China'S Luxury Industry Will Be Cautious In Optimism.

November 21, 2011, luxury Research Center, International Business University, international

Luxury consumption presents new characteristics

In the aspect of collection, two is the consumption concept from face consumption to social consumption and personal consumption; three, the low brand loyalty and strong impression consumption concept coexist. The survey shows that the top five most frequently purchased brands of high-end consumers are Louis Weedon, Chanel, Gucci, Hermes and Rolex, but they are also very easy to be advertised and buy well-known brands with common cognition. Four, custom-made and limited consumption preferences are gradually emerging, and have become the endogenous driving force of the new trend of the industry. Five, the consumption rules of "1+1+1" in mainland China, Hong Kong, Macao and Europe and the United States have been shown in the purchase of luxury goods, and these three places each account for 1/3. In Europe and America, 58% in Europe, 28% in the United States, 28% in Japan, and 8% in Japan. According to the report, there are five major trends in consumer spending on luxury goods: first, consumption has shifted from self use to business gifts and investment.

According to the report, in recent years, the "poor and rich" guidelines for luxury goods consumption are being challenged. When more and more extreme luxury groups consume luxury goods from brand loyalty to personalized customization, a large number of general high asset consumption groups are becoming the focus of competition for luxury brands. More and more brands are paying attention to the training of potential customers and younger age customers.

The two or three tier city is the focus of competition.

According to the report, after nearly 20 years of development, luxury goods have been consolidated in Beijing, Shanghai and other first tier cities, and the future strategy of luxury goods in China will be reflected in the realistic choice of "first tier cities make brands, and two or three line cities do sales volume".

According to the report, in the first tier cities, Beijing is the center of China's politics, economy and culture, so the luxury goods sales are the best. Shanghai is the second place, but Shanghai is the headquarters of luxury brands in China. The market competition is intense, and the luxury market is mature. Guangzhou is located in Hong Kong and Macao, and has a big gap with the former two.

In the future, Hangzhou, Shenyang, Chengdu and Qingdao will be an important battleground for luxury brands. The current sales volume of the four cities will reach 8%, 6%, 5% and 3% of domestic sales respectively.

But the promotion and sales resources of the two or three tier cities are also important constraints for the expansion of luxury brands.

In view of the shortcomings of this market, the e-commerce of luxury goods has also emerged in recent years. Many famous websites such as Xiu Xiu net, Fifth Avenue and old acquainted guests have emerged. The e-commerce business of these luxuries not only makes up for the geographical restriction of luxury consumption, but also strives to catch consumers' real consumption experience under the wired entity store, striving for more advantages in convenience, product quality and after-sale service.

Most likely local luxury brands accounted for three of Sichuan's enterprises.

In the face of the rapid development of international luxury brands in China, the report suggests that although most luxury consumers do not believe that China can produce local luxury brands, Chinese brands will not stop trying to internationalize their development. Some consumers also hope that many excellent enterprises in China will be able to produce internationally competitive Chinese luxury brands in the future.

After extensive research, it is reported that China's most likely industries to produce luxury goods exist in more than 20 categories, such as liquor, clothing, watches, jewelry, cigarettes, tea, porcelain, perfume, household products and crafts.

Luxury goods will be cautiously optimistic in the future.

According to the report, the four most likely areas for China's luxury industry to grow in the future are artwork market, second-hand luxury market, China's tax exempt market and China's luxury e-business emporium.

But at the same time, the report also holds that, in the face of the weakness of foreign economy, although China is one of the most promising countries in the eyes of luxury brands, China's real estate regulation and control in 2011 and the downturn in the stock market have affected the cash position of specific consumer groups. Although the consumption behavior of the extreme wealthy people will not be significantly affected, the consumption of the affluent people will undoubtedly be more cautious.

Therefore, the report believes that the future of domestic luxury consumption is optimistic in prudence, growth and change synchronization is an inevitable choice.

In the future, international luxury brands in China will still face the choice of integration and innovation of foreign brand culture and traditional Chinese culture, and equal emphasis on business growth and social responsibility.