In The Luxury Market, Seek Stability And Win.

It has been popular since last October.

The industry has seen a slowdown in the Chinese market.

Recently, the growth rate of luxury goods industry is not satisfactory. Burberry group's earnings report showed that sales growth in the Asia Pacific region fell to 16% in the first quarter of this year from 67% in the same period last year, of which China's sales growth also dropped from 30% to about 15%.

PRADA also admitted in its latest earnings report that its market share in China declined by 25% over its 12 month high last year.

Hugo Boss also revealed that revenue in the second quarter of this year increased by 4% from the same period last year.

Although sales of luxury goods in China have slowed down significantly, shopping centers and department stores that carry out publicity and investment under the banner of luxury goods are still emerging.

What will be the future of China's luxury market? How can high-end stores keep their charm and get better returns on business performance?

Exit and entry

As we all know, in the past 10 years, the development of the luxury market and China's retail industry can be accompanied by each other. Due to the weakness of the luxury goods industry, high-end shopping centers dominated by high-end luxury goods have also been affected.

According to the survey, this year, about 30% of the Chinese tycoons will reduce their spending on luxury goods, and the average annual salary is 160 thousand ~18 yuan.

Reporters visited several high-end department stores and shopping centers in Beijing, such as Jin Yuan, Yansha mall, Cui Wei Plaza, etc.

The staff concerned generally reflected the general sales situation this year, especially the luxury brands.

"Luxury this year

The sales situation is much worse than before. Because of the brand positioning relationship, discount sales promotion is generally not used, but this year, in order to promote sales, many activities have been added to attract customers, but the effect is still general.

Cui Wei square staff complained to reporters.

The report released by the Beijing Municipal Commerce Commission also reflects that high-end luxury goods consumption is not optimistic.

In the first half of this year, the sales growth of Xinguang Tiantai and Seth shopping center dominated by international high-end brands decreased by 27.9 and 9.6 percentage points respectively over the same period last year.

At the end of September this year, the "west department store", known as "the nobleman of department stores", has been completely lost in the mainland. Following the closure of stores in Chengdu, Shenyang and Changchun, the Shenzhen store has also been closed.

However, many enterprises still have high expectations for luxury goods stores.

Recently, at the Wanda business annual meeting, the Wanda Department announced that it would build a luxury shopping center in Wuhan, Taiyuan and Changsha.

In the development process of the whole market, the three or four tier market has considerable room for development. Wanda is confident of building a good luxury department store.

Coincidentally, the closing ceremony of the third Beijing Wangfujing international brand Festival, which is almost at the same time as the Wanda brand negotiation conference, is also released by the Wangfujing group. At the end of this year, the high-end shopping malls will be launched in Beijing.

The cold spell of luxury goods has become a reality. In the past, the agitation in the pition of middle and low end stores began to appear in the high-end market.

In view of this phenomenon, Wang Xianqing, director of the Institute of circulation economics of Guangdong University of Business, believes that the prospect of high-end department stores and shopping centers is still clearer.

"Although the luxury industry has been hit, the proportion of luxury goods in the overall consumption will be improved correspondingly with the continuous increase of per capita consumption level in China. The overall market prospect is very broad. The proportion of high-end shopping malls increased by enterprises is normal."

Wang Xianqing told reporters.

Yes, the future performance of luxury goods also depends on China.

According to Bain consulting, China's luxury goods market will reach US $14 billion 600 million in the next 5 years and occupy the first place in the world's luxury consumption.

For some of the main high-end brand stores, poor management is frequent, Wang Xianqing analysis said: "in recent years, the rapid expansion of the Chinese luxury goods market operators will lead to periodic adjustments. If the enterprises themselves operate poorly, they will naturally fall back and produce normal fluctuations."

Seek stability and win.

For the luxury goods industry, although the environment of the first tier cities in China is very favorable, the competition pressure is quite great. The competition with the regional shopping malls, the increase of foreign purchasing agents, and the increasingly frequent shopping abroad of the Chinese people bring great pressure to the domestic high-end shopping malls.

With the acceleration of China's urbanization process and the growth of wealth outside the big cities, it is easy to see that in recent years, luxury brands have been advancing to the two or three tier cities of the country, and many high-end shopping malls have also entered the two or three line cities at the same time.

At present, high-end department stores and shopping centers are everywhere in Hangzhou, Wenzhou, Qingdao, Dalian and other two or three line cities in Northeast and Southeast China. Chengdu, Xi'an, Urumqi and other places have also become a new city for the layout of luxury goods enterprises.

Compared with the relatively saturated first tier cities, the high-end consumption power of the two or three tier cities has yet to be released.

In the high-end department stores and shopping centers of mature business circles, the clustered consumption atmosphere and consumption status are usually formed around them, equipped with high-end clubs, catering and other forms, so that people and logistics are gathered in this large business circle.

But in some two or three line cities, even though the location of high-end department stores and the distance from the core area are better, the phenomenon of "isolated island" in shopping malls is particularly prominent due to the serious polarization of cities.

"If you want to build high-end shopping malls, there are two points to note.

On the one hand, the consumption of luxury goods in the two or three tier cities is just beginning. The conditions for developing luxury goods are not mature. Only a small number of people can afford luxury consumption. So we must not blindly expand.

On the other hand, the location of luxury shopping malls should be relatively mature, with a group of consumers and buyers supporting it.

Wang Xianqing told reporters.

In addition to the surrounding

Outside the environment, the high-end department store's internal environment, brand structure, and services provided must be very detailed. It is a compulsory course for market operators to figure out the consumption behaviors and habits of local high-end consumers, and timely and appropriately adjust the business operation mode.