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Luxuries Go To The Countryside: Competition Between Desire And Ability

2010/9/1 11:41:00 133

Luxury Consumption Desire

The first troops quietly entered the city.


Do you know that luxury brand Gucci has 20 stores in the mainland of China in two or three line cities, and LV has opened 27 stores in 22 cities in China, including two or three cities such as Changsha, Xi'an, Qingdao, Xiamen, Wuxi and Wenzhou. Cartire plans to open seven or eight stores in China this year, Taiyuan in May, Yiwu in June, Ningbo, Wuxi and Wuxi in the second half of the year.


Do you know that Maybelline, the cosmetics brand of cosmetics group L'OREAL, has set up sales outlets in 666 cities in mainland China. Semir, a domestic casual wear brand Semir, is targeting the target consumers into the younger generation of the two or three line market. Semir apparel QQ show for more than 100 million QQ users has won the welcome of consumers in the two or three line market.


Do you know that as the biggest jewelry in China?

chain

In order to meet the needs of consumers in the two or three line market, Zhou Dafu decided to invest 4 billion yuan in 5 years and increase 400 branches in the mainland of China.

Its policy is to "consolidate and develop the first tier cities, increase market share in second tier cities, and focus on three line cities", and comprehensively layout the mainland market.


The most recent opening show was held in August - China's first line brand white-collar workers, Beijing's brand Notting Hill, settled in Anhui Hefei, opening two stores.


Consumption upgrading embraces demand


Market orientation

Two or three line

Transfer is an inevitable trend. This trend is not only due to the promotion of domestic demand policy, but also because of the promotion of 4 trillion yuan infrastructure investment. The deeper reason lies in the higher demand and desire of consumers in the two or three line market.


For example, in the research of the new generation market monitoring organization, a Sichuan double stream consumer was not satisfied with the double flow commercial facilities, and the whole family drove to Chengdu to spend the weekend. A 22 year old Shandong Jiaozhou youth hoped to win another pizza hut, because there was only one KFC and one McDonald's in Jiaozhou.


Take luxury as an example.

2010 China, recently released by Rhodes public relations company

luxury goods

According to the report, 24% of the respondents in second tier cities spend more money on first-line brand clothing than other regions.


Such consumption upgrading has formed a new market with a very solid demand. If enterprises can embrace the needs of consumers in the two or three line market in a timely manner, they will probably get a new round of success in the new market space.


Strong consumption in two or three tier cities


Then, is there a corresponding consumption power to support the upgrading of consumption desire? This is something that companies who are interested in the two or three line market can not ignore.


In fact, compared to the first tier cities, the advantages of the two or three tier cities are also obvious.

First, the two or three line cities have slower pace of life, smaller living circles, people have more leisure time (consumption time); second, the local media environment is relatively simple and tranquil, and there is no complex city line, so enterprises can affect more consumers through simpler media combination and less dissemination precomputation. Third, consumers in the two or three line cities are "streaming", and they yearn for the life of the first tier cities. The popularity and popularity of many cities in the first tier cities can easily be accepted by two or three cities through television, advertising and Internet.


From the economic level of the two or three line urban families, the average income gap between families in the first tier cities is not small, but they do not have to face the pressure of high housing prices and high cost of living, unlike the consumers in the first tier cities.

Therefore, compared with the limited consumer freedom of the first tier cities, the consumers in the two or three line cities have a greater spending space.


Grading of China's market


Source: 2009 China urban statistical yearbook



(Note: the population size and the GDP calculation of the first to four lines of the table above do not include the rural and rural population; the GDP ratio of cities at all levels is calculated according to China's GDP 30 trillion and 60 billion yuan in 2008.

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