The Luxury Market In The Two Or Three Tier Cities Is The Most Popular.

The development mode of luxury brands in the Chinese market is quietly changing. On the 10 day, DDT, one of the world's four largest accounting firms, released a survey report that the luxury market profits of the first tier cities in China are far below that of the two or three tier cities. The report also shows that high-end products have a certain consumption scale at all levels of the domestic market, with an average of over 25%.

According to the report analysis, at present, in the domestic first-line market, because of the earlier arrival of luxury brands and the increase in the number of people who own the same product, their attractiveness to consumers gradually decreases, and sales growth shows weakness. At the same time, many luxury brands have slowed the pace of expansion in the first tier cities and turned them into platform for image display. Therefore, the advertising and marketing investment of luxury brands in the first-line market is much higher than that of the two or three line market, which has squeezed the profit margins of luxury brands.

Although the operating costs of first tier cities such as rentals and manpower are rising, it is a major reason to limit the profits of luxury brands, but in fact, the decline in purchasing power of consumers in the first tier cities is the main reason.

　　 luxury goods market Zhou Ting, a research expert, believes that the main force of consumer luxury goods in the first tier cities is the middle class. But since last year, the cost of living has continued to rise, making consumers in the first tier cities start tightening money.

The China luxury report also shows that the budget of white collar and middle class luxury goods has declined this year.

Compared with the cautious consumption in the first tier market, the invisible rich group carried the banner of luxury consumption in the two or three tier cities. Although they are small in number, their spending power is considerable. Moreover, this group of people is still at the initial stage of luxury brand pursuit, and their lack of concern about their core concepts, origin and so on. This kind of consumption concept makes commodity price the main factor to decide whether the brand is good or bad.

Extravagance Brand sales The staff also verified the above views. It shows that consumers in tier one cities prefer to choose basic or even discounted purchases; consumers in the two or three tier cities prefer to buy new, limited and classic versions of higher prices. Moreover, the number of purchases is relatively large.

The new consumption trend in the domestic market has long been grasped by smart luxury brands. Two years ago, Gucci It began to sink the layout of Chinese stores. It is reported that 8 of its 9 branches are located in two or three cities, such as Shijiazhuang, Xiamen and Changsha, and only one of them is settled in Shanghai. Last year, Gucci still loves to set up shop in the two or three tier city.

In fact, the "perseverance" of the two or three line market has also given back to these luxury brands. According to sources, sales of Gucci in Zhengzhou opened on the first day, and another luxury luxury brand LV was located in the Urumqi store. It was also the national sales champion for a period of time. A famous Swiss watch brand also said its Huludao shop was among the best in the Asian market.