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The following article was published in our article directory on September 7, 2010.
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Financial Risis Changed the Concept of Luxury Consumption

Article Category: Business Management

Author Name: xia zihui

2009, with lackluster compared to the first two quarters, sales growth in the European luxury brands in general have reached the 2 digit. Some analysts believe, that yes After the first two years of financial crisis, consumers repressed desire to buy luxury goods of a pandemic, Er Qian Jing in the end is not yet clear how.

This growth in sales for luxury phenomenon, and the other interpretation is, in addition to other ultra-rich high-end consumer groups, the power of the general public not to be overlooked - this is the brand strategy. Many brands have been or are about to launch low-cost series more accessible, the so-called "affordableluxury". Brands were from lower social status, lower-profile approach, the development of space is quite huge. This is a new definition of luxury.

In fact, the new "luxury" market has already matured, because many brands are already beginning to do it. Such as Coach, KateSpade this affordableluxurybrands, now the trend has become a strong brand. They play the value card is a "classic, high-quality yet still fashionable." Another example AlexanderWang, 3.1PhillipLim other upstart designer brands, in addition to their Duorenyanqiu bold, innovative design, the veteran designer than those lower pricing is essential to the success of these brands one.

In contrast, those who are more contradictions in the traditional luxury brands. They have to maintain their status, they do not want to lose in a price war on those affordableluxurybrands. Fendi's CEOMichaelBurke said, the market increasingly clear differentiation, or choose an 'entry price', or to maintain a real luxury, compromise is the most difficult to do. As a leader in the traditional old, MichaelBurke Yoshimasa words: "luxury of democracy is by no means a product catalog." The implication, luxury high above the position and shape to the consumer will not be deflected. Of course, MichaelBurke admits, must be "resolutely uphold the form of a premium" and "price war in battling" to select one.

For consumers, if used to buy luxury goods in the "superior in merit to pick the best" of a process, then this action is now likely to become a "selected in the second-best better." From the customer's spending habits, or that the consumer objective, also produced a new definition for luxury.

Undeniably, the years before 2008 is the era of luxury overflowing, while the economic downturn is greatly limited purchasing power. Once the "impulsebuying" low tide, and reason to become a new consumer shopping habits. Consumers to buy the traditional focus from high-end luxury brand shift to a more affordable "new luxury" - that is, looks like a "luxury", in fact, is not a single luxury goods. For example, the major second-tier brand launched by the Deputy card - they came with the main line of the background of the same single product, but a lot of price difference. Consumers seem to spend less money on to a master's work (is it really from the hand of master to do the discussion here temporarily). Expensive compared with the main line of luxury goods, high cost second-line to become beneficiaries under the crisis, this is likely will continue.

The impact of economic crisis, the promotion Sale of goods and fast fashion brand become the main consumer target. And the occasional luxury purchase, target those who are locked in a classic iconic products. All year round such as major brands of ItBag. No obvious seasonal presence of single products can often longer, and those stylish showpiece is rarely cares - they only favor the rich and big stars. Therefore, high quality, classical, easy with the product sales instead of climbing, Gucci Group, said President and Chief CEORobertPolet for luxury brands, these iconic products is very competitive.

Fendi's CEOMichaelBurke also noted that sales of luxury goods is closely related with the stock market. Financial crisis, European and Japanese market is still strong, the value of 50 000 -10 million euros a fur sales continues unabated. This year, hot leather of the most expensive brand Peekaboo series, still maintained a long waitinglist. "In the luxury goods industry, we do not short-term business." MichaelBurke added.

What the traditional luxury brands go from here? Sales in the first half after the release, Gucci Group owner PPR's Chairman and Chief CEOFranois-HenriPinault said, Gucci's products will gradually paragraph from the logo of "liberating", "This is a concept for the luxury of adjustment and change , although it may be only minor changes, but the more sophisticated and elegant. "Franois-HenriPinault said.

For luxury brand products through its own changes to adjust the concept of luxury consumers, nothing less than a luxury development of the industry is conducive to positive action, especially for luxury goods market is still in the development of China, Russia and some Middle East countries and Introduction. In the luxury market has not matured, a large part of consumers will be luxury models with the logo "link" to the neglect of the design, material, process the value. Well-known strategy consultants AgendaInc.'s Founder LucianJames also reminded luxury brand, must have a stronger element to represent the brand value, not simply to arouse consumer desire to buy the moment.

Because the future needs of the people, will no longer be mass-produced, monotonous luxury, but the significance of a sense of luxury brands, and even rise to the level of spiritual satisfaction. That is why today people travel, the arts, entertainment, spiritual, luxury consumption is gradually replaced by the fashion, luxury leather goods and other traditional material consumption. Follow the contemporary way of life is a luxury to go the next step in the direction.

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