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    China Luxury Market Research 2014 Three Themes

    2014/1/3 18:44:00 54

    LuxuryMarket ResearchTheme

       One, the three themes of 2014: taste change, focus on women, travel shopping


    1. Mainland China Luxury goods The market grew by only 2% in 2013 compared with 2012 (+7% slowed down in 2012), and will remain at this low growth level in 2014.


    2, mainland China consumers have become the world's largest luxury consumers, buying 29% of the world's luxury goods (4 percentage points more than in 2012), and 2/3 of them are overseas.


    3, with the growing maturity of Chinese consumers, the focus of luxury consumption is shifting to women's products and fashion.


    These changes have prompted luxury brands to adjust their development strategies in mainland China from product pricing, customer relationship, fashion connotation, and local talent management.


       Two, the reason why the luxury market has changed from prosperity to decline.


    The reason why the luxury market in China is changing from prosperity to decline is very complicated. But the most important thing is: the government's anti-corruption campaign has combating the culture of gift giving, especially for advanced watches and watches. Senior men's wear The most important driving force is officialdom giving.


    1, advanced watches account for 1/5 of the luxury market in mainland China, and sales in 2013 dropped by 11% over the same period last year. The growth of senior men's clothing has also fallen to a weak point in the past few years.


    2, cosmetics, perfume and personal care products account for the 1/4 largest luxury market in mainland China. The year-on-year growth rate slowed from +15% in 2012 to around +10% in 2013.


    But there are also bright spots for luxury sales in mainland China.


    Women's wear and footwear are strong, with a growth rate of about 8 to 10% in 2013. Women's influence and consumption become more mature, prompting men and women to share the luxury market in mainland China in 2013. In 1995, male luxury consumption accounted for 90%.


    China's luxury goods market has bid farewell to the era of "attacking cities and lands", paying more attention to improving customer experience and increasing sales growth in the same store.


      Three, the four major changes in the luxury market


    1, store expansion is not enough to drive growth.


    In 2013, the number of new international brand stores fell by 1/3 compared with last year (the 20 brands covered by the bain report this year put together about 100 new stores, while the number of new stores in 2012 was around 150).


    In 2013, many brand stores' same store sales declined year-on-year.


    The major brands will focus on renovation of old stores, re location and improvement of local operations.


    2, China Consumer More subdivision


    The customers in the first tier cities are getting more and more mature, emphasizing individuality, high and low mix, and not just buying thousands of famous brand bags.


    The luxury consumption of customers in the two or three tier cities is still at an early stage.


    Brand must be careful and differentiated.


    3, rapid change of marketing channels


    73% of customers use the Internet (brand website, news website, micro-blog, mobile apps, etc.) to get information about luxury goods and help make decisions. Bain especially emphasized "Chinese shoppers are extremely well informed" (China consumer information is very well-informed).


    60% of consumers bought at least one luxury item online (such as Taobao purchase and luxury professional website). Half of those who have not tried online shopping luxury have this intention.


    4, market differentiation of two levels


    Take luxury handbags as an example, 25% of purchases are concentrated in RMB 5000 yuan, and 33% of purchases are concentrated in products with a unit price of more than 20 thousand yuan.



      epilogue


    In short, if we want to succeed in China, luxury brands must have broader management skills to adapt to the more mature and complex Chinese market.


    Strengthen fashion line management, product planning and inventory management.


    Customized business strategy for different levels of customers


    Train staff to provide best customer service.

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