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    Luxury Sales In China Will Catch Up With Japan For The First Time

    2011/12/16 10:37:00 16

    Luxury Sales In China Surpass Japan

    According to PWC's 14 2012 Asian retail and consumer goods industry outlook report, China's retail sales growth rate ranks first in Asia.

    According to the report, China's annual retail sales will continue to grow in the next three years and will exceed US $5 trillion and 500 billion in 2015.

    Among them, luxury goods sales in China have reached a new high, Greater China.

    Luxury goods

    Sales are expected to surpass Japan for the first time and the two or three tier cities in mainland China become important luxury goods markets.


      

    Luxury goods this year

    Sale

    Up to 15 billion 500 million dollars.


    In the report, PWC mentioned that consumers in Greater China (mainland China, Hongkong, China, Macao, Taiwan, China), including Chinese tourists, have become second only to the US.

    Consumer

    The second largest luxury consumer group in the world.

    This year, China's luxury market is expected to increase to 11 billion 500 million euros ($15 billion 500 million).

    The 25% increase in sales of luxury goods has made China the largest country to contribute to market growth in the world.

    PWC predicts that luxury goods sales in Greater China are likely to surpass Japan for the first time, while China's two or three tier cities will become an important luxury market.


    But according to the World Luxury Association data, 56% of China's total consumption of luxury goods is overseas consumption.

    Despite the rapid development of luxury goods in China, luxury brands are very strong in China, according to general manager of Beijing Lotte intime department store, which is not a good phenomenon for Chinese luxury goods sales.

    "Because there are too many Chinese retailers who want to enter big brands, some brands have very strict entry requirements, such as letting department stores store upside down, close their counters, and require large business areas. This is not seen in Europe and America."


    In addition, the report points out that China became the fourth largest cosmetology and personal care product market in the world after the United States, Japan and Brazil last year.

    According to the analysis, with the continuous improvement of people's affluence, the scale of the category market is expected to reach US $34 billion in 2015.


    Global retailers accelerate in Hua Kuozhang


    In the report, PWC pointed out that since this year, WAL-MART, TESCO, Metro and other large retail enterprises have announced huge investment plans in China, trying to gain rapid development in the eye-catching Asian market.

    But in most Asian countries, these global retailers are facing fierce competition from local and Asian retail businesses.


    From the Chinese market, enterprises such as TESCO and Yi buy have successively frustrated in the Chinese market, while Asian and Japanese retail enterprises such as Japan and Korea are entering the Chinese market.

    If Seven& I, Japan's largest retailer, accelerates China's opening up plan, its 7-11 convenience stores will open to join the market, and Japan's big supermarket operator Yong Wang will set up its headquarters in China to speed up the pace of expansion in China. It is expected that at least 2000 stores will be opened in China in the next 10 years.


    At the same time, demand for clothing is still strong in Asian markets, and leisure and sportswear markets are attracting increasing attention from foreign brands.

    Analysts believe that demand for clothing markets in Asia and Oceania will exceed Western Europe and North America this year.

    International Leisure and sports apparel retailers are competing for development in Asia, especially in China.

    PWC forecasts that China's total demand for clothing will increase by 7.9% this year.


      

    Increased prosperity

    Expedited

    New consumption trend


    The report points out that over the next 2011-2015 years, China's consumption expenditure for food, beverages and tobacco products will more than double to US $1 trillion and 400 billion, partly from the rapid rise in prices.

    However, the market demand for these commodities increased by only 1.1% in 2010 and is expected to rise to 3% this year.

    At the same time, with the increase of people's income and the awareness of health and food safety, the marketing of functional foods in the Asia Pacific region will surpass the traditional markets such as the European Union and the United States.


    The analysis shows that although inflation has an impact on food and comprehensive retail sales, the rising level of affluence in Asia has also spawned some new consumption trends and consumption growth points.


     
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