Yang Xun, president of Kochi China: The domestic luxury market "changes to the machine" and urgently needs local solution to the problem

The economy was weak, but the luxury industry rose against the trend. The increase in performance and rising prices, netizens teased: "You think poverty, maybe only you are poor."

However, in terms of international brands, in addition to the objective factors of the epidemic, the changes of consumer groups, the richness of consumer channels, and the rise of the national tide forces have made it a short period of time in the development of the domestic market.

Chinese consumers have a high enthusiasm and acuity of fashion, and they also pay more attention to personalized expression. They have higher requirements for the connotation and product quality of the brand, and tend to prove their values ​​through shopping habits, support their beliefs and their beliefs Consistent brand. And organic, how to seek a larger market in mature competitions has become one of the test questions for international luxury companies to develop in China.

In the face of this, as a modern luxury lifestyle brand company that has been cultivating the Chinese market for more than ten years, what kind of breaking the way does Taipi Siqi have? A few days ago, Yang Xun, president and CEO of the Asia Pacific region of Taipisqi Group, shared his problem -solving ideas in the face of the new environment of the domestic market in an exclusive interview with Blue Whale Finance reporters.

The world's largest luxury "soil", which requires localization of "fine cultivation"

The sluggish market environment does not reduce the growth trend of the luxury goods industry. Not long ago, LVMH Group, Kaiyun Group, Hermes, Taipei Siqi and other luxury companies such as the 2022 FY2022 and annual financial reports have been released, and they have achieved double -digit growth in income.

However, this momentum is a bit "cold" in the Chinese market. It is reported that in the first half of 2022, LVMH Group's revenue in China has declined, and Kaiyun Group's revenue in the Asia -Pacific market has also fallen by 8%. In addition, COACH's parent company Tapeisqi Group's sales in the Chinese market in the fourth quarter of fiscal year in the 2022 fiscal year fell by more than 30%.

Behind this, in addition to the impact of the spring epidemic, it is also related to the rise of domestic trends in recent years. Some industry data show that the national tide brand represented by "gold" products is being loved by more and more young consumers, and it is also occupying some market share.

Nevertheless, during this period, luxury brands continue to increase China. For example, the LVMH Group has a new position of the North Asian market and is responsible for the two markets of China and South Korea; Kaiyun Group also set up a new post of fashion business in Greater China for its brand Gucci. Establish a China Tourism Retail Headquarters to coordinate the tourism retail business in China.

It can be seen that although some international brands are short -term, the overall domestic luxury market cake is still huge. The "2021 China Luxury Market Report" released by the consulting agency Bain shows that the size of the Chinese personal luxury market in 2021 has doubled from 2019, and it is expected to reach nearly 73.6 billion US dollars (about RMB 471 billion). The year became the world's largest luxury market.

However, when international companies and domestic brands have met here, luxury tracks have become more crowded. How to seek greater growth in a limited competition has become a need to solve the test of many members.

From the perspective of the industry, as young groups such as post -90s and post -00s become the main consumer force, the supply and demand relationship of domestic markets is gradually changing, and consumers are centered on its centered direction. Facing the "elusive" new generation, the domestic luxury company's operations can no longer be "enjoyed" as before, and they need to take the initiative to change.

"Although they are in this fertile soil, the extensive model of simple sales in the past is no longer applicable. In the new environment, international luxury brands need to root up‘ localized and refined work. ”The above -mentioned industry insiders said.

How to understand "localization and refinement"? In response to this issue, Yang Xun, president and CEO of the Asia Pacific Region, the Asia -Pacific region of Taipi Siqi Group, was given by Yang Ye, president and CEO of China At this stage, Taipi Siqi's solution was answered.

Cooperative thinking solving "localization"

First of all, from the perspective of product design on the upstream of the luxury industry chain, it reflects the cultural connotation that luxury brands want to express to a certain extent. "Therefore, we have been actively seeking cooperation with local outstanding artistic talents to help Chinese creative design for international exchanges." Yang Xun said.

In Yang Xi's view, the enthusiasm of Chinese youth design talents on the trend of fashion and exploring dreams is amazing. This young and new force is an important driving force for the development of China's fashion industry. According to reports, since 2018, the group's brand Coach has continued to join hands with Chinese local artists and college students to empower Chinese fashion from the unique perspective of the younger generation of China. In addition, in 2021, and Donghua University jointly launched the "Guo Chao Chuangcheng" youth design talent training school -enterprise cooperation project. Contemporary Chinese youthful design forces' thinking and understanding of fashion and national tide.

International brands are not conflicting with the national tide. Yang Xun said that Taipi Siqi also looks forward to making more 'Chinese design forces' to the world stage through more exploration and cooperation and leading the global fashion.

In addition to the cooperation of talents, Taipi Siqi has also changed quietly in the choice of market entities: tourism and duty -free markets with Hainan Free Trade Port, and sinking orientation. The focus. In recent years, with the continuous development and improvement of the construction of Hainan Free Trade Port, the Hainan market has continued to release strong potential energy, booming development momentum and continuous optimized business environment attraction, inspiring international brands to move forward.

It also adopted a cooperation method. In April this year, Taipei Siqi signed a strategic cooperation agreement with the Hainan government, announcing that it officially established the Group's China Tourism Retail Headquarters in Hainan Free Trade Port, further expanding the layout of tourism retail business, and continued to increase Hainan Free Trade Port. According to Yang Yan, based on this cooperation, the group will further expand their business footprints in Hainan and actively build a local operating team. It will bring a variety of activities including innovation and promotion, public welfare charity, tourism consumption, etc. in Hainan. Develop layout.

It is worth noting that, while continuing to work hard in the Hainan market, Taipi Siqi has also changed the style of the luxury brand in the past to continue to settle in the front -line market, and began to set its sights on the sinking market and dig deep potential to "cooperate with local consumers to" cooperate with local consumers " "".

Offline store collective inspection, social, service, shopping and one, is an important brand building of luxury brands. Talking about the change of offline market selection, Jiang Xiaoxiao, director of CIC Burning Consulting, said that with the development of my country's economic development, the per capita disposable income continues to increase, and consumers in some second- and third -tier cities have higher income, while commuting, mortgage and work pressure are compared to Small, mastering the actual disposable income and daily consumption and entertainment time, there is huge consumption potential. Luxury brands have sinking into second -tier and third -tier cities to stimulate market demand, cultivate brand cognition, tap the emerging consumer groups, and lay a solid foundation for further development in the future.

According to Yang Yan, in 2008, the group's brand Coach took the lead in entering the Chinese market. So far, the three major brands of the group, Coach, Kate Spade and Stuart Weitzman have more than 350 stores in more than 80 cities across the country. By the end of 2022, the Group's plan will continue to open more than 30 stores in the first, second, fourth -tier cities.

However, Jiang Xiaoxiao also pointed out that consumption energy levels and consumption habits in second- and third -tier cities are different. How to conduct store selection, selection, store layout, and brand promotion will become new topics.

Digital tools carry "fine cultivation"

In fact, under the new retail format, the rise of domestic social media and live broadcast short videos have become an important bridge for deepening interaction with consumers and consumers. Therefore, international brands talk about localization, and it is almost inseparable from digital empowerment.

Even the luxury industry that used to be offline is difficult to escape its "change". Jiang Xiaoxiao pointed out that digitalization is gradually rewriting the luxury industry, and online channels have become important marketing channels. Thanks to China's good e -commerce culture and comprehensive e -commerce supply chain, the new crown epidemic has also accelerated the development process of luxury digitalization. Although luxury brands still use offline stores as the main brand construction and purchase conversion channels, they will have already been will have already been built and purchased. Many brand marketing activities have been transferred to online. According to the statistics of Burning Consultation, in 2016, only 8%of China ’s luxury transactions came from online channels, and this proportion rose to nearly 30%in 2021.

Looking at the future, as Chinese luxury consumers are gradually younger and digital business technology is constantly mature, luxury digitalization is the general trend, and the digital layout will become one of the important strategic directions for luxury brands.

To this end, Tai Pei Siqi also continues the local cooperation model, and has announced its strategy with Tencent Smart Retail to further promote the establishment and transformation of the group's digital capabilities, build a digital ecosystem, and empower the digital operation. It is understood that in the past six months, the two parties have continued to explore in the fields of WeClient's customer service system, WeChat mini -program expansion and upgrade, omnicocated marketing model exploration.

Yang Ye said that the Taipi Siqi Group is currently committed to upgrading the consumer care plan. By adhering to consumers -centered and digital strategies, continue to improve the omnicular experience, further deepen consumer interaction; and to conduct consumer symposiums, data science applications, etc. in major cities across the country, and promote scientific decision -making And improve efficiency to quickly respond to market demand. At the same time, we continuously enrich the digital journey, continue to improve the omnicular experience, and further deepen consumer interaction.

"Empowering employees grow into KOL, encourage consumers who love brands to become" grass -breeders ", and it is also an empowerment project that the company has vigorously carried out in recent years." According to Yang Xun, in addition to Tencent, Tapeisqi has also been with each other with Tencent. Tmall, JD.com and other ecological partners have reached cooperative relationships to interact with consumers on social platforms such as gains, Douyin, Xiaohongshu, B, and Kuaishou, and continue to explore and improve the consumer experience. In addition, the group and its brands are also actively deploying the Yuan universe. By publishing NFT digital collections and exploring new measures such as virtual fashion to innovate consumer scenes and experiences.

"Where is the consumer, where are we." Yang Xun gave such imagination about the development of Taipei Siqi in the Chinese market. In the face of a complex and changeable market environment and an increasingly severe competition situation, can Taipi Siqi win the favor of domestic consumers with their own problem -solving ideas and break through the siege? Everything will be handed over to the market inspection.

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