Bain & Co. Bain Report: China'S Luxury Market Crash Risks Intensified

Industry research institutions Bain & Co. Bain Tuesday's report said: with the growth of China's luxury goods market and the increasing diversity of consumers, the risk of the collapse of the luxury goods market has intensified. Bain & Co. Bain pointed out that if the luxury goods are not rebuilt, the product positioning and sales methods will soon be eliminated.

The report is Bain & Co. Bain, the largest in Europe. Stockbrokers Redburn Partners and the famous market advisory body Millward Brown Hua Tong Ming is based on a study of 10000 luxury consumers.

In 2013, the global luxury market grew by 2%, an increase of four years and a market value of 2170 euros.

Since 1995, the number of global luxury consumers has increased by more than 2 times to 330 million. But with the growth of luxury consumer population, its distribution becomes complicated.

Age structure: more than 50% of the luxury consumption comes from the consumption of "old people" over the age of 49, because wealth is concentrated in the hands of people of that age group. The purchasing power of luxury goods consumers aged 13 to 33 accounts for only 13% of the total market, but young people take a positive attitude towards luxury consumption. People aged 34 to 48 consume nearly 1/4 of luxury goods, while the luxury consumption group of that age group is the fastest growing group in recent years.

Consumer spending: about 5% of the total 15 million of the rich crowd consumed nearly 50% of the world's luxury goods, a total of 100 billion euros, the annual consumption of 6500 euros; the Middle East luxury consumer spending 1400 euros, ranking the highest in all regions, followed by China's luxury consumers, the average annual consumption of 1250 euros; European luxury consumers annual consumption of 450 euros, while the average annual consumption of luxury goods consumers in North America is nearly 400 euros. Luxury consumers in Europe and North America account for more than half of the world's luxury goods consumers.

The analysis is based on the indicators of personal wealth, regional population, urbanization, education and income discretionary power. More than 50% of the global luxury goods consumption is more than 49 years old, the younger layer is classified as a "conservative category". The significant characteristics of this luxury consumer group include: love shopping in multi brand stores, more sensitive to price, preferring to buy famous brand, and spending 1000 euros per person per year.

Whereas Luxury goods The diversity and complexity of consumer groups, Bain & Co. Bain partners, and the report's chief Claudia D 'Arpizio, said that the luxury products that were widely distributed in the past were no longer effective, and they had to be changed against products and crowd strategies. One notable example is that the average price of jewellery has dropped sharply in the past 20 years. Since 1995, the average price of jewelry has dropped to 1500 euros 2000 euros in 201 years, and the price of leather goods has increased along with the so-called "no Logo" strategy of Louis Vuitton and Gucci, as well as the increase in the number of luxury consumer groups. -9000

The report also predicts that the global luxury consumption group will grow by 10 million annually, and it is expected to increase to 400 million in 2020 and 500 million in 2030.