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    Behind The Blowout Of Luxury Consumption "Chinese Style"

    2010/6/10 9:07:00 47

    Clothing

    As of last year, the total consumption of luxury goods in China has increased to $9 billion 400 million, becoming the world's second largest consumer of luxury goods.


    At the end of May, the commercial blue book published by the Chinese Academy of Social Sciences and other units: the China business development report (2009-2010) is remarkable. As of last year, the total consumption of luxury goods in China has increased to $9 billion 400 million, with a global share of 27.5%, and for the first time surpassed the United States, becoming the second largest consumer of luxury goods in the world, after Japan.

    In the next 5 years, China's luxury goods market will occupy the first place in the world.


    In fact, China's real luxury consumption path has only taken 20 short years.

    20 years of rapid expansion, it has created a world's second "future" or "the world's largest consumer".

    In 2009, when we entered the post financial crisis era, faced with the repeated atrophy of the old customers in the west, the most top sellers in the world saw the great power of "Chinese consumption" in a timely manner; in the first half of 2010, in the Chinese market with strong demand, the world's top brands, like a screaming sports car, stepped on the accelerator to China to expand their business, and more luxury brands came to life.


    The industry even said that China might be able to win the luxury consumption in 2012, not even by 2015.

    In the face of the booming luxury consumption feast, what we want to know is whether the Chinese can really afford it?


    "The soaring consumption of luxury goods in China is a window which reflects many abnormal realities in today's Chinese society."

    Wang Ning, a professor of sociology and guidance at Zhongshan University, told reporters.


    Seller:

    Top brands

    Collective salute


    Behind the data is a series of moves this year to make domestic fashion circles from excitement to habit.


    In April 28th, LV opened two new stores in Huaihailu Road and Pudong in Shanghai.

    This marks a new record of LV's opening of two flagship stores in the same city in the past century.


    Another Chinese luxury brand GUCCI, which has been rapidly becoming familiar in recent years, plans to set up 13~17 stores in China. However, by the end of 2008, its number of stores in the mainland of China was only sixteen or seven.


    PRADA has opened 3 new stores in Shanghai in May this year, and will open 1 new stores in Shanghai in June. In the next 7~8 months, it will open 4 new stores in Chengdu, Guangzhou and Hangzhou.

    Before that, PRADA had only 17 stores in the mainland.

    In addition, the British brand Vivienne Westood will open 20 outlets in China. Burberry also decided to increase the number of branches in China from 44 to 110 before 2012. The famous leather brand Coach of the United States will open 20 stores in 2010 and the 10 outlets of Italy famous brand Ferragamo plan.

    At present, there are 20 branches in China: Levi 1; 1; s, which will be expanded to 1000 branches before 2015.


    The dazzling brands are coming to Beijing, in Shanghai, in Guangzhou, and in many two or three line cities in China.

    Those big brand labels that used to be seen only in fashion magazines and TV channels may come to the door one day.


    Chen Min, who works in a fashion media in Shanghai, said that since last year, the media has received a geometric increase in the invitation of these top brands. "In the market budget, they have greatly increased the share of China, and this growth is explosive."

    In the past, the brand pre purchase "VIP special", which is commonly seen in European and American countries, is a direct invitation to the customers in the store for priority purchase activities. Now it has opened to many two or three line cities in China. "I have traveled to Hohhot, and some cities in Inner Mongolia."


    Li Qian, editor in chief of fashion magazine, kept this detail in mind. At the beginning of this year, this reporter went to Paris's famous "Lafayette department store", LV, CHANEL stores and Rolex and OMEGA watch counters. Apart from a few salesmen, they were almost Chinese customers.

    In the VIP rebate Service Office for customers who spend more than 50 thousand euros a day, most of them are Chinese passports.


    Looking at the theme of the Chinese luxury big bang by fashion show, there is such a saying: "in October 7, 2009, the fashion week in Paris came to a close.

    Hermes has divided the green land into the A L area. Among them, journalists from Japan, Korea, Singapore and China occupy the K and L districts. Obviously, this is the two best area to see the show. The show of CHANEL is round T, but the best location is still one. This year, the location is marked "CHINA".


    "The West does not brighten the East," and after the financial crisis hit the old customers of luxury brands, Asia, especially China, is the Savior from the East. Its position has never been highlighted.

    As a result, since 2009, China has been like a distinguished guest sitting on the seat of the Bureau, receiving the collective salute of the world's top brands.


    Buyer: one person has a luxury dream.


    What is the relationship between the consumption of this huge luxury goods and the people today?


    A week ago, Guangzhou Man Wang Yue, who worked as an administrative assistant in a Japanese capital company, finally had his first LV bag.

    This is known as the "entry bag" NEVERFULL at Tianya and other forums, 455 euros, and the tax rebate is less than 4000 yuan.

    She said it was a gift from her 25 year old birthday. It was hard to wait for a friend to travel to Europe, and quickly asked him to buy one.


    It's much cheaper to buy a tariff free abroad.

    Friends said that in the German store, the bag was placed at the bottom of the counter as the most paramount commodity.

    When he told the salesman, she was still very upset, saying that the bag was the cheapest, and the Chinese should pick up a little more.


    Nevertheless, Wang Yue is still very precious his first luxury.

    "I dare not tell my mother how much it costs," she would say, "I spent thousands of dollars buying a bag and went mad."


    "Friends all have their own sense of what they should not have.

    To tell you the truth, this bag is not so easy to use. No zipper is very unsafe in Guangzhou.

    But I think it's good to have a feeling on the back.

    Wang Yue said that having LV bags was the first wish she wanted to fulfill after her work.


    Li Wenyu is also enamored of the classic pattern. She has not only LV but also GUCCI.

    "Beijing road called Taibai store, what new money has, hundreds of pieces will do."

    She bought what was commonly known as "a product" in the industry.


    In Guangzhou's Guihua Gang's leather wholesale city, there are a large number of manufacturers and distributors who are pursuing the world's top brand package for the first time.

    Whenever the major brands' season shows are over, or celebrities represent people to show up in magazines, they copy the styles with the fastest speed, and then do their best to study related materials. Usually, they can be copied to the counters in less than one or two months.


    Li Gang, who has been in the industry for 3 years, said he had mastered the highest standard in the industry. "To tell you the truth, GUCCI is the most emulation, because we have broken its fabric.

    The term we can do is: 1:1.

    Nowadays, the biggest customers are not local people, but foreigners who come to the Canton Fair every year.

    "They have been dragged away in batches, and do not know how to return to their country."


    College student Zhou Jialing is ready to start her dream of luxury goods from employment.

    She chose to be a Italy brand "gamma" store director.

    In the past few years, the brand dealer has been a Chinese agent for LV, Valentino and other brands, looking at the great potential of the Chinese luxury consumer market, which plans to introduce itself to new luxury brands.

    "At present, there are three branches in China. When I interviewed, the company said it planned to open 10 rooms a year."


    Although not yet out of the school gate, Ka-ling admits that he is no stranger to luxury brands.

    She laughed, saying that this is the topic of the young people, and they have no common language with their parents.


    Backtracking: dissatisfaction to pursuit only 20 years


    On the one hand is the crazy pursuit of young people, especially the middle class. On the other hand, some groups do not know anything about it.

    In China, this is a current situation of luxury consumption.

    Looking back on this Chinese luxury consumption Road, you will find that for these luxury brands with hundreds of years of history, from exclusion to popularity, the Chinese have only been on the "high speed road" for 20 years.


    In 1992, second years after the opening of the world's luxury luxury brand LV (LV) in Beijing, the economic daily published the article "too much of you," accusing the price of "too expensive".

    3 months later, the Beijing evening news responded with "Yansha and Seth may not be too outrageous."


    "This actually reflects that the mainstream media and people at that time were skeptical and even dissatisfied with the consumption of luxury goods."

    Jiang Caifen, an associate professor of business school at Guangzhou University, has devoted a lot of research to luxury consumption in China. In her view, the period of rapid growth in luxury consumption began in the late 90s and lasted until the beginning of twenty-first Century.


    "At the Beijing motor show in 2002, the Bentley extended version 728, priced at 8 million 880 thousand yuan, sold two cars. At the 2003 Shanghai motor show, Bentley, which marked 11 million 880 thousand yuan, was soon bought away.

    In 2004, Bentley created the following three records in China: total sales volume is the first in Asia Pacific region, sales growth is the first in the world and sales of Bentley 728 are the first in the world.

    In 2007, the first China Luxury Brand Summit Forum was held in Beijing. According to incomplete statistics, China now has more than 100 thousand consumers of top international cars such as Bentley, Porsche and so on. Armani, Zegna and other top apparel consumers in the world have more than 1 million consumers. With French cosmetics and top jewellery, the annual sales volume of China's luxury goods market has reached about 2000000000 dollars, which does not include 300 thousand of potential private aircraft consumers and more potential top motor vehicles, yachts and other consumers.


    "It can be seen that the consumption of luxury goods has changed from discontent to popularity."

    She said.


    Contrast: Chinese luxury consumption face


    In the 20 years of rapid expansion, the consumption of Chinese luxury goods lacking in tradition and foundation has made a different appearance.


    PWC's analyst Yue Zheng pointed out that the consumption of Chinese luxury goods is quite different from that of foreign countries. First, most of the luxury goods purchased in China are young people under 40 years old. In developed countries, the market is dominated by 40~70 year old middle-aged and elderly people. Besides, for Chinese people, most of the luxury goods are concentrated on personal necessities such as clothing, perfume, watches, etc. in Europe and America, housing, automobile and family travel are the luxury that we all aspire to.


    Jiang Caifen believes that these realities show that China is still not rich enough, and on the other hand, it reflects the different lifestyles of China and the West.

    According to a survey, unlike many people imagine, the main force of Chinese luxury consumption is actually the middle class.

    He believes that those who earn 20 thousand yuan to 50 thousand yuan a month should be a typical luxury consumer.


    "This shows that in China, consumers of luxury goods are younger than foreign countries. At the same time, the emphasis of Chinese luxury consumption is still on display of personal status."


    Jiang Caifen said, in fact, in contemporary American society, conspicuous consumption is not the American preference and character.

    American Demographics, an American business magazine, has published a Consumer Expenditure Survey (CES). It claims that the attitude of Americans towards consumption is not so conspicuous, but rather practical.

    The view from the United Kingdom is that the real luxury brand represents a whole elegant temperament, and they will not treat someone else with an expensive backpack on their shoulders.

    That is to say, luxury is not a necessity in life, it can express an attitude towards life.

    For example, the elegance and comfort advocated by COCOCHANEL, the founder of Chanel, has revolutionized the fashion of women's clothing around the world and became the pride of the French.


    However, it has apparently not reached such a level for Chinese people who have been in contact with international luxury brands for less than 20 years.


    Guangzhou Perspective


    Non mainstream consumption of luxury goods


    In the nationwide luxury craze, Guangzhou, which has always been characterized by a pragmatic and low-key consumer culture, will join this kind of carnival?


    One phenomenon is that in the eyes of many fashion industry, Guangzhou has never been the first choice of big brands, even less than the number of two or three line cities in China.

    However, sales data from Guangzhou Friendship Store show that international brands such as jewellery and watches keep growing.

    Therefore, there is news that the second half of this year will usher in the opening of the Asian Games in Guangzhou, has become part of the international top brands eager to try.


    Guangzhou people do not seek to show off their wealth.


    Jiang Caifen has made some investigations on the consumption concept and attitude of Guangzhou people.

    Her conclusion is that Guangzhou is a populist city. The culture of the city is different from the elite culture of Shanghai, Beijing. The characteristics of Guangzhou city are similar to those of Guangzhou people, which are more pragmatic and reflect a lot of low consumption.

    Guangzhou people also speak face, but the mentality of Guangzhou people is generally good, and they will not pursue extreme wealth through consumption.


    On the other hand, Guangzhou is very close to Hongkong.

    According to the Research Report of "globalization of retailing" published by Wei Lishi, Hongkong, it is the first place in the world to defend the world's top and business fashion capital.


    Among the 47 top retailers surveyed, Hongkong attracted more than 90% retailers.

    Many people are willing to go to Hongkong to buy luxury goods.

    Therefore, Guangzhou is not very attractive to top luxury brands.


    "Due to the traditional pragmatic and low-key style of work, Guangzhou people prefer to buy real estate and gold and silver jewelry.

    However, the consumption culture of Guangzhou people is also changing with the increase of population from the outside and the new generation.

    Wang Ning thinks.


    Top level

    Luxury goods

    Consumption is not mainstream


    Jiang Caifen believes that this consumption habit in Guangzhou is not easy to change, which is still related to the consumption culture of a city.


    "In May 20th, H&M Guangzhou Zhonghua Plaza Branch opened, attracting many people to shop. Queuing up takes more than an hour of bustling scene.

    So some people questioned, "who says the actual Guangzhou people are simply not good at catching up with famous brands?" I think this is precisely the Guangzhou people's rational attitude towards the brand.

    Because H&M is definitely not a luxury brand, H&M is the first class design of second class quality and three price, and its price is very close to the people.


    So, before and after the Asian Games, whether there will be many luxury brands ready to settle in Guangzhou, I wonder if these luxury brands that are ready to locate in Guangzhou are the top luxury brands.

    If the brand like H&M or Zara is quite suitable at the moment. "


    However, Jiang Caifen does not deny the potential of Guangzhou's luxury market.

    According to the data of Guangzhou Friendship Shopping Center, luxury goods in the first quarter of this year increased by 27%, of which the growth of the list reached 42%, and the cosmetic brands such as DIOR and CHANEL rose by more than 40%.

    Guangzhou people can see the purchasing power of luxury goods.


    "But compared to Beijing and Shanghai, Guangzhou people's whole life atmosphere is more plain, and the pursuit of top luxury goods has not become a mainstream phenomenon.

    When the economy develops to a certain stage, the attitude of Guangzhou people to luxury goods goes further.

    observation

    "


    China observation


    One major feature is business gifts.


    Jiang Caifen once observed the main body of luxury consumption in China today.

    "According to my observation, there are more than two kinds of rich people who get rich first, including the rich generation or even the three generation. The first is the social elite, including the white-collar workers of foreign enterprises.


    "First is to show off," Jiang Caifen said. Because of the characteristics of luxury goods, it is destined that luxury goods can not be the public, but only a small minority.

    The value of luxury beyond the practical value shows the owner's social status and status.


    Secondly, she believes that people who buy goods beyond their level of consumption can get a unique mental experience and great satisfaction, and imagine that they can have some luxuries that ordinary consumers do not have.


    This is why there are some so-called "moonlight clan" and "Qing ethnic group" in recent years in China's cities. Although their income is not enough to support their consumption luxuries, they are willing to buy all the small luxury goods like LV bags.


    Unlike foreign countries, the biggest feature of Chinese luxury consumption is to satisfy the purpose of business gifts.

    Sun Yat-sen University

    Professor Wang Ning, a sociology professor, says that in Chinese officialdom, the level of gifts reflects the value of a person's power, and the LV package, which is recognizable gradually in the eyes of the Chinese, is conveniently identified as a sign of this value.


    According to a recent report by Bain consulting company, in 2009, China's luxury goods market increased by nearly 12%, accounting for 27.5% of the global market share, of which 50% of luxury consumption was used for gifts.

    "Vacheron Constantin watches, LV handbags, Zegna ties are all the best choice for business gifts."

    Jiang Caifen said.


    Conspicuous consumption magnifies the gap between the rich and the poor


    "From the perspective of our industry, it may not necessarily be that in 2015, China will become the world's first luxury consumer in 2012."

    Li Qian, editor in chief of fashion magazine, said.


    "This is not surprising."

    Wang Ning, who regards consumption sociology as the main research direction, said that the soaring consumption of Chinese luxury goods has a certain social foundation, that is, the polarization of income in recent years.


    according to

    Mckinsey

    According to the survey, the number of wealthy families in China (more than 250 thousand yuan per year) has reached 1 million 600 thousand households in 2008. This figure is still growing at 16% per year, and it is expected to reach about 4000000 by 2015, the absolute number behind the US, Japan and the UK.

    "The consumption of suppressed luxury goods has been liberalized in the past, and China's market will surely be very large."


    "If it is purely economic phenomenon, under the social background of fair distribution of income, the rich will buy more luxuries.

    The problem is that the soaring consumption of Chinese luxury goods is like a window reflecting the abnormal phenomenon of China's current society - excessive materialism.


    Wang Ning believes that, unlike western countries, China consumes luxury goods more for the purpose of comparing and showing off wealth, not for the pursuit of quality of life, but in a state of imitation and following the trend.


    In Jiang Caifen's view, the current Chinese consumers' pursuit of luxury goods and the media's exaggeration of luxury consumption need to be vigilant.


    "If we calculate three households in each household, there will be 430 million households in China, and the proportion of affluent families in the total number of households in the country is only 0.36%, with a very small proportion."

    The conspicuous consumption of a few people magnifies the gap between the rich and the poor, and is not conducive to social stability.


    "I think more attention should be paid to how to improve the standard of living of ordinary people, rather than exaggerating the enjoyment of top luxury goods."

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