In the current luxury market, some brands are facing the same challenges. Too many stores, products everywhere, weak sales, and fleeing customers all point to a decline in brand value. One was once the world’s top brand, and the other was the ‘Emperor’s Jeweler’, both of which have made the world look forward to. People have been proud to get a piece of the brand. Now, while more people own the works of these brands, some people are starting to abandon these brands. It seems that overnight they have become the representatives of some people who follow the trend and even vulgarity, which is worth reflecting on.
How to balance the commercialization of luxury brands: learning from Patek Philippe (1)
From luxury goods to luxury goods
如何 How did all this happen? Let’s take a look at the number of stores they opened over the years. According to the “Top 10 International Luxury Brands in China Top 10” in the “2012 China Luxury Report” released by Fortune Quality, Cartier’s store count in China reached 224 Home, ranked first. The number of LV also reached 50. As consumers buy more and more, its attributes begin to change from luxury goods to luxury goods. It is this difference that makes the brand a natural difference. The root cause is the result of maximizing profits. The essence of business is profit-seeking. From the day they are acquired, these brands may be destined to become a tool for making money, and making more money has become the main goal.
Pursuit of profit is not a derogatory term. The world has become prosperous because of commercialization, but as a special product such as luxury, how to handle and balance its commercialization is particularly important. This is indeed a technical task. Obviously, as a luxury brand, some people are smashed, and others are both fame and fortune.
Master of Balance——Paida Philippe
所以 The reason why Patek Philippe can continue to maintain the brand’s advantage and height is directly related to Patek Philippe’s ability to balance. Even more commendable is that Patek Philippe has precise control in many aspects.
Balance in production: After Thierry Stern took over as the fourth generation of Patek Philippe at the end of 2008, he made important decisions at many conveniences, one of which was to increase production. The increase in output mentioned here is modest, and according to Thierry Stern ‘it is an increase in output without affecting quality’. This is understandable, of course, but in fact he hasn’t said a thing yet, that is to increase output without causing product flooding and reducing brand value. This is a question of controlling the ratio of production capacity and demand. Patek Philippe generally controls the ratio of production capacity and demand between 1: 1.2 and 1.5. Under the current circumstances, Patek Philippe’s increase in output each time is within 2%.
Corresponding to this, more brands are unrestrained. They used to be proud of the large number of stores, and all focused on sinking channels. As long as there is demand, they will not let go of every opportunity to make money, and they will not miss every profitable market. In the end, they finally have a common harvest: the popularity of the brand.
Balance in the international market share: Although in the years after Thierry Stern took over, the Chinese watch market has once flourished, and many brands have made great strides. Thierry Stern wants to balance Europe, Asia, the United States, and the Middle East. Data for 12 years is that in Patek Philippe’s global market, Europe accounts for 40%, while Asian sales including China and Japan account for 33% of global sales, and then the US market accounts for 17%. The reason for controlling this proportion is because Thierry Stern’s responsibility to the family business is unwilling to let the brand take too much risk in the market.
According to data reported by the media, at the beginning of 2012, LV China’s sales accounted for nearly 40% of the world’s sales, exceeding the 19% share of Europe and 23% of the United States. Cartier’s situation is similar.
The balance between sales and after-sales: In the past two months, the media has continuously reported on after-sales service issues for luxury brands. There are service issues and channel issues. However, no matter what level of the problem, it reflects one point, that is, the problem of not paying attention to consumers in the process of chasing profits. Thierry Stern once said directly that ‘the service center actually exists as a cost center, so many brands do not take this service very seriously, but Patek Philippe will unswervingly invest in this area.’ ‘This is for Patek Philippe It’s very important. Buying a Patek Philippe costs a lot of money. If you agree to pay so much, then we need to help you out when you have a problem. ‘
Patek Philippe said to its customers in China that in order to better serve Chinese guests, in September this year, Patek Philippe’s Shanghai Talent Center officially opened, laying a solid foundation for service guarantee.
We know that Patek Philippe is far from the brand with the highest sales revenue and the most profitable brand in China. However, the efforts made in after-sales make us feel his sincerity.
平衡 Balance in product development: Patek Philippe is very careful about product design, and even the change of dial color will be well thought out. When Thierry Stern introduced the grey plate, it was a long process of discussion in the family, and finally realized under the persuasion of Thierry Stern. The reason why Patek Philippe does this is to maintain a unified and independent brand style for the world, but at the same time, it will also strive to innovate and progress.
In this regard, many brand practices are completely market-oriented. The Chinese market is good, and all the watches they like are made by the Chinese market. The Indian market is good, so I started to make watches that the Indian market likes; if the original styles can’t achieve results, they start to develop concepts, and they are eye-catching in style, which are all impetuous performances.
The direction of family business management is controlled by Linlin, which is used by Patek Philippe. It is precisely these differences that lead to differences in different results under the same market and under the same conditions.
The Chinese market is a rapidly changing market, and Chinese consumers’ consumption concepts are also constantly improving. Don’t focus on consumers, only for profit, always think that Chinese people are stupid people with more money. In the end, they will find themselves a real fool.