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    Behind The Huge Purchasing Power Of Luxury Goods Is The Misunderstanding Of Consumption.

    2011/4/18 16:47:00 76

    Luxury Consumer Loss Of Purchasing Power

    At present, domestic consumers are right. Luxury goods Consumer demand is very strong, and China's luxury imports have jumped to second in the world, second only to Japan. However, due to many factors such as tariffs and circulation, the price of many luxuries in China is much higher than that in other countries, leading to a serious loss of luxury purchasing power in China. In this regard, at the recently held high-level forum on China's development, the Minister of Commerce Chen Deming China will adopt measures such as promoting competition, improving logistics system, changing and innovating retail mode, lighten the burden of retail enterprises, and so on, so that its price will return to the right level.


    Domestic luxury goods Loss of purchasing power Sparking government concern


    Recently, a spokesman for the Ministry of Commerce Yao Jian The news disclosed at a regular news conference confirmed Chen Deming's statement. Yao said that the difference between the 20 brands of watches, bags, clothing, wine and electronic products is at home and abroad: the mainland market is about 45% higher than Hongkong, 51% higher than the US, and about 72% higher than that of France, according to the Ministry of Commerce survey.


    Why has the price of luxury attracted the attention of the government? "With the improvement of domestic consumption level, the luxury consumer goods we used to think are now being purchased more and more, and the formulation of relevant policies and systems is facing challenges." Yao Jian disclosed that at present, the price of some international brand luxury goods in China is higher than that of foreign countries, which affects the decision makers' judgement of trade balance. "It is not only a concern about the underestimation of imports, but also an important part of the expansion of domestic demand by bringing consumers' purchasing power to luxury goods to China." Zhou Ting, deputy director of the Cheung Kei luxury research center of the University of foreign trade and economics, said in an interview with our reporter that it is a great change from government departments to avoid luxury consumption and change to the luxury market, showing the idea that the government hopes that the state and consumers will benefit from the adjustment of the luxury consumption policy. "At present, many luxury goods in China are more expensive than foreign countries, but the income of Chinese people is only 1/10 of developed countries. This has prompted a large number of domestic consumers to rush to buy abroad, resulting in a large number of purchasing power loss." Wang Xianqing, director of the Institute of circulation economics, Guangdong University of Business, pointed out.


      Consumer misunderstandings hidden behind huge purchasing power


    Luxury goods have become huge purchasing power. The Ministry of Commerce said that due to the fact that a large number of domestic tourists' purchases from overseas were not counted into customs statistics, the import volume of our country was underestimated by tens of billions of dollars due to the overseas consumption of luxury goods. Then what is the number of domestic luxury goods?


    According to the China luxury goods market survey released by Bain consulting company in 2010, luxury goods suppliers in China picked up 10 billion 800 million dollars from our consumers' pocket last year, and 30% of their profits came from China.


    In this way, China will be able to get closer to the position of global luxury consumption. According to Goldman Sachs, the world's leading financial institution, as China's luxury goods sales increase at an annual rate of 20% and the world's first growth rate, China's luxury consumption will reach US $14 billion 600 million in the next 5 years, and the number of consumers willing to consume luxury goods will increase to 100 million.


    However, behind these stunning data, there are hidden misunderstandings and misunderstandings that can not be overlooked. "At present, domestic consumption and luxury goods become popular. First, they buy the luxury goods counters in the country and then run to Hongkong and Macao to consume them. In Japan, France, Switzerland and other countries, Chinese consumers can buy luxury goods everywhere." One industry insider said.


    In recent years, the international financial crisis has caused the consumption of luxury goods in Europe and the United States to be severely damaged. But at this time, the demand for luxury goods is booming in China, and this has become the "life-saving straw" of these international luxury brands. According to statistics, only in 2010 London discount season, domestic consumers purchased luxury goods as high as 1 billion pounds, replacing the Russians and Arabs as the biggest buyers. Some European countries even created "Beijing pound" new terms to show our consumers' purchasing power for luxury goods. In addition, in order to better serve our consumers, many foreign luxury stores also specializes in employing Chinese students as employees. {page_break}


    Show off consumer psychology when returning to reason


       According to statistics, in the mainstream population of luxury consumption, the monthly income of about 10 thousand yuan of young people accounted for more than half of the total. Miss Xue, who works in a foreign company, is a loyal customer of luxury goods. During the Spring Festival this year, she went shopping in Hongkong. The list included bags, perfume, shoes and so on. Among them, a famous brand bag of nearly twenty thousand yuan paid her two months' salary. "It's a bit tangled to buy such an expensive bag, but there are friends around us who do not always feel that they are defective." She said.


    Wang Wen, who has just joined the work, now has a monthly income of 5000 yuan, claiming to be a young person who likes to enjoy life and pursue high quality. She told reporters that she already owned several luxury items in the world. "In the cold wind, I queued for hours at the door of a luxury store, only to get 15 minutes to rush to buy limited edition clothing." Of course, thousands of dollars of perfume, 10000 yuan of luggage and jewelry is also a great expense for her. Wang Wen said: "the original idea is that since the next" LV "can not afford to buy a house, then why bother this hobby? But after shopping, she found that the feeling of "moonlight clan" and frequent credit card accounts were not pleasant. "With a famous brand bag, usually you want to buy cheap lunch, and you can't afford to take a taxi to bear the bus congestion. This way of consumption should be changed. " She said.


    With limited savings, but keen on luxury consumption, Wang Wen's entanglement is no more than an example. It is precisely because of such a malformation "excellent" consumer psychology, making them become too much of the domestic luxury market consumer main force.


    A luxury agent said many people who queued up to buy "LV" packages all night did not know that "LV" was Louis Weedon. Many domestic consumers do not know the cultural connotation behind luxury brands. Irrational consumption not only makes consumers face financial and emotional pressures, but also encourages multinational companies to make unreasonable price positioning in China's market.


    "The location of luxury goods consumption and the state of the present national wealth are not the same, which is the root of" not rich and extravagant ". Zhu Mingxia, director of the Cheung Kei luxury research center of the University of foreign trade and economics, believes that China is still in the initial stage of luxury consumption, showing off consumption. "Face saving, herd mentality and gift culture have led to over consumption of luxury goods." According to the survey data of the center, the proportion of domestic consumer spending on luxury goods accounts for 20% of the income, while the proportion of other countries does not usually exceed 4%.


    Consumers tend to be younger, which is a significant feature of luxury consumption in China. Statistics show that from 2007 to 2010, the minimum age of luxury consumer groups in China decreased from 35 to 25 years old. The average age of luxury consumers is 15 years younger than that of Europe, and 25 years younger than that of the US. "A big reason for this phenomenon is that luxury goods are regarded as a sign of self-identity because of the comparison between the two generation and the 1990s.


    From "made in China" to "for China's production". Nowadays, China's luxury consumption is needed by the world. "We hope that luxuries will not become our new generation of" opium poppy. " Some experts are so loud. It is understood that from the early 70s of last century, Japan launched a craze for luxury goods and went back to rational consumption for 20 years. Some experts predict that if our luxury consumption is really mature and rational, it will also go through a long process. Therefore, the vast number of consumers in the current luxury goods need to be calm. {page_break}


      Background link


    20 years of luxury consumption in China


    In fact, the consumption of luxury goods in China has only taken 20 years. The real rapid growth is the most recent 5 years.


    At the end of the 70s, when foreign brands opened our country, the country was shocked and moved. In 1979, Pierre Cardan was invited to hold a fashion show for professionals only in Beijing's national culture palace. 8 French models and 4 Japanese models laid the foundation for the opening of our modern fashion aesthetics. By the 80s of last century, international brands such as Montagut, crocodile, old man and Playboy came to China one after another. My Guo Lao people began to have the concept of brand fashion. At this point, many years of blue and gray tones began to become rich and colorful.


    In the 90s of the world, there were five star hotels with foreign investment in China. At that time, luxury goods really came into the domestic market. In 1991, the Italy brand Zegna opened the first luxury store in China. The people who bought it had to use foreign exchange certificates. In 1992, Louis Weedon opened a store in China. In 1993, Burberry appeared at the Hilton Hotel in Shanghai.


    The loosening of policies has led to the spring of luxury goods in China. In 1996, the Ministry of foreign trade and Economic Cooperation issued the Interim Measures for the establishment of a Sino foreign joint venture foreign trade company. The registration place of luxury goods companies in China gradually shifted from Hongkong to the mainland. In 2000, Versace in Italy and Vacheron Constantin in Switzerland officially entered China.


    The huge expansion of foreign luxury goods in China's market was in 2004. Our country fulfilled its pledge to join the WTO. The implementation of the "foreign investment business area management method" was implemented. Foreign capital brands were no longer restricted by the chain stores, and they resumed the agency power in succession, and launched the direct and flagship stores in large numbers. At that time, Armani entered Shanghai in a high-profile manner. Cartire was launched in the Museum of Hong Kong. Over the next few years, Patek Philippe and Rolex also opened stores in China. At this point, the international first-line brand stores are everywhere in China.


      Related links


    There is no uniform definition of luxury goods.


    When the world's major luxury goods manufacturers come in a rush, luxury goods consumption is discussed in full swing. Reporters find that luxury goods lack unified definitions and standards.


    "There is no authoritative and unified definition and concept of luxury goods internationally. Only the definition of luxury goods is a kind of consumer goods that is unique, scarce and rare beyond the scope of people's survival and development needs." Zhou Ting, deputy director of the Cheung Kei luxury research center of the University of foreign trade and economics, told an interview with our reporter that luxury goods also have the characteristics of high price, good quality and good design, and bringing different feelings. The category and scope of luxury goods are not defined. They can be expensive bags, cosmetics, perfume and personal care products, belts, watches, yachts, private aircraft, luxury villas and cars.


    It is understood that luxury in English is Luxury, Luxus, luxury is Latin words, the original intention is "sparkling things." But in modern times, the understanding of luxury goods is different, even in the luxury industry, there is no uniform answer. Perhaps it is the vagueness of the definition of luxury that makes itself very controversial.
     

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