The Rise Of Online Luxury Market Has Led To The Pformation Of Physical Stores.

According to the world clothing and shoe net, Bain Consultancy (Bain & Company) was in Italy in October 25th.

The trade association Altagamma Foundation (Altagamma Foundation) jointly released the "2017 Global Luxury Industry Research Report". China's personal luxury consumption strength is increasing for the 2017 global luxury goods.

Recovery has injected strong momentum.

The key data of the global luxury market mentioned in the report are as follows:

In the past 1.2017 years, the global luxury market (generalized luxury market, including luxury car, tourism and other high-end experience) is expected to achieve an overall year-on-year growth of 5%, with an estimated output value of 1 trillion and 200 billion euros.

2., sales of luxury cars increased by 6% over the same period last year, with a total output value of 489 billion euros, which is the main driving force for the overall growth of the luxury goods industry.

The output value of 3. luxury goods is expected to be 262 billion euros, a 6% growth rate at a constant exchange rate, which is faster than the previous forecast of 2% to 4%.

The rise in growth reflects Bain's view that the healthy "new normal" growth model will eventually take shape in the global luxury market, thanks to the strong Chinese market and the rise of millennial consumers worldwide.

China's luxury market is growing faster than all other countries.

As China's luxury consumer spending continues to surge in both domestic and international markets, the report predicts that China's local luxury market will grow by 15%.

The company also predicts that Chinese buyers will account for 32% of global luxury consumption in 2017.

In 2017, the individual luxury industries in various regions of the world were shown as follows:

Europe: the European luxury market has been on the rebound. The total retail sales of personal luxury goods reached 87 billion euros, up 6% over the same period last year.

The increase of tourist consumption has played a great role in promoting the luxury market in Britain, Spain and France.

Mainland China: the rising demand for luxury goods of the middle class has greatly promoted the sales of luxury goods in mainland China, an increase of 15% over the previous year, the highest in various markets and a total market value of 20 billion euros.

Japan and Mainland China: Asia's total output value of 36 billion euros, an increase of 6% over the same period, of which Hongkong and Macao's rebound is the main driving force for growth.

Japan: with the increasing consumption of Chinese tourists, Japan's personal luxury market output reached 22 billion euros, an increase of 4% over the same period last year.

Americas: the total value of personal luxury goods market is 84 billion euros, up 2% over the same period last year.

Canada and Mexico performed very well, but the United States was depressed because of the overall downturn in the department store industry.

It is still challenging.

The Middle East: except for Dubai, other areas are mediocre, and the overall growth rate is expected to be around 1%.

The rise of online luxury market has led to the pformation of physical stores.

The online luxury industry flourished in 2017, and Bain is expected to grow by 24%.

The report predicts that by 2025, the market share of online channels is expected to reach 25%, up from 9% in 2017.

The collapse of online luxury sales channels shows that, due to the strong relationship with the brand and their unique content and business integration power, the total growth of electronic retailers in 2017 will exceed the website of brands and retailers, contributing 39%.

Meanwhile, luxury brand's own e-commerce website is also popular in 2017, which accounts for 31% of the total sales volume of the global network.

In the past year, a series of elite luxury brands including Gucci (Gucci), Hermes (Louis) and Louis Weedon (Louis) have increased the intensity of e-commerce.

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The above development marks a change in the attitude of luxury goods companies to digital channels.

In the past, brands did not want to accept digitalization because they believed that digitalization had a more exclusive impact on consumers than on benefits.

Bain said that in the next ten years, the offline entity network will continue to shrink.

The report reads: "we need to regard stores as an episode of brand narration to impress customers and keep our customers at ease."

He pointed out that physical stores should play a new role in the new retail era.

For luxury brands, it is also important to integrate various sales channels to create seamless online to offline shopping experience for consumers.

Bain suggests that the brand use the Internet platform as a physical network with a 360 degree support channel.

Brands need to attract luxury consumers.

The prosperity of tourism and tourism markets around the world, especially in China, has increasingly blurred the boundaries between luxury consumption at home and abroad, and shows the importance of brands to tourism luxury consumers.

As we all know, when traveling abroad, Chinese tourists are interested in buying luxury goods.

On the budget, middle class consumers like to use price differentials and tax exemption in overseas duty-free shops and export shopping centers.

On the other hand, super rich customers prefer to shop abroad for better customer service and more product choices.

Therefore, Bain said that when dealing with this growing demand for luxury brands, brands should treat them by "adjusting the store concept", "providing products and store experience in specific locations, rather than trading", and "making them feel welcome and recognized everywhere".

When serving domestic customers, the brand should encourage them to provide various forms of shopping in the city, and constantly update the classification so that they can relax in the store and create a seamless shopping experience.

The rise of millennalism has given birth to "new luxury".

Bain said that with the younger generation entering the luxury market, the significance of luxury has changed dramatically.

Luxury consumption has become a way of self expression, enabling them to feel a group of people with common values.

The Y generation and the Z generation value brand creativity and strong views because they see their shopping behavior talk about their personal thoughts and preferences.

In addition, compared with the older generation, consumers of the millennial generation need to establish a closer relationship with the brand.

The report reads: "consumers do not want to listen to brand stories, but want to live out stories."

Therefore, luxury brands need to think of creative marketing campaigns to attract consumers and make them part of the ongoing dialogue, totally immersed in the luxury experience of brand creation.

Looking ahead, Bain Capital has a positive attitude towards the global luxury market. It is estimated that by 2020, the global luxury market will grow by 4% to 5% annually.

It especially refers to the two main forces of China's middle class, the Y generation and the Z generation.

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