Chinese Government Crackdown On Lavish Luxury Goods To Two Or Three Line Cities

< p > due to the Chinese government's actions to combat extravagance and gift giving, the luxury industry has been in trouble. In the past two years, the "a href=" http://sjfzxm.com/news/index_h.asp "luxury brand" /a has not had a good time.

Recently, however, a survey of companies has shown that the 234 directions of online shopping and expansion will be the future direction of the luxury market.

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< p > recently, < a href= "http://sjfzxm.com/news/index_h.asp" > KPMG < /a > (KPMG) together with glamour (Asia based luxury brand retailer) and mogujie.com (China's online shopping platform) sent an e-commerce survey on China's online shopping, and analyzed the online consumption habits of over 10 thousand Chinese luxury consumers.

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< p > survey results show that the online shopping volume of luxury goods is on the rise. Meanwhile, social media is playing an increasingly important role. The demand for luxury online shopping has become increasingly urgent.

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< p > KPMG said in its report that China's consumer spending on online shopping exceeded the US for the first time last year. It is estimated that by 2015, the size of China's online shopping market will reach US $540 billion, accounting for 7.5% of China's total retail sales.

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Less than 3/4 of respondents said that they prefer online shopping because online shopping is more favorable, and 55% prefer online shopping because it saves time.

Another 47% said that online products can guarantee the purchase of genuine European and American brands.

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< p > survey shows that most luxury items < a href= "http://sjfzxm.com/news/index_h.asp" > online shopping paction < /a > happen on third party websites, such as Tmall and Taobao.

One of the reasons is that Western luxury brands are slow to direct sales to Chinese consumers online. They worry that selling online will damage brand image, and customers will not feel the complete brand experience if they do not go to a physical store.

Some brands are also discouraged by setting up a sales network because of their high investment in logistics networks.

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< p > but KPMG's advisers say that the online shopping market is too big, and brands are unlikely to be ignored for a long time.

Although the brand is reluctant, consumers are keen on online shopping.

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The fashion industry has slowly changed this attitude. The Italy fashion brand, which once refused to supply the country's e-commerce website, has been in long-term cooperation with a domestic e-commerce website at the end of last year, while LV signed an agreement with Taobao to boycott counterfeit goods in flood. P

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Companies such as < p > a href= "http://sjfzxm.com/news/index_h.asp" > Gucci < /a > (Gucci) have entered the Chinese luxury online shopping market through alliance with existing network based companies (such as Yoox SpA of Italy).

In 2010, Yoox SpA became the first foreign company to launch luxury online shopping in China.

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< p > even in the fast fashion industry, 2013 was also a year when the Internet changed. ZARA opened the shop and sold it to the two or three tier cities. The famous online store brand ASOS was quietly launched in China at the end of the year, and it told consumers directly that it would not have any tax deduction problems, because warehouses were directly set up in China.

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On the other hand, luxury brands want to reverse the growth trend of the year. Apart from relying on the strength of online shopping market, the expansion to the two or three tier cities has become another important strategy. P

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< p > Fashion Technology Company Rose Vision released its product guide App application "global cargo sweeping guide" data last weekend. The data show that Chengdu has the highest acceptance of new fashion brands in China's second tier cities.

This also shows a trend that demand for luxury goods is spreading from second tier cities to two or three tier cities.

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< p > a widely cited example is the LV flagship store of Renheng land Plaza in Chengdu, which sold 5 million yuan worth of goods on the day of trial operation in September 2010.

The reason why LV opened flagship store in Chengdu is that the sales of LV Chengdu's direct sales outlets up to 900 million yuan in the past had ranked the top three in China, second only to Beijing and Shanghai, while Prada, Ermenegildo, Zegna and other brands also ranked third in China.

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< p > < a href= > http://sjfzxm.com/news/index_h.asp > Ogilvy < /a > China reported last year that China's 234 tier cities have two hundred million large families.

In 2011, the disposable income of the first tier urban residents was 1 trillion yuan, while the total disposable income of the 234 line urban residents was about 8 trillion yuan.

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< p > contrary to the saturation of City stores, advertising and marketing investment, the demand and cost of the two or three tier cities are very attractive to those eager to promote sales.

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< p > according to experience, the sensitivity and trend of Chinese two or three tier cities to fashion is 3~5 years later than that of first tier cities.

In the past few years, the most popular trend of LV and Gucci in Beijing and Shanghai had been pmitted to the two or three line cities, and the latest trend of Beijing and Shanghai has not yet affected them.

This creates an excellent "time difference" for the luxury brand's "going to the countryside".

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The P luxury group has started the layout of the two or three tier cities. As of 2013, LV managed 46 stores in 32 cities in mainland China.

There are 13 stores in Beijing, Shanghai, Guangzhou and Shenzhen, and the rest are in two or three line cities.

Burberry has opened 70 cities in 36 cities in China.

Gucci has opened 59 stores in 32 cities.

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< p > > a href= "http://sjfzxm.com/news/index_h.asp" > Prada < /a > plans to add 10 to 15 branches in China in the next 12 months, so that the total number of stores will increase to 60.

Carlo Mazae, vice president of Prada, said that Prada's new stores in China will be located in the second tier, or even three tier cities, such as Urumqi, Xinjiang.

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