Why are luxury brands becoming popular?

Because the rich are a minority at any time, the money this billionaire earns every year is far from enough to ensure the maintenance and development of luxury brands. Therefore, these luxury brands began to consider younger and more civilian. Moreover, it is true that the living standards and consumption levels of people all over the world are improving. If luxury brands don't lower their prices to attract customers, some luxury brands will attract customers away. Brand will cultivate your consumption habits and make you form brand inertia.

The first reason is simple. You can see that any brand in any industry, almost without exception, develops low-end products to attract new customers. Because it is not enough for a big-name enterprise to rely only on the consumption of the rich, in order to expand its scale and increase its income, it also needs to attract new customers, which is called open source. No matter in which era, there are always few people who have a lot of wealth in society. Rich people can't just invest their money in luxury goods, so their consumption is not enough.

As the saying goes, two heads are better than one, which may be equally applicable in the luxury goods industry. A wealthy businessman buys a bag of100000, so every ordinary person can surpass him by spending more than 30000. If there are 30 people, each person only needs 300 yuan. The average profit is small when the quantity is piled up, but it is too big to grasp the opportunity.

Moreover, price reduction attracts the attention of young people and other emerging groups. With its brand influence and good quality, it is easy to capture the hearts of young people, so it is necessary to cultivate their consumption habits and brand orientation step by step. If you launch a high-end bag, he will definitely buy it as long as he has spare money. Because he has formed a dependence on this brand, when facing other brands, he also follows the buying inertia and chooses "his own brand", which makes luxury brands popular.