Luxury Magnates Will Expand To Two Or Three Tier Cities Like Xiamen And Changsha.

China

This big cake is attracting more and more international famous foods and has been expanding in the Chinese market.

Zhou Hanmin, vice chairman of the Shanghai municipal CPPCC and vice chairman of the brand China Industry Association, recently pointed out in Shanghai that China's GDP ranked second in the world last year, making great progress in the economy, making the international front line.

They are all concerned about the Chinese market.

Unfortunately, China is still short of its top luxury brands.

"Almost all the luxuries in the world are produced in China, but China itself does not have a world-class brand."

In Shanghai recently held the "China business newspaper, Fudan University Management School Luxury Summit Forum", Zhou Hanmin said that China's fortune 500 companies ranked second only to the United States, but in the world's 500 largest brand list, China ranked only fifth.

Take luxury goods as an example, there is no shortage of so-called luxury goods in China. Antiques, paintings, jewellery and jade are all luxuries that Chinese people often live in.

But today, China's local luxury brands are still at the embryonic stage, far from meeting the rapidly expanding luxury consumption market in China.

The data from Bain, an American consulting firm, have shown that the total consumption of China's luxury goods market has exceeded 1/4 of the global total. The global luxury brands of nearly 2/3 have entered the Chinese market, while China's luxury goods market is ready to rise 18% to 20% in the current year, exceeding the expected value of the European, American and Japanese market.

Zhou Hanmin said that the fashion luxury industry is closely linked with the development of industrialization. If China's industrialization can be changed from being big to strong, it will not be impossible for the world's top brands to emerge in the future.

Lu Xiaoming, a former managing director of MontBlanc China, told NetEase finance that the two areas of jewelry and clothing are most likely to be the world-class luxury brands with Chinese elements, rather than the liquor and tea fields that Chinese people have always been proud of.

In addition, it is worth noting that the first tier cities in China

Profits far below two or three line cities.

LVMH, a luxury tourist retailer of French luxury group DFS, also released data at the forum, saying that last year, the world's total consumption of personal luxury goods was 191 billion 100 million euros, an increase of 10% over 2010, of which China's market grew by 18%-22%.

"The contribution of consumers in China's two or three tier cities is overwhelming."

Bi Wei, vice president of the global tax exemption group (DFS) market, said.

DDT, one of the four largest accounting firms, also told NetEase finance that luxury goods have a certain consumption scale at all levels of the domestic market, with an average of over 25%.

But in the domestic first-line market, many luxury brand sales growth shows weakness, which also slows down the pace of expansion in the first tier cities, and turns it into a platform for image display.

But compared with the cautious consumption of the first tier market, the invisible rich group carried the banner of luxury consumption in the two or three tier cities.

"Although the number of the two or three tier cities is not large, the consumption power is considerable."

DDT people say that the luxury brand has also been burning to the two or three tier cities.

As early as two years ago, Gucci began to sink the layout of China's stores.

It is reported that in recent years, the newly opened 9 branches, 8 are located in Shijiazhuang, Xiamen, Changsha and other two or three line cities, only one settled in Shanghai.

Take LVMH's brand as a case, it will open 28 stores in China's two or three tier cities this year.