Analysis Of The Global Strategic Survival Rule Of Luxury Brands In Fashion Kingdom

In any place where stars gather, they can not escape the contests of bright and dim fashion -- the fashion kingdom is no exception.

Consumers are king, and big cards are inevitably "contending".

If you think you can rely on a long history, you can make one.

It is wrong to eat enough "old books".

This industry, like its continuous innovations, is always the same theme.

In the fashion kingdom, almost every day there will be new changes, small to the release of a piece of work, as large as the birth or fall of a brand.

Recently, the "surprise" of Burberry is not only last week, but it won hundreds of millions of dollars in compensation for the lawsuit against China's counterfeiting its brand website last week. The old British brand has begun celebrating its performance of one billion and thirty million pounds in the past six months, rising by 17.1% over the same period, and becoming one of the top brands in Prada, Gucci and LouisVuittton.

"From the day of shaping the luxury industry, this kind of panic fighting brand struggle has not stopped."

Turning to the trend of Burberry, Qu Yong, managing director of Hefeng Management Consulting Co., Ltd. told reporters that although it seems to be a performance change of a luxury Brand Company, behind it, the fashion kingdom is changing.

In the view of Qu Yong, if Prada, which has only its own official website until 2007, is the reference point. The most flexible Burberry in new media marketing is a breakthrough point on the Internet.

"All the way from e-commerce to street shooting website action frequency and its (Burberry) crazy long performance has nothing to do with."

Qu Yong said.

At the moment, the old traditional business model is once again constrained and challenged, and the new media impact of the huge base of China's Internet users brings the rule of survival to "old" rather than "new" numbers.

The Internet is a battleground.

Throughout the luxury industry, although the strongest vitality of the fashion comes from its continuous development, many brand enterprises are still in the traditional way of management.

Today, the dazed luxury group finally has a new dawn: redefining traditional luxury goods with the Internet.

Among many luxury goods, Burberry began to use digital technology earlier.

Starting from the photo sharing in 2009, their performance in digital marketing has been remarkable.

From digital interactive propaganda to live broadcast of T fashion show, and then to the global "retail theater" environment and various innovative social media activities created by the latest technology, they are all encompassing.

Looking at Burberry global business, in all the fast growing markets from China, India, Turkey and Latin America, the average age of high net worth customers (purchasing power customers) is 15~20 lower than that of developed markets. For these young customers, they prefer digital technology, intelligent equipment and dependence.

"Digital technology is their common language."

Burberry global CEO AngelaAhrendts said: "for a brand, if these customers are regarded as target customers, then we must use their language."

In fact, the practice of Burberry is quite different from the traditional luxury brand's understanding of the Internet. In the traditional concept, this vast mass of information dissemination and the pursuit of luxury by luxury goods are incompatible with fire and water, or, in a broader sense, the contradiction between high technology and handicraft.

However, the development of the industry seems to be challenging these traditional concepts.

Talking about the relationship between the future of the Internet and luxury goods, Qian Jie, a senior analyst in the industry, said: "luxury brands are afraid of the Internet at first, but the Internet will not disappear. It will only combine with our lives more closely."

A person in charge of LVMH, Hennessy, Lewis, Vuitton and Dior, also told reporters that in China's emerging high growth markets, luxury brands' market strategies are different from those in other markets and pay more attention to the interactive value of new media.

Now, Burberry, who has tasted the sweetness of the Internet, is more courageously moving forward.

Up to now, only in the construction of social media, the official website of Burberry has appeared in 45 countries in 6 languages. The number of windbreaker pictures displayed on its official website has exceeded 3 million 700 thousand. On Facebook, Burberry already has about 10000000 fans and fans on Twitter have reached 700 thousand; in China, Burberry has opened a brand home page on Sina micro-blog, Youku, watercress and happy websites, and the click volume can not be underestimated.

Luxury brand still "love toss"

In the fashion kingdom, there are still a large number of luxury groups sticking to their traditional ideas.

Among them, if the regional brand and their respective methods are used to classify the global luxury brands into categories, French brands such as Chanel and Dior may be responsible for elegance; American brands such as MarcJacobs and AnnaSui are responsible for commercialization; luxury brands in Italy are more like "troublemakers" - they have been rather twists and turns in the way of brand growth, and the storm is continuous, which is a typical "love toss."

While Burberry is pushing the Internet, Italy brand Gucci "criticism" continues.

In addition to being outspoken by Italy designer RobertoCavalli before his show, he accused Gucci of "completely" copying its design two years ago and last season. Since 2009, the relationship between Gucci and Guess's two brands has been pending.

In addition, Gucci was also exposed to sweatshops at the end of 2011.

"The troubles of Gucci actually expose many problems of traditional luxury group in managing enterprise strategy, and these old school practices may need to be re examined today."

Chen Liang, a senior brand manager, said the new concept of business management needs to be embedded in traditional family luxury brands.

Looking back at the history of the industry, in 1990s, in the eyes of many groups, Prada became one of the major shareholders of Gucci group in 1998.

Prada, who won the title of the world's first luxury group, failed to grasp the opportunity.

"At that time, the Prada male Bertelli came out with a set of" paternalistic management ", which was very fussy about the internal iron fist and Gucci. Finally, she also denounced Gucci's plagiarism of the Miuccia design of Prada female head, and sold all the shares she owned to the LVMH group for this reason.

Chen Liang said frankly, "no matter it is out of reason or anger, Prada will hand over Gucci to each other and basically say goodbye to the first tier of luxury group."

Today, LVMH group has become "the world's first". Through a series of capital operation, brand acquisition and the establishment of retail network, far behind its rivals, its annual turnover is 3 times that of Switzerland's second largest group.

By contrast, Prada was finally successful in the first time last year, and listed on the other side of the globe is Hongkong, China.

"Prada has recognized that the Asian market is a battleground for growth.

Prada listed in Hong Kong is also optimistic about the prospects for the development of the Asian market.

Qian Ying, analyst at UBS Securities, told reporters.

Qian Ying also admitted that the reality before Prada is that Chinese luxury consumers are on average 15 years younger than European luxury consumers, 25 years younger than the average American level. These active buyers are not old men who can not surf the Internet, but they are heavy users of the Internet.

"If you want to reach the target consumer group in China, the luxury brand is really going back to learn Burberry."

Qian Ying said.