Decline Of European And American Brands In China

"People buy only the feeling of senior and noble, rather than the product itself.

Businesses also push prices up to help customers shape this illusion.

In recent years, some of the "international brands" that have not been developed in Europe and the US have been in hot pursuit of emerging markets such as China.

They reinvent themselves and smart marketing to build up the image of luxury in the eyes of Chinese consumers.

Among them, some foreign second-line brands have changed to become "big luxury goods", and some foreign brands have been closed in the mainland, but rarely seen in China.

CK: edge ball and second line brand.

Once, China's "pioneers" young men learn from Europe and America fashion circles an alternative trend - underwear exposed.

They walk on the streets wearing baggy low waist jeans, marking the edges of the obvious underwear always "head out" from time to time.

It is in this fashion of "underwear outside" that many Chinese people first met Calvin Clay (Calvin Klein).

Many people don't know that Calvin Klej started off by cowboy clothes.

Fashion designer Calvin Clay founded the same name brand in the United States in 60s twentieth Century. It was famous for its minimalist and avant-garde fashion.

At the end of the 70s, Calvin Clay successfully opened the advertisement of the young actress Bokiy Shields, who was just an adult at that time.

On TV, young Bokiy Shields shook his beautiful hair. One of his hands was gently resting on his hips. In a magnetic voice, he said the world-famous slogan: "I am intimate with Calvin".

At that time, the controversial advertisement caused Calvin Clay's brand reputation to rise.

But by 80s cowboy clothing was in the doldrums, and Calvin Clay's development was in the doldrums.

The company shifted its focus to underwear and perfume to reverse the decline.

In 2002, Calvin Clay was bought by PVH group.

Nowadays, in the United States, Calvin Clay is no longer popular as a fashion brand, but sells underwear, perfume and mid priced clothes.

The company also changed the "people to people" line, pushing the Calvin Klein Jeans.

An American fashion magazine editor said: "New York customers wear Prada, miu miu, Gucci fashion, they will never choose Calvin Clay, up to two CK underwear."

However, the brand, which has gradually withdrawn from the international mainstream, has successfully called "the second spring" in Asia.

Among them, China is Calvin Clay's largest Asian market, accounting for 70% of Asia's total.

By 2010, Calvin Clay had more than 300 franchised stores in China.

In 2000, Calvin Clay entered the Chinese market.

The brand invites Chinese and European and American celebrities and celebrities to create their own trend. It is also playing the erotic edge ball in advertisements, allowing men and women to pose with pornographic gestures half naked to highlight their sexy and fashionable images.

Many young men are happy to imitate Beckham on the billboard to show the edge of underwear, which serves as the finishing touch for personal image.

In China, Calvin Clay is not only satisfied with becoming a famous brand underwear, but also striving to "blossom in full".

The company's publicity for its casual clothes far exceeds that of underwear.

In the United States, jeans priced at $70~120 are usually sold at a discount of 3~5 in the discount season.

But in Chinese stores, the same goods are sold at almost two times the price.

But under the high price gap, the purchasing power of Chinese youth groups is still strong.

Now, at the waist of young people, Calvin Clay's logo is still hidden.

Most of them do not know that they only consume a declining brand, and their second line brand, CK (Calvin Klein), is the main fashion dress, CK is the senior garment manufacturer, and CKJeans is its young vice card.

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Long Gao: "national package" in advanced shopping malls

If you do some observation in French Street, you will find a colorful dumpling shaped folded bag frequently seen in the field of vision.

Seventeen eight year old girls take it as a schoolbag or a shopping bag, while the office worker grabs the newspaper and carries it as a briefcase, holding a large bag full of baby products on her shoulder and holding her baby's mother's bag. The seventy or eighty year old lady carries it to the vegetable market, and two fresh baked bread sticks are displayed in the zipper.

This variety of colors, similar to dumplings, is the classic French brand Longchamp.

The user of the long folding bag has been selected as the most famous and favorite handbag of France across all age groups. It is no doubt that it is a French national bag in terms of popularity.

Since it is "national package", its price is naturally "approachable".

Take the most popular shoulder fold pack as an example. The price is 55 euros, 65 euros and 75 Euros according to the size.

In terms of the average income level of the French, it is definitely not luxury.

On the material quality, the national package is also an absolute root. It uses nylon and leather which are of excellent quality but not expensive.

The long brand was founded in 1948 and once became a best seller in Europe.

But now, in the competition with other fashionable brands with stronger design, the development of "dumpling bags" has become increasingly mediocre.

Cassegrain, chief executive of the company, said that 2/3 of the products were produced in France and the rest came from Tunisia, Monaco and China.

But by the impact of the financial crisis in 2008, the speed of sales slowed sharply, so the company considered to gradually shift the production area to reduce costs.

According to the French fashion magazine, although today's long factory is still in France, its size is very small, similar to the sample design laboratory, which is only responsible for making samples.

The dumplings sold on the market are mostly produced in developing countries such as China or Mexico.

About seven or eight years ago, the cottage dumplings began to be popular in Beijing and Shanghai.

At that time, in Xiushui Street, Beijing, a girl would be able to win a "dumpling bag" after cutting the price and catching up with the fashionable girl for 30 yuan.

Many girls who buy it have heard about it. This is the "French bag".

In 2008, long lung was officially introduced to the international brand counters of China's advanced shopping malls.

In the new Dongan shopping mall, Beijing opened its largest store in Asia.

The new store covers an area of more than 250 square meters. The walls are made of brick with a steady grey and luster white. Chrome, leather and valuable wood veneer plywood make the display more elegant.

The company also remade the price for Chinese customers. The classic style "dumpling bag" priced at more than 1000 yuan, though not as good as Louis Weedon and Hermes, but it was three or four higher than its European price.

This repositioning "high-end line" caters to the shopping needs of white-collar workers and fashionable young women with certain purchasing power in China's first tier cities.

Some girls decided to drop the original cottage bag and put it on the real pin.

Some people form "collects".

Miss Liu, who works in a foreign company in Shanghai, said that collecting different color styles of "dumpling bags" has become a habit of her own. At present, she has collected 9 kinds of long bags and 3 special packages.

Nowadays, in the office buildings of Chinese big cities, fashionable white-collar girls also carry "dumpling bags", just like French girls.

Perhaps the difference is that they carry a different bag of hearts on their backs. When they buy bags, they also pay different prices.

Jaguar: only appreciated by old love.

The new Jaguar slowly sailed into Shanghai's rich European style villa, and pedestrians slowed down.

They showed their reverence and some illusions.

Even the gatekeeper of the villas could not help but admire the "tune" of old Shanghai. One day in September 2010, the old British car brand Jaguar held salon activities in the nearly 100 year old manor villa.

A 34 year old Shanghai man with a refined temperament says he owns a Jaguar XF car and is confident of his choice of cars.

Nowadays, in the most luxurious international hotel in Shanghai, Jaguar often appears. In the high-grade community of Eastern Beijing, the unique Jaguar has become a highlight in Mercedes Benz and BMW group.

For many Chinese men, Jaguar is probably the most effective decoration for wanting to be a gentleman.

Lenze, general manager of Jaguar China, is satisfied with the sales performance. "The sales volume of Jaguar in the first half of 2010 is equivalent to the annual sales volume in 2009, an increase of 100%."

The "British leopard" is highly regarded in several Chinese cities. Jaguar believes that it is necessary to thank the young Chinese new rich class who want to have a unique taste and do not want to be drowned in the wave of German luxury cars. These new Chinese gentlemen are exactly the same as the European gopus in the 50s and 60s of last century.

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In 1922, William Lyons founded the Jaguar, and its XK racing car became a symbol of nobility.

In 60s, Jaguar switched to the civilian car industry.

Due to its achievements in the field of car racing, the sales volume of Jaguar's civilian cars has been growing at an alarming rate. The company has annexed Daimler, Gaye and vertex car factories.

In 1968, Jaguar merged with Lei Lan company to form the largest car company in the UK.

In the 60s and 70s of last century, Jaguar became a genuine European car leader.

In the last century in Britain, as long as people talked about cars, they would talk about Jaguar forever.

But nowadays, many Chinese do not know that the "leopard", which is regarded as a high-end by themselves, has long been declining in the European and American markets.

Foreign media are so banter: "the big brands have already become small brands, just like the subject shares that have been fired, only by the appreciation and symbolic holding of the shareholders who are old lovers."

In fact, as early as the 80s of last century, Jaguar has gradually entered the haze following William Lyons's death.

Its sales went from bad to worse, and finally it was bought by Ford Motor Co for $4 billion 70 million in 1989.

The old and low productivity of Jaguar production technology has been a big headache for Ford.

In 2006, Jaguar averaged only 16 cars per worker per year.

A former Ford chief inspected the Jaguar plant in Coventry with a sneer that it was the worst car factory he had ever seen outside the Soviet Union.

In the third years Ford bought, Jaguar began to slash its workforce by nearly 30%.

The launch of its entry-level X-Type sedan also ended in failure.

In 2004, only one quarter, Jaguar led to the loss of nearly $178 million by Ford luxury car division.

By 2005, the brand loyalty of Jaguar has dropped to 38% from 85% dramas in previous years.

In terms of sales, taking the US market as an example, Jaguar sold 49 thousand vehicles in 1988, down to 42 thousand and 700 in 1990, and fell to 25 thousand and 600 in the next year, and sales in 2007 dropped to the lowest point in history - 15683 vehicles.

After years of suffering, in 2008, Ford Motor Co had to sell Jaguar to India Tata group.

Facing the continuous decline of sales volume in the European and American markets, Jaguar's market is mainly concentrated in developing countries such as China and Russia.

Although Jaguar's high consumption vehicles are not encouraged in China, this does not weaken the strong demand for the XF series with 2.2 liters of diesel engines in China.

Many Chinese are enchanted to drive Jaguar to the streets, such as the guitarist George Harrison of the Beatles, the British national treasure singer Ayrton John and the American female star Marilyn Monro, who are proud of having a Jaguar.

The only difference is that these Chinese rich people have Jaguar time, nearly seventy years late.

Lafite: the sky wine that the West no longer enjoys

At the London Christie's auction in 1985, a bottle of Lafite wine signed by former US President Thomas Jefferson in 1787 was photographed by the owner of Forbes magazine at a high price of one hundred and five thousand, which set up and maintained the record of the world's most expensive wine so far.

Now, a wine lover from Suzhou said: "if a person bought 20 boxes (12 bottles per box) in 1982, he could become a multimillionaire today" in 1983.

Once, Lafite was once the darling of European and American wine collectors. But now, the quality of Lafite itself and its skyrocketing asymmetry have gradually stunned collectors.

In the European market, wine prices in good years do increase two to three times a year, but the normal increase will not exceed 10%.

The sharp rise in the price of Lafite makes it lose the significance of collecting wine itself. After all, for European and American collectors, they value the taste and quality of wine itself.

In fact, for the Europeans and Americans, Lafite is not unique, so they are not as keen on the Chinese as they are.

In their view, Lafi is only one of the five first-class wineries in Bordeaux (Bordeaux), and is also famous for its La Tour (Latour), Obiang (Haut Brion), Margo (Margaux) and Mu Tong (Mouton) winery.

In addition, there are also some wineries not participating in rating in Bordeaux, such as Pomerol and St. Emilion, which are no less than the reputation of the first class winery. The price of these wines is sometimes more expensive than that of the five first-class wineries.

Another reason why Europeans are no longer keen on Lafite is that economic weakness leads to extravagant consumption.

The consumption of red wine in France, Italy and Spain is shrinking and production is surplus, so the industry calls these three giants "wine lake".

To this end, the EU also introduced a "crisis distillation" plan to encourage enterprises to turn excess wine into biomass ethanol, and let some vineyards abandon planting.

Against this background, consumers are more inclined to cheap wine brands.

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However, in China, Lafite, rejected by European collectors, has almost become a symbol of status and status.

Some Chinese consumers know little about wine, but they are crazy about Lafite.

A person working in a construction company said that it would be considered "humiliating" to entertain guests on many occasions without choosing Lafite and ordering other brands of wine.

When many Chinese businessmen entertain guests, Lafite is also the first choice for alcoholic beverages.

Among them, some rich businessmen have never studied English, but can quickly identify the "Lafite" (Lafite) logo on the wine bottle at the table.

As a result, a large number of smuggled liquor and fake liquor appeared in the Chinese market.

According to media reports, an empty bottle of Lafite red wine can sometimes be sold for two thousand or three thousand yuan.

Liv, manager of the international wine department and wine master Serena Suk, London Sotheby's auction house, can not help but sigh: "Lafite was appreciated by European aristocrats in nineteenth Century, and won the favor of Americans in twentieth Century 70s and 80s, and is now conquering Asia."

According to the London International Wine exchange Lix-ex survey, in the auction of Hongkong's Lafite auctions at Sotheby's auction house, several years of Lafite paction price are several times the paction price in the British market.

For example, a box (12 bottles) of Lafite in 1982, the British paction price of 37500 pounds, Hongkong paction price of 84289 pounds, the difference is 125% higher; a box of Lafite in 2005, the British trading price of 10182 pounds, Hongkong paction price 23522 pounds, the difference is 131% higher; a box of 2009 Lafite (still in oak barrel aging stage), the British trading price 10950 pounds, Hongkong paction price 43124 pounds, the difference is 294%.

Gideon Rahman, editor in chief of the Asian edition of the Economist magazine (Gideon Rachman), put forward the Lafite s China price in the column to satirize the Chinese people's blind wine.

Some experts point out that the market price of Lafite is far higher than its own value under the influence of wine investors, and the price bubble has begun to appear.

The price of Lafite, such as 1986, 1996, 2000 and 2003, will double in one or two years.

In recent years, in China, even the Lafite sub brand liquor (raw material is not suitable for brewing genuine wine grapes), the so-called "Carruades de Lafite", its price is also climbing all the way, or even far higher than the price of other well-known Chateau brand liquor.

Parker: the outdated stuff that was snapped up.

On the occasion of his 54 birthday, Mr. Pan of Hangzhou received a pike pen with a value of more than ten thousand thousand yuan.

This is the ninth tribe he owned.

Mr. Pan is very proud of this: "some people collect handbags, some collect jewelry, and I collect pens."

I have to admit that peck pen is a luxury. It not only has many gold plated pens and jewellery pens worth more than 10000 yuan, but also has a glorious history that other brands are hard to compare with.

In the history of brand development over the past hundred years, British writer Conan Doyle used Pak to portray Holmes; the American rich Henry signed the contract to buy The Empire State Building with Pak pen; President Nixon visited China with a Parker pen as a gift; peck pen also witnessed the final surrender of Japan in World War II and the signing of the Treaty on nuclear disarmament between the United States and Russia.

However, when American George Pike set up Parker pen company, I probably did not expect that the pen could be sold to astronomical price.

Because more than 100 years ago, he was just a part-time teacher who sold and repaired pen.

In 1888, George Parker founded pike fountain pen company in Jan Sitwell, Wisconsin.

In 1899, pike created a patent for the easy to install pen holder.

This kind of pen writing is smooth and clean, and has good ink storage. It has brought revolutionary changes to the pen.

Soon, pike pen became a symbol of status and identity in the American society at that time.

Since the 20s of last century, park has begun to expand its international market.

At that time, park pen had been exported to Europe, Australia, India and East Asia.

However, it didn't last long. As the Hungarian bellow brothers invented the ball point pen, Parker's pen was frozen.

Since the ball point pen is cheap and inexpensive, it has won the favor of consumers since it came out.

In the middle of twentieth Century, Parker's sales dropped sharply.

At the time, New York Times reported that pike had plunged and was on the verge of bankruptcy.

In 1962, Parker company was allowed to become the exclusive supplier of Royal writing equipment and ink in the UK. Parker pen became Elizabeth S's imperial pen.

It was widely publicized and eventually made pike become famous.

But in the late 70s, other pen companies followed the Parker company's high-end luxury pens.

Under the impact of this wave, pike pen company's market in the United States has been occupied, and sales have dropped significantly. Since 1980, pike has lost 5 consecutive years, and its loss has reached 5 million US dollars in 1985.

At that time, in order to save Parker company and expand the market share, general manager Pedersen made a wrong decision: he made full effort to locate the medium and low pen under 3 dollars.

The move made the pike company, which is already struggling, even worse.

Consumers who agree with park's high-end positioning have abandoned it, and the middle and low end market has not improved.

The market share of peck pen dropped to 17% in the US.

At the end of last century, pike repositioned, trying to achieve new life by showing off and decorating function.

For this reason, pike reduced the output of pen greatly and raised the selling price by 30%.

But when the time came into twenty-first Century, with the popularity of electronic office, the fate of pen writing became dim.

Parker pen has no fear of the future.

Because in emerging markets, especially in China, a large number of "good quality" consumers are fanning Parker with a retro complex.

In 2009, sales of pen, including non luxury brands, increased to 7 billion 800 million yuan in China, up nearly 17% from a year ago, according to data from market research firm Rui information consulting.

In November 3, 2011, Penny McIntyre, the head of the office supplies Department of the park's Newell group, said that in the past three years, pike has nearly 500 shopping malls in China, and sales of many counters have soared by 30% to 50%.

Parker counters sell many products specially designed for Chinese consumers.

To cater for Chinese writing culture, Peck's Chinese design team has deepened the ink color of their pens. The Chinese pen nibs have specially designed the word "Fu", which symbolizes prosperity and good luck. The special edition pen, which is painted with Jinlong, is priced at 39888 yuan RMB.

Even though electronic office and e-commerce have been popularized in China, Penny McIntyre is confident that China will become Pak's largest selling market in the future.

Foreign media also said, "in many countries in Europe and America, for business executives, smart phones and tablet computers have made expensive pens obsolete.

But Chinese professionals are increasingly buying them, including some pens worth thousands of dollars to show off their wealth.