Analysis Of Luxury Goods In China

Shanghai, the Bund.

Once, "a the Bund" is the landmark of genuine luxury goods. The Bund 3 is located in CHLOE, Giorgio Armani; the Bund 18 is Cartier, Patek-Philippe, etc.; the Bund 33 has Chanel; the Bund 6 Dolce &Gabbana...

However, since 2013, HUGO BOSS, D&G, Patek Philippe, Boucheron and even the Giorgio Armani flagship store, which has been in the past 10 years, has been quietly evacuated from the Bund, Shanghai.

However, in 2013, luxury brands did not go far. For instance, although Giorgio Armani was withdrawn from the Bund, it was stationed in the Shanghai Golden State Center, which was separated by a river. HUGO BOSS was transferred to the Kerry Center in Jingan; Patek Philippe moved to the the Bund source club not far away. In addition, some luxury brands are constantly picking new cities along with the market. Just like brands like LV (Prada), Ermenegildo and so on, Chengdu has strengthened their brands. At that time, at least, luxury brands still linger in China.

However, the next change is brutal: luxury brands must stay away from China. In January 31, 2015, before Zhou Ting's "China luxury report" was released, the core brand of luxury goods, Hermes, told her that she would miss the ceremony because "all our teams met in France" to re understand the marketing strategy. When COACH's president and Zhou Ting exchanged, "I believe that night was the most difficult night for the brand because they were meeting in the whole Asian region." Zhou Ting believes that the "real voice" conveyed by her team in the first line has deeply touched the nerves of these international luxury brands.

"I study economics." Zhou Ting said, so she likes to tell people what she has discovered.

Survey data show that in 2014, Chinese consumers spent 25 billion dollars on local luxury goods, down 11% from the same period last year, and China's luxury market accounted for the world. Luxury goods The share of the market dropped from 13% in 2013 to 11%. although Outlet And online sales have increased significantly, but they have not changed the overall decline of China's luxury market in 2014.

The big contrast is that in 2014, the consumption of Chinese consumers reached $81 billion, up by 9% over the same period last year. This means that the proportion of Chinese luxury goods consumption up to 76% occurred in 2014. Moreover, if the global luxury market's total amount of $232 billion was inspecting in 2014 according to the industry's forecast, in 2014, the Chinese bought 46% of the world's luxury goods.

So China Consumer It is still the undisputed largest buyer in the global luxury market. "Chinese consumers are continuing to decide the pattern of consumption of luxury goods around the world." But at the same time, the data tell people the cruelest fact is that Chinese luxury consumption is leaving China.

No wonder the "big traders" of international brands in China are beginning to worry about their survival. For a sudden change in the market, an international brand name in China's channel business description: "before 2013, I do not need to smile to customers, because I do not smile, he has to smile to buy my product; but in 2014 it will not work, and in 2014, my face is all rotten, and customers will not come to buy my product." China's luxury stores have become more product display windows and warehouses, and consumer behavior is more overseas.

At this point, LV found that their growth in the US market has far exceeded the increase in the Chinese market. Suddenly, the Chinese consumer market and the Chinese market are no longer the same concept: China's consumer market is supported by the global consumer market, and the Chinese market is only a regional concept later. China is no longer the strategic focus of many luxury brands. This is completely different from before.

This makes the idea of international brand far away from the Chinese market and even becoming an action. But although they can leave the Chinese market, they know they can not leave Chinese consumers, so they are more concerned about the real trend of Chinese rich.