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Luxury Goods Shrink In China, Who Will Make Money In The Future?

2013/7/7 12:17:00 19

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"high-end brand discount is closer to normalization."

The phrase "brand manager" of Guangzhou friendship store, which is a collection of high-end brands, reflects the fact that luxury goods in Guangzhou are experiencing an unusual "discount season".

Guangzhou luxury market has been changing frequently. Not only many international brands such as "a" target= "_blank" href= "http://www.91se91.com/", "dress less than /a", "a target=" _blank "_blank", "href=", "shoes", "shoes", "bags" and other brands rarely appear "low to half off" discount, some department stores also quietly add luxury brand discount shelves products.

this is not an isolated case. Recently, some media reported that luxury brands such as Armani had already left Shanghai the Bund and moved to the two or three line market.

China's luxury consumer market has been in the doldrums and has been spreading since last year. In the eyes of luxury giants, "mobile wallet" - Chinese consumers are closing their pockets, and Cartire, LV and other international luxury brands are shrinking rapidly.

Reporters from Shenzhen, Beijing, Hangzhou and other international luxury brands in the field of opening up wild markets know that the sluggish Chinese market continues to add insult to injury.

extended discount season /p >

"if you want to start now, it's also a good time."

A sales manager at a high-end luxury brand store in a high-end store in Shenzhen patiently shows customers new products on discounted containers.

she explained to our newspaper reporters that the goods in the discount area were only a few different areas. The discount area this year increased the number of goods and extended the discount time limit. "Even the discount cards issued at the door have been taken out several times in the first half of this year."

as far as the discount rate of rumours is concerned, the manager, who has 8 years experience in luxury goods sales, said that the discount rate this year is really great compared with the same period.

She displayed a handbag in her hand. "It was released at the end of last year, and now it can also play 15% off. This is something unimaginable in the past few years, and there is little discount on this brand."

In addition, she pointed to part of the spring and summer style women's bags and men's bags, saying, "these can never be discounted just now, now there are 5% off".

since 2006, the composite growth rate of China's luxury goods market has reached two digits in the past 5 years. However, by 2012, the annual growth rate of China's luxury goods market is only 7%.

Last year's slowdown in the Chinese market reduced global luxury sales growth by 50%.

The annual reports of luxury brands, the turnover of high-end stores and investment predicament, as well as reports from various industries across the globe, have long torn the hard side of China's luxury market.

Until P this year, the Chinese market is still struggling, and many brands have already prepared for the shrinking Chinese market.

P, January 2013, LVMH said at its 2012 earnings conference that the brand will cease to expand in China to maintain its high-end image and that it will not continue to open stores in the two or three tier cities of China.

GUCCI also said that in 2013 it will maintain the number of stores in China, no longer go to new cities to open stores, instead of existing stores to repair and expand.

In addition, the Burberry group and the peak group also said they would slow down their expansion in China.

Less than P, a few representative brands will not change the first quarter of the Chinese market even if they shrink the front line.

"This year is worse than last year."

A Guangzhou Taigu Hui high-end jewelry store sales executives constantly complained to reporters.

a set of data confirms this point. The sales of GUCCI store in shinguang department store in Beijing ranked third in 2012, and its monthly sales fell by about 30% after the new year's day in 2013.

LVMH group's quarterly results showed that sales increased by only 6% over the same period last year, compared with 25% in the same period last year.

The PRADA group's revenue growth fell by 70% compared with the same period last year, of which Asia Pacific growth slowed by nearly 50%.

the power of "Prohibition of luxury" is less than /strong > /p >

"Prohibition of luxury consumption has the greatest power."

The head of a watch luxury brand store in Guangzhou Friendship Store believes that gift cards, VIP consumption cards and bulk sales volume have been sharply reduced due to the influence of "three prohibition".

She recalled that in the past, new year's day just passed, many enterprises, organs and units and individuals came to order, mainly buying gift cards or directly ordering different styles of watches in bulk.

reporters learned from multiple organs and enterprises that under the influence of "Prohibition of luxury orders", some state prefix agencies have reduced the purchase of luxury goods, including gifts and employee benefits.

Moreover, to apply for procurement in this area, more complicated reporting and approval processes are needed, often requiring the approval of the highest level leaders.

data show that before 2013, gift consumption accounted for 72% of the mainland's luxury consumption.

in addition, insiders pointed out that the sale of luxury brand goods was poor due to poor sales in the one or two quarter of this year, so the discount was a phase of inventory elimination.

The overall economic downturn and the increase in consumer goods consumption have weakened the purchasing power of the middle class.

weak sales of luxury goods are also evident in the upstream foundries of the industry chain.

He is the purchasing manager of a number of luxury goods factories in China. He told the China Times reporter that the overall output of the factory has been reduced in this year. As the products are divided into different product lines, such as the mainland, the Asian countries and the European and American countries, the order of the different production lines can reflect the frontline sales.

According to his observation, the output of the mainland's production line has been partially reduced, but the output of Asian countries has increased.

on the other hand, the digestibility of luxury brands in the two or three tier cities seems to reveal a little "vitality".

Data show that Beijing's GUCCI shinguang world store has always maintained the first sales nationwide. Now shinguang store falls to seventh place while Wuhan store takes the place of first place. Meanwhile, other GUCCI branches in Beijing also fall out of the top ten in the country.

the sales staff of a British luxury brand store in Hangzhou compared the consumption situation of the first line market and the two or three line market. He said that in terms of personal consumption, in some two or three tier urban markets, some new clothes were newly bought and sold.

Consumers in the first tier cities are more rational in choosing discounted goods. In the first tier cities, consumers often come from "two or three line cities" to sweep goods, most of them are positive prices.

grasp the "mobile wallet" /p >

however, the reporter understands that the "prohibition order" of three public consumption may promote the consumption of Chinese luxury goods to the overseas market.

A salesperson at a luxury brand store in Tsim Sha Tsui, Hongkong, told reporters that sales volume for mainland tourists has increased since new year's day this year. Sales of briefcases, wallets, belts, watches and other products are ideal. P

He put forward a detail, many mainland tourists put forward some special requirements, such as buying products without brand logo, and identifying products with smaller or just patterns.

"These products are even more popular, which we do not understand. These requirements are not commensurate with the normal consumption mentality of buying luxury brands."

reporter learned from the above enterprises and units that in the process of procurement reimbursement, only the mainland China's bills were recognized in the past. Since luxury purchases were mostly gifts on the bills, they had recently been restricted. At present, including overseas small ticket, overseas purchasing small ticket and online shopping list are all included in the scope of permitted reimbursement. Because most of the overseas small ticket only shows the seller of goods, there will be no "gifts" or "office supplies" and other purposes in the mainland bills, so the reimbursement is more convenient.

it is reported that in general, < a target= "_blank" href= "http://www.91se91.com/" > leather < /a > and fashion products are 50% more expensive in Europe than in Europe.

As a large number of Chinese luxury goods are being pferred overseas, many brands have made a gesture to reduce the premium level of the Chinese market. For example, the price of LVMH in Beijing and Paris dropped from 50% last year to 30% this year, only to retain the purchasing power of the mainland consumer market.

in addition, Yang Juan, who has been engaged in luxury brand purchasing for a long time, analyzes that at present, the purchasing market is rising. If the purchasing market and the electricity market can drive China's luxury consumption, the luxury brand stores will be hard to revive.

A report released by Observer Solutions, a market research firm in Washington, D.C., predicts that in 2013, China's luxury network sales will reach $270.

Julia Q. Zhu, an analyst at the company, analyzes the huge demand for luxury goods in small and medium-sized cities in China. E-commerce is a more flexible and relatively inexpensive model, which is suitable for consumers in remote areas.

For Western luxury brands, the Internet is a viable channel to penetrate China's inland provinces.

reporters learned from Mr. Ho, a representative of the industry and commerce, that although the production line of the OEM exported to the mainland was reduced, the notable details were that he knew from the partners that he could expand the product line specially designed for the electricity supplier to meet the increasingly large luxury electric business market in China.