2016-12-27 来源: 51due教员团队 类别: Essay范文
Fashion is a ticket of customer to enter a "fashionable social circle". Depth of understanding of customer behavior is an important factor of enterprise's ability and level of marketing. London, New York, Tokyo and Paris, are gathering places for fashion. Following the improvement of people's live, the fashion demand of dress, wearing, travel, auto and decoration are increasing quickly.
Even the rainy days, the Oxford Street in London still have a lot of shoppers. Depending on the cultural and economic development of each country, the demand of vary brand is different. European luxury customer base is in 40-70 years old, but in China the customer base is to focus on young people that usually less than 40 years old. With the saturation of the Japanese and Korean markets, rapid economic development of China has become the main market of luxury goods. At the same time, Europe has entered the era of fast fashion (Gutsatz&Auguste 2013). Therefore, this project will discuss the market of different level fashion brand.
In this project, firstly, the luxury and customer psychology will be explained in the luxury customer part. Secondly, the price strategy, product strategy, place strategy and promotion strategy will be discussed in marketing part. Finally, the summary and recommendations will be explained in conclusion part.
2. Luxury customer
The global luxury goods to seize Beijing and Shanghai mean that China has become the concern of the international big-name. It can be said that China's luxury consumption era has arrived. Luxury goods have great development potential in China, so enterprise to grasp the consumer psychology is important. They key of Luxury goods success is implement an effective marketing strategy (Li et al 2012).
2.1 Luxury features
Firstly class quality is the most important feature. Usually, the extraordinary delicate handmade skill, stringent requirements for quality and classic design concept are the synonymous of luxury good (Joy et al 2012). Touching tradition and history is the heritage of luxury. Luxury has a strong cultural features and it needs time to accumulate and literacy influence (Kim et al 2012). Therefore, Luxury consumption actually is a kind of belief and respect for cultural.
The innovative style is a reason of the remained high price. Luxury is more emphasis on individuality and unique, so only base on understanding the connotation of the brand to creative future-oriented brand. If the old brand cannot be established the different technology and features with the same industry, the customer will not keep investment or purchasing (Wang et al 2015).
2.2 Consumer Psychological Analysis in China
China's luxury consumer groups are mainly concentrated under the age 40. They are confidant and vanity young people. Although current income is not enough to be a sufficient reason for their consumption of luxury goods, sometime, the self-realization of the complex make them become the main force in the luxury. They consider the luxury be a culture and a high quality of life (Ngai& Cho 2012). They do not have many deposits, but it does not affect their pursuit of affluent lifestyle. They tend to spend money at all costs in luxury, and in other places to live frugally. Therefore, these young Chinese consumers give a huge market for luxury. The vanity think is more and more popular in Chinese young customer, so the opportunities of luxury increased very fast.
Due to the fast economic development in China, the number of rich people is growing sharply. Luxury is a sign of wealth that to show their new economic and social status. This is a psychological release in order to meet the wealth. From a marketing point of view, this is a stage and natural psychological needs (Sharon et al 2015). This psychological will increase the demand for luxury goods.
The knowledge and international level increased, because the Chinese people have the awareness greatly increased. Chinese government combat the imitation is important to luxury in Chinese market. Chinese people have recognized the luxury goods and purchase the original goods can help luxury to occupy more market share in China (Zhan &He 2012).
Therefore, the customer psychology is very conducive to luxury goods to sales in China. Chinese customers have very high desire for luxury goods, because luxury can display their social status and vanity. Therefore, development marketing strategy is crucial.
3. Marketing strategy
3.1 Product Strategy
Luxury brand should keep their classical product and update, because almost time customer pay more attention on the brand history, culture and classical. Before 1993, the Prada’s culture is most understanding woman, but in order to expand the market share and profit, Prada began rolling out man’s clothing. But this adventure allowed their brand image plummeted, because they never involve menswear, so customer believed they only for the profit. Their menswear do not have any culture and history, as well as their price of menswear still really high, so their sales of menswear are particularly low, and the impact on the women’s sales (Song et al 2015).
In fact, Dior also have the menswear product, but their menswear’s culture have a long time training. Dior famous at the classical Lady Dior, but they have good design at menswear, so they begin to design for the famous people. They according to propaganda those information to attract customer, but they did not sale the menswear. After customer’s suggestion, Dior launches a small style of menswear product in market. When the market demand is higher than their sales, they start to large quantity to sale menswear in market. Therefore, they have successful menswear product sales in market (Hennigs et al 2012). Therefore, the luxury brand need to training the culture firstly, and then start to sales in market. At the same time, keep their classical product is important, because it still the main product of the luxury brand.
3.2 Price Strategy
High prices can necessarily reflect the company's high-end positioning, because of the high price reflects the best image. Usually, the luxury manufactures can consider the cost, but the cost should not be the most critical factor. Thy can not overly concerned the manufacturing process cost factors, because they need pay attention on the customer need and communicate with customer (Kim et al 2012). The supporting service of luxury is very important. Usually, the customers of luxury are mostly wealthy, so service is important. Enterprise need communication with customer, because understand and meet customer needs is the key of marketing of luxury brand (Ko&Megehee 2012). Therefore, the high price is the price strategy, but they must satisfy the customer needs.
3.3 Place Strategy
Brand flagship store is the embodiment of the brand value of the mode, so brand flagship is can be the distribution channel. Flagship stores are generally only in the first-tier cities, because of the huge flow of people to ensure that the more customer can see. Their reputation also limits luxury brand only can site in big city, because their brand is value, they have ability to attract to find their store. Therefore, the quantity of store can not large, usually site in the city center of first - tier cities (Jiang, Nagasawa and Watada 2014).
Therefore, the store not only should cover enough in big city zone, but also let customers think these brands are rare. Therefore, only site in the center of big city is important.
3.4 Promotion Strategy
Every promotion and marketing tools will hurt the luxury brand, such as the price wars and discounts, because it will make customer think the brand value is low. Almost luxury customers fancy the brand value. If the brand value is low, they will not buy the product (Kapferer&Bastien 2012). Therefore, the social status and wealth of customer determines the luxury cannot compete on price.
Therefore, the luxury can find the gathering of high-end customer to cooperate. Usually, bank is the good partner with luxury, because could use low price to quantities purchase the luxury goods and use the luxury brand value to handsel to big customer, and then attract customer to save money or financial in bank.
Usually the promotion strategy of luxury only can add value, because their target customer will need high value product. Advertising can help the luxury goods increase the value and awareness. For instance, the product placement is in movie, because this kind of advertising is not boring and superior quality.
In conclusion, each luxury brands are derived from the special cultural. Every brand hastheir own well know moving story. The root of the charm of luxury is from origin story. This kind of culture achieves tidy’s luxury brands. The basic goal of marketing is to achieve change in marketing and consumers two-way action from the basic objective of marketing. Luxury consumer search product information in different psychology, so marketers through the collection of relevant information and consumer psychology and behavior to use suitable means of marketing to stimulate consumer, in order to achieve stimulate consumers to buy.
Usually, hunger marketing is useful for luxury. Most luxury good are limited production. Keeping noble gesture can more attract consumers, although consumers do not know you in the end how much production (Osterwalder&Pigneur 2010).