Deep | Why do the three "big names" in the world's high-end consumer market collectively choose to "see the East"?

(The Fourth CIIE) Deep | the world's high-end consumer market three "big names" Why did the collective choose to "see the East"?

China News Service, Shanghai, November 7 Title: Deep | the world's high-end consumer market three "big names" Why do they collectively choose to "see the East"?

China News Service reporter Li Jiajia

At the 4th China International Import Expo, the three major luxury groups lvmh Road, Kering and Richemont gathered at the exhibition for the first time, why did the three "big names" of the world's high-end consumer market collectively choose "look at the East" this time?

In the consumer goods exhibition area of the Expo, three major luxury goods groups live next to each other.

Lvmh Luwei Moscow Xuan debuted at the Expo in 2019 in the name of the Group; this year, it set up a 600-square-meter pavilion with the theme of sustainable development, bringing its 15 brands to the exhibition. Wu Yue, president of lvmh Group China, said that at present, we can feel that China is leading the recovery of the world's economy, and "we are deeply benefited by it."

On the other hand, Richemont group and its 10 brands have made another appearance, of which ala aa is the first appearance of the Expo. Gu Jialin, CEO of Richemont China, said that it is a great honor to participate in the Expo again, bringing together many boutique brands on this important platform.

For the third consecutive year, Kering has brought all its brands onto the Expo stage. This year, the Kering Pavilion is named "Kering Galaxy" to depict a magnificent fashion universe. "Participating in the Ciie for three times has allowed us to take another step forward on the road to becoming the most influential boutique group," said Cai Jinqing, President of Kering Greater China.

What kind of attraction makes the three "big names" come together?

Under the new crown pneumonia epidemic, the "return" of China's high-end consumption may be a very important reason.

"Indeed, after the outbreak, the Chinese market has achieved strong growth." Cai Jinqing, president of Kering Group Greater China, said in an interview with China News Agency that "because the people have confidence in the government's management and policies, consumer confidence has been very strong."

Cai Jinqing said that the epidemic has accelerated the trend of consumption "return". In response to this change, Kering has actively participated in China's digitalization process, not only opening brand flagship stores in more cities, but also increasing the layout of online channels and self-operated websites, of which online channel sales showed a three-digit gratifying growth. "We can feel the buoyant confidence of Chinese consumers and their urgent need to pursue more high-quality products and experiences."

The vitality of the Chinese market has made Kering, an established luxury company, choose to adjust its supply chain and meet the needs of the Chinese market first, which is rare in the past when the global supply chain is tight.

Cai Jinqing believes that in the high-end consumer market, China does lead the world in many fields, and the Chinese market has its own characteristics.

First of all, China's high-end consumption is mainly young people, "many of them have overseas education experience and life tourism experience, and they are also closely related to international fashion trends."

Secondly, China's high-end consumers are paying more and more attention to the social responsibility of brands, especially in terms of sustainability.

Third, the rise of the "national tide" in China has made local consumers more fond of brands that have "Chinese elements" or have had a good impact and experience in China. "I don't think it's enough to have 'Chinese elements', we should work hard to tell the brand story in conjunction with Chinese cultural trends," Cai Jinqing said.

In addition to the reason for the "return" of high-end consumption, Zhou Ting, an expert in the luxury industry and president of the VIP Research Institute, believes that the "attractiveness" is also due to a number of factors, including: the rise of China's consumption status with Shanghai as the core, the increase in the proportion of China's high-end consumption in the global market, and the commercial promotion needs of luxury goods groups.

In an exclusive interview with a reporter from China News Agency, Zhou Ting said that Shanghai, as a leading city and an international consumption center city in China's high-end consumption, has always been the most important wholesale and trading port for luxury brands to enter China.

According to the calculation of the VIP Research Institute, China's domestic luxury sales will account for about 80% of the global market in 2021. "This is a huge change from before," Zhou Ting said, adding that because the Chinese market is a top priority for international luxury groups, they must join the event for strategic reasons.

At present, in the case of international tourism and business has not yet fully recovered, to let Chinese consumers better understand the culture behind luxury goods, familiar with their image, their products, their stories, their history, participating in the Expo is undoubtedly a very good choice. (End)

Source: China News Network