The Fall Of China'S Economic Growth, The Latest Anti-Corruption Policy Restrictions

< p > restricted by the decline of China's economic growth and the latest anti-corruption policy, luxury companies including LVMH, Kering and the peak group are not selling well in China.

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< p > a research conducted by Altagamma, a luxury industry association in Italy and consulting firm Bain, is expected to show that global luxury goods sales grew by 4% to 5% in 2013, down from 10% last year.

The report predicts that the growth of luxury goods sales in Greater China in 2013 is 6% to 8%, significantly lower than the expected growth rate of 20% in 2012.

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"P," Bain, director of fashion and luxury goods business Claudia 4, said that "in China, the impact of gift giving behavior is affecting luxury sales, especially precious watches."

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< p > but in stark contrast, Reuters reported that Armani did not find a slowdown in the growth of luxury consumption, including in the Chinese market.

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< p > Italy luxury goods company Armani (Armani) reported in May 21st that its revenue in 2012 increased by 16% to 2 billion 100 million, of which China's growth rate was 39%.

Although this performance is not as fast as 45% in 2011, it is still the fastest growing heavyweight market in the world.

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< p > it's a couple of happy worries.

However, it seems that more people in the industry still believe that the spring of Chinese luxury goods is coming.

In particular, the list of the most influential ones under the anti-corruption policy will soon show its momentum in the Chinese market.

According to jargon, where can we sell luxuries in the Chinese market? Where else can we sell them? < /p >

< p > < strong > several families are happy to have a few worries. < /strong > < /p >

< p > the fact that China's luxury sales are sluggish has been going on for months.

In the fourth quarter of 2012, the peak sales group, which has many famous brand names, grew by only 5%, and its growth in the Chinese market was negligible.

LVMH2012, the world's largest luxury group, reported a total annual revenue of 28 billion 100 million euros, with net profit of 3 billion 424 million euros, up 12% from the same period last year, but its growth rate was 34% last year.

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< p > China's purchasing power has become a great hero behind these gratifying figures.

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< p > no wonder that the European and American listed luxury goods giants such as LVMH and Li Feng have issued an early warning about the slowdown in China's revenue growth, saying that the impact comes mainly from China's economic slowdown and the latest anti-corruption policy.

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"P" is the world's third largest luxury group Kering with Gucci, Bottega Veneta, Yves SaintLaurent and other first tier brands. Its 2012 earnings report shows that as the group's most important brand Gucci, sales in the first three quarters of 2012 increased by 12%, 10% and 7% respectively, and the downward trend was obvious.

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Data from the Swiss Watch Industry Federation also showed that watches exported to mainland China fell 26% in the first quarter of this year.

Pessimists even believe that the growth rate of China's luxury market will drop sharply.

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< p > < strong > but not all brands are dismal. < /strong > /p >

The sales volume of < p > Prada group increased sharply in 2012, the annual revenue increased by 29% compared with 2011, and the Asia Pacific region's performance increased by 33%.

Among them, the fourth quarter earnings of 217 million euros, compared with the third quarter of 122 million euros, nearly doubled, a record high.

Another luxury brand Hermes sales increased 23% to 3 billion 500 million euros in 2012, and net profit increased 25% to 740 million euros.

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P Prada CEO Patrizio Bertelli, in an interview with the women's wear daily, said: "in the year when the global economy is going through a difficult year, we have made good progress."

And China's purchasing power has become the hero behind these gratifying figures.

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< p > according to the latest ten year official report released by the World Luxury Association, as of the end of December 2012, the total annual consumption of China's luxury goods market has reached US $12 billion 600 million (private aircraft, yachts and luxury cars do not include them), occupying 28% of the global share. China has become the largest luxury consumer country in the world.

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< p > it is understood that three years ago, this ratio was only 10%.

If the consumption of Chinese is overseas, the sales volume of 40% of the global luxury industry will be contributed by Chinese consumers.

Experts predict that by 2015, China is expected to become the world's largest luxury market.

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< p > < strong > the anti-corruption policy has limited influence < /strong > < /p >.

It is an indisputable fact that several P families are happy to have a few worries. But the latest anti-corruption policy in China was launched only last autumn. It is hard to say whether it will pmit to the market at such a fast speed.

It is worth noting that the specific market feedback after the policy exit.

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In May 23rd, Deutsche Bank released the "global luxury report in the first quarter of 2013", showing that the sales performance of luxury goods industry has slowed down in the first quarter of 2013, although the growth rate of the luxury goods industry has slowed down, but the main luxury companies still achieve a good average growth level.

Especially in the Chinese market, the growth rate is still the highest in the world.

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< p > benefiting from the upward trend of the US economy and the depreciation of the yen, the consumption has returned to the domestic market. A slight increase in sales has appeared in the US and Japan markets in the first quarter.

European markets are also beginning to rebound as they continue to benefit from tourist driven consumption.

These growth offset a slight slowdown in the luxury sector in the Asia Pacific region, especially in the Chinese market.

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P, Deutsche Bank said that although China's retail sales growth was at its lowest level in 5 years, it still maintained an increase of 10%-15%.

The growth trend of the disunity among the luxury goods companies is also a reflection of the uncertainty in the macroeconomic data of the Chinese market.

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Excluding P and excluding exchange rate changes, China's comparison shows that China's sales growth in recent years is stronger than any other market.

Deutsche Bank expects the annual growth of the Chinese market in 2013 will be 20%, and will account for 26% of the world's luxury sales.

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< p > according to Bain's Research Report on China's luxury goods market, the growth rate of luxury goods in mainland China slowed from 7% in 2011 to around 7% in 2012, but the consumption of luxury goods abroad increased by 31%. The luxury consumption of Chinese consumers accounted for more than 60% of the total expenditure of luxuries in China's consumers. 2012.

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< p > the World Luxury Association's "China outbound consumer psychology trend report" conducted a group survey on the consumers in the main luxury areas during the golden week of 2012. Most respondents believe that golden week is the best time to go shopping with their family members. 9 adults say that buying luxury goods out of the country is one of the main purposes.

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< p > Bain said that tourists made up 40% of the global luxury purchases in 2012, and Chinese tourists contributed the most.

Chinese tourists account for 1/3 of European luxury purchases, helping the industry grow in the financial crisis.

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Less than P, it seems that the slowdown in China's economic growth does not seem to affect Chinese people's pursuit of luxury goods. In the long run, the anti-corruption policy seems to be difficult to contain the consumption of luxury goods in China.

Moreover, "before buying luxury goods in Hongkong is the mainstream, but now we control the price in Hongkong area, because we have to gradually ensure that the price is consistent in China."

The group said.

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< p > besides, insiders also pointed out that LV and Gucci rely heavily on the Chinese market. Some people will not dare to buy the old luxury goods in a short time. This, to a certain extent, has some influence on some kinds of luxury goods.

On the other hand, Chinese consumers are tired of these brands. In the era of individuality pursuit, the phenomenon of "bumping into bags" on the streets has made the luxury generation feel less beautiful.

As a result, more Chinese consumers turned to luxury goods with low recognition, or even no LOGO.

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< p > because of this, Burberry (Burberry) CEO Angela Ahrendts even said that the Chinese market is the most important market, and plans to open 10 new stores in China next 2013.

According to reports, Burberry has released a good performance report before, its sales for the first time in history exceeded 2 billion pounds, the Chinese market growth is also as high as 20%.

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< p > Wall Street journal analysis pointed out that luxury goods companies are trying to attract large buyers from the auction to the practical suggestions of fashion products, trying to find out what these wealthy Chinese people who often linger in the glittering shopping mall boutique stores want.

With the intensification of competition and the short growth stagnation of sales in China, the urgency of finding answers has become more apparent.

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< p > it is understood that not long ago, Zhou Dafu invited 200 top customers to participate in an event at Hotel Carlton, Ritz, Hongkong, including jewelry auction and dinner.

More than 100 Zhou Dafu service personnel were admitted to the distinguished guests from mainland China.

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< p > these are not ordinary customers. Each of them has bought jewelry at a price of RMB 1 million or more.

During their stay in Hongkong, they were invited to wine tasting sessions, investment talks and personal makeup counselling.

The aim of the event is to sell 15 top jewellery, which has been in six city roadshows before, hoping to attract buyers.

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< p > < strong > the name list is about to return to < /strong > < /p >.

< p > as we all know, following the appearance of China's "Uncle" in 2012, one of the big luxury consumption groups is that government officials are increasingly afraid that LOGO will be recognized.

Accompanied by Premier Li Keqiang during his visit to Sichuan earthquake stricken area, Lushan county Party Secretary carefully picked up his watch, which triggered a heated debate on the Internet.

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< p > with the intensification of competition and the short growth stagnation of sales in China, the urgency of finding the answers has become more apparent.

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< p > the anti luxury trend which has been blown up since last autumn has caused the Swiss watch export to China to greatly slow down.

Over the past ten years, China has been the fastest growing market for Swiss watches.

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< p > however, in the early May Basel exhibition, brand leaders were still at a loss. They felt confident that the short term growth rate would soon be over, and that the Chinese market would still bring huge sales to the table.

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< p > a staff member of the peak group told the reporter that the market of yachts, jewellery and watches in China is still huge, and even if officials do not get any more convergence, their families still have needs.

"Many officials first look at the style, turn around and leave the shop, and then his secretary will come in and pay some money, and some will never leave personal information.

People do not rush to wear them when they buy them, they are also very good collectors.

The staff member said.

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< p > it is understood that in 2002, the total value of Swiss watch imports in mainland China was only 94 million 200 thousand Swiss francs. By 2012, this figure has jumped to 1 billion 650 million Swiss francs, and the mainland China has become the world's third largest buyer of Swiss watches.

Even on the Chinese media day of the Basel exhibition this year, its president delivered a speech in Chinese, showing that the luxury brand of wrist watches is dependent on the Chinese market.

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< p > even if the sales growth of old luxury brands such as Cartire and Earl in 2012 fell, the sales of mid end brands increased.

"As far as possible, we are opening fewer outlets as far as possible, and are more willing to cooperate with distributors.

The brand of the world and Jaeger Le Coulter will rise, but it will not go up too fast.

The staff told us this.

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Zheng Zhigang, executive director of P Zhou Dafu, said, "in the past, customers wanted to participate in various parties all over the world. Now they hope to have exclusive senior dinner parties. Before, they like to visit museums, and now they like to see artists themselves.

Their desired experience is evolving.

The challenge for luxury companies is to constantly meet the changing needs of Chinese customers.

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For Zhou Dafu, the challenge is more realistic: because of the decline in same store sales, the company's share price has fallen by 1/3 compared with the first round of public offerings in December 2011, partly because the Chinese government has been cracking down on officials' acceptance of valuable gifts.

The other reason is that high-end brands are already everywhere in China - Gucci under the PPR group has only 8 stores in Shanghai, which is in sharp contrast to the luxury retailers struggling to find a good place to shop many years ago.

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