Why would luxury goods rather be destroyed than discounted?

　　Why would luxury goods rather be destroyed than discounted? Angel investor Wang Gang once said: The most taboo thing for brand companies is positioning offset.

　　Nowadays, many brand clothing companies on the market will attract customers in terms of price in order to increase sales. Originally, a 300-piece clothing can now be sold for two or even three pieces. Some brands even started to discount when they first launched a new product. As long as the price is reduced, sales can increase several times, so why not?

　　However, many people do not buy clothes just to buy clothes, but to show their own level and rank. It is undeniable that society has always had classes and levels. Some people even think that you asked me to wear the same clothes and use the same mobile phone as someone who is less than the same level. How do I feel? It's better not to use it. So when your positioning has been created, don’t move it again, even if it’s moved once, your original user will leave.

　　When Taobao was just starting out, no first-tier brands were willing to join. At that time, would LV sell things on Taobao? It is impossible, it is going to enter the world of Xinguang. Therefore, Taobao can only focus on supporting a group of weak brands and grow with them. Taobao may have invested 800 million yuan a year to make traffic, but it only charges 200 million yuan of advertising fees. Who is the cheaper of these 600 million yuan in the middle? These are those weak brands that dared to advertise on Taobao in the early days. So we will see that many companies' performance will soar, and the valuations of many companies will quickly surge to hundreds of millions of yuan. And this is the value brought by traffic dividends.

　　When brand companies enjoy the traffic dividend, they should seize the time to build a brand and timely build their own brand capabilities, design capabilities and quality control capabilities. Establish brand premiums in a timely manner instead of drifting in price wars. The most taboo thing for brand companies is to move their customer positioning around. So, we see many luxury brands that are better destroyed when they are out of season than they are rotten in the warehouse than discount.

　　Because traffic costs are relatively expensive, many brands need to convert this traffic dividend, so they will build their own official website and convert Taobao customers into their own official website. At this time, we have to face a new problem: if we spend so much money to buy a website, it would be a waste to only sell clothes, can we sell things from other categories together? Do you still remember the Vancl back then? Because I feel sorry for the traffic dividend, your traffic dividend will definitely be converted. You will find that the decision in front of you is too wise. Sure enough, if you add new products, sales will increase. But this will blur your core competitiveness. So, is Vancl a brand or a channel? This is the difference between a brand company and a retail company. What brand companies show off are products, materials, research and development, and brand control. What retail companies show off their ability to recruit, brand franchise, and set rules.

　　Marketers should recognize their own battlefield. What brands need is people who are not arrogant or impatient. People who think about getting off the bus every day cannot build a brand. It is difficult for those who have to sell their companies to cash out after not having to do it for two or three years. Like Apple, you can drive your fans crazy, queue up, and buy them even when you come over the wall. Whether it is parallel goods or smuggling, you can do anything. You must buy them. This is the brand. Similarly, I think Lao Ganma is also a brand, so it won’t go public. It’s useless to say that anyone wants to build a brand. It requires stock paranoia. To build a brand, you must recognize your own battlefield and do a long-distance running mentality, rather than lowering your attitude for the immediate interests.

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