Hermes Is Popular Among Chinese Consumers.

Although sales of other luxury brands have declined in the Chinese market due to various political and economic factors, Hermes is still welcomed by the niche market, and the rising trend is not decreasing.

Hermes is a world famous luxury brand. Its Birkin and Kelly two bags are popular all over the world.

Despite its various disadvantages, its sales in China still thrive.

Axel Dumas, chief executive of Hermes, said that its company's business in China has not been affected so far.

Sales of the French company in Asia (excluding the Japanese market) increased by 17% in the first half of 2014.

By contrast, Louis Weedon grew by only 3%.

Although China's luxury market is grim,

In September this year, a facade shop was opened in Shanghai, which is also the first facade shop in mainland China.

Dumas says yes.

Optimistic attitude.

He thinks Chinese consumers have been able to show their taste through luxury brands, and have developed their own consumption habits to satisfy this taste.

So Hermes is catering to the needs of China's small consumers: the image of the upstart who abandons the money and many products, and the pursuit of exquisite and unboasted high quality.

Majority

Analysts agreed.

Chinese consumers are becoming more and more interested in the high-end luxury brands such as Hermes, and their interest in mass luxury brands like Louis Weedon (LVMH) and Gucci (Gucci) has begun to decrease.

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Yesterday, the domestic luxury Market Research Institute of wealth Quality Research Institute issued the third "China tax exemption report", according to the global 25 Exempt Company and 76 duty-free industry executives, 892 high net worth of high net worth consumer survey of 892 assets, our country more than 70% extravagant consumption into overseas, this situation will continue.

The report says that with the increasing number of outbound people, the Chinese have begun to release their spending power worldwide.

Although in many countries, China may not be the country's largest tourist source country, but from the perspective of consumption power, the current consumption per capita of Chinese consumers is 1508 euros, the number one in the world, which is 3~5 times the average per capita consumption of overseas citizens in many European and American countries.

Data show that in 2013, the Chinese bought 47% of the world's luxury goods, about 102 billion dollars, but only 28 billion dollars of consumption remained in China, and China's luxury consumption outflows 73%.

"Luxury goods consumption will shift further overseas this year."

Zhou Ting, President of the Institute of wealth and quality, predicts that China, Hong Kong and Macau (30%), Europe (22%) and the United States (21%) are the three most important areas for Chinese people to buy luxury goods overseas.

It is worth mentioning that China's Hong Kong and Macao region's sweeping status has begun to waver.

The findings show that the US region has increased by 7 percentage points over the past year, and the European region has increased by 6% over the same period last year.

At the same time, the proportion of Chinese consumers buying luxury goods on the mainland decreased by 2% compared with that in 2013, while Hong Kong and Macao decreased by 14%.

Judging from the category, the rich prefer custom made leather goods, watches and jewellery, while ordinary consumers prefer to choose big bags, perfume, cosmetics and costumes for overseas shopping.

"For ordinary consumers, the price is relatively cheap, the style is complete is the main reason for choosing to buy luxury goods abroad."

Zhou Ting said, however, for the rich class buyers, whether the quality assurance is the focus of consumption, and the rich consumers also pay more attention to the shopping experience.

The report proposes that along with the acceleration of global economic integration, the basic tax revenue on the tax exemption industry will be further reduced, and import zero tariff will become one of the tax policies pursued by many countries.