High-end Luggage Marketing Strategy

In 2005, the luggage and bag manufacturers are tens of thousands, a total of 865 above-scale enterprises. From the regional distribution, the South and East China is the main distribution zone. Sub-provinces (municipalities / autonomous regions), it seems, the first eight provinces (municipalities / autonomous regions) in Guangdong and the Yangtze River Delta (Shanghai, Jiangsu, Zhejiang) as key areas. China’s major industrial parks bags in Guangdong Province, the Yangtze River Delta, and Hebei.
Production and export of bags in China is big country, but serious deficiencies in the embarrassing situation of the brand. Big but not strong, neither the design nor content of brand value, is a major weakness of China luggage. China’s export unit price of bags is usually only a fraction of imported bags and even a few one-tenth of China’s nearly 300 billion luggage market, most of Louis Vuitton, Gucci and top brands such as Paul, Pier Ka Dan and other foreign brands occupy the mid-authorized, according to incomplete statistics, China-made own-brand market share less than 20%, with more than 20,000 manufacturing enterprises in China, luggage, just in the industrial chain for the developed countries play a manufacturer’s role.
Bags as an unplanned consumer goods, in a few years ago and no cause for concern. Now people around the bag is not a shortage of goods. Not only in the application has been strengthened, decorative also been expanded, a variety of shops and bags have become an indispensable fashion accessories. As an important factor in fashion, bags contains a huge market opportunity, the present situation, there are several large luggage market demand points:
1, changing styles, a wide range of
2, simple style, generous
3, graceful, rich luxury
4, the demand for leisure – the popular cartoon
China bags channel model:
1, Direct mode
2, the regional agency or regional distributor model
3, the franchise mode
China luggage terminal market business model:
1, independent stores
2, shopping center store
3, exclusive department stores (Nakajima, side hall)
4, leather goods market
5, online store
6, the online trading platform
Case: notlie bags marketing strategy
1, Notlie product positioning:
Product lines: leather bags,hand bag, shoulder bags for women, wallet-based; belts, cosmetic bags, canvas bags.
Features: Elegant, sophisticated, stylish, classic, excellent quality, sophisticated technology.
Color characteristics: leading the trend in Asia, China in the international wind off
Price: DISSONNA in with similar or slightly lower than the COBO, this series of brands in the country belonging to the high-end price
The main products sold price :100-500 dollars (fashion handbags category).
Products sold times the price :50-300 (complete product category).
Products target consumer groups: the 22-45 year-old fashion demands of women, have a good career, a higher source of income, young, energetic, dynamic, free no pressure, for high quality of life of people.
2, Notlier business model selection
notlie development of the mainland China market using the separation of production and sales company system, both the company’s total sales by the notlie responsible notlie development of the domestic market, responsible for notlie of network development, dealers choice, branding, sales policy, marketing methods and a series of selection marketing activities. The national headquarters based in Shenzhen, Guangzhou or Shanghai, according to the strength of sunlight conglomerate, choose the form of sales in the country, these forms include the terminal Direct, two major forms of franchising, comprehensive development of the domestic market.
In the sales terminal choice, choose the form of high-end department store franchise based, high-level shopping center stores to highlight the form, in Beijing, Shanghai, Guangzhou, Shenzhen and other large developed cities, select high-end department stores, shopping centers or senior set up flagship stores, brand high-end display is notlie and experience, but also high-end luggage notlie occupy the mainstream of the city to develop a strong market. Selected urban centers in provinces of higher local department store to notlie counter in the form of presence. According to the residents of the cities there are differences in consumption levels, a choice for the development of point of sale terminals. Beijing, Shanghai, Guangzhou and other large cities with higher levels of consumption, should be appropriate to increase the number of point of sale terminal to Shanghai, Beijing, for example, the city should be developed at least 20 or more point of sale terminal.
3, Notlie market selection and development
Notlie development in the domestic market, can be divided into three stages,
The first stage of the Direct or franchises development in Beijing, Shanghai, Guangzhou, Shenzhen and other major urban markets;
Direct the second stage, franchises developed provinces and cities of the developed urban markets;
The third phase of development of other domestic markets (specific marketing strategy will be reflected in later chapters).
Competitive analysis
China is currently on the market in high-end handbags competitors are divided into the following three categories:
The first is the world’s leading luxury goods brands such as COACH, GUCCI, Louis vuitton, etc., their main city in the country a class of high-end department stores to open up a few outlets, such as Beijing, Shanghai, Shenzhen, currently not many outlets in the country, such as only seven in mainland China COACH, GUCCI 14 in the mainland.
The second category is the leading brand, with international brand image in the Chinese market, such as DISSONA, COBO and so on. These companies in the country to join the Direct and the combination of the rapid expansion of the domestic channel, sales distribution more, covering major domestic and municipalities, provincial capitals and other major cities.
The third category is the Volkswagen brand and products to meet consumer demand for middle and low.
For consumers, it is difficult to distinguish between these two types of enterprises. And the second business is essentially to Italy, France, the brand’s image appeared, and a more complete story of the brand and mode of transmission.

Major competitive brand analysis:
Shenzhen Jin Shun Industrial Co., Ltd. was as DISSONA general agent in China, currently DISSONA sales outlets in China’s urban centers throughout the provinces, close to upscale department stores in the country established the image of the counter, in the Miss Gao Dang Pijuxiangbao 25% market share in its possession.
Dissona main Ms. shoulder bag, hand bag, wallet and other products, the target consumer group is 25-45 years old focus on quality of life, and have the willingness and ability to improve the quality of life of women.
Dissona-store monthly sales of 30 million or more, the country in the Miss Gao Dang Pijuxiangbao 25% market share in its possession. Total sales revenue of 3 billion yuan.
COBO claims: “brand from Italy in the 1990s to enter the China market”, in fact, produced by the production of COBO Sun Moon Star Leather Products Co., Ltd. Shenzhen, complete, in fact, the domestic brands.
COBO currently has six outlets in Hong Kong, in Beijing, seven points of sale in Shanghai, there are 24 outlets in Shenzhen five points of sale. In China with Hong Kong, Beijing, Shanghai, Shenzhen, four offices.
Ms. COBO products hand bag, shoulder bag-based, end-fabric package price of $ 1800-3000; leather bag Terminal Price 2000-5000 yuan. Same-store sales were 25 million or more months. Excluding Hong Kong, including, COBO annual sales in the country of 1 billion yuan.
COACH of the excellent reputation of the United States from its original spirit and design, adhere to the tradition of making high-level leather, with exquisite craftsmanship, from natural leather lines in the cortex show a sense of quality and durability. “Within reach of the luxury boutique” concept and is confident COACH efforts to create brand image, COACH has a full range of accessory products: purses, briefcases, luggage, travel bags, wallets, jackets, gloves, scarves, watches, glasses, shoes, fashion accessories and so on.
COACH in Hong Kong, China has 12 outlets in mainland China 2 Beijing, Shanghai 3, Shenzhen 1, Xian 1, a total of seven points of sale.
According to monthly sales of 500,000 single-store basis, single-store annual sales income of 600 million, COACH big sales in China takes root in 42 million.

Market forecasts and opportunity analysis of market opportunities:
1978-2006, China’s average annual GDP growth of 9.67%, far higher than the world average of around 3.3 per cent economic growth rate. Significantly improve people’s lives, and the pursuit of high quality of life is the common goal of society as a whole, the high-end consumer goods, luxury consumer goods market demand with the economic development and rapid increase. China luggage products every year to more than 15% of the rate of growth, growth in high-end luggage products faster, which is the development of luggage to bring a good business opportunity.
Gucci, LV, Coach leather bags for women and other famous brands have entered the Chinese market for many years, and achieved a certain market opportunities. The success of these international brands, to DEGER can provide a number of successful experience will help DEGER to open the Chinese market, many in the market to avoid detours.
High-end luggage industry has some barriers to entry, brand, design level, technological level, high-end channel selection and so the entry of other companies have some barriers. As for the Sunshine Group has a solid strength and rich experience in enterprise business bags, barrier is precisely the advantage of their own development.