Luxury Consumption Is Fiercely &Nbsp; &Nbsp; 155 Billion 600 Million Yuan In A Year.

For a year,

From a global perspective, the Chinese market is still in the front runner camp. China's Asia Pacific region is unique. The consumption growth in the US market is higher than the actual economic recovery.

The famous Chinese strategy consulting firms Bain recently released the 2010 China luxury market research shows that roughly the same as last year, 56% of the consumption was carried out outside China, although the proportion of consumption in the mainland continued to increase, but the proportion was still only 44%.

The reasons for choosing domestic and overseas purchases vary. Among overseas buyers, the low price is still the main attraction factor. However, it is obvious that a considerable portion of domestic buyers are not sensitive to price. They are concerned about timeliness, can get goods faster, and have good shopping experience, such as convenient after-sales service, suitable size, and are expected to become VIP customers.

Some brands are aware of this trend. They have made improvements, such as increasing small products that attract impulse consumption, synchronizing new products with Hongkong, reducing operating profit margins and offsetting part of the tax gap, and so on, which has increased the attractiveness of domestic purchases.

For many luxury brands, they are not worried about the potential purchasing power of the mainland market, and the international director of a luxury brand is confident that the importance of domestic consumption will increase in the future as the market and consumers become more mature.

The survey shows that the growth of luxury consumer market in mainland China still comes mainly from new consumers.

Luxury brands find that new stores can create new demand when they open new stores. Besides, the emerging middle consumer groups in the mainland have become one of the main driving factors for the growth of luxury consumption. Gift giving has become an important element that can not be ignored.

Christian Blanckaert, former vice president of Hermes and chairman of the French boutique Association, said that some of the most familiar luxury brands have developed their ten year plan in China. The key point is that by 2020, there will be 100 stores in the mainland market in China, Christian Blanckaert.

Among these luxury brands, there are already some pioneers who are far ahead.

Bain's brand interview showed that as of the end of August 2010, Dunhill had opened 93 stores in the mainland market, followed by Hugo Bos, and its number of stores in the mainland was 89.

In the context of economic recovery, the pace of expansion of many brands in the mainland market can be described in terms of "radical".

Data show that by the end of August this year, the total number of 15 new brands including Dunhill, Hugo Bos, Burberry, Ferragamo, Barry, GUCCI, Louis Weedon and so on will reach 80 in the mainland.

Luxury brand sales director, who does not want to be named, said strong growth in the mainland's economic recovery and consumer spending are also recovering, encouraging luxury brands.

It said that the new store's single store sales exceeded the sales of the original stores.

The sales director said they plan to continue to invest in the mainland market and plan to open more stores in the future.

"For luxury brands, it is important to create scarcity and manage scarcity."

Bruno Lannoo, a partner of Bain, told the first financial daily.

He noted that positioning is the most important step for luxury brands.

"You can't buy it like you want to buy cabbage."

He took out data from Chanel stores, emphasizing that the brand has only 6 stores in the mainland of China.

This is a typical example of the scarcity of manufacturing and management.

But this does not mean that Dunhill and Hugo Bos have a problem with their strategy. "We should know that male business consumers are regular customers. If we want to keep them, it is important to make them easy to buy."

Bruno explained.

When positioning is completed, luxury brands must do everything at the executive level, and must match their positioning in selecting and developing talents, ensuring investment returns and supporting services.

This is also the bottleneck for luxury goods to expand in the mainland.