Li Jie Talks About The Market Differentiation Of Chinese Luxury Goods

As a global

The Chinese market for brand development engine has been showing signs of weakness this year, including news of the growth of many luxury companies including LVMH, Burberry, Prada (Prada) and Lafite.

However, Li Jie, visiting director of Shanghai Jiao Tong University's luxury brand research center and a visiting professor of Columbia University, who has long been engaged in luxury brand research, says, "rather than slowing the consumption of luxury goods in the Chinese market, it is better to say that the Chinese luxury market has been divided."

"While the growth of some luxury goods is slowing down, other brands of luxury goods have maintained a rapid growth in the Chinese market."

Li Jie, who is taking part in a luxury market activity in Zurich, Switzerland, told reporters that the slowdown in China's luxury market can not be generalized.

It is pointed out that under the circumstance of slowing economic growth in China, short-term irrational and extrinsic luxury consumption will be restrained.

At present, luxury brands that are more individualized, have cultural connotations and keep constant values and keep pace with the times can win the favor of Chinese high-end consumers.

The comprehensive luxury market will continue to show a long-term growth trend.

This differentiation is not only caused by the decline of economic growth, but also closely related to the change of consumers' consumption concept. The change of economic environment only accelerates the differentiation.

"Luxury brands have always been stratified and graded from entry-level, mainstream to dignified and top-ranking. Different levels of luxury goods have different consumer groups, and their own development strategies and value pursuit also differ."

Li Jie believes that as a top luxury brand, it will not be produced in large quantities because of short-term demand expansion, nor will it change the global strategy because of the increasing demand of a particular market.

Li Jie cited examples such as Swatch's (Swatch)'s table, Hermes, and Gaggenau, "although a few years ago,

(LV) it is a symbol of luxury in China, but more and more people are starting to chase Hermes. "

"If we pay attention to the consumption trend of the high-end consumers, we will find that the external conspicuous consumption is turning to the low-key luxury consumption, and the group consumption of homomorphic consumption is changing to the niche personalized consumption. This will undoubtedly increase the difficulty of brand projection to different levels of customers for the four luxury brands."

Li Jie said that some luxury brands have been aware of this change, such as LV has also launched a custom service in China.

Li Jie also mentioned a limited Chinese calendar published by Po Po in early September in Lake Kunming, Zurich: "it combines the twelve Chinese zodiac and heavenly stems and Earthly Branches in modern timepieces."

In addition to the above changes in luxury brands, Li Jie believes that China's luxury market will develop from a simple external dress to a comprehensive direction, including luxury goods such as home, which still have considerable market space in China.

"The fifty thousand or sixty thousand yuan coffee machine and twenty thousand cups of coffee cups cupboard may be the next requirement for Chinese high-end people to enjoy their homes."

Because of this, Giorgio Armani (Giorgio Armani) brand has expanded to restaurants, food, home and Top Class Hotel in recent years.