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    Demand For Luxury Goods In China Has Fallen, Creating Luxury Brands

    2014/7/26 20:56:00 17

    ChinaLuxury GoodsLuxury Brands

    MOET & CHANDON Hennessy Louis Vuitton group, which is widely recognized as the benchmark of luxury goods industry, fell 7.2% on Friday, the largest single day decline since 2009. It also dragged Cartire's owner, Swiss group and Gucci brand, France's Open Cloud group. The share price of the two companies fell by 3% and 3.7% respectively on Friday.

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    P's > a href= "http://? www.91se91.com/news/index_c.asp" > MOET & CHANDON Hennessy Louis Vuitton /a group's earnings report on Thursday showed that China's demand has dropped sharply, and the decline of the Japanese market worse than expected has also had a negative impact on the whole industry.

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    < p > > a href= "http://? www.91se91.com/news/index_c.asp" > Morgan chase, Jiacheng securities < /a > analyst, a href= "http:// www.91se91.com/news/index_c.asp" > Melanie flacquet (/a), said, "we think this gives investors a cold war too. They bought the luxury sector in spring, hoping that the demand of Chinese buyers will develop upward."

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    After the financial crisis, the sales growth rate of luxury goods industry has rebounded between 2010 and 2012. The growth trend has slowed down again in the past two years. An important reason is China's crackdown on corruption and opening up.

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    Since P in 2000s, luxury brands such as Louis Weedon, Gucci and some watch makers have invested heavily in building new stores in China, hoping to attract the attention of the middle class to buyers and high-end people.

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    < p > China has long been seen as the main engine of growth in the luxury goods industry, making up for the depressed demand in the European and Japanese markets.

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    < p > but this Friday, MOET & CHANDON Hennessy Louis Vuitton group's earnings determined the market judgement that China's demand situation will no longer return to its previous strong situation, and the global luxury industry has entered a long-term mild growth.

    < /p >


    "The confidence in the whole industry will not change direction until the trend of Asia is stabilized," said Omar Saad, a consumer goods analyst at P ISI group in New York.

    < /p >


    The sales and profit targets of MOET & CHANDON P Louis Vuitton group in the first half of 2014 were not up to market expectations in the first half of 2014.

    The company said that the number of tourists shopping in Hongkong decreased, especially the number of tourists from mainland China.

    < /p >


    Hongkong, once a British colony, usually has more than 10% of the global sales revenue of many leading brands in the luxury goods industry. This proportion is 16% in the P group and 12% in the Swiss watch giant Swatch's sales.

    The three markets in Hongkong, Macao and Mainland China account for more than 1/3 of the new global sales revenue of most of the top luxury brands.

    < /p >

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