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    Sales Of Luxury Goods In China Are Rising At A High Level Of &Nbsp, And Analysts Say They Are Strong In Showing Off Their Wealth.

    2011/4/11 10:48:00 27

    Luxury Goods In China


    Interestingly, in China,

    Luxury goods

    While consuming second big powers, it has ushered in the biggest "shortage of migrant workers".

    How to explain that a big consumer of luxury goods accounted for only 29% of GDP in 2009.


    Spend about 300000 yuan to buy a vase, brush 100 thousand yuan purchase.

    Wrist Watch

    200 thousand, buy a bag. If I heard about the price of these luxury goods 10 years ago, the first reaction of most people would be "except for the big ones," but now these "

    Extortionate price

    The aristocrat is placed in our department stores and has many fans.


    Recently, the reporter learned from the Chanel store in Shanghai that Chanel watches will be raised in April 1st, but the increase has not been disclosed.

    According to people familiar with the matter, the CHANEL jewellery watch series will increase by about 7%. In addition, CHANEL handbags will also increase by 5%-18% and some handbags even rise by 20%.


    Prior to this, Shenzhen Louis Weedon (LV) flagship store has also started raising prices since March 1st, according to staff members. "The nationwide average increase is around 5%, and some products are slightly higher than the average increase."


    Nevertheless, according to the survey conducted by reporters, sales of LouisVuitton brands, such as LV, CHANEL and GUCCI, have not declined, but have risen.


    The growth rate is high.


    The rapid development of luxury goods industry in China is an indisputable fact. It indirectly reveals the existence of huge invisible social wealth, and at the same time intensifies the inequality of China's current wealth and income. It also confirms the mentality of Chinese people blindly pursuing and yearning for the "noble status" brought by luxury goods from another perspective.


    Recently, a brand in the Department Hall of some place attracted many customers' attention.

    Reporters noted that this is not a new product introduction, but a member's record of spending a single day.

    One member ranked first in the championship on the day of spending 123 thousand and 517 yuan, while the rest of the daily sales records were no less than 10000 yuan.


    It is reported that since the opening of Libai Plaza, a luxury shopping mall in Guangzhou, the annual total consumption of the top 10 customers is up to one million, and the purchasing power is amazing.


    Ouyang Kun, chief operating officer of the World Luxury Association, told reporters: "the price of luxury goods is basically increasing every year. Last year it was a small increase, and this year it will be slightly larger than that between 5%-15%.

    Now LV and Chanel have begun to raise prices, and other brands will also gradually increase.


    Although the price of luxury goods has risen year after year, this seems to be no influence on the "luxury generation".

    In a star flagship store in Beijing, a reporter interviewed a consumer who was buying CHANEL leather bags. She told reporters that the brand is her favorite, and even if it goes up, she will not hesitate to spend a lot of money on it.


    Commerce ministry officials have said that with China's per capita gross domestic product (GDP) more than 2000 U.S. dollars, the domestic consumer market overall space to further expand, China is moving towards a consumer oriented country.


    Recently, Hainan's "Islands tax-free" shopping policy was settled.

    According to Gao Hua Securities, in 2011 and 2012, Sanya duty-free shops could contribute 103 million yuan and 238 million yuan respectively to China International Travel Service, accounting for 15% and 23% of the company's net profit in 2011 and 2012 respectively.

    {page_break}


    Who is supporting the luxury market?


    According to a comparative survey, the sale price of the top saloon BENTLEY (Bentley) in the UK is between 100 thousand -50 and 3 million yuan, and the price has changed to 3 million -1200 yuan. Even at such a high price, BENTLEY has entered China for less than 6 years, and its sales in China surpass that in Japan.

    It is reported that in 2008, BENTLEY sales in China increased by 93% over the previous year, far faster than the 7% growth rate in the UK.


    Who is supporting the luxury market?

    You may soon think of entertainment, sports stars and successful business people.

    In fact, the consumption of luxury goods in China is much more than that. The situation that luxury brands belong to successful people has changed.

    A luxury business operator says that in developed countries, most of the luxury consumers are from 40 to 70 years old, and in China this age is greatly advanced.


    From the point of view of consumption structure, they are often keen to buy some accessories of top brands, such as leather shoes, leather bags, watches and so on.

    Women are more fond of cosmetics, perfume, fashion and so on.

    People with high incomes will rely on these brand items to suggest that they can also get involved in high-end consumption.


    From the perspective of consumption affluence, the main consumer group who buys the top luxury goods is not the richest list of Hurun rich list, while Shanxi coal bosses, private equity funds in Wenzhou, real estate groups such as Beijing, Tianjin and Jiangsu and Zhejiang are usually the main diners in the luxury feast.


    Is it ostentatious or consumer?


    Lang Xianping, a famous economist, wrote in the "why our income is so low" that although China has made Japan the second largest economy with its ultra-high GDP growth rate, the salaries of all countries have been combined together, divided by the GDP of the country. The conclusion is: the highest in Europe and the United States, the average is 55%, Japan is 53%, Australia is 47%, South Korea is 44%, South America's Argentina, Mexico and Venezuela are 33% on average, Southeast Asia, including Philippines and Thailand, on average, 28%, and the Middle East, including Iran and Turkey, is about 25% on average, while China only 8%.


    Interestingly, China has become the second largest country of luxury consumption, but at the same time, in the wake of the financial crisis, "shortage of migrant workers" has emerged again.

    How to explain that a big consumer of luxury goods accounts for only 29% of its GDP consumption in 2009.


    Despite the rise in the price of luxury goods in China in recent years, the "shock" price has only hit the Chinese tourists for a short time, and then they have reformed their power to invest in the queues.

    "Anyway, inflation has gone up, but it is hard to achieve. It is not a stock. It is not a stock. We always have to buy it. We should buy it sooner rather than later."

    This is what a consumer at a luxury store said to reporters.


    Experts say that in recent years, blind high-end consumption has become a potential consumption concept of the Chinese people.

    In order to ensure quality, top luxury goods will not be produced in China, and will not play a major role in promoting China's own economic growth.

    At the same time, our country is far from ready to accept the consumption and production of luxury goods.


    According to the ranking of luxury brands that consumers consider buying in 2010, top fashion apparel products occupy the absolute advantage. LV, CHANEL and GUCCI are the top three brands.

    The reason why LV is so popular is that it makes consumers feel that the LV bag is a symbol of identity through value creation. It is not a product that is honored, a luxury.


    Insiders say that although China is not a big country of luxury goods, it has become a big country of luxury consumption. The more important factor is that our new rich people do not yet know how to consume luxury goods. They do not know how to taste the cultural connotation of luxury goods. Most of them are determined by impulse. They prefer to buy the most expensive and most famous brand, but only consume behavior for consumption.

    Most of the luxury consumers are "showing off with consumption", which is a blind social imitation.


    According to the "passion for luxury brands: a strong interest in Asian luxury goods", Chinese consumers are in the stage of showing off. Luxury is regarded as a direct symbol of wealth and status.

    Western consumers have turned to pay more attention to the quality and intrinsic value of brand goods.



     
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