Luxury Goods Are Slowing Down The Pace Of Opening Stores In China

Less than P > commercial real estate investment is becoming more and more difficult.

Guangzhou's new Hongkai Hongcheng square, which is scheduled to open in 2015, is located in the international luxury brand. However, with the slow speed of a href= "http://www.91se91.com/news/index_f.asp" > luxury goods < /a > in China, the progress is nowhere.

< /p >

< p > since 2013, many luxury brands have slowed down the pace of expansion of Chinese stores, and have been influenced by macroeconomic patterns. Some of the international luxury brands who once vowed to launch their efforts in China are more cautious about opening up new stores. The change of luxury brands is not a great pressure on commercial real estate investment, especially in the two or three tier cities.

< /p >

P, a real estate consultancy, Woods and Berg, a design consultancy, surveyed 43 high-end retailers and released a joint report that 2/3 of high-end retailers failed to set up new stores in China in 2013.

This means that 1/4 of the more than 700 shopping centers, department stores and shopping malls currently under development in China's more than 30 cities will end in failure.

According to the insiders, the consumption patterns of Chinese customers tend to be rational, and they need to provide them with a diversified consumption platform. The combination of innovation, design brand and light luxury brand may have more opportunities than a single luxury brand.

< /p >

< p > < strong > store expansion slow down > /strong > < /p >

< p > since 2013, in order to better enhance the brand image, the growth of LVMH, the world's largest luxury group, has slowed to 4% to 5% in China, which is about half as low as in 2013.

Luxury goods, led by Gucci, LV and Hermes, have begun upgrading the existing flagship stores around the world without being anxious to expand.

< /p >

As of 2013, Gucci opened 59 stores in 32 cities in the mainland of China (P).

Louis Weedon directly manages 46 franchised stores.

Bobury has opened 70 stores in 36 cities in China.

However, after investigating 47 world-renowned luxury brands, a number of relevant agencies have considered that the number of new outlets in the Chinese market has decreased from 280 in 2012 to around 100 in 2013, a decrease of 37% over the previous year.

< /p >

"P >" Chinese overseas tourists have increased sales in Europe by 10%, and American stores are also booming because of Chinese tourists.

Gucci will be renovated in the future in China. "

Francois Henry Pino, chairman and chief executive officer of Gucci's parent company, said in a reply to reporters.

< /p >

Less than P, compared with new stores, some flagship stores in cities have been evacuated from their stores. It is even more stunning. At the end of last year, Hermes was evacuated from Wuxi's big Oriental [-3.50% Capital Research Report, and entered Armani's flagship store nearly 10 years ago and Dolce&Gabbana flagship store was closed in Shanghai the Bund 3 and the Bund 6.

Patek Philippe and Boucheron withdrew from the Bund 18.

< /p >

< p > however, the major luxury brands are still in the two or three line stage.

According to the observation of the Institute of wealth quality, the location choice of luxury brands in China has obvious cluster effect. When a landmark luxury brand opens shop in the locals, other luxury brands tend to follow suit and lack their own judgement ability. As a result, there is a phenomenon that the brand stores shop together but the local luxury consumption does not match.

< /p >

< p > "luxury brands need to pay attention to the development of local commercial real estate when they shop.

For example, many luxury brands are very optimistic about the Central Plains market, of which Zhengzhou is the most concerned city, but because of the poor local commercial real estate environment, luxury brands have fewer shops in the local market.

Zhou Ting, President of the Institute of wealth quality, said.

In Wuhan, Hubei, the existing commercial projects already have 4 million square meters of supply. Over the next 5 years, there will be more than 3 million square meters of commercial projects. But most of the commercial projects are located at the middle end or scattered for sale.

< /p >

< p > "China's current and future large-scale commercial supply is mostly located at the middle end or the middle and low end. The problem of project positioning and brand homogenization is becoming more and more serious. This requires developers and the mass market to digest and solve together. The impact of luxury stores on reducing China's commercial real estate and department stores is more market confidence and weaker expectations."

Li Jie, managing director of Jones Lang LaSalle, Wuhan, said.

< /p >

< p > < strong > store hardware and software strength does not match < /strong > /p >

(P) when luxury stores increase their efforts to open up stores in China to meet the needs of consumers, one of the biggest bottlenecks is the scarcity of high-quality retail space.

Although new shopping stores are springing up all over the country every year, due to the dignity and premium nature of luxury goods, they are extremely picky about the sales environment and the brand combination. Many luxury brands are concerned about the mismatch between their business capabilities and their own charm.

< /p >

< p > in fact, a very important reason for the expansion of stores in China is: two or three line cities, many local shopping malls lack experience in cooperation with luxury goods, and operation standards are far from foreign countries.

In addition to store decoration and display, the quality of local luxury goods salesmen, known as soft power, also needs to be improved.

A foreigner in a luxury circle told reporters that he selected his wife "a target=" _blank "href=" http://www.91se91.com/ "clothes" /a "in a luxury luxury flagship store in North District of Sanlitun. However, he needed to communicate with his wife on several styles. The telephone was not clear. When he was in a hurry, he asked whether the shop assistant could take photos. He was surprised that the shop assistant did not say much, but said very quickly," you shoot it! "

< p > "this is absolutely unthinkable in a luxury store in Italy. If the salesperson there gives the customer such convenience, she may lose her job."

The source told reporters.

< /p >

< p > "luxury stores not only play a role in circulation, but also play a more prominent role in brand promotion and customer service.

That is to say, luxury brands in the two or three tier cities at the same time realize the settlement of service terminals, which challenges the luxury brand's local service capabilities.

Once the local hardware and software can not satisfy this demand, it will sink. "

Zhou Ting said.

< /p >

The reason why P is deeper is that the developer's initiative has become more diversified. In the past, for luxury developers, the presence of luxury goods can drive more other brands to enter. In addition, luxury entry can increase the location of shopping centers and make them mismatch with the general shopping centers. Of course, it is also an important goal to bring high-end consumers through luxury goods.

< /p >

< p > but to achieve this, we need to compromise with luxury brands.

Owners of new shopping centres located in non core business areas in China have no pricing power. In order to fill commercial space, they have to make great concessions on rent.

There are senior luxury industry sources, in the past, many developers in order to stimulate the entry of luxury goods, to give decoration subsidies, the industry's average price is 30 thousand yuan per square meter.

< /p >

< p > in recent years, with fast fashion brands and light luxury brands gradually gaining popularity, some developers have abandoned the pursuit of luxury brands and moved to invite other luxury brands to enter. This has stimulated similar lines such as Miu Miu, Emporio Armani, MARC BY MARC JACOBS, DKNY, Coach and JACOBS, and small luxury brands.

< /p >

< p > {page_break} < /p >

< p > "when consumers are more mature and rational, they no longer pursue big cards. Developers are less enthusiastic about the pursuit of big brands.

This is due to the gradual weakening of the agglomeration effect brought by luxury brands, and the reduction of the international luxury goods consumption environment for the Chinese market, so the preferential treatment provided by the external environment for luxury goods has also shrunk.

According to MI Shi Zhe, deputy director of China excellent investment company limited.

< /p >

< p > < strong > the characteristics of new consumption groups affect the real estate format < /strong > < /p >.

< p > nowadays, most newly built shopping centers in China are concentrated in small and medium-sized cities, where mass brands still dominate. However, the consumption capacity of luxury goods is increasing day by day. It is worrying that they do not seem to have a bad idea of the newly completed shopping centers.

< /p >

< p > "more and more residents of two or three line cities know that Hongkong and Europe are buying cheaper luxuries, and most of them are not strangers to Hai Tao's website and luxury electric business."

Mi Shizhe told reporters.

"Consumers in mainland China are very fond of commodity reliability, price advantage and service. Meanwhile, the tendency of online shopping is strengthening, leading to the weakness of luxury stores."

< /p >

Less than P, less domestic demand, and increased overseas and online shopping also inhibited the expansion of luxury stores.

In fact, many luxury brands have realized that major customer groups (officials and rich people) are rapidly losing and need to build diversified brand type business platforms.

Today, Chinese luxury customer groups are experiencing changes: they can or are more willing to buy young, energetic and international generation, who are more willing to discover new brands and pursue different people.

This also affects the positioning and distribution of real estate brands.

< /p >

< p > "only a handful of projects rely entirely on high-end luxury goods and large volume scale."

At present, commercial real estate investment has entered the era of refinement. In such an environment, the real test is the intensive cultivation level of developers.

Online shopping and Hai Tao are just a form of consumption. The consumption of physical stores is more to increase customer experience and interest.

For example, Hongkong's Shen Shen square and Pudong's Kerry City in Shanghai are all high-end shopping centers that do not rely on LV and Gucci to support the facade.

Li Jie said.

< /p >

< p > "as long as the developer is flexible enough to let other formats brand enter, I believe there will be a good performance of < a href=" http://www.91se91.com/news/index_s.asp > Sales < /a >.

I think a second tier city will first promote this change.

The thinking of attracting investment in small and medium-sized cities must change direction, or try to introduce new luxury brands, or rely on local resources.

In fact, the best performing format in real estate business is auris, which is reasonable in price, diversified in brand and rich in shopping experience. It provides a comprehensive platform for shopping, entertainment and entertainment. At the same time, orter is also the only retailing format with significant growth. Similar to Bailian, Pacific [-1.27% capital Research Report, Yansha, friendship Apollo, Junsi and so on are all pforming in this direction.

Mi Shizhe told reporters.

< /p >