Italian luxury brand Valentino recently announced Yang Yang as the brand spokesperson through social media officials, and specially filmed advertising for him in Rome. Even earlier, Valentino had begun to cooperate with Sun Li and Guan Xiaotong, who were brand spokesmen and close friends respectively.
This is a series of marketing that Valentino has done for the Chinese market. In addition to working with stars, its other recent move is to work with the silent drama Sleepless Night to design its own costumes. In 2022, it also held the "Pink PP" concept time limited event in Anaya, Qinhuangdao.
According to the disclosed financial report data, Valentino's revenue will increase by 15% to € 1419 million in 2022, and its operating profit will increase by 30%. Compared with 2019 before the epidemic, brand direct sales increased by 21% year on year, and its proportion in total sales also increased from 54% to 62%.
The increase of market heat also provides the basis for Valentino's price rise. On social media such as Xiaohongshu, some consumers said that the brand had completed a new round of price increase in April. The price of MINI LOCO calf leather handbag increased by 11.6% to 19500 yuan, while the price of all shoes and shoes products rose to more than 9000 yuan.
But it is not just Valentino. In fact, many second tier luxury brands, including CELINE and Bottega Veneta, have increased their prices for several rounds in recent years. The main reason is the rising cost of production materials and logistics after the outbreak of the epidemic, but more importantly, although these brands still have a gap in sales with the top brands, their marketing volume is catching up quickly.
The competition of the second echelon is no inferior to that of the first echelon. It is common for the brand to decline rapidly after its popularity rises. Like many brands, Valentino has also accelerated its expansion in recent years. On the one hand, the sinking of high-end real estate operators provides luxury brands with space to open stores; on the other hand, brands need to expand consumer groups as much as possible while taking advantage of the heat.
When releasing the 2021 performance report, Valentino said that China was the next market to focus on expanding direct stores. According to the official website, the current brand has more than 40 stores in the Greater China market, including Hong Kong, Taiwan and Macao, but most stores are still located in first tier cities such as Beijing and Shanghai.
Chinese consumers are not unfamiliar with Valentino, but they are not very familiar with it. Consumers know that it is the dress brand often chosen by female stars on the red carpet of the film festival, and it also has popular items such as rivet shoes. However, from the perspective of overall image, people sometimes can't give a clear definition. They think that this is a brand famous for making luxurious clothes, but also has trendy pieces.
Another embarrassment is that the second tier brands are often less conspicuous than the head brands, which makes it difficult for people to confirm the meaning of purchase through display. This is a dilemma faced by many brands, including Valentino. There is often no other way out, but to be more high-end or unique, or both.
In addition to price increases, Valentino is also increasing its direct marketing channels in the matter of moving towards higher end positioning. This is a step that almost all luxury brands cannot bypass in the process of promoting transformation. Direct marketing channels can not only enhance the control of price, but also output a more unified brand image.
In terms of image, Valentino's transformation has two parts. One part of this is to maintain the previous image of luxury dress. Although such an image is far from the current consumer preferences, it can emphasize the history and value of the brand. The other part is more radical. Through the concept of "Pink PP" full pink color, it repeatedly deepens the impression of consumers in a more fashionable form.
The second approach is difficult to avoid controversy, but for today's luxury brands, the traffic behind it is more important. Fast moving consumer products usually benefit most from traffic. Valentino has authorized L'Oreal Group to operate beauty business before, and the financial report shows that this business will record a 40% growth in 2022.
