renowned big-name luxury goods stores have also expanded to seize market share. Prada has also announced the resumption of the listing, in addition to listing in Milan, Italy, also planned listing in Hong Kong, China, for its depth of camp to enter the Mainland market.
Emerging markets – mostly Asian buyers
”Western is not on, Dongfang Liang.” Since the financial crisis struck two years ago, Europe and the United States economy has been mired mire become addicted. Post-crisis era, the emerging market economies to lead the global economic recovery, particularly in Asia up to the luxury market brings warmth to the entire industry.
London Business School in 2010, “Asian Forum”, the official consumer of luxury goods to Asia as an important subject for discussion, the College economists found, “not bad money” the Asians, on the luxury fever has reached a kind of the point of near paranoia. Merrill Lynch expects the overall global sales of luxury goods in 2010 will grow by 5%, the biggest driving force is the rapidly expanding Asian market.
McKinsey’s latest survey, Japan’s luxury market is gradually improving, professionals and consumers on luxury goods than the confidence of the industry increased in 2009. The survey of 15 luxury goods company executives, 80% of that company’s performance this year better than 2009, or even 33% of executives expect annual sales growth of 10% or more.JP Morgan Chase, head of the luxury industry Frau cover that, in addition to the Japanese luxury market, including China, India, Russia and the Middle East emerging markets, including emerging.
CB Richard Ellis recently issued the 2010 “retailglobalization, “the report said, in 2009, LVMH’s total revenue, the Asian market (excluding Japan) to 28% of the share of top spot, which contributed the majority of the Chinese market , LVMH in Europe, the United States, Japan and France, total sales revenues were 21%, 18%, 18% and 18% LVMH Asia has become the largest market in the world. CB Richard Ellis Asia Customer Development Division Director Simon Davies said a senior, for those who wish to expand the luxury retailer in the world, the emerging markets in Asia should be the first choice.
British Luxury handbag maker Mary 100 Li is expected, as the fall of 2010, the company store sales in Asia will triple. Italian fashion house Armani has announced that the company’s sales in 2009 from 1.62 billion euros in 2008 fell to 1.52 billion euros, down 6%, operating profit from 303 million euros in 2008 fell 28% strength, to 218 million euros, the company’s sales in emerging markets are jumped 32%.
Analysts pointed out that Asian consumption of luxury goods, “not blink”, to a certain extent, reflects the emerging economies, the first out of recession and indisputable fact, but it also exposes consumers of luxury goods in these areas is not yet mature consumer concept.
”Asians like luxury, largely to show off their rich.” Branding strategy expert Dara Chadha said that Asian consumers to buy luxury goods generally can be divided into two groups, one from Japan, South Korea and Western Asia the already high per capita income of people in the area, the other is from China, India and other developing countries, consumers. Long leather Ai children (Heirloom) designer Wu Boxin said: “Europe and the United States has entered the personal luxury goods market, consumption of the times, some very unique designer brand is becoming a new favorite, but the Asian market, consumers will only focus on the prominent eyes fashion big, do not buy right, just pick expensive. ”
Online shopping – buy the kind of happiness
Shopping brings happiness beyond the shopping itself. Keep up with fashion trends is the preferred destination for the luxury industry rules, the global luxury goods company has been additional stores have also begun to deep plowing online shopping market. Miao Miao (Miumiu), Ralph Lauren, and Tiffany, the majority of young people to discourage these gave its the luxury brands have begun to 5 discount prices in the high-end shopping site.
Japan’s membership online luxury retail platform – Charm Hui Wei Yibo, CEO of China Web site, said: “At present, more and more began to choose luxury brand new including e-commerce marketing, and high-end luxury consumption shows getting younger and younger. those who like online shopping, depending on the network as a way of life of urban youth to become the mainstream of luxury. ”
Because eliminating the middleman and expensive store costs, the net purchase luxury items more difficult to resist with the price advantage. Weiyi Bo said: “In the charm and benefits of products purchased from the physical store bought goods, the price is at least 30% cheaper.”
Italian fashion network vendors first – Rafael line to provide consumers with a range of designer style handbags, silk ties and shoes, specially introduced Gucci, Prada and Fendi (Fendi), and several other international brands, consumers can enjoy an average 40% lower than retail prices. Armani Group Executive Vice Luobotete Reeves said: “In the U.S., Armani stores, limited coverage, which has deprived us of many potential customers, online sales will greatly increase the sales of the radius.”