Luxury Brands In Italy Will Open At Least 100 New Retail Outlets In China.

< p > luxury sales in China are facing "brakes" but the executive director of Italy Luxury Association said.

The growth rate of many first-rate luxury brands in China has obviously slowed down, but Armando Branchini, executive director of Italy Luxury Association, recently told reporters in Shanghai that luxury brands in Italy can still grow at a rate of 16% to 17%. In the next two years, Italy's luxury brand will open 100 new retail outlets in China at least.

The chief executive of the Earl watch group, Mai Zhen Jie, also said that there will be 3 new stores in China this year, and believe that the growth potential of the Chinese market will be the biggest.

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< p > < strong > Chinese consume 1/4 luxury goods < /strong > /p >

< p > Armando Branchini says that 25% of the world's personal luxury consumption now comes from Chinese consumers. In the past, the luxury goods market in China was mainly gift giving, such as men's products, gifts and consumption could reach 25% to 30%, but it included gifts for husband, son and boyfriend, and gifts to officials. In the purchase of female consumers, gift consumption reached 50%.

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< p > "from January 2012 to July, the growth of luxury consumption in China is even higher than expected. From August to October, there has been some change in the data, but there has been growth, but the rate is slowing down. From November to now, the data show a decline after reaching the peak," Armando Branchini said.

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A survey released in February this year by the World Luxury Association showed that in the month of the Spring Festival in January 20, 2013 to February 20th, the total consumption of luxury goods in the mainland of China amounted to 830 million US dollars, a decrease of 920 million US dollars compared with the 2012 Spring Festival of 1 billion 750 million US dollars, and sales fell by nearly 53%, reaching the lowest level in 5 years.

This month, the total consumption of luxury goods in mainland China and overseas Chinese and Hong Kong, Macao and Taiwan reached 8 billion 500 million US dollars, up 18% from last year's US $7 billion 200 million.

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< p > < strong > part of the brand strategy shifted to conservative < /strong > < /p >.

The statistics of the Swiss Watch Industry Federation also showed that in the first quarter of this year, Swiss watches exported to China dropped by 26%. P

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Affected by P, some luxury brands in China seem to be turning conservative this year.

According to reports, Bernard Arnaud, President of MOET & CHANDON Hennessy LV group (LVMH group), said in January 31st this year that it will completely inhibit expansion and will not continue to open stores in China's two or three tier cities.

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A spokesman for Italy brand Gucci (P) also said that the market strategy of Gucci in China in the next few years is not a rapid expansion but a consolidation. First of all, it is necessary to refurbish and refurbish existing Gucci shops, and then set up new stores, but the speed of Gucci will not be comparable with that of the past few years.

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< p > Armando Branchini believes that the degree of slowing down of different brands in China is different. For example, some brands in Italy now grow to 16% to 17% in China and may even reach 24% when opening new stores. Such companies are generally female consumer goods companies, and there are many stores that have not yet been fully recognized, such as Tods, Fendi and Ferragamo, which will grow faster than other brands.

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P, the chief executive of the Earl watch industry group, said that the growth rate of the entire peak group (count's parent company) was 9% last year. This figure is quite optimistic, which is equivalent to the growth rate of the Chinese economy, but the growth rate is slowing compared with the relatively high 14%, which is expected to have a slight impact in the next few years, but the whole is optimistic.

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< p > < strong > still believe China's market potential < /strong > /p >

< p > Mai Zhenjie said: "at present, about 50% of the Earl's global sales come from China, including the purchase of Chinese consumers in the domestic market and foreign markets.

In fact, the impetus for the count's growth in China comes from the growth of China's economy and wealth, and the increasing willingness of the Chinese to spend more money on the purchase of beautiful products. Besides the count, the Cartire brand of the peak group is also selling well in China. Although China's growth rate may not be as fast as in the past few years, it is believed that the growth potential of the Chinese market is still the biggest.

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< p > Mai Zhenjie said that the Earl has set up 3 service centers in Beijing, Shanghai and Guangzhou, and will open 3 new stores in China this year.

Armando Branchini also said that at present, Italy's luxury brands in China have reached 640 retail outlets, and it is expected to add at least 100 new retail stores in the next two years.

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