Why Do Chinese Youth Chase Luxury Goods All Over The World?

Zhang Xiaowei, who was going to Australia to travel, packed his suitcase in less than half an hour, but spent nearly two hours arranging his long shopping list.

Most of the lists were shoes, cosmetics and bags brought home by relatives and friends.

What worries her is that after 8 days' return, the suitcase almost empty now must be overweight and overpriced.

"In order to empty the box, I plan to wear a pair of cold hauls and buy new shoes."

In recent years, with the increasing chance of going abroad, more and more people have the experience of Zhang Xiaowei.

Shopping is gaining more and more weight in traveling abroad.

China makes money all over the world during the Spring Festival.

During the Spring Festival this year, outbound tourists from China have once again sped up consumption worldwide.

According to reports, nearly 800 Chinese tourists spend two hours at the Messi store flagship store in Las Vegas on the eve of the third year of the lunar new year. The average family in Beijing who travels to Europe this spring festival will spend 50 thousand to 60 thousand yuan in Europe.

In February 9th, the China UnionPay released data that during the Spring Festival in 2011 (six in the first thirty months of the new year),

Chinese people are shopping, especially buying.

"Since June 2010, 65% of the total consumption of luxury goods in Europe is Chinese."

Ouyang Kun, chief representative of China Representative Office of the World Luxury Association, told reporters that China's luxury consumption will exceed Japan in the next few years and become the world's largest consumer of luxury goods.

The latest survey by the association also shows that Chinese luxury consumers are on average 15 years younger than European luxury consumers, 25 years younger than the US.

Consumer psychology is the key.

Ouyang Kun said that the World Luxury Association conducted a survey of the mainstream population of China's luxury consumption. The results showed that consumers with a monthly income of about 10000 yuan accounted for more than half of the total, and their ages ranged from 25 to 28 years old.

The speed of the younger generation of luxury consumers in China is even more surprising: between 2007 and 2010, the lowest age of the mainstream consumer group of Chinese luxury goods dropped from 35 to 25.

"In the next 3 to 5 years, consumers aged 25 to 30 will become the main force in purchasing luxury goods in China."

Ouyang Kun said that China's luxury consumption mainly consists of clothing, perfume, watches, leather goods and other small personal products. European and American consumers mainly buy luxury luxury goods such as luxury real estate, automobiles, precious jewelry and so on.

In Ouyang Kun's view, a big factor in the younger generation of luxury goods is the comparison between the rich two generation. They first compare themselves with luxury goods in order to compare their wealth and social status.

"In Europe and America, few parents buy children extravagant consumer goods.

China's first generation of rich people are different. They want their children to enjoy them. "

Ouyang Kun said, "whether Chinese people buy luxuries is not dependent on their income and age, but on their consumption psychology."

Among the luxury buying forces, there are still a lot of young "chaser".

The proportion of their consumption of luxury goods often accounts for a large proportion of their total income.

Wang Li, a college teacher whose monthly income is less than 3000 yuan, has two LV packages.

The first is the basic pattern of chessboard pattern purchased by friends abroad, which is more than 4000 yuan.

One day, she took the bag and took the subway. She heard two girls talking about it. "Buying LV and riding the subway is definitely a fake."

The next day, she went to the most expensive shopping mall in the locality, and spent 5500 yuan to buy a LV bag of the same style, with only different patterns.

"This is only the old flower, it is the classic design of LV!" Wang Li emphasized.

The World Luxury Association's "2010 China's luxury behavior psychology survey" shows that more than 70% of Chinese young consumers buy luxury goods in order to have a luxury brand. Brand culture is not important, so that more people know that it is luxury goods, the biggest selling point is "must be a recognized luxury in the circle".

The survey also shows that the consumption of luxury goods in China's second-line cities has been increasing, and its per capita consumption expenditure in 2010 has even surpassed that of the first tier cities.

In such a warm shopping atmosphere, China has almost become a paradise for luxury goods. Last year, almost all the luxury brands that landed in China gained two digit growth. China's share of the global luxury goods market has reached 15%. China has become the second largest market of Porsche (Porsche) and sold 14785 cars a year. Louis Weedon is still the most luxurious brand Chinese consumers want.

According to the latest data released by Goldman Sachs, China's luxury consumption in 2010 was as high as 6 billion 500 million US dollars, the first global growth rate for three consecutive years.

In the next 3 years, China's total consumption of luxury goods is expected to surpass Japan and become the world's largest consumer of luxury goods.

Goldman Sachs estimates that the number of people willing to spend luxury goods in the next 5 years will rise from 40 million to 160 million.

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"Luxury" sells "cabbage prices" abroad.

People who are pursuing luxury goods find that, compared with the high price at home, many seemingly "luxurious" goods are sold as "cabbage prices" abroad, and the higher the price of real luxuries, the greater the difference.

The domestic Nine West handbag, which sells four hundred or five hundred yuan at home, is only more than 30 dollars a year in the United States. In the domestic, ten thousand yuan Burberry new model can be taken as long as 33% off abroad, and Chanel's bag is worth more than 9000 yuan less than the domestic price.

The more you buy abroad, the more you buy.

At the end of last year, Tang Jia, a 27 year old boy, went to England for training for half a month. When he returned to China, he only allowed one piece of luggage and one baggage to carry. He took a Chanel, two Dior, a few LV and MiuMiu bags and stuffed them in a snake pocket.

"Fortunately, the Hermes package that my sister asked me to buy was not bought because it needed to be customized, otherwise it could not afford it."

Tang Jia said that these bags were sent by friends.

When he returned, his eyes never left the snake skin bag worth about one hundred thousand yuan, and declared that "wrapped in a human being, the bag died."

Like Tong Jia, when many Chinese tourists return home, even though they have prepared the largest suitcase, they still can not get high priced trophies. Many people have also handed in a baggage overweight charge.

According to reports, Chinese tourists spent about 1 billion pounds (about 11 billion 200 million yuan) in the UK in 2010.

At the beginning of 2011, a group of Chinese tourists who were rich in luxury and luxury goods also exploded the consumption craze of the luxury market in the British shopping season. The British media even called this consumption the "Beijing pound".

The Chinese people pay for their pockets, and the whole world is waiting to earn money.

To welcome the coming Chinese guests, the retail giants in Europe and the United States have made preparations: salesmen with Chinese pronunciation standards at the store, lions and couplets on the doorway, and high grade stores to prevent the sale of goods from being broken, stipulate that Chinese customers can only buy one big two small ones, and foreign department stores are equipped with machines that can brush Chinese UnionPay cards.

Should luxury tax be restricted or encouraged?

Chinese people continue to contribute to GDP in other countries, which makes people feel bad.

It has been suggested that tariff reduction should be made to attract consumers to buy luxury goods in the mainland, so that money can be left at home.

Another view is that we should impose heavy taxes on luxury goods, and guide and regulate young people's excessive consumption through tax levers.

Should luxury taxation be restricted or encouraged?

Hu Xianming, the State Administration of Taxation, once wrote that: at present, China's luxury goods are basically produced outside the country, and consumption is mainly outside the country. Taxation of these luxuries in the mainland will widen the existing domestic and international commodity price differentials, aggravate the consumption of related goods, and thus reduce domestic industry and other related taxes.

Moreover, luxuries as a necessities of life do not have uniform standards, and define their scope as "difficult to adjust" work. Therefore, the specific tax rate is very complex.

Another point is that at present, China's consumption tax is basically levied in the production process, not directly based on the retail terminal price, and the monitoring of the price of luxury goods is very difficult.

At the same time, in view of the current situation of luxury goods mainly in overseas production, how to ensure full receivables in the import link and how to supervise the customs is also one of the difficult problems.

In fact, if we do not understand the operation mode of luxury goods industry, it is not only difficult but also effective to guide luxury consumption according to traditional ideas, such as tax system and price.

According to the insiders, the real cost of luxury goods is very low, and the phenomenon of "covert foundry" in China is very common.

In order to reduce costs, some luxury goods companies choose a processing plant in a certain area of China to authorize production, but in advance, there is agreement that they can not disclose the OEM brand to anyone. Once the agreement is revealed, the agreement is invalid.

In order to get higher profits, these manufacturers will not kill them.

After the completion of the production, "pull the pass to the sea for a lap, affix a brand of a country of origin, do not disembark, and then pull back to sell."

In this way, domestic luxury goods become "overseas production" of "imported goods".

In addition, luxury goods in China also "tiptoes", saving other costs.

According to the introduction, some luxury brands spend less on advertising in China, but many magazines show their "high-end" and advertise for luxury goods in order to raise their value.

Some shopping malls are offering rent free, decoration and other policies to encourage luxury brands to settle down.

In the condition of extremely low cost and high profit, luxury goods never depreciate.

"Luxury is bigger than sales, and it will rather not sell, nor discount, so that the vitality of the brand may continue for 10 years. If you want to increase sales discount, you may collapse in two or three years."

Therefore, even if they reduce taxes on luxury goods, they will never lower their prices, industry insiders say.

He told reporters that at present, luxury items may be discounted abroad, but after entering China, they are not discounted, and they even need to raise their original prices appropriately.

This is because, in some foreign countries of origin of luxury goods, people do not have such strong worship and sense of mystery about brands, and they will never go crazy to grab them, or even have a sense of identity.

Some consumers in China, Russia and Japan seem to see that the social value of this brand in Europe has increased a lot.

Luxury goods have become people's "identity cards".

So luxury has always been "carrying": must be expensive, must be high, must not buy, the more so, the more people buy......

This also means that the price of luxury goods increases because of Taxation, and it can not achieve the purpose of restricting consumption.

Guo Wei, executive director of the third China registered tax Association, told reporters that the sale of luxury consumer goods is a psychological suggestion. It is "face". "Luxury consumer groups have no sense of tax, and 300% of the tax is bought."

For the pursuers of luxury goods, raising taxes will exacerbate the current situation of luxury purchases overseas.

"Luxury consumption is not a simple economic phenomenon."

Ouyang Kun said, "one day, the Chinese concept of luxury consumption will gradually mature from buying luxury and buying identity.

However, this will be a long process, and the Chinese will spend more money on this process. "