2011 explores conspicuous consumption of luxury furniture to attract home new trends

China is an eager emerging market. This is what everyone knows, but not everyone can make a difference. The high-end furniture that is also a luxury item allows us to see the other side of the Chinese market. The problems they face in China can be clearly stated in one sentence: they can't catch the "fast train" of conspicuous consumption, and they can't convey the true value to consumers in a short time.

Ms. Hu Rushan, one of the founders of the high-end design furniture retail store “Design Republic”, compared the consumption psychology of high-end furniture to “buying underwear”, but in fact this is still more optimistic about this “lost” market, in the management design republic. After nearly four years and represented a large number of international high-quality furniture brands, she still feels that “many foreign furniture brands have a strong interest in the Chinese market, but in the face of differences in consumer attitudes, they seem helpless.”

A few hundred thousand yuan of chairs, if you have less, you can pay a down payment for a house. If you have more, you can buy a house with a small square meter. But how can the Chinese people say that these hundreds of thousands of dollars to buy a chair?

Compared with Europe and the United States, there are more kinds of answers in China for "what reason to buy hundreds of thousands of chairs."

Exploring conspicuous consumption

If you don't know how to design and don't know the brand story, what is the reason for you to pay for a few hundred thousand chairs? Brand, face or quality of life? This question has more answers than the European and American markets in China. Hu Rushan told us in an interview that less than 20% of the design consumer groups really know how to design, and compared with other high-end furniture stores in China, this is already a proud number.

The Nordic-style China region CEOSimonLichtenberg pointed out a cruel reality: “History proves that design tastes are always associated with education levels. In developing countries, high-end consumer groups are initially upstart-type.” The 2% high-end consumer market in the national furniture industry highlights the weak understanding of lifestyles in China's new money consumption. “Chinese consumers are still willing to spend money in places that can be seen, such as fashion, watches, cars, etc. The things at home are very behind. The high-end furniture market in China is only about one-tenth of the US.”

Yin Zhixian, editor-in-chief of "Fashion Home", the industry insider who witnessed the development of China's home furnishing industry for more than a decade also believes: "The history of Chinese wealthy is still relatively short, and the cultivation of taste requires a process. For the use of certain furniture, even From the beginning of the professor how to use. The same industry abroad, designers and customers have a ready-made tacit understanding of a certain concept and design, from production to purchase. This tacit understanding may take tens or hundreds of years of history. It is the reason why luxury furniture needs a long process in the domestic development."

The lack of taste and conspicuous consumption are not only in the Chinese market, but also in Russia and the Middle East. “And in the luxury goods sector, furniture is slower than fashion.” Hu Rushan, who has lived abroad for many years, told us, “If you go to Fifth Avenue in New York or Green Hill in Tokyo, you will find that furniture brands are not at the most. The core location opens the store and concentrates on the branch road that intersects with it. On the other hand, furniture does not have to buy new products on a quarterly basis like fashion. Even the wealthy consumers want a million-dollar sofa to be used. May be a long time.

These reasons have caused the speed of international first-line furniture brands to enter China not to be the same as fashion brands. The furniture brands that have come in have lost their feelings because they are unclear. But not all high-end furniture stores are barely operating, such as design republic, Da Vinci, and the two furniture stores with quite different marketing models have developed steadily in China, as can be seen from their examples. The problem of Chinese luxury furniture comes.

See the right time for education, education, education

The design republic was opened four years ago, and the first store was located at No. 5 Shanghai Bund. This rather high-profile site made many people surprised. But then people found that design republic is not a reckless act, but a product of market demand. “At the beginning, we were very frustrated. When we were working on a project that needed furniture, we always extended the cycle due to shipping problems. In this market, we needed a store that could provide excellent classic and modern furniture series.” In a few years, it is time to prove that they are opening. "If you look back at the development of high-end furniture in China in the past ten years, you will find that the growth in the past four years is significantly higher than in the previous six years." Yin Zhixian, who shares the same view with Hu Rushan, She told us: "Although the Chinese furniture industry has not experienced explosive growth, the growth in the past four or five years has been relatively stable." Yin Zhixian feels that this relatively stable growth has a lot to do with the continuous improvement of people's tastes of life.

In addition to the timing of the store, the design of the Republican operation model is also worth exploring. The furniture in the store always uses design as the core selection standard, and constantly invites design big brands such as TomDixon and RossLovegrove to come to the store for communication and publicity. It can be seen that the design republic wants to taste from life. Fundamental improvement affects consumers, not just sales growth. It turns out that this is a very viable development direction: In this relatively lacking passion market, Design Republic has once set a world record for the sales of Moooi brand lanterns. Foreign media commented on them: "If you want to succeed, you need to have the enthusiasm to do business like designing a republic. In the endless stream of millions of millionaires, they will go further."

As the Nordic-style Simon Lichtenberg said: “Education, education or education, we must constantly tell consumers how important a good lifestyle is.”

China is an emerging market that is eager for everyone. This is what everyone knows, but not everyone can make a difference.

Another mode

If the success of design republic proves more or less the improvement of Chinese people's lifestyle, then the Da Vinci Group's sales reflect another value of Chinese consumers: more emphasis on luxury, brand and even price. These values ​​are quite Chinese, but they are also widely accepted by top luxury brands such as Armani/Casa, VerasceHome, FENDICASA, and CerrutiBaleri. The above brands are represented in China by the Da Vinci Group. Since its inception in 1978, Da Vinci has become Asia's largest retail agent for home and interior decoration products. Database marketing is their main marketing method. Accumulate the list of rich people and contact information, and promote their own brand through event promotion and word-of-mouth introduction. The brands they represent will not be used for large-scale advertising as in foreign markets, but instead focus on the reception and designer salons. “The market for high-end furniture in China is very small, and most of them are bought by elites and rich people.” Yin Zhixian said, “Luxury homes are less likely to be mass-produced through the mass media. Generally, people can’t afford to see advertisements.”

Compared to the design republic, Da Vinci's marketing approach looks more like a "shortcut." This kind of approach, rather than affecting the taste of the current market, has also caused some people in the industry to see hidden dangers. Yin Zhixian believes that brands like FENDICASA are extravagant, but the design lacks new ideas and even “looks too old” with the market. The development, "new customers will not like the brand that is so old."

However, the development of China's luxury furniture market is still relatively slow, and the values ​​of the new money consumer groups will not change rapidly. Da Vinci also knows this well. From the opening of their store, we can see some clues: In addition to the first store opened in Singapore, Da Vinci's retail stores are opened in Indonesia, Brunei, Malaysia and In mainland China and other places, Japan and South Korea, which are more mature in design, are not on Da Vinci's commercial map.

Design sales and Da Vinci's two models of sales are optimistic, let us see some hope in the taste improvement and purchasing ability of China's new money market. Many international brands that have opened stores in China believe that new money will be consumed within a few years. There has been a leap from conspicuousness to quality of life, and perhaps the furniture industry is just getting rid of the loss.

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