Is Luxury Still Loving The Store?

Try, experience, even pick up and return goods in a physical store, but place orders online.

Today, it has become a magic weapon for the luxury industry.

Many luxury brands have begun to shut down poor performing stores, but have expanded their business in some of the most prosperous businesses to enhance their experience.

"I have turned off a dozen stores."

A Swiss top watch brand China general manager said that in recent two years, the luxury market has been on the decline. Sales of the brand in China have dropped by about 10% this year, which has been a good achievement in the industry.

Faced with such a situation, the brand side chooses to turn off the poor performing stores to save costs.

At the same time, we should invest more in business shops and do more VIP activities to promote real sales.

Stores were originally a crucial part of luxury brands.

The count CEO, Mai Zhen Jie, said that the entity store is the space for the brand to communicate with customers, and its significance is not just sales.

Although luxury brands attach importance to the Internet, but for tens of thousands of high-end watches such as tens of thousands of watches, the task of the Internet is more communication and interaction, and no high-end watches or jewellery brands choose the electricity supplier.

However, the super high cost of physical stores also makes brands feel under pressure.

Recently, DTZ reveals that the first floor store rents of Shanghai Hang Lung Plaza and national gold center have reached the level of 100 yuan / square meter / day.

With the sharp decline of passenger flow, the physical stores that sell poorly are playing the game of burning money, and the cost of staff salaries is unavoidable.

In the past two years, the development of luxury brands has slowed down, and some of the existing stores have been closed.

Hendry, an executive at the watch retailer, said that under today's market conditions, many luxury brands' strategies are to streamline their stores, and to shut down those stores that are poor in location and difficult to make profits.

We should be more cautious when choosing new stores, and strive to "open a successful one".

For flagship stores, important stores to increase investment and enhance customer experience.

For top shopping centers, shop space is scarce.

Brands want to expand their area and show more active business status.

But not every brand can successfully take up the space upstairs or next door.

For those poorly managed shopping centers, the vacancy rate is rising.

The Internet has become the common choice of brands.

In 2014, the leading brand of luxury goods, Hermes and Chanel, opened their official WeChat account, and began to stabilize information about pushing brands and products.

Most of the luxury brands currently operating in China own their official WeChat public numbers, micro-blog and video can not be small.

Burberry is a pioneer of digital technology, and has been broadcasting live shows by various means. They have done more than once.

The use of luxury brands to the Internet is still dominated by marketing, and the attitude towards e-commerce is more cautious.

At present, the luxury brands involved in e-commerce are mainly cosmetic and light luxury brands.

These brands have lower unit price and more vivid market image, so they are suitable for Internet.

Estee Lauder, L'OREAL, CLARINS and other high-end cosmetic brands have set up online flagship stores on Tmall and other electronic business platforms.

At the same time, they will further enhance their store experience function, so that customers can have more space to try cosmetics.

Offline trial, online shopping, the functions of physical shops and online shops are further differentiated.

In some shopping centers in Shanghai, make-up brands not only occupy space limited counters on the first floor, but also offer more specialized stores in the lower two floors, providing skin care, make-up and other services that can not be provided on the Internet, more detailed and personalized.

This online and offline integration mode is increasingly being recognized by brands and shopping centers.

British luxury brand Burberry revealed that the brand is

In the flagship store of Kerry Center in Jingan, store sales will help customers place orders at Burberry's flagship store. Customers can also choose clothing colors and materials to a certain extent and complete some of them.

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Customers can choose to pick up the goods at the store. The brand will exempt the online sale of this part by up to 180 yuan.

Gu Ming, general manager of luxury e network, said that logistics is a key link of luxury electric business, in order to ensure the most important experience of luxury brands.

Electricity providers usually choose the best logistics providers, and freight rates are usually higher.

At present, there are many patterns in the layout of luxury brands on the Internet. Coach chose to build a self built e-commerce platform. Burberry opened an official flagship store on Tmall, which was once considered a different style.

Salvatore Ferragamo and Hugo Boss authorize the domestic e-commerce website to take the lead in online sales.

"The competition between the luxury electronic business platform and the physical shopping center is similar. It was born in the domestic e-commerce platform, hoping to win more high-end brand support, and give better conditions for luxury brands," said the summit of the small star group.

However, in the three or four tier cities, the situation is different.

As luxury prices turn cold, many brands have abandoned plans for further sinking, and shops have been frozen.

Those who dream of winning luxury brands to support their shopping centers can only try light luxury fast fashion brands.

For example, Wanda, their partners in the three or four tier cities are mainly local fashion brands in China, as well as the rapidly developing brands in Europe and America.

The total price of these brands is more close to the people, and can play a role of attracting popularity in the three or four tier cities.

A business entrepreneur who specializes in luxury handbags in Shanghai says that many of his customers come from cities unknown in Hunan and Jiangxi. They may not have many opportunities to go abroad, so they can buy goods without going out.