In many people’s minds, “Made in China” and the high-end clothing and fashion is always some distance.
But now, with the first lady Peng Liyuan named “Vanity Fair Best Dressed”, all of a sudden make Chinese local brands as “tall on the” image went public. After that,
“Exceptional”, “Dayang Creation”, “down”, “Vivienne Tam” …… As media reports, these low-end brands produced in China was beginning for the people to know.
But we are familiar with those international big compared to these domestic brands still a bit “immature”, whether or influence brand value still has some gaps.
So, what difference our high-end brand in the where? “Tall” and whether it can become a path to China’s garment industry restructuring?
“90” in the “high end”
Three pieces of clothing per outlet in the world, there is one from China.
As China’s first gain a foothold in the export market, industry, garment production on the scale of decades of progress for all to see. Statistics show that
China’s textile and apparel exports in 1990 was $ 1.689 billion, to 2010 reached 206.738 billion U.S. dollars, an increase of one hundred and twenty years between times. At the same time, China’s clothing market share in the international market has gradually improved since the beginning of 2010, the world’s textile and apparel exports from our country has more than one-third. Difficult to see from these figures, China is the world’s largest textile and apparel producer and exporter.
However, although the point of view of size, garment exports to China enough “big”, but if you go to consider the brand value, profits and other dimensions, China’s clothing but not enough “strong.” Facing the huge export scale, China’s garment industry has been said he was “no money”, especially since the economic crisis, as demand continued to be sluggish, before Chinese garment simple extension of the extensive expansion mode has been seriously challenged, inventory crisis continues, influx of a large number of enterprises have closed shop, clothing the 2013 called “the history of the most difficult years.” And into 2014, so the cold wave continues.
The face of this grim situation, the garment industry several years ago have been saying, “transformation”, “build their own brand” has become the goal of many Chinese garment enterprises. Thus, in the 1990s, as China’s young designers began to emerge, the gradual emergence of a number of high-end brands. And internationally, LV, Chanel these frequently have a hundred years of history, “big”, these domestic brands many of which are headed by young designers, but is not a long time to develop, a lot of brands or even just “90”, but achieved good results.
Peng Liyuan visit to Guangzhou custom clothing brand “Exceptions Exception”, is the designer Mark and Mao Jihong founded in 1996. An “exceptional” at least 4,000 yuan from wool coat, a pair of pants or a scarf will have 2,000 yuan. Distinguish from the price only, “exceptional” and can not be considered as a “mass consumer goods.”
“Exceptional” founder Mao Jihong has repeatedly said that “exceptional” success is different.
Moreover, in addition to the brand concept, but in the specific business operations, did the designers have done marketing Mao Jihong chosen a “reverse traditional and mainstream moving” slow thermal growth line. In the end of 2004, the “Exceptions” started to reduce the number of shop, while the corresponding internal contraction of the market, the center of gravity away from the pursuit of the shop number and size effects. At the same time, doubling the price of the clothes. Thus, the 100 stores that year to become today’s 60 fully take the high road.
Also known as “China’s top luxury brands” –NE · TIGER (Siberian tiger) is “90.” 1992, designer Zhang Zhifeng founded the brand, early in the design and production of fur origin, and later launched a tuxedo, Chinese-style wedding dress and wedding and other products, and introduced advanced custom costumes.
The so-called “China’s domestic first luxury brand” and “Yang Creation” (Trands) is through such “transition” from the. In 1979, the company’s founder Technologies for a “small workshop” start a business from the Dalian Economic Development Zone, at first, and many Chinese garment enterprises, they do some simple processing export products. After Technologies for the business is getting better, upgrade equipment, expand the product line, the more orders received more. When in 1995, and finally founded his own brand – Creation.
However, with the 2008 financial crisis sweeping the globe, Dayang Creation net profit 50.53% negative growth, OEM processing mode has been unprofitable. At this point, Technologies for know, to have the transition moments, Chinese garment enterprises must have their own brand. From the beginning of the year, Yang Creation began to take its own brand of high-end line.
Now, a Trands suit men’s top custom high price to 88,000 yuan, their level has not inferior to a world-class brand. Our national leaders, Bill Gates, Warren Buffett have become their customers. Now and then another founded Caiman wear and YOUSOKU electrical products sold other second-tier brands. According to “Dayang Creation,” the report shows that, as of the first half of 2014, the company achieved operating income of 348 million yuan, an increase of 1.21%.
“Like ‘exception’ this well-known brand is the Chinese custom clothing internationalization a very good start, custom designer brand in China over the next five years there will be a good trend.”
Chinese luxury goods research institutions, pay-yu, deputy director of the Research Center for Foreign Trade University of luxury in the “new leader” interview, said that China’s consumer market younger, inclusive of that light from a number of international luxury brand sold well in China can be seen. So, given these young brand many opportunities.
Closed shop big cold wave
When a public recreation, low-end clothing brand suffered massive losses when the “high end” brand mostly maintained a good momentum of growth, which makes a lot of Chinese garment enterprises to see the development of space. But when they began to busy restructuring the high-end, but found that the high-end market does not look so beautiful.
According to media reports, a number of international brands including Cartier, Louis Vuitton (LV), GUCCI, including’re facing an unprecedented dilemma. Many performance brand in China plummeted, even a collective case have closed shop out of business.
From the world’s first luxury giant LVMH (Moet Hennessy Louis Vuitton Group) announced second quarter earnings, the actual sale of the group’s second quarter growth rate of only 1.3%. Among them, the stylish leather sector LV-owned sales year on year growth of 10.7% for the first quarter fell 75%.
In fact, this is not a luxury in the first year suffered cold. After a 2011 sales volume growth of 30%, the luxury sales plummeted in 2012 by 7%. Subsequently, such as Giorgio Armani, Dolce & Gabbana and Patek Philippe and Boucheron brands in China have closed a portion of the store, while including GUCCI etc., have begun to slow or even big suspended expansion plans.
According to Bain statistics, China’s luxury market size of 116 billion yuan in 2013, up by only about 2%. 2013 Chinese people spending on luxury goods fell by 15%. 2014 Spring Festival period, this is the peak of luxury consumption, can Spring Festival this year, the domestic consumption of luxury goods total of only $ 350 million, compared to $ 830 million last year, a decrease of 57.8%, also the lowest point in the history of the creation of a decade.
Apart from international big, China’s domestic high-end brands are also among this cold “cold.” 1994 was born in Hong Kong clothing brand “the beach”, has just suffered a decline in performance of baptism. The main fight with Chinese elements of the brand, the main business cheongsam, Chinese dress and other high-end clothing, general cheongsam price at 7,000 yuan, an inlay of some fur dress price is more than million. And ordinary wool coat, prices are around two to three million. Only the price, do not lose international big.
1997 “on the beach” is taking over the Richemont Group. Richemont with Cartier, Dunhill, Piaget, Montblanc and a number of luxury brands reposition the same business model of the “beach” brand. Subsequent years, “the beach” traveled the world, in New York, Tokyo, Paris, Madrid, London has opened a facade. But in 2012, “the beach” global store suddenly closed seven, remaining 42. One year, the rate of up to 14% off store
In the industry view, these luxury brand after another closed shop, where “corruption” because of course, can not be ignored. But it is worth noting that the brand over the pursuit of profit is the root cause. Such as LVMH, Richemont, Dior net increase in the number of stores in 2011 to expand rapidly, compared to 3-4 times more than the increase in 2010 were not only pushed up the cost, but also contrary to the high-end brand “top niche customized brand” concept, So will the subsequent shrinkage phenomenon.
“China’s high-end brands of various failures, mainly due to the decline in performance is the positioning is not clear.” Fu Yu said that although the domestic high-end brands of product quality, overall VI, shop display, etc. have done high-end, but the performance is still general. The main factor is because brand awareness is the need of time precipitation. This is not wishful self-positioning the brand as the core, but in the consumer’s identity is positioned as the core.
Our “big” How far
“‘Luxury’ is the product of nearly a hundred years of history precipitation integrated marketing it experienced a history of baptism, the classic story of the brand, the consumer’s identity and heritage value of the precipitation under.” Fu Yu said, “luxury” is more representative of the a small minority of life is to follow the masses, the real spirit of luxury consumption is a taste to follow, not blind price luxury. To create a scarcity of luxury and mystery, rigorous attitude, given than the “high-end” and “expensive” deeper spiritual values, and therefore can not say that things are expensive luxuries.
“Ms. Chanel once famously said: Some people think luxury is the opposite of poverty, in fact it is not, luxury is the opposite of vulgarity” Yu Fu luxury and expensive when it comes to the difference between say, precisely because there is more of a luxury culture, so many of them need to go through several decades of integrated marketing to success of brand value, not a day for two days can be replicated.
Assistant Professor of Fudan University School of Management and Marketing Department LU Xiao stressed that the birth and creation of luxury brands need strong culture; superb, modern manufacturing processes; values and a strong brand identity in the market, world-class design talent and class luxury management personnel.
So visible, to create a luxury brand is a very high threshold. “Able to put the majority of manufacturers and brand competition outside the door to block one of the reasons this is a luxury brand, even if temporarily unable to profit in the market and still be able to exist. Want to know that this has exquisite products and strong positioning of the brand, not a day will be able to build, which makes the brand itself has a very high value. “Lu Xiao said.
“But that does not mean that high-priced product is a luxury.” With the price of many domestic brands to differentiate brand positioning behavior, pay Yu said that this is a short-sighted approach. “A lot of domestic and international first-tier luxury brand pricing of the cards priced similar, but many consumers would rather spend a little money to buy the cards international line will not spend money to buy the domestic high-end brands.” For now, China most companies expect quick returns, are unwilling to invest the money needed to build a brand, time and effort. However, it takes the luxury and cultural heritage.
“More and more consumers begin to follow quality, so blindly chasing high-priced brand-building ignore, ignore product quality are short-sighted, not long-term.” Fu Yu said that as more consumers to enhance our position in the consumer goods, high prices will not become the standard segment of the market, lifestyle segmentation is king. In short, all with the purpose of profit-mode high-end line will eventually be in serious difficulties, to do a real high-end, not only takes time, but also need to invest a lot of market building itself is not only a simple product upgrade.
Therefore, the establishment of high-end brands is not an overnight thing, in addition to the brand, but also requires a lot of financial support, professional operation of the market, as well as baptism and market validation time of many factors. In these areas there is clearly a big gap between domestic brands.
“Domestic luxury” path selection
“With our rapid economic growth, China’s consumption of luxury goods in the world.” Speaking of luxury goods in China’s future development of the market, pay Yu was very optimistic, she said, “We do not lack quality products, we give European and American big OEM for many years, cheap production cost, high-quality products are our core strengths. ”
Therefore, pay Yu suggested: “We want to learn from international business mode of operation, make more international luxury goods group to enter China,
And learn their way of doing business, and now the world smaller, advanced management experience, good business model spread quickly, many returnees, including the field of foreign trade in the industry and has worked with many internationally renowned Institute, trained many outstanding talent. ”
Facing a lot of walking, “Chinese style” luxury brand style, LU Xiao believes that to build China’s own luxury brand elements should be passed along to China.
In fact, when it comes to the status quo and the luxury industry in China, many people believe that China’s high-end fashion brand is still too pursuit of “international effect.” Many domestic brands to foreign blindly par from the name, to product design to publicity is very westernized. As a result, they found no external recognition by the international market, also lost their domestic consumers.
“The luxury industry itself is a values-based culture industry. Yet in reality, some Chinese local brands to cater to Western tastes and give up their own cultural traditions and roots of the final result may be imitate others.” Marketing Department of Fudan University School of Management Assistant Professor Lu Xiao luxury marketing research has been focused on. In his view, the Chinese cultural elements is desirable and respected Chinese luxury brand building strong brand foundation and roots of their culture. Only in excellent traditional Chinese culture foundation, combined with new elements of modern lifestyle and providing top-quality, in order to dilute and get rid of cheap, “Made in China” image quality times, in the process of establishing a luxury brand in the open world of innovation.
“China to accept faster than any other country in the world for international stuff, such as: In Japan Korea people to find local brands more absolute advantage in China, we are more tolerant more cultural products, more countries brand.” Fu Yu also said that she believes that if China more internationally successful brands draw mode,
Combined with our own production advantages, industrious advantage, China will produce more excellent brand.
When talking about China’s high-end brand development path, LU Xiao has written, said: “For the Chinese luxury brand, whether it is high-end development or want to re-create a new brand, product quality is superb Chinese brands started simply.” While “Once you have with a strong culture based brands and superb manufacturing process, the luxury brand is just the first step towards success, it must also have a highly recognized brand values to its market, only to survive space for Chinese luxury brand, is to make its own brand values to get Chinese consumers’ recognition, and strive to make their brands and products to Chinese consumers become part of life. “
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