Marketing Strategy and China Penetration

LUXURY  BRANDS  –  MARKETING  STRATEGY  

PRADA   GUCCI   ARMANI  

-­‐  Design  and  production   -­‐  Experiential  marketing,  they  create    

  and  sell  a   dream”  for  the  customer,  

“ The  brand  image  is  very  powerful  

-­‐  New  design   emotional  attachement  with  them    

Advanced  production  techniques   -­‐  Attention  to  every  single  aspect  of   -­‐   Creates   a   high   luxury   series   of  

High  quality  of  fabrics  and  leather   the  final  purchase   products  representing  a  VIP  lifestyle  

Workers’  high  level  of      

specialization   -­‐  Careful  service,  they  develope  a   -­‐   Careful   attention   given   to   each  

    relationship  with  customers,   customer  to  make  him/her  feel  like  a  

-­‐  Distribution   creating  an  affinity  with  them   celebrity    

Epicenter  concept  store    

DOS     -­‐  Store  strategically  located  on   -­‐   One   corporate   brand   and   5   sub-­‐

Multi  brand  stores   expensive  high  street  locations,   brands    

    atmosphere  of  prestige,  unique    

-­‐  Image  and  communication   packaging,  perfectly-­‐dressed  and   -­‐   The   brand   lines   reflect   perfectly  

Strong  press  coverage   flawless  salespeople     Armani’s  identity  and  taste  

Cultural  and  commercial  in-­‐store        

Sponsor  Luna  Rossa  boat  for  the   -­‐  Shocking  advertising:  perfum   -­‐   Advertising   campaigns   are   direct,  

America’s  Cup   “Ophium”,  with  a  completely  naked   clean  and  essential  usually  made  by  a  

Fondazione  Prada   Sophie  Dahl   Hollywood  celebrity  

TAILORING  BRANDS  –  MARKETING  STRATEGY  

ZEGNA  

KITON  

CORNELIANI  

-­‐ Able  to  adapt  to  a  changing   -­‐ Retailing  strategies  used  by  the  

-­‐ Wide  and  comfortable  space  

market  and    to  the  new  purchase   group  are  niche  marketing  

furnished  with  wood  and  glass  

-­‐ Change  strategies  to  respond  to   -­‐ Build  a  strong  and  

-­‐ Aim  to  attract  customers  

the  increasingly  high  expectations   differentiated  image    

attention  and  to  make  them  feel  

and  selective  customers.   comfortable  and   at  home”    

“ -­‐ Create  a  customer  loyalty  

-­‐ Brand  experience  involving  the   understanding  the  needs  of  

-­‐ Its  design  reflects  the  luxury  of  

target,  through  the  use  of  the   customers  and  trying  to  build  a  

the  brand    

power  of  emotional  storytelling     relationship  with  them    

-­‐ It  uses  advertising  videos  on  its  

-­‐ Store  designed  by  the  Podda/ -­‐ Bravery  to  invest  in  the  BRIC  

websites  

Ponti  Architetti’s  studio-­‐  "wall"   markets  that  today  represent  

with  the  reason  Mantegnesque   for  Zegna  high  revenues  

-­‐ Doesn’t  use  famous  models    

circle  of  concatenated  circles  -­‐  

made  with  absolutely  exclusive   -­‐ First  brand  that  has  shown  the  

materials.   fashion  show  on  social  media  

 Penetration  in  the  Chinese  

Market  

Both  categories  after  the  Chinese  growth  are  trying  to  catalyse  the  Asian  

Market  considering  it  as  a  huge  opportunity  for  their  business  

LUXURY  BRANDS  –  CHINA  PENETRATION  

PRADA   GUCCI     ARMANI  

-­‐  Around  2000s  Prada  Group  invest  in   -­‐  Strong  local  management:  100%  

China   Chinese  workforce.  Challenge  of  

  overcoming  China’s  traditionally   -­‐   Armani   opens   its   first   store   in  

-­‐  Expansion  of  DOS  for  men  ready-­‐to-­‐ Communist-­‐style  customer  attitude.   Beijing  in  1998  

wear   They  have  to  be  more  attractive  than    

  pirated  goods  in  China   -­‐   2004:     a   new   project   of   creating   a  

-­‐  Increasing  distribution  channel  in     store  in  Shanghai  of  1100  sqm  

second  and  third  Chinese  cities   -­‐  Good  pricing  strategy:  Gucci’s    

  China  prices  are  only  10  to  13  percent   -­‐   2010:   launched   a   new   e-­‐commerce  

-­‐  Adapt  style  to  Chinese  needs  and   higher  than  global  standards  (unlike   platform  only  for  the  Chinese  market  

taste   others  fashion  brands  and  despite    

  fashion  taxes)   -­‐  Project  of  building  a  new  redisential  

-­‐  Improve  digital  market     area   in   Chengdu:   two   towers   of   222  

  -­‐  Targeted  merchandising  strategy:   meters   height   with   65   apartments  

-­‐  Quoted  in  Hong  Kong  stock   each  store  is  selected  and  highly   e a c h ,   e n t i r e l y   d e s i g n e d   a n d  

exchange   targeted  and  tailored  to  the  local   decorated   with   the   Armani’s  

customer   fornitures  and  style  

-­‐  Careful  local  selection    

TAILORING  BRANDS  –  CHINA  PENETRATION  

CORNELIANI   KITON   ZEGNA  

-­‐ Was  the  first  luxury  brand  

-­‐ China  is  Kiton’s  fourth  largest  

-­‐ The  most  interesting  market   that  opened  a  store  in  Beijing  

market  in  terms  of  sales  

for  Corneliani  is  China   in  1991  

  -­‐ Pushing  Chinese  customers  to  

-­‐ In  a  few  years,  it  will  be  the   -­‐ China  is  also  now  the  main  

understand  its  style  

first  market  for  the  brand   market  for  the  brand  with  

  over  70  flagship  stores  

-­‐ Its  turnover  grows  to  20%  per  

-­‐ The  brand  image  of  the   opened  

year  

Chinese  customers  is  

represented  by  managers   -­‐  For  Zegna's  20th  anniversary  

-­‐ In  the  stores,  the  most  part  of  

between  thirty  and  fifty  years   in  China,  it  created  a  limited  

the  clothes  sold  are  darkened  

and  cosmopolitans   edition  collection  of  20