Relying on the strong purchasing power of the domestic rich, Shanghai Ranran has become an important exhibition hall for international luxury brands. However, like the previous luxury goods summit, it was hard for the participating giants to take advantage of Chinese companies.
However, “Made in China†is not irrelevant to luxury goods. Chinese entrepreneurs are using their own actions to prove that the three ways of originality, OEM and M&A, and which one can bring China closer to the ultimate “desire†of this society.
OEM: Pretending to be a wedding dress or a brand preview?
In numerous explorations, "Chinese luxury goods" seems to be the closest term to "Chinese luxury goods." Branding for foreign brands has become the most popular choice for Chinese companies because it seems to be “easierâ€.
Hangzhou Shenghong Garment Co., Ltd. is an Italian famous brand GIORGIO ARMANI, MOTIVE, VEST, ANGLOE, L. M is the largest manufacturer in the country. Among these garments, an unassuming lightweight cotton jacket costs about 650 euros.
“If northern Italy can rely on local artisans’ craft to build their luxury goods industry, Hangzhou has similar advantages in this respect. Hangzhou has a long tradition in silk embroidery, and Shenghong’s clothing employs women from the surrounding villages to do sewing. Workers,†an industry source explained to reporters.
However, “To give someone a job is to do what others want, and with my own brand I can really do what I want.†Sheng Hong, president of the company, is no longer satisfied to just make work for others. She owns it. Sun Divina, his own clothing brand. To this end, Shengmei has formed a new team. Two top designers from Italy are responsible for the type and style of the clothing. The four domestic designers are mainly responsible for injecting the oriental elements into the design.
However, the most difficult problem now is: “The domestic high-end shopping malls feel that domestic brands are relatively low-grade, and the initial progress is very difficult,†Sheng Mei said.
M & A: The most direct solution?
In recent years, the acquisition and merger of the global luxury market has been one after another. Can acquisitions and mergers become a shortcut for Chinese investors to include well-known luxury brands?
At the beginning of this year, the famous Chinese shoe-making company Hung Hom Group reported that it was negotiating a merger with a brand-name company with a “100-year history in Italy†and had signed a letter of intent.
The impulse to enter the high-end segment of luxury goods is not confined to the apparel industry alone. The overseas merger and acquisition of high-end brands in the auto industry has already begun. In December 2004, SAIC invested 67 million pounds to purchase Rover’s core technology intellectual property; in July 2005, NAC acquired Rover’s remaining assets for 53 million pounds. Rover was originally a private manufacturer of British royal cars.
However, the road to achieving China's own luxury brands through mergers and acquisitions remains difficult.
Yuan Yue, chairman of Zero Research Group, stated that “luxury goods are those goods whose tangible value is maximized. At present, the development of intangible value for domestic high-priced goods is still limited, although in terms of manufacturing level, many 'Made in China' has begun to catch up with 'Made in Italy' or 'Made in France'."
Therefore, people in the industry suspect that even if Red Dragonfly acquires Italian brands, the development of the luxury market will still start from scratch.
The head of the Red Dragonfly, Qian Jinbo, once told local media that it is not easy to say whether Hung Hom will use this Italian brand to launch a luxury brand. "Of course, if you push with your own brand, it will definitely take longer."
Similarly, although SAIC and Nanjing Auto have acquired tangible assets that represent Rover’s highest level of craftsmanship, the formation of their own high-end brand cars still requires a rethinking of zero.
Original: Challenge luxury consumer psychology?
Someone is taking orders. Some people are buying, but there are also some people who are creating.
In China, there are no shortage of priceless liquors and liquors, but real luxury goods need cultural nourishment. Maybe art is not a luxury, but luxury goods must be related to art.
In 1998, famous artist Chen Yifei founded Layefe apparel brand, first registered in Shanghai and New York. Especially in Shanghai, Yifei Apparel's boutiques are located in top shopping malls such as Meiyi Town Plaza and Huating Isetan. The Yifei brand is on an equal footing with other world famous brands.
Similar to Chen Yifei, another young Shanghai artist, Jiang Qionger, also founded his own brand “Jonesâ€, creating two new exhibition spaces on the banks of the Suzhou River, with the latest jewellery and the most bold and creative arts. Design, expensive.
However, the biggest problem they have to face is the skepticism of the Chinese people on "Made in China" luxury goods.
“When Chinese customers purchase luxury goods, they look forward to the quality of the West. The mystery of our brand is closely linked with the origin.†Prada's president, Patrizio Bertelli, said.
In China, luxury brands must convey a superior lifestyle, an avant-garde and westernized concept of life. In today's globalized world, the concept of “luxury equals European and American†is to die. The road for Chinese companies is long.
How China Creates a Luxury Brand
On October 11th, the second Shanghai International Top Private Goods Exhibition was launched. Since last year's exhibition created an amazing turnover of 250 million yuan in 3 days, many brands were unsolicited this year. The number of exhibitors from the previous 40 Increased to more than 70, and are all international giant brands. On November 2nd, China’s luxury goods summit will be opened. The pioneers of the global luxury goods industry will push Shanghai to examine and weigh market development strategies.