Obstacle of luxury brand


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Obstacle of luxury brand

  1. 1. Meeting Report"Obstacles of Luxury Brands in Thailand"
  2. 2. Topic• Luxury goods and luxury brands• Thailand luxury market• Obstacles of luxury brands in Thailand
  3. 3. Luxury Brand• Luxury is not about richness• Not about price Ex: Apple is not luxury• High quality• Heritage story• Richness symbolic
  4. 4. Luxury Goods• Jewelry and Time Piece• Fashion and Accessories• Automobile and Vehicle• Wines and Spirits• Property and Mansion• Art and Home Accessory
  5. 5. Luxury consist of• Exclusivity• Craftsmanship• Experience• Distinction• Long Lasting Value
  6. 6. Experience• Story• History• Feel different when shop luxury brand• Make you feel exclusive• Gucci do leather good for long time ago Craftsmanship• Quality• Material
  7. 7. Distinction• Butler in 5 star hotel Long Lasting Value• Use for long time• Still valuable when its old
  8. 8. Loyalties• Step 1: Brand value• Step 2: Brand attribution – a bit higher than normal brand loyalty• Step 3: Momentum – trust of the brand, love the brand and repurchase the brand
  9. 9. History of Thai’s luxury market• Luxury has entered Thailand for hundred years Major customers of Thailand 2011• Thai people prefer imported • 50% of customers are tourist ex: China Cambodia good • 25% from other part of Thailand• Social Class, Culture and norm • Bangkok people will shop at UK and HK use luxury good• Art and beauty for Thai people
  10. 10. Main Shopping center of luxuryShopping Mall Pros and cons Consumer Demographic and psychographicSiam Paragon – larger than other part mixed - More traffic over the mallEmporium Close to Sukumvit station -Japanese -IndianGaysorn Plaza and Erawan -Connected with 5 star hotels - niche marketBangkok -Many of 5 stars hotel - business men - real high class -Prefer quiet place -Need more privacyCentral Chidlom Good reputation to -Uk -Rural area or up countries -Japan -Foreigners
  11. 11. Players• Global Luxury Group – LV, Chanel and Prada• Brand’s own operated• Initial local distributor
  12. 12. Obstacles of Luxury Brand in Thailand• Customer• Distributor• Principle• PR and Communication• Location and Landlord• Employee and stuff
  13. 13. CustomerDefine your customers Asian and Europe consumer’s behavior• Demographic data • Asian use luxury product to• Geographic data • show-off Japanese and Europe use• Spending power luxury product because they are caring about art and quality• Lifestyle and attitude • HK and NY try to be different from just rich, unlike some• Need and objective others part of it’s city
  14. 14. Customer Educate customer• PR and Educating of history• Advertising – create dream
  15. 15. DistributorShould consider of• Brand Core-Value• Brand life cycle and trend• Brand Management• Aim or mission• Business strategy• Financial support
  16. 16. DistributorInventory Management• Stock 5-7 times of sales target - Because luxury must be presented all time - Concern about the space and goods• Stock Replacement - How often - Timing – seasons product• Stock left-over (Outlet) - Clear stock - Outlet do Not harm brand image - Discount 50% now or 70% next year
  17. 17. Principle• Nature of each principle• Conservation of brand• How to purchase• Promotion• Communication problem• Relation• Supporting – discounting, order more product• Press release in brand owner’s country
  18. 18. PR and Communication• Exhibition, event and party – Prada create exhibition in Korea – Mobile exhibition of Chanel, to educate story of the brand• Sale accessories – Bag• Store display• Communication channel – Facebook, website and EDM• Advertising, advertorial• Celebrity / star power
  19. 19. PR and Communication• Supporting factor – Transportation – Luxury hotel connect to mall – Business function – Travel function• Location / landlord – Neighborhood / Brand Mix – Traffic• Press / Media – Connection and press relationship is very important – Intelligent magazine
  20. 20. Employee and staff• Luxury Experiences – Must have luxury experience• Personality – Manner – Cleanness• Knowledge – General – Brand and product• Basic skill – Language – Business operation – Retail – process of selling
  21. 21. Business Partners• Contractor / forwarder– shipping knows the good very well
  22. 22. Uncontrolled issue• Flooding• Political• Environment• Government / regulation – Import tax reduced from 80% to 30%
  23. 23. Key Strategies• Know your customers behavior• Control the value of the brand• Connections (press)• Keep educating customers, employees and yourself• Increase dreams of your customers