Versace'S Performance Decline Forced Pformation Into The Real Estate Industry, People Do Not Understand.

While some leading domestic real estate enterprises have been switching to other industries in succession, these luxury brands are in the opposite direction, and they are in the layout of the real estate market in the mainland of China.

While many people shout "do not understand" at the same time, I can not help worrying, luxury goods across the border to engage in real estate, reliable?

It is reported that the Versace apartment will be located in the center of Chengdu, and is located across the river from the famous building of Wangqing in the Qing Dynasty. Its brand art director Donatella Versace (DonatellaVersace) is personally responsible for the design work of the project.

The 68 storey apartment will be more than 220 meters high and the housing area will be between 150 and 400 square meters.

The whole project will be officially completed in 2017 and is expected to cost about 30 thousand to 40 thousand yuan per square meter. It will become the highest unit in Chengdu.

In fact, Versace is not the first luxury brand to enter the real estate business in China. As early as last January, Armani group announced that it was located in Chengdu, the first luxury residential project in China, Armani Residence Artesse.

It is reported that this is the first residential project of world-class luxury brands landing in the mainland of China. SWAROVSKI has also disclosed that it is in contact with Beijing and several other cities in China to enter the real estate market in China.

What is the purpose of luxury luxury brand's high-end real estate projects in China? The main business slump is a major reason.

In recent years, China's high-end consumer goods market has been seriously affected.

In April 23rd, one of the three luxury goods groups announced that the net profit fell by about 36% as of March 31st, that is, the net profit for the whole year will fall from about 2 billion 67 million euros in fiscal year 2014 to about 1 billion 323 million euros.

Previously, the declining trend of international performance such as Prada (Prada), Gucci (Gucci) and Louis Weedon (LouisVuitton) has not been effectively suppressed.

Seeking pformation is imperative for luxury brands.

According to the analysis of the industry, the oversupply of China's real estate market and the dilemma of high inventory also led to the pformation from the past product competition to brand competition.

Because of this, many luxury brands have stepped into the real estate industry, seeking diversified innovation, integrating resources with cross-border thinking to maximize their brand value.

In addition, the younger generation growing up in China's modern cities not only has a good understanding of luxury brands, but also enjoys the culture of brand pmission in consumption.

Therefore, they pay more attention to the brand effect in housing consumption, which has also brought confidence to international investors to enter China's high-end market.

It is worth noting that the path chosen by luxury brands to enter the Chinese real estate industry is the mode of cooperation with local real estate developers.

In response, a luxury industry insider who did not want to be named said to reporters that "luxury brands enter the real estate business in a region, and they will inevitably encounter the situation of not being acclimatized. Therefore, it is necessary to cooperate with local experienced enterprises."

As for the reason why Chengdu has been frequently selected as a luxury apartment project, the research institute told reporters, "for developers, compared to Beijing and Shanghai, the cost of Chengdu is obviously much lower.

In view of the investment promotion, the government also welcomes the entry of luxury brands and offers more preferential policies.

In addition, Chengdu's consumption power is also strong in Chinese cities, which is also an important factor for luxury brands to choose Chengdu.

Although for many

For example, getting involved in apartment projects is the first time, but the cross-border real estate industry is no stranger to it.

In fact, many luxury brands have been in the hotel industry for many years before that.

With the continuous upgrading of "experience economy",

The time and space are expanding.

El Luxor Hotel is undoubtedly the most complete and direct way to provide this high-end experience.

And storytelling is what luxury brands are best at.

As early as in 1994, Versace built the world's first six star luxury hotel "Versace Palace" (PalazzoVersace); in 2009, Armani built Amani Residence Hotel in Dubai, taking the first step in the real estate industry.

It is reported that Amani Residence Hotel is expensive, and the cheapest guest room is 6440 yuan / day. In 2004, Bvlgari and Marriott group launched the Bvlgari hotel in Milan.

Then, in 2008 and 2012, Bvlgari Bali Island Resort and Bvlgari hotel in London were built. The world's largest luxury group, LVMH, opened its first "white horse estate" hotel in 2006 in the French ski resort Courchevel.

In this regard,

Zhang Jianhua, general manager of the largest commercial real estate service provider, RET Rui Yide, general manager of the western region, said that luxury brands have their own advantages in cross-border Games: first, luxury brands usually have deep deposits, and some even have hundreds of years of history and social status.

Some brands are able to enter other industries at low cost with high popularity and market recognition. Therefore, the high investment cost of early brand culture pmission can be apportioned, and the capital utilization rate can be effectively increased. Two, luxury brands have greater market influence, and all actions are attracted by the outside world. Cross-border behavior itself plays a positive role in promoting product marketing. It is easier to implant a successful brand element into new products than to build a new brand from scratch, and also gain additional profit from the company's open source.