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    The "Outlets" Mode Is Booming Rapidly In China'S Luxury Market.

    2014/9/2 14:35:00 44

    Luxury GoodsOutletsShanghai

    Luxury outlets in the US highway or in remote European towns are mushrooming in China. Customers can roam in the imitated Italy town full of Rome style buildings and magnificent fountains. Here, a Burberry jacket sells for about 9000 yuan (US $1450), which is 40% cheaper than the original retail price in the Chinese market.

    Value Retail PLC plans to invest about $450 million in China in the next five years to build three new outlets, so that its total number of stores in China will reach five. Value Retail is a European operator. Luxury goods The developer and operator of the outlets is headquartered in London.

    TIAA Henderson Real Estate, a London based investment management company, is expanding its existing luxury outlets in the North China city of Tianjin, adding two new stores in Shanghai and Foshan, Southern China. The company also plans to buy more venues in Central China, West China and North China in 2014 and 2015.

    These companies believe that in the past, Chinese consumers, who equate luxury goods with high priced goods, are increasingly demanding for luxury discounts. TIAA Henderson Real Estate portfolio manager Sim (Kenny Sim) said that China's rich people's brand awareness has been rising, and they are pursuing more discounts when purchasing luxury goods. Because luxury goods are expensive and expensive in China, many customers prefer to go abroad to buy high-end handbags and shoes. Luxury discount stores hope to pull this part of the consumer group back.

    Qian Shuwen, a more than 20 year old Shanghai resident, is in Shanghai Bailian. Outlet (Bailian Outlets Plaza) shopping. She said that the price here is cheaper than the city center. She came here because she was off duty.

    A substantial discount may damage the brand image of a businessman. But Afri Booker, partner of China Luxury Advisors (Avery Booker), pointed out that the existence of discount stores has made it unnecessary for brand merchants to discount sales in their stores, which may be a protection for their valuable and unique brand image. Value Retail and TIAA Henderson, which built the outlets in Shanghai near Disney Park, Disneyland, refused to disclose the names of tenants.

    Experts say that apart from the brand image problem, the outlets can help solve the backlog problem. As the economy slows down and competition intensifies, and the Chinese government has launched a campaign to crack down on official corruption and hospitality, luxury goods are facing increasing pressure on inventories. According to Bain & amp; Bain, 2013, sales of luxury goods in mainland China increased by 2% to 116 billion yuan in 2013, an increase below 7% in 2012.

    Zhou Deping (Joe Zhou), research director of Jones Lang Lasalle in East China, said the demand for full priced goods has declined since more than a year ago because of the government's advocacy of frugality.

    Outlets can also attract shoppers in the parallel market. Boke, China's luxury consultant, says many Chinese travel abroad will bring luxury goods back and sell them in the domestic informal market. Because of lower foreign prices, they can make the price lower than the official price but still earn money. To solve this problem, Italy fashion brand Gucci (Gucci) and France Louis Weedon (LVMH) and other companies have restricted the number of goods that customers can buy outside China.

    Philip Guarino, director of the European Department of luxury consulting in China, said that the increasing number of outlets has shown that China's luxury market is becoming more mature and becoming more and more European and American. Philip Guarino

    JasmineSun, a retail consultant at Smith Street Solutions in Shanghai, said consumers in Shanghai and other first tier cities are very smart and will not buy full priced goods at home. She said the Chinese market is not fair to Chinese consumers; in Europe and the United States, consumers have discount stores and otter Les; Chinese consumers are also striving for the same international standards.

    Orlies usually store over season goods, and the price is 50% above the original retail price. Consumers will not see the same product at Oteri J and flagship retailers at the same time.

    stay Shanghai The price of a windbreaker in the Marystow series of orlies, bobury, is RMB 9000 yuan, the original price marked on the price tag is RMB 15000 yuan. In a shopping mall in Shanghai, the Kensington windbreaker with a similar appearance but closer to the shelves may be priced at 16000 yuan.

    Boblie Hongkong official website shows that the Kensington series of a windbreaker is priced at HK $15000 ($12052), while on the official website of the United States, the price of the same windbreaker is only 1495 yuan (9311 yuan).

    In fact, before that, luxury merchants began to discount or even open outlets. A spokesman for Italy fashion brand Gucci said that in 2012, Gucci opened two outlets stores in China, one in Tianjin and one in Guangzhou. The spokesman declined to comment on plans to open more stores in the future. A spokesman for German brand Hugo Boss AG said they would not provide the exact location of the outlets, except that the company had 10 outlets in China. Hugo,

    According to a spokeswoman for the French luxury goods company Hermes International SA, even brands like Hermes have begun selling discounts in China. The spokesman did not disclose more details.

    Holly Wei, a 30 year old songwriter, says China's existing outlets are not comparable to the orlies she has seen in the United States.

    Here, she says, the brand and product variety is not as fast as New York, so she doesn't have to shop here often. Maybe once or twice a year is enough.

      Noun interpretation: Oteri J

    "Orlet" is a Chinese literal translation of English OUTLETS. The original meaning of English is "export, outlet and export". In retail business, it refers to the shopping center consisting of stores selling brand names, off-line stores, and broken yards, so it is also known as "brand direct shopping center". Oteri J (Outlets) was first born in the United States, and has nearly one hundred years of history. Outlets was the first factory outlet to deal with factory tail cargo. Later, it gradually formed a large Outlets shopping mall similar to Shopping Mall, and gradually developed into an independent retail format.

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