Foreign Luxury Goods Are Facing An Unprecedented Cold Winter.

< p > recently, a number of foreign luxury brands released the first quarter earnings in 2013, which attracted media attention.

Many of the previous luxury sales reports that have made amazing sales in China show that their sales growth has kept only one digit.

In recent years, Cartire, which was almost regarded as the "first choice" by Chinese consumers, quietly closed 10 stores in China last year.

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< p > in fact, since last year, the "Chinese feast of luxury goods is coming to an end" and so on.

Statistics from Bain consulting show that the growth rate of luxury consumption in mainland China in 2012 was only 7%, compared with 30% in 2011.

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< p > today, great changes have taken place in the consumption concept and consumption habits of the Chinese people. Foreign luxury goods seem to be encountering an unprecedented cold winter.

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< p > < strong > the consumption of business gifts falls down to < /strong > /p >

The first quarter of 2013, announced by the French luxury giant LVMH group, which owns many luxury brands, showed an increase of 6% in the first quarter of 2013 compared with the same period last year. The growth rate was far less than that of 25% in the same period last year. All the business departments of the group have slowed down to varying degrees, and P is one of its brands.

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In the first quarter of this year, many famous foreign luxury brands encountered an unprecedented "cold shoulder" in the world's second largest luxury consumer market. For example, the Swiss watch Federation and the world's largest InterContinental Hotel said its sales in China increased by only 0.6% and 3.1% respectively.

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P and foreign luxury consumption are mostly concentrated on their own use. In China's luxury market, business gifts occupy an unnegligible share.

The 2011 China luxury goods report shows that business gifts have been stable at 20% to 30% of the total consumption of luxury goods.

Besides, business gifts are mainly concentrated in high-end tobacco and liquor (20%), famous brand leather goods (19%), cosmetics (17%), name list (17%) and jewellery (8%).

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< p > with the implementation of the new national policy guided by the theme of thrift and thrift, curbing extravagance and waste and regulating consumption of public funds, many luxury goods sold as "good gifts" have fallen off. Chivas and whisky have dropped even in the two figure during the Spring Festival.

LVMH group chief financial officer said: "the weak demand in Asian markets, China's shopping center passenger flow decreased significantly."

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< p > some luxury goods such as Boboli have issued a profit warning in China, Stacy Cartwrigh, chief financial officer, said: "we see the slowdown in Asian demand and China is the first to bear the brunt."

According to the Wall Street journal, "the Chinese feast in the luxury industry is coming to an end."

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< p > strong > luxury consumption is considered "inappropriate" /strong < /p >

< p > China Luxury Goods Association released the "2012 China luxury market consumer report" released in May 26th, pointing out that luxury consumption has rapidly become an unsuitable lifestyle shared by mainstream consumers.

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< p > in fact, in recent years, the blind worship of "luxury brand" has gradually changed in Chinese society, and the concept of high-end consumption is shifting from "face consumption" to social consumption and personal consumption.

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< p > Bain Bruno, partner of the consulting firm, said: "China's luxury consumers begin to change from" show off "to" cognition ".

Brands will face greater pressure, they need to provide products that are more relevant to Chinese consumers, rather than relying solely on the status of luxury goods themselves.

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< p > a survey shows that compared with luxury brands' popularity and identity mark, consumers with assets ranging from 10 million yuan to 50 million yuan pay more attention to the brands used in social circles. Consumers whose assets are more than 50 million yuan pay more attention to the unique charm of brand culture and their own personal qualities, and the unique charm of < a target= "_blank" href= "http://www.91se91.com/" > designer /a.

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Charles De Brabant, founder and CEO of a luxury brand consultant, said that many brands could usher in many customers in the past, but now the situation is different. P

For many consumers, LV and other brands are so common that they prefer to see new brands.

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< p > at the same time, China's luxury consumer groups are younger than foreign countries, and have limited recognition of brand culture. Their loyalty to brands is not high, and they are vulnerable to external influences.

Data show that Chinese luxury consumers' brand loyalty is only 10% to 20%, and the frequency of replacement is as high as 80% to 85%.

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< p > < strong > low service satisfaction is hard injury < /strong > < /p >.

< p > the change of social consumption concept and market environment is not caught off guard. Luxury brands with "arrogance" mentality can not adjust their product innovation, marketing strategy and brand positioning in China, which is also the reason why they lost a large number of Chinese customers.

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Less than p years of feeling of unsatisfied consumption, many domestic consumers no longer believe that the more expensive things are, the better.

Last year alone, LV skin "a target=" _blank "href=" http://www.91se91.com/ "shoes" /a "quality gate", Hermes "fake door" and "inspection door", Dujia Banna led to mass protests and other events, so that people who originally had high expectations for luxury goods were doubtful.

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< p > according to the relevant research, 69% of consumers believe that lowering the price of maintenance service, increasing product maintenance points and shortening product maintenance time are the most important areas for luxury brands to improve.

In addition, Chinese consumers have long been strongly dissatisfied with luxury stores' "buy more respect and do not buy coldly" service attitude.

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Nowadays, luxury consumers in China no longer favour hard advertising but turn to a more participatory way, such as brand public relations activities, self exploration of brand culture, which is what they want. P

With the popularity of smart phones, people's consumption of information has also undergone tremendous changes.

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< p > experts point out that most luxury brands are still "eating old books" and are slow to communicate their brand image. Their outdated marketing methods have been unable to keep up with the brand new consumption concept of people seeking novelty, seeking difference and seeking fast.

Although some brands realize the importance of changing marketing methods and gradually benefit from it, most brands still stick to the old marketing mode and lose a large number of customers.

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