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    International Luxury Brands Are Facing A Slowdown In The Mainland'S Economic Slowdown

    2012/5/7 10:27:00 19

    International BrandsLuxury Goods

    China's mainland market, once the engine of global luxury growth, is also facing a risk of decline as a result of the downturn in the mainland economy.   


    It has been reported that some luxury brands that have been making money in China's mainland market in the past few years have been decadent.


       France MOET & CHANDON Hennessy - Louis Weedon group (LVMH) recently indicated that the sales growth of its LV brand in the first quarter set a double-digit record. However, the sales growth of LV brand in the mainland is relatively slow. At the same time, Asia is the slowest growth area in the first quarter of the LVMH clothing and leather products sector, which includes the LV and Celine and Fendi brands.


    In addition, Burberry chief financial officer Cartwright said earlier that the sales revenue growth of the group in mainland China increased from 30% in the third quarter (last October to December) to 20% in the second half of the fiscal year. A spokesman for Prada also said recently that it is difficult for the luxury market to maintain its growth in the past.


    Zhou Ting, director of the luxury research center of the University of foreign trade and economics, believes that the slowdown in the growth of the luxury market has much to do with the slowdown in the mainland economy. As the real estate market is sluggish and the stock market is sluggish, the cash flow of some consumers is decreasing. In the past, the middle class who bought luxury goods paid more attention to the input of basic daily necessities, while others were more willing to buy luxury goods with investment and collection value.


    In addition, the world Luxury goods Ouyang Kun, chief executive of the association, said earlier that "LV stores in Beijing and Shanghai, which are high-end consumers, are down 5% to 10% a year. "


       international brand The intensification of competition, coupled with the difference between the mainland and overseas, has also diverted some of the Chinese consumers in the European market. The United States is also trying to speed up the visa process, hoping to attract more Chinese tourists to the United States to spend shopping.


    Prada said that the importance of mainland Chinese consumers is not only for mainland China, but also for developed countries.


    Some luxury brands have begun to turn from the first tier cities in mainland China to two or three tier cities and continue to seek growth.


    It is understood that since 2007, the speed of opening LV shops in mainland China has significantly accelerated, and most of its new stores are located in two or three line cities.

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