Luxury Plate "Lose Blood" Asian Market Does Not Give Strength

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The demand for the market has declined, and has been fiercely competitive by the latest electronic intelligence products, including the latest sales performance of several luxury goods companies, including the world's largest luxury goods company, Richemont, which has reached a new low since the financial crisis.

So far this year, the luxury sector has not performed well, and its share price has fallen by more than 30%.

According to a statement released on 17 July, the group of Asia based consumers reduced their luxury purchases. By the end of August, the company's sales grew by 4% over the past five months, the slowest growth rate since 2009.

The Swiss luxury goods company was founded by Anton Rupert, a South African billionaire, in 1988.

The company deals with jewelry, watches, accessories, fashion and other business areas.

It has Vacheron Constantin, Jaeger Le Coulter, Cartire, Dunhill, MontBlanc, Italy jewelry brand Giampiero Bodino and other famous brands.

Its group with OMEGA, Longines and other brands also recently predicted that sales growth of the group could drop to 2% to 6% this year, much less than last year.

Because of poor performance, this year, the stock market of luxury goods is gloomy.

As of 18 closing date, so far this year, the world's largest luxury group, the peak price fell 6%.

Its group of famous clothing brands including Gucci, Prada, Alexander McCune, Betty Winnie, Santa Laurent, barista, briueni, Stella McDartney, Choros, Boucheron, PERREGAUX, and Wei Sha are among the best performing stocks in the luxury industry, and the stock price in Paris has increased by 8%.

COH.NYSE has the worst performance and its stock price has fallen by 34%.

In addition, stocks such as Michael Gaus and KORS.NYSE have been sold by famous investors recently, and the share price has dropped by about 7%. The stock price of BOSSn.DE has been reduced by about 7%.

Bain report, a consultancy, points out that the global luxury market growth is expected to be only 4% to 6% this year, mainly due to the weakness of Asian markets, which is unchanged from 2013.

Among them, China's market growth is expected to be 2% to 4%, much lower than the two digit growth achieved in 2010 and 2011.

The report points out that mainland China, Hongkong and Macao are the hardest hit areas of luxury goods sales this year.

In addition, Japan raised its consumption tax in April this year, which also limits the ability to consume luxury goods. The sluggish sales in these regions have led to the dismal performance of major luxury companies in the Asia Pacific region.

Last year, sales in the Asia Pacific region accounted for 40% of the total sales volume of the group.

Luca, a leading analyst in the luxury industry in Paris, France, said: "the luxury industry should be prepared for the downturn in sales this year."

MOET & CHANDON Hennessy Louis Vuitton group released a report that the demand situation in the Chinese market will no longer return to the previous strong situation, and the global luxury industry has entered a long-term period of moderate growth.

However, Bernard Fornas, Global CEO and chief executive officer of Cartire group, believes that the downward trend of China's market consumption is temporary. With the increase of tourism, the sales volume of Chinese market will rise again CEO.

Apart from the fact that the traditional luxury goods consumer market is not strong enough, the latest smart products launched by technology giants are also affecting the watch business of the luxury goods giant's traditional business.

Citigroup expects that with the newly launched Apple Watch by Apple Corp, by 2018, the $5 billion watch market will be robbed by smart watches.

The old luxury goods giant is unwilling to sit still. On the 15 th of this month, TAG Heuer, the watch brand of LVMH, announced that it was ready to launch smart watches and compete with apple smart watch Apple Watch.

"We want to launch a smart watch with TAG Heuer brand, but it must not be a copy of Apple Watch," Jean Claude Bif, director of watch business at Lu Wei Min Xuan, said.