Sales Of Luxury Brands Have Shrunk Dramatically

According to reports, "a domestic bag with a price of over thirty thousand yuan can be bought overseas for nearly 10000 yuan, and the price difference in Hongkong and other places is 5000 yuan. Now the attractiveness of luxury prices in Hongkong and Macao is gradually decreasing. I prefer to go shopping in Europe and other places."

Yesterday, a Miss Chen, who traveled all the way to Shenzhen and Hong Kong yesterday, told reporters that in the past, friends often asked her to buy famous brand bags in Hongkong, China to bring them back to the mainland, but now more and more friends will choose to go to Japan, Europe and other places.

Yesterday morning, France's Kai Yun group's luxury brand Gucci (GUCCI) announced that it has appointed the current Taiwan business leader Merinda Yeung as the president of Greater China, while Gucci sales continued to drop 5.7% in the two quarter after falling 3.7% in the first quarter of this year.

"This is just a microcosm of luxury brands."

Industry observers told reporters that the total sales volume of luxury goods this year will be far lower than the high level since 2011, especially in the Chinese market for the first time to show a negative trend.

Some consultants estimate that global luxury sales this year increased by only 2%, the weakest since the financial tsunami, reflecting a rather bad market for luxury goods.

The price of luxury goods is almost the same in Hongkong.

"This time we went to Japan to make a special choice in Hongkong, China. After comparing it, we found that apart from the big package, the Japanese price is obviously lower than that of Hongkong. The price of many brands of skin care products and electronic products also has a larger price difference."

Miss Xiao, a consumer, told reporters that a brand purse purchased in Hongkong was about 4000 yuan. "Although it is nearly 1500 yuan cheaper than the mainland, it is found in Japan that the price is only about 3000 yuan.

The price of a Japanese facial cleanser purchased in Hongkong, China, is half the price.

The industry admits that luxury pricing strategy is the main reason for its wide spread. Luxury brands are generally based on three different regions in Europe, the United States and Asia.

Even in Hongkong, China, known as "tax free port", the price is almost the same as that in the mainland.

"The narrowing of the price gap is also the reason why Chinese people are increasingly willing to buy overseas or buy overseas."

Consumption of Mr. Wang told reporters that his family's five luxury items.

And a watch is from Europe, "compared to the domestic price at least saved tens of thousands of Yuan".

According to the survey data, 56% of mainland respondents said they would continue to increase their luxury purchases overseas in the coming year, with the strongest demand from consumers in the second tier and three tier cities.

"There are obviously fewer consumers coming to the shops to see bags."

A luxury salesperson in Guangzhou told reporters.

The global luxury market monitoring report released by consulting firm shows that total sales of luxury goods will increase 2% to 223 million euros this year, and the growth rate is far below the high level since 2011.

The report also pointed out that in 2014, subject to changes in consumption patterns, luxury goods for the first time showed a negative trend in the Chinese market. In the first 8 months of 2014, China's consumption grew by 10%, which was significantly lower than that in 2013.

Insiders said frankly that if the aforementioned consultants correctly predicted, this would be the first decline in luxury sales in China in more than 10 years.

"China's luxury sales growth has been slowing down in the past two years following a surge of 20% in 2012."

In the first half of last month, Prada announced that its first half of the year not only cut shop plans, but also significantly reduced its net profit by 20%.

Prada group management said that the situation in the second half of this year is expected to be roughly the same as in the first half of the year. The number of new stores that the company plans to open will be reduced from 80 to 65. Cost cutting measures will improve marginal profits, but profits will continue to bear pressure.

Although the UK's luxury brand Burberry recently announced that its revenue rose 10% in the first half of the year, it also issued a profit warning, calling the external environment more difficult, showing signs of slowing in the ring, warning travel channels and European customers or facing the next half of the fiscal year or spending caution and profit margins downward pressure.

Burberry expects to see a drop in the number of units in the second half of March and have a substantial impact on the whole year's profits.

In addition, the performance of Kai Yun group has shrunk, the net profit in the first half has dropped by 4.7%, the sales performance has increased by only 1.8%, and the sales of the core brand GUCCI dropped by 3.7% after the first quarter, while the two quarter continued to drop 5.7%.