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    Luxury Spring In China

    2010/12/7 11:04:00 53

    Luxury Goods

       along with China's economy With the development of the rich class, the consumption of luxury goods is gradually expanding. According to statistics, the total consumption of luxury goods in China has increased to 9 billion 400 million US dollars at the beginning of this year, with a global share of 27.5%. U.S.A And become the second largest consumer of luxury goods in the world. In the next 5 years, China is expected to Luxury goods The market will reach US $14 billion 600 million, occupy the first place in global luxury consumption, and maintain the first momentum of luxury consumption in the world.


    Moreover, the report issued by Bain & Company also claims that China has become the world's fastest growing consumer group of luggage and jewelry. This year, China's luxury market has increased by 23%, which means 84 billion 300 million yuan.


    One obvious phenomenon that Chinese people buy luxury goods is that many Chinese choose to buy luxury goods abroad. It has been reported that the European luxury market has returned to "spring" precisely because of overseas purchases by Chinese people. Data show that last year, global luxury sales fell by 8%. Luxury goods included clothing, handbags, watches and cosmetics. But luxury sales and profits surged in 2010, just as this year's rapidly rising share price.


    In this regard, Tran Pani, chief executive of Bulgari SpA, a jeweler in Italy, pointed out that Chinese consumers are "a big factor" to boost their sales in the third quarter of Europe by 11%. The revival of European luxury sales has largely benefited from the entry of European travelers, who have been shopping with the opportunity to depreciate the euro. It is predicted that the number of Chinese tourists visiting Western Europe will increase to 2 million 400 thousand this year, compared with 2 million in 2009. In addition, the consumption of Chinese tourists in Europe is also increasing, thus promoting the consumption of luxury goods.


    In the European sales of GUCCI (Gucci) of PPR SA, the luxury goods and retail group of France, tourists spend more than 50%. According to the company, the number of Chinese tourists nearly doubled from 1 to September in 2010, accounting for almost 22% of the company's European sales. Roughly the same as last year, 56% of consumption was carried out outside China, although the proportion of consumption in the mainland continued to increase, but the proportion was still only 44%.


    For wealthy Chinese consumers, although the global market integration is intensifying and the luxury stores in China are increasing day by day, the Chinese customs has also significantly raised taxes. However, the relatively low price and variety of luxury goods in Europe still attract them to go shopping abroad. Luxury companies have been struggling for consumers in emerging markets for many years, and most of them have expanded their retail businesses in China and Dubai. But this year, consumers in these places are significantly more competitive in Europe.


    In addition, the survey shows that the growth of luxury consumer market in mainland China still comes mainly from new consumers. Luxury brands found that when they opened new stores, they could create new demands. Besides, the emerging middle consumer groups in the mainland also became one of the main driving factors for the growth of luxury consumption. Gift giving became an important driving factor that can not be ignored. Bain found that with the popularity of anonymous cash cards, there has been a new trend, that is, the diversification of brands and products as gifts.


       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. At the same time, the strong growth of the mainland's economic recovery, coupled with the recovery of consumer spending, has encouraged the luxury brands.

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