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    More Than 90% Of The World's Recognized Luxury Brands Have Been Settled In Shanghai.

    2011/4/22 13:41:00 66

    Luxury Brand Shanghai

    according to Shanghai Shanghai international luxury brand development research report released recently by the city commercial information center shows that at present, more than 90% of the internationally recognized luxury brands have been settled in Shanghai, and Shanghai has become an international brand. Luxury brand China's first choice. The report also pointed out that 169 international luxury brands have set up retail outlets in Shanghai. clothing Consumer goods such as leather goods, watches, jewelry, cosmetics and so on.


      Annual growth rate of more than 10%


    The report points out that in 2009, the total consumption of luxury goods in China has exceeded 9 billion 400 million US dollars, accounting for 27.5% of the global luxury consumer market, and the second largest consumer of luxury goods in the world. Among the 169 luxury brands that have already set up retail outlets in Shanghai, 62 brands are multi category businesses, accounting for 36.7%. Among the single category brand, clothing brands are the most and 34 brands account for 21.1%.


    Julie Harris, general manager of WGSN Asia Pacific, once said: "the trend of luxury consumption in China and the world is two curves, one from low to high, one from high to low, and finally crossing in twenty-first Century.


    Especially in the past 3 years, the retail sales of international luxury brands in Shanghai and the whole country showed a rapid growth, with an average annual growth rate of more than 10%. Among them, the growth of luxury clothing, leather goods and jewelry retail in the national market is more than that of Shanghai. The retail sales of luxury watches in Shanghai are faster than that of the whole country, with an average annual growth rate of 39%. The average annual growth rate of other luxury brands such as clothing, leather goods and jewelry in Shanghai market is 17.5%, 13.3% and 21.5%, respectively.


    The survey shows that the consumption volume of international luxury brands is growing and retail sales are increasing rapidly, which accounts for the continuous increase of Shanghai's consumer goods market share. In some large department stores, the international luxury brands account for more than 10% of the retail sales. Luxury brand stores and monopoly counters are mainly on the first floor, which not only improves the retail sales, but also plays an important role in enhancing the image of the whole department store.


    Take Dior as an example, as early as the late 90s of last century, it began to explore the Chinese market. In 1994, Dior had its first store in Shanghai. The investment in the store has been very rewarding. Dior CEO has said that Dior has doubled its sales in China, and the market is developing too fast. "I am referring not only to sales figures, but also to their depth of understanding and purchase needs."


       Direct battalion and service become important "weapons"


    The report points out that international luxury goods entered Shanghai since the 80s of last century and have gone through different stages of development so far. In recent years, Shanghai's international luxury brands have diversified characteristics, and the concept of consumption is expanding from "small pieces" to "big pieces", from "products" to "services", to "cultural experience", and high-end luxury clubs such as high-end clubs, tourist holidays, yachts and leisure are also accelerating development.


    There are two modes of luxury brand management, namely, direct and agent. International luxury groups such as LVMH group, Lifeng group, Gucci group and other international luxury goods groups choose to operate direct outlets in Shanghai, and choose Shanghai as the location of China's regional headquarters and the location of investment and operation center. At the same time, the location of retail outlets also spread from the central commercial blocks to urban shopping centers, as well as new modern commercial buildings and historic conservation buildings.


    In addition to changes in business models and siting, better service has also become the "weapon" of many luxury brands to fight for Shanghai consumers and Chinese consumers. The chairman and chief executive officer of Jean-ClaudeBiver, the chairman of the board of directors and chief executive officer, summed up the success of her brand in the Chinese market: "we opened a watch repair service center in China, providing services in the place where the watches are sold, so that Chinese consumers are confident of us that Chinese consumers will know that they have bought a very expensive watch and can get no defect service. You can change batteries in time when you need to change batteries. In China, maintenance service is the most important factor for our success. "


      Waiting for time to form industrial clusters


    The report shows that after 20 years of development in Shanghai, international luxury brands have gradually evolved from the initial period of introduction and growth to maturity. Shanghai's per capita GDP has entered the ranks of the world's moderately developed economies, creating a good economic foundation for the rapid development of international luxury brands. Shanghai has a large consumer market and strong radiation capability, which provides market protection for the development of international luxury brands. In addition, the improvement of residents' consumption level and the acceleration of construction of commercial facilities provide favorable conditions for the development of international luxury goods in Shanghai.


    At present, the development of international luxury brands in Shanghai has reached a considerable scale, but there is still a big gap compared with the famous international metropolises such as New York, Paris, London and Tokyo. The collection of Shanghai's international luxury brands is only a gathering in space and has not become a truly viable industrial cluster. At present, Shanghai has fashionable landmarks, but has not yet formed a scale of agglomeration, and has not formed an international first-class commercial block like New York's Fifth Avenue, Paris Champs Elysees and Tokyo Ginza.

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