Not only MK, but also the light luxury bag that was once popular in "City Girl" has also fallen to the price of cabbage for idle fish. Luxury goods have officially become synonymous with "unfashionable" in the fashion circle.
This month, Capri, the parent company of American luxury goods group MK, announced its third-quarter financial report. The sales of the Group decreased by 17%, and the income of Macquarie, which accounted for the most, decreased by 18.6%.
Coach and Kate Spader in "Luxury Brothers" are not much better. Its parent company Tapestry Group's sales in the third quarter of 2020 decreased by 7.2 1% year on year. Coach decreased slightly compared with the same period of last year, and Kate Spader decreased 12.7%.
In addition, Furla's revenue decreased by 67% year-on-year last year and filed for bankruptcy protection at the end of the year.
Furla went bankrupt, kate spade declined, MK village, Coach rotten street, what happened to luxury bags?
0 1
The first bag of middle-class girls after 90 s
To be sure, luxury goods are really popular in China, and the post-90s really love them.
20 12 the first batch of post-90s college graduates. At that time, a coach was 4 thousand. For city girl, who dabbled in ZARA and clothing love, being able to carry an old lady's canvas coach with the same model is enough to prove that she has "taste (money)" in front of her classmates and colleagues.
It was also at this time that the new middle class rose in China, and the luxury brands between fast fashion and traditional luxury goods ushered in explosive growth.
During this period, MK came from behind with its simple and clean design and quickly caught up with Coach, becoming a big explosion in luxury goods.
In 20 14 years, Haitao has not yet emerged, and everyone's awareness of the brand is limited. MK is probably the bag you see most often in the elevator of Guo Mao or Dawang Road office building. Having MK means that you are elegant, charming and well connected. (usually relatives and friends in the United States or Canada help)
Later, WeChat business/purchasing rose. In their circle of friends, we met Kate Spader, Tory Burch, marc jacobs, Left-leaning and Fula.
The prices of these bags are generally more than 300 dollars, equivalent to 2000-4000 yuan.
At that time, the average salary of fresh graduates was 4000 yuan, and the iPhone was sold late. Swallow and Pandora are still fashion benchmarks. Buying a bag, a mobile phone and a necklace with their monthly salary is not only money, but also an exquisite petty bourgeoisie lifestyle, which exudes a unique sense of superiority.
02
Who buys MK with money?
However, this sense of superiority has been broken in recent years.
The first is the price.
With the rise of overseas travel and purchase, the luxury image of Coach and MK has fallen from the altar.
I don't know if I don't go abroad. It turns out that luxury goods can be so cheap in discount villages and duty-free shops. Take Coach as an example, you can always get an Ole money at a discount of 3-5%, and you are embarrassed to say that you have been to the United States without buying a few buses for your relatives and friends.
From thousands of popular brands to hundreds of discounted goods, many people are puzzled. Coach didn't do a good job in luxury goods business. Why did he go bankrupt one after another?
In fact, discount is a kind of "self-help" of Coach.
In 2008, due to the international financial crisis, Coach's performance fell sharply. In order to survive, it has to launch discount stores to reduce profits and improve performance in the short term.
However, since then, Coach's discount road has become out of control, with more and more discount stores and low-priced products. By 20 14, six of Coach's 10 North American retail stores will be discount stores.
Without discount, there would be no coach, which has penetrated into everyone's mind. Last year's Double Eleven, Coach became the first in package sales.
When people grab Coach like cabbage, the brand is getting farther and farther away from the word "luxury".
What luxury goods fear most is rotten streets, even if they are frivolous. When the grocery lady in the morning market has a canvas carriage logo bag, fashionable city girl can't escape.
In the past two years, in order to tear off the "discount" label, Coach has made great efforts to reform, hire new designers, expand product lines and reposition ... The design of some products has returned to the advanced level, but the prices are catching up with luxury brands.
No one buys low-end products, but high-end products can't afford it. Coach can hardly change this situation in a short time.
Worse than coach is MK.
In 20 13, the concept of luxury goods became popular all over the world, and MK began to open stores crazily. By 20 17, MK has more than 800 stores around the world, including 20 1 in Europe, 228 in Asia and 398 in the United States.
MK on the tuyere has been expanding uncontrollably and shipping crazily. Although it made a lot of money, it also caused many disputes because of the deterioration of product quality. Nordstrom, a famous American department store, was even forced to take off its shelves, and MK's image in people's minds plummeted.
Not only is the street rotten, but the quality is poor, and the design of MK has also been criticized. Its single products include Montgomery, Peyton, Savannah, smiling face bags and other series, and there are no obvious traces of imitating LV, Chanel, Dior, Prada and other big names.
Especially in recent years, Dior, Burberry, Fendi and other big brands have rushed to launch overwhelming Monogram prints (generally referring to the brand's letter combination patterns), and MK has no brains.
But the problem is that luxury is not the same as luxury. The most important thing about luxury goods is to keep a low profile. Who wants to put me "inferior" on my face?
Now luxury bags are in an awkward position.
On design, I want to be different, different, but my strength can't keep up with my ambition; On the price, there is neither fast fashion nor cheap, and there is no confidence in big names.
Many fashionable girls, with thousands of dollars in their hands, either buy a medieval classic design with a good color, or save up and buy a big brand directly in one step.
No money and no luxury, no money and no luxury, have become the common sense of fashion circles.
03
China girls are getting richer?
In today's streets and alleys, young girls' bags are LV, Loewe and Fendi, and the young lady who graduated for several years wears Gucci on her feet. Some people lament that young people are so rich now?
Data show that China has become the only country in the world where the luxury goods market has increased due to the epidemic. China's luxury consumption rose 48% against the trend, reaching 346 billion yuan. By 2025, China is expected to become the largest luxury market in the world.
It's not just the epidemic. Ogilvy & Mather China's latest research white paper "Making Luxury Brands More Meaningful" shows that the total consumption of millennials in the luxury goods market in China has increased year after year, accounting for 45% in 20 16 and 53% in 2020.
On the one hand, enjoying the reform dividend, these young people have a good family and are no strangers to luxury goods; On the other hand, luxury goods are also moving closer to young people.
In recent years, the live broadcast of LV, Dior moving to Mile Mile, Gucci and Doraemon jointly signed, Tiffany opened a coffee shop in Shanghai, and Hermes made lipstick, all with one purpose, making young people in China feel that luxury goods are not far away from them.
Coupled with the continuous development of Haitao, now 6,000 yuan can buy Gucci mini, 7,000 yuan can get started with LV basic models, and 8,000 yuan can take Dior's latest reading glasses. Is it a blow to the luxury bag of 3,500 yuan?
The consumption level of young people is different from before. There is not much difference between what middle-class white-collar workers and rich people can enjoy in consumption. Apart from the "hard" resources such as house, registered permanent residence and education, there is nothing that Xiaobailing can't enjoy for several years.
There are 200 hot pots, 350 lipsticks, 2,000 bottles of essence and 5,000 mobile phones. All these "small money" were spent, and 6000 yuan was spent on a serious luxury bag. It can be sold for at least 5 years after a large number of uses, and it can still sell for 3000 after changing hands. Is it worth it? Does it smell good?
Some people say that this generation of young people love to buy luxury goods because they are old-fashioned and vain.
There really isn't.
The data shows that the main source of luxury consumption after 90' s to 80' s and 80' s to 90' s is personal income.
From 20 15 to 20 18, the national average wage rose sharply for four consecutive years. The salary of fresh graduates has nearly doubled in four years from 4,700 yuan to 7,800 yuan.
Correspondingly, the reason why contemporary young people buy luxury goods is no longer to show off their wealth.
In recent years, housing prices in big cities have soared, there is no hope of settlement, and educational resources are tight. The stronger this feeling of being deprived of the future, the more young people want to "enjoy the present".
Nowadays, more and more women are financially independent, have money and careers, and have no financial burden. They can buy whatever they want. Luxury goods are just rewards for their achievements at a certain stage.
"Luxury goods will give you a kind of confidence, give you chicken blood and give you the motivation to make more money, but luxury goods will not."
"Since I bought the LV, those coaches have never been used again."
……
When we have experienced better things, it is difficult to go back and endure bad things. -Ratchet effect
Coach and MK, abandoned by the times, are right when they say wrong. Only the young people nowadays are too "smart" to spend money.
When a girl can carry Lu through her own efforts, MK will never enter her eyes again.
In the era of material satisfaction and information explosion, we are faced with choices every day. In the matter of buying a bag, it is better to spend more money to buy a good one than to compare it in a pile of bags. That's all.
There are also some thrifty young people who think it is not worth buying bags and buy the money saved into funds. That's another story.
References:
Crowd Industry Research Report ||20 18 Portrait of Luxury Consumers | Industry-wide Report Circle. Hu zi Shu Shu
Why do more and more people advocate "luxury"? Veblen effect's Psychological Analysis
Misreading luxury goods | Sales and Marketing Management Edition
20 19 luxury report: China young people buy global13 luxury goods | doorways fashion.
Mike Gao Shi closed the store if he didn't agree, and he couldn't escape the curse of the rapid decline after the luxury goods exploded | koi fish Finance and Economics
Luxury goods were favored yesterday and cold today | Beijing News
Young people behind luxury show off the chain |ELLEMEN Ruishi