Several Factors Restrict The Entry Of The World'S Top Luxury Brands Into Guangzhou Shopping Malls.

According to Guangzhou's "12th Five-Year" modern business development ideas, Guangzhou municipal Party committee and municipal government are committed to building Guangzhou into an international business center and making it an international shopping paradise.

To this end, Guangzhou is planning to build a number of iconic high-end commercial complexes and introduce a number of top international flagship flagship stores based on the new urban functional areas such as white goose pond, Baiyun New Town, Zhujiang New Town and Pazhou district.

But from now on,

Influencing factors

The price of imported luxury goods is much higher than that of neighboring countries, regions and Europe and America.

Luxury consumer big shopping eyes out

Since 2008, luxury consumption in China has surpassed the United States and has become the second largest in the world.

The industry predicts that in the next 5 years, the potential customers of China's luxury goods market will rise from 40 million to 160 million.

In the next 5 years, China's luxury goods market will reach US $14 billion 600 million, surpassing Japan.

Some people are amazed: the global 1/4 luxury goods are bought by Chinese guests!

In spite of the accelerated expansion of international luxury brands in China, Gucci opened branches in Wuhan, Shanghai and Beijing in two months last year.

Italy's top brand Versace (Versace) opened 25 outlets in China last year.

In the Zegna plan, 6 stores will be opened in China this year, so as to achieve the scale of 64 Direct stores.

It is reported that international luxury brands including Gucci (GUCCI), Zeg Na (Zegna), Coach (Cozi) and other international brands have increased their direct strength in China, and have entered the two or three line cities.

However, in the Pearl River Delta, Guangzhou does not enjoy the luxury of the world's top luxury goods. They are stumbling into Guangzhou.

The reasons are certainly manifold.

First and foremost, as a big country of luxury consumption, many of the luxury consumption of Chinese people is realized abroad.

According to statistics from Nielsen Co, an international famous market research organization, in 2009, residents of four first tier cities in Beijing, Shanghai, Guangzhou and Shenzhen traveled abroad, and the amount of luxury goods they purchased per capita amounted to US $900.

According to the latest survey report released by the global tax rebate company, in 2009, the total amount of duty-free goods purchased by Chinese tourists in France amounted to 158 million euros, which was more than 47 million euros in the second place in Russia, and became the world champion.

"Tourism has become an important way to buy luxury goods.

In particular, tours to Europe almost all require shopping in luxury stores.

It is understood that at present, the value added tax and import tariffs on luxury goods imported from the normal customs channels are about 29%.

In China, 20% of the luxury consumption tax will be collected.

Coupled with the exchange rate gap with Hongkong, luxury goods in China are more than 50% above Hongkong prices.

The price of imported luxury goods is much higher than that of neighboring countries, regions and the European and American markets, which has led to most of the luxury purchasing power of China flowing abroad.

Nowadays, there are many shopping centers in the world famous tourist cities, such as Paris, New York, Hongkong, Dubai and so on. Shopping is the main factor to attract tourists.

Guangzhou is next to Hongkong. It can travel back and forth every day, and the fare is not expensive.

In the US, the selling price of a COACH brand is $more than 200, which is HK $more than 2000 in Hongkong, and nearly 4000 yuan in Guangzhou, which is almost two times higher than that in the United States, doubling the price of Hongkong.

An international top brand handbag, tens of thousands of yuan, or even tens of thousands, hundreds of thousands.

Unless you are eager to buy gifts, many people will arrange time to buy them in Hongkong.

In this regard, it has been suggested that the policy of reducing import tax on luxury goods should be introduced as soon as possible, so that it can integrate with the international market and make full efforts to build a shopping paradise in the mainland of China.

But this is unlikely to happen in the short term.

Guangzhou can not hope for this.

Earlier, Chen Deming, Minister of Commerce, said in a high-profile manner that it would solve the problem that some international brand luxury goods sold in China were higher than overseas prices, causing great concern to consumers and luxury goods industries.

However, the new regulations of the Ministry of commerce only include measures to improve the logistics system, pform and innovate the retail mode, and lighten the burden on the retail enterprises, etc., and the immediate reduction of prices is mainly domestic luxury goods.

The price of international first-rate luxury goods produced in Europe can hardly be cut without lowering tariffs on Tariffs and luxury goods.

It has little effect on promoting the world's top luxury brands to enter Guangzhou.

Updating ideas

The high-end commercial complex is developed and operated by commercial real estate developers. They do not have sufficient brand resources and strong brand integration control capabilities.

International luxury Brand Company do not know about it, nor do they agree with this mode of operation.

The operation mode of commercial real estate needs to be innovated urgently.

Since the "Indus" tree has been planted and will grow more in the future, Guangzhou must also unswervingly move towards the international trade center and make Guangzhou an international shopping paradise. Then, how does this road go?

Ouyang Kun, CEO of the World Luxury Association in China, frankly bluntly: "Guangdong and Hongkong have too close geopolitical relations. International luxury brands generally do not regard Guangzhou as the main battlefield of" revenue generation ". They are more willing to see Guangzhou as a bridgehead for brand image propaganda.

If the real estate operators do not update their ideas, even if they are invited to join the department stores, it will be difficult to recruit luxury brands.

Indeed, many high-end commercial complex hardware in Guangzhou is enough to attract the world's top luxury brands, but because these high-end commercial complexes are developed and operated by commercial real estate developers, they do not have sufficient brand resources and strong brand integration control capabilities.

International luxury Brand Company do not know about it, nor do they agree with this mode of operation.

Guangzhou Jingdu Industrial Co., Ltd, a large shopping center running on "5 Apron", is a group company focused on commercial real estate operation and urban management. Its business involves the location research, format design, investment planning and execution, operation management, brand building, capital operation and other aspects of the commercial project.

However, in the past projects of Jing Du industry, there was no major brand resources in the professional market.

Guangzhou Baiyun Wanda Plaza, Wan Ling Hui, Guangzhou friendship country Jindian and Gao de land development and operation are also commercial real estate companies.

Obviously, neither the Jing Du industry nor the majority of commercial real estate developers in Guangzhou have such strength.

More professionals pointed out that because luxury brands and real estate developers do not have a direct interest relationship, they will never come personally to investigate whether commercial projects have investment value. Instead, they are more willing to give professional things to professional people. First, make research reports through third party organizations, and then consider the matter of cooperation.

Fortunately, the two high-end commercial complexes of "Tai Koo Hui" and "Huacheng Hui" have already done so.

Guangzhou's "Tai Koo Hui" operators have the advantage of Hongkong's "Tai Koo Hui" international luxury brand resources. "Huacheng Hui" operator Hongkong Lan Kwai Fong Holdings Limited also has a world-famous leisure and entertainment brand.

Perhaps, the two "Indus" trees of "Tai Koo Hui" and "Huacheng Hui" will bring more international luxury goods "phoenix" to Guangzhou.

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Explore the way out

Zhou Linsheng, vice president and Secretary General of Guangdong Provincial System Reform Research Association, said: Guangzhou should introduce Hongkong and even the world's high-end consumer goods dealers in Nansha.

At the same time, through the application of Guangdong to the central government, Nansha will be built as the first high quality consumer goods free zone in the mainland.

Can Nansha become a luxury tax free zone?

However, even if the two "Indus" tree of "Tai Gu Hui" and "Huacheng Hui" can bring more international top luxury goods "phoenix", but if there are not many buyers, only let them stay in the stage of display, these "phoenix" will probably not stay too long, nor will they be big.

The high-end consumer goods trade is the Pearl of the service industry crown.

In the face of the world-famous first-line brands stopping in Hongkong, Guangzhou is only regarded as the "bridgehead" of brand promotion, especially the buyers of high-grade consumer goods are few. Guangzhou is afraid that it is difficult to realize the dream of international shopping paradise.

Guangzhou is known as the "Millennium commercial city". In the wholesale market, Guangzhou has many first in the country, such as Guangzhou's wholesale clothing, Yide road seafood market, toy market, etc., all forms the national "Guangzhou price".

But in the retail market, Guangzhou has not been the strongest.

Guangzhou's retail industry, the top nine business circles, the Beijing Road business circle, the gold rush business circle, the Tianhe business circle and the newly rising Pearl River new town business circle and so on, punctuate the combination, has the south of the Five Ridges characteristic, the commercial competition, actually is the competition of the commercial culture.

The shortage is that high-end brands representing a city's taste are not enough.

Relying solely on the source of tourists attracted by the wholesale market, it is difficult to pform Guangzhou's "millennium city" into an "international business center".

Wang Xianqing, director of the Institute of circulation economics of Guangdong University of Business, believes that although many commercial projects have been completed in Guangzhou, there is no overall planning package and system propaganda among these projects, and each of them has no influence on the improvement of Guangzhou's business environment.

In order to develop international trade centers, Guangzhou must first compare with the big cities in China.

Guangzhou should find a breakthrough in promoting the upgrading of Commerce and trade.

Jiang Lin, a professor at south of the Five Ridges College of Zhongshan University, advocated that Guangzhou's trade and industry should "build the moon" and make the two moon or three moon do well.

Guangzhou should consolidate and enlarge the existing business circle instead of building business circles and shopping malls everywhere.

However, the stars and the moon do not replace each other.

Meeting the nearby consumption of community businesses will not affect the moon's brilliance.

Then, where is the breakthrough for Guangzhou to promote the upgrading of the trade and industry? Where should the "Moon" of the commerce and trade be built? Zhou Linsheng, vice president and Secretary General of the Guangdong Provincial System Reform Research Association, said: Guangzhou should vigorously introduce Hongkong and even the world's high-end consumer goods dealers in Nansha.

At the same time, through the application of Guangdong to the central government, Nansha will be built as the first high quality consumer goods free zone in the mainland.

In this way, Guangzhou will rapidly improve the current downturn of high-end consumer goods, greatly enhance the attractiveness of the international first-line brand and absorb the high-end consumers.

For Hongkong and even the world's high-end consumer goods dealers who enter Nansha, they will directly face the vast number of target customers.

As we all know, the rich Pearl River Delta is not the consumption power of the lack of high-end consumer goods, but now it has gone to Hongkong to buy it. After the opening of free trade, people in the Pearl River Delta region, including Guangzhou, are shopping more and more in Hongkong. Guangzhou is hard to retain high-end consumption.

Guangzhou's high-end consumer goods are not competitive in Hongkong.

Huang Wenjie, executive director of the Guangdong Circulation Industry Association, believes that Guangzhou needs the most to enhance its business or retail trade.

He believes that the momentum of Guangzhou's commerce and retail industry is ready to go, and the market capacity, policy environment and property supply that it needs to develop are all available.

The government and enterprises should work together to introduce more domestic and foreign brand businesses and commodity brands, and the level and scale of Guangzhou's business will rapidly increase.

In the outline of the national "12th Five-Year" development plan, it is clearly pointed out that the development of Nansha new area should be listed as a major project to deepen cooperation between Guangdong, Hong Kong and Macao. It is positioned as "building a commercial service center serving the mainland and connecting Hongkong".

Secretary Wang Yang pointed out clearly that "we need to take Nansha new district development as a breakthrough and create a new Guangzhou".

Compared with Shenzhen Qianhai and Zhuhai Hengqin, Nansha has no policy advantage.

If the central government can give Nansha the policy of "building the first high-end consumer goods tax free zone in mainland China", Nansha will undoubtedly play a huge role in building an international trade center and an international shopping paradise in Guangzhou.