How Will Juicy Couture Embrace New Retail?

According to the world clothing shoes and hats net, facing

Crazily encroaching on the current situation of the physical market under the line, Tmall's new strategy of consumption upgrading has become a hot topic in the recent industry.

In order to better serve Chinese consumers and keep pace with changes in the trend, the US luxury brand Juicy Couture and Tmall talk about how to embrace together.

The coming of the age.

New retail, that is, data driven, through the development of new technology and user experience upgrades, to pform the form of retail industry.

Alibaba CEO Zhang Yong presented 54 global leaders at a closed door meeting this week.

The helmsman or CEO emphasized that "four refactoring and five pillars" are Redefining Global retail. "If we haven't finished the digitization of basic business elements, we will not be able to reconstruct them."

Juicy Couture restarted the global expansion plan in 2015 and officially landed in Tmall mall last year.

As one of the most important brands in China, the agency right of China has always been owned by the China Stirling group, Hongkong's link Crawford group.

In the face of Tmall's latest retail development strategy, Huang Xinghui, managing director of the Juicy Couture brand of Hua Stirling group, said in an interview with reporters that Juicy Couture has always been in line with the idea of positive trial. For the 618 carnival, except the Tmall flagship store, special stores will be launched, and the entity stores under the line will synchronize the sale of Tmall special items during the activity. Consumers can conduct double experience on line and offline through the way of scanning and paying attention to the purchase, completing the online and offline synchronous diversion, further blurring the line between the line and the offline, and revealing that Juicy Couture China will launch more cooperation plans with Tmall in the new retail and other fields in the future.

The picture shows Huang Xinghui, managing director of Juicy Couture brand of Hua Stirling group.

Juicy Couture officially entered the Chinese market in 2007. The Chinese group was responsible for opening the first store in the mainland in Beijing. It has been 10 years since then. In the early stage, because the brand has a good reputation, the overall development is very smooth.

In 2014, Juicy Couture parent company Authentic Brands Group group and China stirrup group reached a long-term cooperation agreement, layout Juicy Couture in Greater China and Southeast Asian market development. Juicy Couture has more than 70 shops in mainland China, 6 in Taiwan, 12 in Hongkong and 4 in Macao.

According to Huang Xinghui, the reason why Juicy Couture chose to enter Tmall last year is based on the two angles of the electricity supplier trend and customer demands.

Before entering Tmall, Juicy Couture's business in China was mainly operated in three ways: direct shops, Oteri J and franchisees. However, restricted by the factors such as brand shop cost and product retail price, Juicy Couture shops are mainly concentrated in the second tier cities in China. In the face of the demand of domestic non shop area customers, the development of electronic business platform is an imperative measure for the brand, and it is of great help to improving the volume of Juicy Couture business.

However, Huang Xinghui stressed that the attempt and layout of Juicy Couture in the field of Chinese electricity business is still in the initial stage. In the next 3 to 5 years, the brand will adhere to the way of "entity + electricity supplier double drive" to manage domestic business, but it is also because the Juicy Couture is in the initial stage of the development of the electricity supplier, so the brand will spend more energy in promoting the exploration in the electricity supplier field, increasing the number of fans and business volume.

According to the "2016 consumer behavior report" data, electricity providers currently account for 15% of the total retail sales of the society, but in the definition of Tmall, the future is not simply to change the proportion of electricity suppliers to 20% or 30%, but from the perspective of customers, standing in the global market perspective, will generate 100% of the health.

In the face of the Tmall platform with 500 million Ali users, there seems to be no longer any reason to resist the luxury brands that are trying to force the Chinese market. Tmall is becoming the preferred platform for global luxury brands and luxury brands, and will continue to grow in the future.

According to relevant sources, China's luxury goods market will gradually recover this year, with sales expected to reach US $76 billion. It will become the second largest luxury market in the world. It will surpass the United States to become the world's largest luxury market in the next 5 years.

In the interview with reporters, Meng Gu, deputy general manager of Tmall clothing, said that as the earliest industry rising on the platform, women's clothing's richness and brand maturity are the biggest advantages of Tmall women's clothing.

Whether it is light luxury brand, luxury brand or fast fashion brand, consumers can find any type of clothing seller on Tmall platform.

With the help of Tmall's backstage data, the brand's marketing programs and products can also be accurately delivered.

It can be said that Tmall women's clothing has led to the development trend and marketing trend of the entire Chinese e-commerce apparel industry to a certain extent.

The picture shows Meng Gu, deputy general manager of Tmall fashion.

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According to Huang Xinghui, Juicy Couture is also upgrading the brand as a whole in the overall layout of the Chinese market, and moving closer to the younger generation of consumers.

The main color and image of the brand are upgraded from the image of rosy red, crown and puppy to the neutral street style, such as black and gold. This change has broadened the positioning of target consumers of Juicy Couture to a certain extent. It has also promoted the brand fashion while meeting the needs of brand upgrading.

In the run-up of Tmall new retail marketing tools, Juicy Couture products will be accurately targeted to target consumer groups, while promoting sales growth and improving brand marketing efficiency.

Juicy Couture's products are gradually tilting towards younger ones.

In addition, in order to better carry out the younger strategy, Juicy Couture started from the spring of 17, and released the Juicy x Juicy Couture Couture series. This series is more in line with the needs of young people at the design level, mainly for the next generation, and the price is also more attractive. For the sales performance of this quarter, the launch of Juicy x Juicy Couture series is in line with the aesthetic needs of young people.

Huang Xinghui also stressed in the interview that physical retail and e-commerce retail actually have their own strong points. Physical retailing has a strong customer experience. The retail business has great advantages in terms of efficiency and cost. Therefore, whether or not it is a light luxury brand, the relationship between e-commerce and physical retailing should complement each other.

While explaining how to embrace the new retail brand, Meng Gu also said that in the future there will be no obvious distinction between online and offline, but a synergistic whole. The new retail base is to create a better bridge between Tmall consumers and brands, in order to build a better bridge between the consumers and brands, which is very suitable for the current and future development needs of light luxury brands, and will be a win-win situation in the long run.

The following is an exclusive interview with Huang Xinghui, managing director of the Juicy Couture brand of Hua Stirling group and Tmall's clothing deputy general manager,

Reporter: Juicy Couture has been in the Chinese market for some time. What is the challenge that Hua Stirling group faced in the early stage of taking over Juicy Couture? Why did it choose to enter Tmall last year?

Huang Xinghui: our group opened the first Juicy Couture store in Beijing in 2007 and officially entered the Chinese market. So far, it has been 10 years. In the early stage, because the brand has a good reputation, the overall development is very smooth.

Choosing last year's entry to Tmall is based on the two perspectives of the trend in the electricity supplier sector and customer demands.

Before entering Tmall, Juicy Couture's business in China was mainly operated in three ways: direct shops, Oteri J and franchisees. But because of the factors such as brand shop cost and product retail price, Juicy Couture shops are mainly concentrated in the second tier cities in China. In the face of the demand of customers in the non shop area, we found that entering the electronic business platform is imperative. It is believed that the promotion of Juicy Couture's business volume and brand awareness will be very helpful, so it was settled in Tmall last year.

Reporter: the first impression of most Chinese consumers when talking about the Juicy Couture brand is the velvet sports suit. Can you disclose your product strategy in Tmall flagship store?

Huang Xinghui: Yes, I believe many domestic girls understand that the Juicy Couture brand starts with velvet sets. With this advantage, the sales of the current stage suits are very stable in the Tmall flagship store. We have the idea to make it a brand explosive product in the electronic business platform, and we are also working hard for this idea.

In addition to velvet sports suits, there are fashion series products on sale. I believe the fashion series will become a new boost for business growth in the future.

Reporter: Juicy Couture sales this year on Tmall is expected to be greatly improved or even doubled over last year. What is the approximate proportion of the electricity supplier's sales in the mainland of China in the Juicy Couture plan? How do you understand the new retail concept promoted by Tmall this year? Will there be more cooperation plans with Tmall?

Huang Xinghui: Juicy Couture active layout in the field of electricity supplier, Tmall flagship store sales performance has also been significantly improved.

Compared to the sales performance of Juicy stores in China, we believe we will improve in the next few years.

For the new retail concept, at the present stage, under the premise of basically establishing the electricity supplier's big pattern, the combination of online and offline is a new trend corresponding to the technological breakthrough and upgrading of consumption.

In the face of this new trend, Juicy Couture has been in line with the concept of positive trial. For the 618 carnival, except the Tmall flagship store launched special funds, the offline direct shop will display 618 Tmall special items simultaneously during the activity. Customers can conduct double experience on line and offline through the way of scanning code and purchasing, and complete the online and offline synchronous diversion.

I believe we will continue to introduce more cooperation plans with Tmall in new retail and other fields in the future.

Reporter: with the gradual downturn of physical retail, will the development focus of Juicy Couture in the mainland of China shift to the electricity supplier channel? How do you think a light luxury brand should balance the relationship between the electricity supplier and the entity retailer?

Huang Xinghui: in recent years, the Juicy Couture has made corresponding adjustments in its physical stores and sales strategies in order to meet the current challenges.

The attempt and layout of Juicy Couture in the field of electricity business is still in the initial stage. In the next 3-5 years, we still insist on the way of "entity + electricity supplier double drive" to manage domestic business, but it is also because Juicy is in the initial stage of the development of electric business, so we will spend more energy to promote the exploration in the field of electricity supplier and attract fans to pay attention to the improvement of shops and business volume.

First, do not despise the premise of luxury brands. If we compare the traditional brand with the brand of e-commerce, the traditional brand will have a solid foundation in terms of quality and customer experience. The e-commerce brand will focus more on the retail business of electric business, and have great advantages in terms of efficiency and cost. Each has its own strong points. Therefore, whether or not it is a light luxury brand, the relationship between e-commerce and entity retailing should be complementary to each other. As far as possible, we can gather the advantages of the entity and the retailing of e-commerce, and start with the experience of customers, and believe that there will be better performance development.

Reporter: in order to attract more consumers, how will Juicy Couture be younger?

Huang Xinghui: at present, Juicy Couture is upgrading its whole brand, expanding its product line, and enriching the product selection including fashion series, accessories and footwear series.

In addition, since 2017, the monthly strategy of new products will better satisfy young consumers' pursuit of fashion frontier.

Secondly, the brand color and image are upgraded from rosy red, crown and puppy to black street, golden street and so on. This change broadens the positioning of Juicy Couture crowd, and has a more fashionable sense of brand, and also meets the needs of brand upgrading.

In addition, in order to better carry out the younger strategy, Juicy Couture started from the spring of 17, and released the Juicy x Juicy Couture Couture series. This series is more in line with the needs of young people at the design level, mainly for the next generation, and the price is also more attractive. For the sales performance this quarter, Juicy x Juicy Couture series has a good response.

I believe these two initiatives will have a positive impact on the Juicy Couture brand younger strategy.

Reporter: will you talk about the current development of light luxury brand in Tmall and the trend of user demand?

Meng: in fact, the development and progress of Chinese consumers is very fast. If you are concerned about the new retail conference held recently by Tmall, the whole Alibaba, including Tmall and Taobao, is a very high proportion of the whole GMV. It is a mapping of the overall ability to eliminate fees, and the consumer upgrade of Chinese consumers is very profound in the reflection of Tmall and Taobao.

Tmall and Taobao are an industry with higher permeability under the contrast line at home.

So light luxury is particularly potential in China, because with the growth of Chinese consumers' economic strength, it has already been able to afford light luxury or even luxury goods.

However, there is no challenge to light luxury brands. At the very beginning, Chinese consumers were driven by brands, which would choose which brand would bring honor to themselves or conform to their status as a standard to choose light luxury products.

But nowadays, Chinese consumers have a deeper understanding of the background, culture and style of light luxury brands, and more mature consumption concepts, so they will be more sensible when they spend less time on luxury products.

Tmall is becoming the preferred platform for global luxury brands and luxury brands, and the brand side is very satisfied with Tmall's flagship store's performance. However, some brands' performance growth will be further improved in the future, because these brands are still too conservative for Tmall and Chinese consumers, resulting in a high turnover rate and limited performance growth.

In fact, the performance of some extravagant brands who trust Tmall very well and maintain good cooperative relations is very good.

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Reporter: more and more luxury brands choose to enter Tmall, where does the power come from?

Meng Gu: Tmall's user mind in the fashion dress field has accumulated very deeply. Therefore, with the trend of shopping, that is, the popularity of online shopping and mobile terminal shopping habits, Tmall is the first to undertake in China. Second, from Tmall's analysis of target groups, the quality loss of high quality customers is very low every year, almost no, which means that consumers will have a high probability of repeat purchases.

Third, Alibaba has recently launched a new marketing tool that uses its own user data to attach brand names to help them conduct more targeted marketing tools. However, it is not officially released at present, and is expected to be released in the next one or two months.

Reporter: how will Tmall support better online sales of light luxury brands? What are the new initiatives?

Meng Gu: as mentioned in the question just now, Tmall will help the light luxury brand to subdivide users better through the marketing tools to be released soon, and form a Alibaba media matrix to help light luxury brands to make media delivery and do precise marketing.

At the same time, Alibaba also has tools to help brands understand consumers' needs better. Before Alibaba launched the activities of "shop two floor" and Tmall client's revision, these measures can help consumers to upgrade their demand while helping luxury brands and luxury brands to better sell.

Reporter: how do we view the current situation of the big business tycoons in the fashion industry? How will Tmall face the increasingly fierce market competition?

Meng Gu: in the field of fashion, Tmall is now in a leading position in China, no matter the market share or the user's mind, especially the clothing department. So what we value more is how to serve good customers and how to develop further, so we haven't yet come to the point of looking back.

As for how to move forward, Tmall's latest plan is to divide the user into layers, which is in line with the layering of luxury and luxury brands.

In the process of docking with the brand, we find that the positioning of our users is consistent with the brand positioning.

Determining the indicators of stratification is actually related to the shopping psychology of consumers when buying fashion clothes, that is, KOL, high quality users, pragmatism and price sensitive persons. These four categories are four psychological choices for consumers when buying clothes.

For example, some quality brands will pay more attention to their own background culture, while the trend brands will prefer to do some cross-border cooperation to promote and interpret the trend. These are the content resources and marketing that the brand can provide to us.

Therefore, what we have to do is to accurately target the resources provided by different target consumers. The big data of Tmall's backstage has been able to identify the consumers in layers, so for us to promote the delivery of clothing brand content and commodities, we should first meet the needs and interpretations of different levels of consumers.

Second, Tmall will further improve service quality and standardize packaging so as to improve consumers' shopping experience.

Therefore, for the Tmall clothing department, the current domestic considerations are more about how to serve good consumers and how to move forward.

Reporter: since Tmall put forward the concept of new retail, the slogan has been upgraded from "Heaven Cat to buy" to "ideal life". In this era of consumption upgrading, what do you think is the biggest difference between new retail mode and traditional retail mode?

Meng Gu: the definition of new retail has actually reached a consensus within Tmall, that is, data can be attached to the brand. The brand will be more digitalized and attached to retail efficiency in terms of operation and development, so in this process, the use of marketing promotion will be accompanied.

Because marketing promotion is actually the content resources derived from the brand aimed at the target customers, and what Tmall needs to do is to help them make precise delivery, especially the light luxury and luxury brands.

Because for light luxury and luxury brands, it is not necessary for all users to become their consumers, so precise user positioning is very important.

In the supply chain, Tmall will also do a lot of work this year to help the brand find more resources and opportunities, and will have more in-depth cooperation with the branding side in the supply chain.

Then the integration of brands and offline channels will have an official announcement this week.

In addition, online shopping has become a way of life for people.

At present, the "618" ideal life, Tmall activities emphasize more on the ideal life of consumers, but at the same time, it is also a platform for Tmall to help brands promote their lifestyles.

For example, Juicy Couture, the brand is the velvet suit, so for this brand, the target consumer group has certain requirements for the quality of life, but maybe the consumption scenario is in leisure, including business and leisure lifestyle. So what Tmall needs to do is help Juicy Couture identify user scenarios to push the products to consumers who really need and buy.

Therefore, through the "618" activity, we can popularize the ideal lifestyle for consumers, while allowing the brand merchandise to be exposed accurately.

Reporter: how should we understand and grasp the new retail concept for light luxury brands?

Meng Gu: actually, domestic consumers still prefer offline consumption to light luxury and luxury brands. There are two aspects of the application of these brands in the new retail market. The marketing aspect has just been said a lot, while the new retailing emphasizes the combination of offline and offline experience.

When Ma proposed the new retail concept, it was very important that the future would not differentiate between consumption and online consumption, but a whole new retail.

Therefore, from the user side, we hope that Tmall and Taobao clients can accompany users' entire consumption process, and we may not emphasize whether the payment takes place on the client or offline stores in the future. We emphasize the whole purchase experience.

For example, whether consumers are at home or in a coffee shop, as long as there are brand stores nearby, she can make reservations on offline services through online browsing, all of which are possible for Tmall to achieve through new retail, especially for light luxury and luxury brands.

However, at present, there is no part of the brand store in the city where consumers are located, so Tmall will also upgrade the online service experience. In the future, it will upgrade the online service experience of light luxury and luxury brands.

Generally speaking, the new retail industry is very suitable for the needs of light luxury and luxury brands. It is also a channel development strategy emphasized by many brands in the development. In the long run, this will be a win-win situation.

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