Financial Crisis, Luxury Magnates Cast Their Sights On China

The consumption volume of luxury goods in Japan and North America has dropped by 35%. According to the relevant data, China has become the second largest consumer of such products. The global luxury goods have encountered "cold winter". Luxury magnates have turned their strategic vision to China.

Tiffany (Tiffany), a famous jewelry company, announced a third - quarter financial report yesterday, according to American media, which showed that its profit fell by nearly 60%.

Tiffany, founded in 1937, has the reputation of "king of diamonds" and the world's most expensive silver product. Its customers are not only rich and famous, but also European royalty.

But Tiffany's latest quarterly report shows that its global sales have dropped by 1%, while US sales have dropped by 7%, only 3% in the Asia Pacific region.

Profits in the third quarter fell by 57%.

Although this data is higher than Wall Street's expectations, the company is planning to lay off and adjust its financial expenditure to make more efficient use of resources in view of the decline in consumer demand.

US media said that the global luxury market was in the doldrums due to the financial tsunami. Data show that in the past 11 months, luxury consumption in Japan and North America has dropped by 35%. The major brands have been reducing their prices to save themselves. Bvlgari, the world famous jeweler, has considered reducing the number of new stores.

Although the global market for luxury goods has shrunk, the Chinese market has risen against the market and maintained a strong growth of 22%. Luxury magnates have invested strategic policies in China.

Foreign media focus on China as the "savior" of the global luxury market. British media said: the traditional luxury goods giants, the United States and Japan, have all been hit hard. China's economy is thriving. Many luxury giants have caught China's straw, and have marched into China.

Versace, the top brand in Italy, said that the Asian market will become the second largest market in the world in 2009.

French media reported: "look at the luxury goods in the United States, they are now investing in China.

Geneva watchmakers have visited 7 countries in the past two months, trying to sell the Titanic -DNA series watches at the price of about 2000000 yuan to the rich in the world, and no one is more interested in it than Chinese people.

The industry expects that the annual demand for luxury goods in China will grow by 15%. According to the 2007 Global Luxury report of China Luxury Association, by 2009, 60% of the international luxury brands will have their own production lines in China, and the demand for luxury goods in China will grow at an annual rate of 15%.

At present, China's demand for luxury goods has exceeded 60% of the European capacity. Therefore, luxury brands must establish production bases in China, which can reduce labor costs and other costs, and save freight.

The Ministry of Commerce of China predicts that by 2014, China will become the world's largest luxury goods market, accounting for about 23% of the world's total value of goods, according to the Ministry of Commerce of China (2011).

Statistics show that the annual sales volume of China's luxury goods market accounts for 18% of the global market share, and is the third largest luxury consumer in the world, second only to the United States and Japan.

Some analysts predict that China will become the world's largest consumer of luxury goods before and after 2011.

China's average wage earners may also be able to buy luxury goods in a few months, so the growth potential is unlimited, according to industry sources.

This is also the reason why the global president of luxury goods industry has been patronizing China in recent times.

[World Luxury Association: luxury market downturn, China's decline is small. The World Luxury Association Beijing Representative Office Mr. Yang told reporters that in 2008, China has become the world's second largest luxury consumer country. As of October 2008, the total consumption volume increased by 8%-10% compared with 2007, reaching US $8 billion 600 million, accounting for 29% of the global luxury industry's total sales.

In 2008, the global research report surveyed the 280 luxury goods enterprises in the world in this year's market (up to October 30, 2008), and found that the turnover of the overall brand enterprises has changed greatly. China still maintains 4 billion euros compared with the European and American markets, the decline is only 5%-8%.

Mr. Yang said that according to the latest research data of the association, the price trend of luxury goods in China is "down sharply", that is, keeping the original price unchanged, and the price of some products may decrease.

China's popular luxury brand categories: GUCCI bags, LV bags, PRADA garments, CHANEL garments, cosmetics, cosmetics, LAmer cosmetics, TIFFANY jewelry, Tiffany (Tiffany), immediately visiting Tiffany (China): we will continue to develop new stores in China.

It is understood that Tiffany headquarters in the United States, its products exported to the world, including China, including 19 countries, which have 8 sales outlets in China, of which two are located in Beijing, located in the The Peninsula Hotel and Oriental Plaza.

The staff member said that the price of the same commodity would be slightly different in different countries under the influence of tariffs and pportation costs, but in any country, prices would not be adjusted easily.

Since their entry into the Chinese market, their sales have been greatly improved every year. In the third quarter of this year, Tiffany's sales in the Asia Pacific region increased by 3%, and China can be said to be the most important part of the Asia Pacific region.

As the headquarters has always had good expectations for the Chinese market, the company has invested heavily in marketing.

For example, in mainland China alone, they have public relations with nearly 100 media outlets, such as VOGUE, fashion bazaar, ELLE and so on.

Regarding the issue of launching new products and opening new stores, he said that he will proceed according to the overall development plan of the company, and believe that he will have more development in the first and second tier cities based on his confidence in the Chinese market.

This morning, the reporter came to Chanel (CHANEL) Xinguang Tiandi store. The spacious shop looked quiet. A very fashionable white-collar worker was selecting accessories. One of them was the belt, waist chain and necklace. The salesperson enthusiastically introduced the necklace selling well, the style and design were unique, and wearing it would show people's special temperament.

Two young looking girls are looking at a bright white diamond watch. The salesperson is showing them how unusual this watch is, the watch chain is made of ceramics, and so on, the price is 1097000 yuan.

A lady carrying a Chanel bag went into the shop and walked straight to the showcase. The clerk greeted her at the door and introduced it to her.

In the Tiffany shop in Wangfujing, a couple is choosing wedding rings, facing several diamond rings with prices ranging from 20 thousand to 30 thousand. The couple soon delineated one of them.

The PRADA, which is next to Chanel, looks a little more lively. There are two girls who are discussing whether to buy that more than 10000 bag or that twenty thousand bag.

The salesmen of several stores said that the recent sales volume was almost the same as usual, but they could not disclose the specific sales figures.

They say the economic crisis is not a big blow to luxury sales, and has never been offered a discount.

Yang Jing: editor in charge