Pierre Denis: Will China'S Luxury Market Boom Or Slump In The Future?

Recently, the CEO Pierre Denis of Jimmy Choo, a luxury shoe brand in Britain, described the blueprint for the booming Asian economy in a Chinese luxury market report entitled "future China: prosperity or depression". Of course, the complexity of the market in the region can not be ignored.

Denis said in its report that although China is currently facing problems such as exchange rate fluctuations and growth slowdown, it is undeniable that its speed of development in the past more than 20 years is astonishing.

In the past, luxury consumption in China was exclusively exclusive to men, and now almost half of the luxuries are for women.

And there is room for improvement in this figure, because the luxury of global 2/3 is

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Luxury consumption in China is no longer confined to China, and there is an upsurge of overseas consumption.

According to the report, the number of Chinese tourists is expected to increase to 242 million by 2024.

In China, luxury brand stores are concentrated in the city center, with huge traffic volume and strong marketing effect.

Compared with general merchandise stores, China's luxury industry is more inclined to set up independent retail stores.

At present, the pace of development of China's shopping centers is slowing down, and retailers are beginning to consider upgrading the existing store space: Taking the exquisite route to meet the needs of the market.

Commercial real estate has been shrinking in recent years, but Chinese interest in shopping malls has not diminished.

If you observe the urban structure carefully, you will find that the speed of China's urban development is astonishing compared with that of ten years ago, largely determined by the urbanization process in rural areas.

Will electricity providers work in China?

To seek the balance of success in these opportunities, Jimmy Choo has invested heavily in digital strategy.

Globalization and electricity suppliers are the biggest selling channels for brands (5% and 6% respectively).

At present, Jimmy Choo has opened 18 stores in 11 main cities in China.

Denis points out that 50% of China's GDP is created by its 20 largest cities, so the brand's future development potential in China is endless.

China's sales account for 15% of Jimmy Cho's global sales.

He believes that according to the standards of the luxury goods industry, the growth potential of the Chinese market is doubling, and it should be able to reach 1/3 of the total sales.

Besides,

The rapid rise of brand awareness in China also reflects the growth of China's luxury market: in 2012, the brand ranked thirteenth in the list of China's top luxury shoe rankings, and only two years later, it has climbed to the top of the list in 2014.

Increasing brand awareness stems from celebrity effects.

In 2012, Jimmy Choo acquired Chinese Direct stores from franchisees.

At that time, the initial strategy of the company was to popularize the publicity effect of red carpet stars to the East, but in fact, it was much more complicated than the invitation of actress Angelina Jolie (Angelina Jolie) to participate in the Beijing event banquet.

Denis said: "only 34 overseas films were released in China in that year, which means that international stars have little publicity for Chinese consumers."

The timely adjustment of brand strategy and the opening of Chinese new generation stars proved their popularity effect very strong afterwards.

With China's success stories, brands also use local strategies in Korea.

Faced with the challenge, Denis believes that the key cultural factors are crucial for further expansion of China's luxury market: "it is predicted that the Chinese economy is expected to grow by 6.5% this year, the fastest rate in all countries in the world."

The brand pays close attention to the rapid development of China's private economy and the growing ranks of the middle class. Besides, the traditional Chinese gift culture also meets the needs of the luxury industry.

In the report, Denis briefed participants on the three major social changes in China's consumer market, which are conducive to the development of Jimmy Choo:

According to the report, in the largest market of brands, the average age of Jimmy Choo consumers in the United States is about 45 years old, while in China, the average age of brand consumers is 25 years old, ~35, which means larger digital marketing space.

But at present, Jimmy Choo's digital warfare in China is only for marketing and brand awareness publicity, and has not yet launched e-commerce business in China.

The primary task of brand in China is to open up the market.

But CEO said that it will be possible to implement e-commerce business in China in the future. After all, China occupies a leading position in the field of digitalization.