Interview With Professor Niu Haipeng, School Of Business, Renmin University Of China

Professor, School of business, Renmin University of China

An interview with reporters said that the luxury market downturn was affected by the European debt crisis and China's economic slowdown.

In the face of market competition, whether or not we should choose to protect ourselves from the market, or continue to protect high-end brands, luxury goods are in a dilemma.

At present, Qingdao is international.

The main marketing position of enterprises in Shandong is leading the direction of luxury consumption in Shandong.

According to the World Luxury Association's 2010-2011 year survey report on luxury goods consumption in China, Qingdao's consumption power ranks third in the country.

I made my own home.

Wang Yan, a company, used to buy luxury goods such as GUCCI, Prada and so on at Hisense square in Qingdao. It only spent tens of thousands of dollars last year, but only bought some accessories this year.

"This year, the whole logistics industry is not very prosperous, and the efficiency of the company is not very good, so the number of purchases is much less than that of last year."

Wang Yan told reporters.

The behavior of consumers soon spread to luxury companies.

It is reported that Burberry has always been the darling of the capital market. In the past 5 years, the stock's total return rate is as high as 125%. Such excellent performance has accelerated its pace of expansion. As of June 30th this year, Burberry has 196 retail stores, 207 franchisees, 48 sales outlets and 58 franchised stores worldwide.

But in the end, in September 11th, the stock price fell to its lowest level in nearly 1 years, and the market value evaporated more than 1 billion pounds without resisting the cold current of global economic weakness.

Yu Feng, general manager of the luxury department of jCG, told reporters that European and American luxury brands such as cunchi, Ralph and jeweller Tiffany also had poor performance due to the market downturn.

It is understood that Britain, France, Germany and China are the main markets of Burberry.

Burberry's chief executive, Angela Aletts, said the challenges posed by the external environment are growing.

Burberry believes that this is not a single brand issue, and some other old brands have also been affected.

This is indeed the case. The share prices of the three major luxury goods groups of the world, Louis Weedon, the peak group and PPR group, have fallen to varying degrees.

Product scope or adjustment

"But in the future, I believe China will still be the main market for luxury goods."

Niu Haipeng said, "China's middle class is growing stronger. This should be a potential consumer of luxury goods."

Some analysts also believe that the growth rate of China's luxury market may slow down, but will continue to maintain a sustained growth momentum.

Niu Haipeng believes that in the face of market pressure, luxury goods must take certain measures to deal with, or introduce low price luxury goods to expand consumer groups, short-term sales to reverse the decline, or to the development of high-end and exclusive products, enhance product profit margins.

Wang Yan and friends who buy luxury goods all over the world believe that quality is only a small part of the purchase of luxury goods, mainly because of the importance of the brand itself.

Yu Feng analysis said that in order to protect the value of the brand, some enterprises may adjust their product range, but the big brands in the luxury industry should not be self declining.

"The purchase of luxury goods should be related to the consumption concept of consumer groups. If consumers change the concept of luxury and status and identity, then buyers may be reduced," Niu Haipeng said. "The price will hurt the brand, but if the price is not reduced, sales will be sluggish in the short term, and luxury goods may be caught in a dilemma."