In mid-March, Prada, a well-known luxury brand, announced the successful acquisition of an 80% stake in angelo marchesi srl. The company owns the Pastry Mayia Pastry of Milan desserts. It is reported that this dessert shop was founded in 1824 and is a senior family of pastries. Its famous high-quality pastries, chocolates, and breads are well known and have been loved by Milanese citizens and tourists for many years.
From selling a single product to selling a whole class of life
In the past, luxury groups or brands often acquired the same category of brands, such as clothing and accessories. Today, the acquisition of luxury brands has extended to all aspects of life.
The acquisition of dessert shop is one of Prada's strategies to strengthen the brand, aiming to broaden the development field and further consolidate the brand image.
Angelo Giovanni McKay, Managing Director of Angelo Miqueux Ltd., said in an interview with Italian media: “Our goal is to ensure that the brand with a long history of McLayers can uphold its two The exceptional quality that has been peculiar since the beginning of the century and its promotion abroad. Prada is not the same as us, whether it is the history of the brand or the image of the brand in the minds of consumers.†Prada Managing Director Pário Bertelly acquired this Satisfied that Prada will fully respect the McKay brand's tradition and seek common development.
Buying a sweet shop is not Prada's strategy this year. As early as last year, Prada and another luxury brand giant Louis Vuitton competed for a dessert shop in Milan. In June last year, Prada lost to the Louis Vuitton Group, failed to achieve the acquisition of Milan's famous dessert shop cova, the store also has nearly two hundred years of history. It is reported that Louis Vuitton acquired an 80% stake in cova, the transaction amounted to 33 million euros.
In fact, the extension of luxury brands to every area of ​​life is no longer a case. Hermes opened a coffee shop in Seoul, South Korea, which was full of branding from architectural style to product details; Gucci opened similar brands of coffee shops in Florence, Italy; Tokyo, Japan; and Shanghai, China; Chanel owns a brand called beige in Tokyo, Japan. Restaurants; In addition, Versace, Bulgari, Armani and other brands opened hotels in famous holiday resorts such as Australia's Gold Coast, Bali and Dubai.
Firm brand image to restore decline performance
Diversified development of luxury brands, talking about its root causes are two reasons. First, due to the decline in performance of main apparel products, brands need to improve their performance in other areas and stabilize their brand image; second, to increase consumer loyalty.
Recently, major luxury brands have issued annual reports for the fiscal year 2013. Overall, the decline in apparel, footwear and hat products is significant. The world's largest luxury goods group lvmh had sales of 29.1 billion euros in 2013, an increase of 4% year-on-year, an organic increase of 8%, and group net profit of 3.436 billion euros, which was basically the same as 2012. However, Louis Vuitton sales in China in 2013 only increased by about 1%.
Gucci, the brand of kering, the world's second-largest luxury goods group, still contributes the largest brand. A total of 3.561 billion euros in sales of the entire group of 6.47 billion euros is the brand's performance. However, the growth rate of Gucci has been significantly weakened. In the third quarter of last year, the sales of the brand in the Chinese market fell by 5.4%. In the fourth quarter, its global comparable sales increased by 0.2%, which was lower than the 0.8% previously expected. The growth rate was the lowest since the third quarter of 2009. In addition, the brand was originally planned to open 10 stores in China in 2013, but the actual one has not yet opened. In the past year, Gucci has maintained its brand appeal by increasing prices and tightening sales channels. Tod's performance in 2013 is also not good-looking, sales of 967.5 million euros, a slight increase of 0.5%, organic growth was only 1.7%.
According to Bain, the global strategy consulting company, the latest research on the Chinese luxury market in 2013 shows that the overall luxury market growth in Mainland China slowed down further, with an annual growth rate of around 2%, a year-on-year decrease of 5 percentage points, and 2011. Compared to the year, it decreased by 28%.
Differentiating consumer groups to lock up high-end customers
When the brand grows to a certain extent, the contradiction between sales and positioning will appear. The brand uses the concept of selling lifestyles to cleverly avoid brand popularity and lock in high-end consumer groups.
The reason why the Gucci brand was not in a hurry to expand in 2013 was because the brand found that the original consumer groups had given up buying due to the popularity of the Gucci brand image. Zhou Ting, president of the Wealth Quality Institute, said in an interview with “Financial Worldâ€: “Apparel and handbags are the most cost-effective and most popular categories. Once the brand is popularized, sales will appear appetizing and affordable. The problem of balance of sexuality. When everyone around them is carrying an old handbag, the brand will quickly lose its high-end customers."
Paggio Bertley said: "High-end consumers are no longer satisfied to only purchase leather goods and apparel products. They need a more complete life support service." Versace and Hermès have also expanded home series products, expressed hope that consumers can Complete one-stop shopping. Luxury brands seem to be sending a signal that true luxury consumers should not just buy wearable products but should also extend into all areas of home life.
The person in charge of Louis Vuitton once said that in China, many people who do not have enough salary to pay for luxury living are also willing to buy luxury goods. Such consumers often buy classic models. However, it is obviously unrealistic for such a group to save money and use luxury goods to extend luxury consumption to all areas of life. Luxury brands are neither willing to give up such a group easily; they are even less willing to abandon high-end users because of lack of consumer power. Therefore, using higher-level sales methods to distinguish consumers from different sectors is the right choice for luxury brands. Zhou Ting said: "Developing a new customer requires several times more energy than retaining an old customer. In order to retain loyal customers, luxury brands must provide a full range of products that cover consumers' lifestyles."
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