China Will Become The World'S Largest Luxury Market By 2015.

The Chinese Academy of social sciences has recently published the 2011 Chinese and English version of the commercial blue book. The blue book indicates that in recent years, with the rapid development of China's economy and the continuous improvement of the living standard of residents, the increase in consumer income has made the consumption of luxury goods continue to improve.

The middle class population in China is expected to increase to 104 million in 2011. With the increase of middle and high-end consumer groups, China's luxury consumption motivation will remain.

Before 2015, China became the world's largest luxury market.

Data show that in 2010, the world

The 2010 Hurun wealth report said that as of December 31, 2009, there were 875 thousand billionaires and 55 thousand riches with assets of more than 100 million yuan, representing an increase of 6% and 8% respectively over 2008.

Three provinces and municipalities in Beijing, Guangdong and Shanghai have nearly half of China's millions of millionaires.

With the increase of disposable income, consumer freedom expenses, such as consumption of medical, entertainment, education and luxury goods, will gradually increase.

Consumer demand for product quality has also been raised.

Surveys show that most of the motives for purchasing luxury goods are related to their choices and feelings, rather than the functions of products.

Among them, "pet and treat yourself" increased from 36% in 2008 to 44% in 2009.

Self encouragement in the 2008 and 2009 surveys has become the most important factor that motivate consumers to buy luxury goods, accounting for 44% and 54% respectively.

Explain China

The Chinese have always attached importance to "courtesy and reciprocity" since ancient times.

Besides personal use, gift giving is also an important luxury consumption.

According to Rhodes's public relations and albatross report, in the use of luxury goods in the Greater China region, 29% of the relatives and friends bought gifts, especially gifts from business, accounting for 28%.

Among them, 28% of the first tier cities surveyed bought luxury goods for business gifts, while the second tier cities accounted for 36%.

Some accessories such as wallets, scarves, glasses,

Because China has adopted restrictive policies on luxury watches, perfume, cosmetics, leather goods, bags and other luxury goods, high tariffs have been imposed for many years, individual goods have been added to the special consumption tax, and the prices of imported luxury goods are much higher than those of overseas markets. In addition, in recent years, factors such as relaxation of tourism restrictions have been relaxed, and Chinese consumers like to buy luxury goods abroad.

Many industry insiders pointed out that luxury consumption of Chinese tourists has become an important driving force for many overseas markets, especially in the Asian region.

In fact, many luxury brands have intensified their efforts to launch Asian markets such as China, Taiwan and Singapore to win customers of Chinese tourists.

Foreign retailers are paying more and more attention to the increasing outbound travel of Chinese tourists.

For example, British high-end department store harrow, Searl and rich, and so on, prompted the British government to relax visa policies for Chinese tourists. One of the important reasons is that the arrival of Chinese tourists can promote the continued development of the British retail industry.

As luxury brands around the world are paying more and more attention to the Chinese market, most of the world's leading luxury brands have entered the Chinese market one after another, while the Chinese market accounts for the proportion of the total sales of many brands. For example, China has replaced the United States as MontBlanc's largest selling market.

In 2010, LV and Hermes sold 25% and 38% of their sales revenue from Asia (except Japan), with revenue from the Chinese market rising.

In addition to the first tier cities, luxury brands are actively expanding to two or three line cities in recent years, such as Shaanxi Xi'an, Shanxi Taiyuan, Kunming of Yunnan, Hohhot and other Inner Mongolia Hohhot, which are often visited by business and leisure travelers.

In 2010, the British luxury fashion brand Burberry, which moved 50 franchise stores in 2010, said in January 2011 that it hopes to increase the number of existing stores in China to 100 in 5 years. It has entered Taiyuan and 2010 in 2010.

LV has entered Taiyuan, Hohhot, Urumqi and other two or three tier cities since 2007.

To cater to Chinese consumers, some brands have launched products specifically designed for Chinese consumers.

For example, Hermes in China based on the forthcoming hand craftsmanship, created the "affordable Chinese luxury brand", "up and down".

"Up and down" opened the first retail store in Huaihailu Road, Shanghai in September 2010. The products were designed by Chinese designers, made by Chinese people and sold only in China.

The conspicuous consumption of Chinese affluent consumers is still more obvious. Many brands have launched more prominent products to match the unique taste needs of Chinese consumers.

In order to match the taste of Chinese consumers, the BMW Motor Company from Germany has specially designed BMW M3 limited edition vehicle, and embroidered a tiger head logo on the car seat in the lunar year of the tiger.

The French fashion luxury brand in 2010 launched a China Limited Edition Red Handbag Marcie designed for Chinese consumers to celebrate the brand's entry into China's 5th anniversary.

However, China's luxury market is also facing many challenges.

The first is the price difference at home and abroad.

The appreciation of the renminbi, coupled with tariffs and excise taxes on imported luxury watches, fragrances, cosmetics, leather goods, bags and other luxury goods for many years, has seen a marked difference in prices between luxury and abroad. The extravagance of Chinese consumers outside China, Hongkong, France and Italy is more than that purchased in China, resulting in the pfer of purchasing power.

In view of this, in recent years, many people have proposed a luxury tariff reduction scheme to encourage domestic consumers to buy luxury goods in the territory, and the government can also increase the tax source on turnover tax and income tax.

In fact, China increased the intensity of customs duties in 2010. According to the announcement of the General Administration of Customs in 2010 fifty-fourth, the mainland residents had to import more than 5000 yuan for their own articles to be taxed, while the non resident travellers brought more than 2000 yuan of their own articles to be taxed.

Overseas luxury goods such as cosmetics, leather goods and so on will be increased accordingly.

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Counterfeit and shoddy products have always been a headache for luxury brands, and many fake and shoddy goods on the market are made by Chinese manufacturers.

The competitive advantages of Chinese manufacturers are their low labor costs and production costs, high productivity and high quality products.

The higher the brand's popularity, the greater the risk of counterfeiting.

Counterfeit products on the Chinese market also have some impact on luxury brands.

Although the target customers of counterfeit goods and regular goods are different, the sale of a large number of counterfeit products in the market may reduce the sense of honour of the shoppers.

The emergence of some official websites of counterfeit luxury goods has also hindered the confidence of online sales platform for luxury brand development.

In 2009, LV prosecuted a shop selling counterfeit clothing in Shanghai.

In the face of rampant counterfeit goods, senior Hermes executives said in 2010 that its group hired 40 employees to track counterfeit manufacturers around the world.

It is true that the industry and commerce departments also attach importance to combating counterfeit goods, and the industry has also indicated that the government has a quick response to counterfeiting counterfeit products. However, the counterfeit brand has a very fine fines, and it is very difficult to fight the counterfeit altogether.

In addition, because Chinese luxury consumers have less knowledge of brands, salesperson training becomes even more important.

If a salesperson correctly introduces the product's characteristics, brand culture, design concept, material and manual details, brand background and history, it will be more effective for product sales and promotion.

Because of the fierce competition in the market, luxury brands are faced with difficult recruitment of experienced salesmen and flagship store managers, and the problem of brain drain.