China'S Luxury Market Has Fallen To Fourth.

Euromonitor's latest data clearly shows that the global luxury industry is fluctuating.

The adjustment of the Chinese market has led to slow growth in the whole Asian market. However, the Japanese market has ushered in the long-awaited recovery from the impact of exchange rate fluctuations. The income imbalance of small countries in Southeast Asia and sub Saharan Africa has also stimulated the consumption of high-income groups.

China's luxury market sales increased by 9 billion 600 million dollars in the five years before 2014.

Only the absolute growth of the United States ranks above China, at 18 billion US dollars, and no other country can get close to this growth.

However, such high growth suddenly collapsed at the end of the economic recovery, and many luxury brands began to question their strategy in China and other emerging markets.

Emerging economies are undergoing painful structural adjustment, and in these markets, the purchasing power of the middle class as the backbone of luxury consumption in the past ten years has weakened.

Of course, luxury brands, which are all over the world, will inevitably go downhill.

China

The market size will drop from third in the world to fourth in 2014, coupled with the impact of low economic growth and the government's suppression of luxury consumption. China's expectations have also been lowered.

Euromonitor expects the actual growth rate in 2014 to be 4%, and the 2015 forecast is more optimistic, 6%.

The good news is that the improvement of the external environment is a strong support for China's exports, which can be seen from the rebound in industrial production - GDP's actual growth rate is smaller than expected.

Although China's adjustment is relatively slow, it is actually a luxury.

Still strong, and thanks to the rapid growth of the labor market and income, the outlook for luxury goods in China is still optimistic.

It is estimated that China's disposable income will grow by 64% in real terms in 2019. Under this drive, the real growth of luxury consumption will reach 52%.

Five major issues revealed in the Euromonitor Report

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The US remains the world's largest consumer of luxury goods, and the 2014 market is valued at $78 billion, two times that of Japan, which ranks second.

India is the fastest growing country for luxury consumption, and its market size has increased by 92% in the past five years.

China's rankings dropped from third to fourth, slowing economic growth and the government's policy of suppressing extravagance and waste.

Designer clothing brands account for the largest proportion of luxury sales in 2014, but accessories and jewellery clocks are the most active category - the actual growth in the past five years is 43% and 25% respectively.

The sales volume of the luxury goods industry is expected to reach US $405 billion in 2019, and the situation is optimistic.