Luxury Brands Will Focus On Asian Market Again

Asia's share of the global luxury goods market 1/3 is expected to be increased to 50%~60% in the next 10 years, according to a report by the Economist Intelligence Unit (EIU) published in 2013 entitled "the choice of the rich class". At the same time, the changes in the economic situation and shopping habits also bring new challenges to the market. South Korea, Japan, India and China are the main consumers in the Asia Pacific region. Which country will be the main trend of luxury consumption boom in the coming period?

　　 Japan

Economic revitalization is beginning to bear fruit. Consumption tax fears spending.

The Japanese have always had the "hobby" of consuming luxury goods, and Japan is also known as the "world luxury consumer power". In 2006, before the outbreak of the economic crisis, Japan's more than 100 million luxury goods accounted for 47% of the world's total consumption. But in 2011, the Japanese earthquake and tsunami hit consumers' confidence and brought heavy losses to the luxury goods market. Because the national economy has suffered huge losses, consuming high-end goods is regarded as a luxury behavior. The consumption prospects of the major international brands on the Japanese luxury market were also low for a while.

In recent two years, thanks to the bold economic strategy of the government, Japan's economy has recovered slightly. The luxury market in Japan is warm, and its hot products are concentrated in high-end watches, sports cars and hand-made leather handbags. In June 2013, a survey by McKinsey and consultancy showed that 95% of the 40 sales managers from different countries admitted that sales in Japan in 2013 were expected to increase significantly. Most of the international clothing and apparel businesses said their shops and sales in Japan reached the highest level in 3 years.

Although the market is improving, the industry pointed out that with the increase of consumption tax, the price of terminal products will further improve, which will cause a certain blow to consumers' spending on luxury goods. In April this year, Japan's consumption tax will rise from 5% to 8%, which will be the first time since 1997 that Japan has increased its consumption tax rate. The trend of consumption that can be expected is the "explosive" growth of consumption in advance consumption, and then the pattern of steep consumption may occur immediately, which will have a greater impact on the relatively fragile consumption of Japanese residents.

Japanese research institutes predict that the total household expenditure will increase by about 7 trillion and 600 billion yen in the fiscal year April 2014 ~2015 March. It is not possible to exclude consumers from spending ahead of time, which will increase the risk of Japan's economic recovery.

　　 Consumer characteristics:

Japanese female consumers are the backbone of luxury purchases. In Japan, more than 8 of women have a LV product, and LV handbags and Hermes scarves are regarded as status symbols.

　 Market volume:

The total sales volume of luxury goods in Japan is expected to reach US $6 billion 700 million in 2013 and US $6 billion 800 million in 2014. It is estimated that by 2025, Tokyo, Osaka and Nagoya will be ranked second, seventh and fifteenth of the 20 top selling women's clothing markets in the world.

　　 Distribution channel Department stores and flagship stores.

　　 The Republic of Korea

High-end consumer masked brand helmsman easy to change

In the Asia Pacific region, Korean consumers' passion for luxury goods has attracted many international attention and is regarded as the next engine to boost the luxury market in the Asia Pacific region.

The rapid development of South Korea's economy and the modernization of the industry have led to the purchase of wealthy consumers. expensive goods Way to show your status. Over the past few years, global luxury brands such as LV (Louis Vuitton) and Prada (Prada) have gained a "blowout" performance in the Korean market. Italy brand Tods (TOD 'S), South Korean market manager Giuseppe Carvalho, described South Korea as an ideal market for luxury goods sales. He believes that Korean consumers prefer imported luxury products to local products. "My first impression of the market is unbelievable. People are very excited when they buy their favorite bags and shoes from shops. Unlike Italy consumers, there is not much sense of these products. "

However, after several years of rapid development, the Korean luxury market, which is considered "good momentum of growth and no signs of recession", is in the doldrums. Because of the slowdown in South Korea's economic growth in recent two years, consumer confidence has been affected, which is particularly obvious for the luxury goods industry. In the 2012~2013 fiscal year, sales of Burberry, a luxury brand in the UK, dropped by 5.3%, while net profit plummeted by 35.1%. Bo Boli also said in its earnings report that the same year the Chinese market had two digit growth while South Korea was weak. Sales of other luxury brands in South Korea are also unsatisfactory.

In order to reverse the decline of the Korean market, many international Luxury brand The brand helmsman of Korean market has been replaced. Choe Wan, general manager of the Korean market at Ferragamo brand, has been in office for 17 years. Since 2014, its position has been taken over by Michael Kim (Michael Kim), who has been in charge of the domestic market in Italy. Ralph Lauren, the US clothing brand, also decided to replace its general manager in South Korea. The new managing director, Kim Liz, was officially inaugurated in January 2, 2014.

　　 Consumer characteristics:

According to statistics, 90% of South Korea Luxury goods Bought by women. The 20~30 year old female group is a new purchasing power group. They have less responsibility and desire to define themselves through the clothes they wear. Another huge consumer group is "multi gold" mothers. They are the most profitable group in the market, and their monthly luxury expenditure is twice the average of the market.

　　 Market volume:

In 2013, the Korean luxury market will reach 7 trillion and 770 billion won (about 7 billion 350 million US dollars), and the compound growth rate of 6.4% in 2012 ~2017 in five years.

　　 Distribution channel:

International airports, department stores, purchasing websites.