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    Luxury China'S First Negative Growth

    2014/10/16 11:26:00 27

    LuxuryMarketNegative Growth

    Yesterday,

    U.S.A

    Bain and the Italy luxury goods industry association released the latest global luxury market monitoring report. The global luxury goods consumption growth rate in 2014 will be only 2%, the lowest since 2009, and the first negative growth of luxury goods in China.

    Last year, the global luxury market, which has declared itself into the cold winter, is facing a more brutal situation this year.

    Yesterday, the US consulting firm Bain and the Italy luxury goods industry association released the latest global luxury market monitoring report. In 2014, the global personal luxury consumption growth will be only 2%, the lowest since 2009, and the first negative growth of luxury goods since entering China.

    The report shows that this year the global luxury market personal consumption will only achieve 5% growth, is expected to increase to 223 billion euros, or about 282 billion U.S. dollars, excluding the exchange rate factor only increased by 2%.

    This year, the number has dropped to 4%-5%, which has been declared a cold winter. This year's situation is even more brutal.

    It is worth noting that the Chinese market, known as the global luxury Savior, will also suffer negative growth for the first time, Bain.

    Forecast

    This year, sales in the Chinese market will fall by 2%, and this figure has increased by 7% last year.

    According to the report analysis, China's sustained and vigorous anti-corruption measures have caused the market to become dispirited.

    In addition, sales of hard luxury goods in the world have also slowed sharply due to the shrinking of watches in the Asia Pacific region.

    Chinese consumers have always been the main force of watch tourism consumption in the Asia Pacific region.

    Wrist watch

    The price is high, and the fluctuation of this category has great influence on the whole industry.

    In fact, the recently released major luxury group earnings reports also confirm the market downturn in the same period.

    Burberry group's first half October 14th earnings report showed a 7% rise in performance, a slower trend in the ring than in the first half of the year, and a decline in median to low digits in the second half of the year. The first half of the October 14th earnings report of the leather luxury brand, LVHM, said its revenue fell by 7%; the LVHM group released yesterday's 2014 quarter three quarter earnings report, which showed that sales growth was only 4%, and the growth rate fell sharply; while the interim results released by the Prada group of the group announced that its net profit decreased by 21% compared with the same period last year.

    Analysts say the global luxury market's weakness has exacerbated the whole industry's panic.

    Recently, luxury brands including LV (LV), Chanel (Chanel), Valentino (Valentino) and Prada (Prada) have frequently acquired the upstream leather workshop and stepped up the control of the cost of the industrial chain, so as to fight against the more severe test in the future.

    Even so, Claudia D, partner of Bain consulting firm "Arpizio" insists that in the long run, the Chinese market will still be bullish, and the Hongkong market in China is expected to recover in the fourth quarter.

    The report shows that in the global region, the Asia Pacific region will grow by only 1%. In the Americas and the Middle East respectively, the global luxury market has been led by 3% growth, and Europe and Japan have increased by 2% respectively.


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