It Is Said That The Business Of Light Luxury Brands Is Not Good Enough. Is That True?

"Affordable Luxury" appeared in the form of fixed phrases only for a few years. The concept of "light luxury" was rapidly popularized by Kate Spade, Michael Kors and Agnes.b.

In 2008, the financial crisis hit Europe and the United States.

As well as China's luxury consumption began to flourish and divide in those years, these brands quickly conquered the city with price advantage.

The most obvious is Michael Kors.

Since its listing in 2011, Michael Kors has launched a worldwide expansion of high speed stores, which has almost doubled the number of stores in 2011, plus the strategy of the outlets at that time, offering discount stores in various shopping villages, selling special contributions, further reducing the entry threshold for purchase, and the way you can always see the shadow of a luxury brand handbag on its handbag, but the price is only 1/3 of the latter.

The above strategies are very exciting.

Sales.

In 2012, the gross profit of the brand increased by 73.4%.

But now you pay more attention to Michael Kors, there are not many positive news. You can find the answer from the chart above.

Coupled with the completion of the Kate Spade's Kate Spade Saturday in 2015, gross profit growth dropped from 46% in 2012 to 10.8% in 2014.

Because of the representativeness of Michael Kors and Kate Spade, we sometimes hear a question: is the luxury brand not enough?

The answer is probably negative.

I asked a Chinese executive of a luxury public relations firm about the matter. He thought the brand at the middle price still had vast space in the global market.

1000 to thousands of handbags and fashion conforms to the consumption level of most city companies, and that is why more and more independent designer brands, high street brands, and more commercial fashion brands seeking the middle price market.

When we went back to 2011, we wondered why the "light luxury" category could quickly open the market, which may be related to the global economic downturn and the freshness of this category to customers.

However, due to the further slowdown of the luxury market, there is not much recovery in Europe and the United States, and China, which acted as an emerging market player, has fallen into a downturn or even a negative growth.

But even in China, the luxury environment is still very popular with shopping centers.

Beijing's great joy city has recently adjusted its brand portfolio, which is still dominated by medium priced brands, but they become Korean jewelry brand J.ESTINA, which is due to the sun's descendants, and French fashion brands such as Sandro and maje.

More fairly, Michael Kors and Kate Spade now face more problems from their own strategies.

First of all, the stores. Too many outlets can make products too accessible.

For high-end consumer goods, scarcity and aura will affect buyers' thirst for them, the less they want, the more they want to get.

It's not like being high above yourself, but it doesn't mean that too many discount stores don't bring risks - the immediate consequences are already there.

The second is products.

Recently, friends circle has been popular with a piece of "Wen Wen", saying that Michael Kors was folded in the luxury sector Guo Jingming because it copied the money very well.

In fact, I doubt the accuracy of this statement, not that plagiarism is right, but for Michael Kors's targeted customer groups, this is exactly the selling point.

If we only discuss income and do not discuss law and morality, "copying" is a shortcut to make quick money.

However, in addition to the bag bags like Prada and Valentino, can you think of any other bags now? Michael Kors, unfortunately, the founder of Michael Kors also showed talent during Celine as the creative director.

For the fashion industry, without excellent creativity, everything is difficult to sustain.