Can discount stores match the second luxury market? On May 13, a reporter from Beijing Business Daily visited the store and found that Hi Tech Shopping, with "special" and "low price" as its selling points, added a second luxury area in its stores and highlighted its price advantage. On the whole, luxury discount and snack discount seem to emphasize price performance, but their customer demands may be different: Second luxury is still high-end consumption, and brand value and commodity liquidity are the primary factors; For snacks and rebates, consumers are more willing to pay for promotions. If you want to succeed in selling second luxury goods in snack discount stores, it will test the reliability of the supply, the perfection of the recovery and identification system, and the willingness of consumers. The analysis points out that discount brands should be carefully arranged according to their own positioning and the characteristics of consumer groups when expanding new product categories.
Highlight price advantage
In addition to discount businesses such as snacks, drinks and general merchandise, Hitco also focuses on second-hand luxury goods. The flagship store of Hitco, located in Xidan Joy City, has added a new area for second-hand luxury goods. According to the reporter of Beijing Business Daily, at present, there are about 30 luxury goods on the shelves in the store, with LV accounting for the majority. There are also a small number of brand products such as GUCCI and FENDI, most of which are of medieval styles and sell for thousands to 10000 yuan.
Low price is still the key point of Hite when it went on sale. The reporter of Beijing Business Daily saw in the store that the billboard in the Second Luxury Zone displayed "VINTAGE Medieval Luxury Bags" and enlarged the words "extremely cost-effective". The price tag follows the usual style of HETECO. For example, a medium size Jiushen bag from GUCCI is pasted on the shelf with the dealer's suggested retail price of 13000 yuan. HETECO has marked the price with a red cross, and the current price is 4725 yuan, only 36% of the suggested retail price.
Different from other goods in the store, the products on the second luxury shelf are locked in different zones. When consumers want to check the details of the goods or test the back, the store clerk needs to unlock and take out the designated style. When the store staff introduced the second luxury products, they also emphasized the price advantage of the second luxury products of the HETE store. He said, "We sell them cheaply, and the price will be more appropriate if we superimpose the store's stored value activities".
As a consumer, the reporter of Beijing Business Daily learned that the Xidan Joy City Store of Hite Shopping has been selling second luxury goods since April this year. At present, it is the only store selling second luxury goods. On the social platform, many consumers expressed surprise at the sales of second luxury goods by Hite, and some expressed concern about the authenticity and quality of goods.
In view of the consideration of the new second luxury category and whether it will be promoted to stores nationwide in the future, a reporter from Beijing Business Daily sent an interview outline to Hitco, but no reply was received as of press release.
Difference in customer demand
"The second luxury market is aimed at customers who have aspirations for luxury brands and pursuit of brand tonality. The stunt of shopping for second luxury may be more than the reality." Zhang Peiying, an expert in the field of luxury fashion, gave the above opinion.
To a certain extent, people who buy second luxury goods have certain recognition and requirements for brand value and product value in the secondary market. First, the brand is appropriate, and then the price is appropriate, which will drive consumers to place orders. Second luxury goods have a certain scarcity. In the case of discounts for drinks and general merchandise, price is the first factor driving consumers to place orders. Discount products of big brands and online celebrity brands may have more market, which are not scarce compared with luxury goods.
In discount stores that mainly sell general merchandise, snacks and drinks, big brands naturally have selling points, but brands with low popularity also have a place. Previously, a reporter from the Beijing Business Daily found during the investigation that the low price of Evian mineral water, Yuanqi Forest and other commodities were just the means to attract discount stores. In fact, most of the commodities in the stores were second and third tier brands with low popularity, and the price of the commodities was not high.
The second luxury market has a completely different business logic. When consumers choose to buy second luxury, they care not only about cost performance, but also about "value for money". Generally speaking, consumers will confirm the authenticity and quality of the second luxury goods, understand the circulation and maintenance times of the goods, and even consider the collection attributes and appreciation space of the goods.
Zhou Ting, president of VIP Research Institute, believes that "the consumption of second-hand luxury goods is also high consumption, which is not the same dimension as the consumption of daily necessities, snacks, drinks and other products that emphasize cost performance. There are many differences between the two in terms of customers, products, prices and so on".
Test the source and channel of goods
The reporter of Beijing Business Daily saw during the visit that some areas of the shelves of Heteshuo Second Luxury were empty. In this regard, the staff of Heteshuo store explained that at present, Heteshuo Second Luxury is still in the exploratory stage, and the goods were not replenished in time after sale. The dealers who supply the goods are also doing the second luxury business, and some styles will be transferred.
An employee of the second luxury market told the Beijing Business Daily that the second luxury market has a high turnover rate, and some consumers may return to the second-hand market for recycling and replace other styles after they have bought the medieval bags for a long time or do not like them. This means that Ershe is very testing the stability of suppliers' supply, their ability to collect second-hand luxury goods and aesthetics, and even their understanding of styles and brand stories. Shelf display is only a basic part of the transaction.
Zhou Ting said that the source of second-hand luxury goods is the first, followed by the channel. "The lack of stable supply and high flow costs are the biggest pressure and obstacles faced by Chinese second-hand luxury goods operators at present."
Many enterprises in the Second Luxury Circle not only rely on their peers to enrich the supply of goods, but also extend the service radius of Second Luxury, such as increasing identification, cleaning, etc., trying to improve and extend the link of Second Luxury transactions. Taking the 1733 commercial space located in the Dazhong Temple as an example, the second luxury brand Panghu was introduced at the opening. 1733 The person in charge of commercial space told the Beijing Business Daily that the introduction of Fat Humen Store was mainly due to the value of the second luxury subdivision category and its ability to link online and offline. It is understood that in the store, in addition to basic retail, it will also let the talent to live broadcast in the store, plan theme activities, and do luxury identification, maintenance, maintenance services, etc.
On the dithering platform, the second luxury brands such as Concubine Fish, Panghu and Juxi entered early, launched the normal live broadcast, and created an account matrix. For example, Juxi has different types of accounts such as watches, bags, luxury, jewelry, etc. Dithering also launched activities for the second luxury category in 2021 to help businesses occupy consumers' minds through price subsidies, streaming and other activities. At the end of January this year, during the festival, Taobao Second Luxury launched a special live broadcast of the hotel; In 2023, the second luxury IP "Taobao Love Luxury Festival" will be created to drive the sales growth of live broadcast rooms. It can be seen that the channel of Ershe business is also crucial.
Zhang Peiying also stressed the importance of supply. The real power of the second luxury business lies in the core supply chain and products. "From the identification of the source of goods to sales and after-sales, the platform needs to establish a traceable circulation system to protect the rights and interests of consumers; at the same time, it needs to have sufficient source of goods, as well as a perfect consignment and procurement model." (Reporter Zhao Shuping, Hu Jingrong)
