Weak Performance Of China's Luxury Consumer Market Or New Opportunity For Market Pformation

Recently,

The global luxury market survey released by the consulting firm Bain consulting and Italy luxury brand industry association, Italy luxury industry association, showed that the luxury market in mainland China in 2014 was expected to be 15 billion euros (117 billion 800 million yuan), down 2% from last year.

In recent years, the global luxury market survey released by the US consulting firm Bain consulting and Italy luxury brand industry association, Italy luxury industry association, showed that the luxury market in mainland China in 2014 was expected to be 15 billion euros (117 billion 800 million yuan), down 2% from last year.

Since the start of the survey in 2000, the first negative growth has occurred.

A website in Japan also reported that the market size of luxury goods sales in China will shrink for the first time since twenty-first Century.

Relevant data show that changes in the Chinese market have led to slow growth in the Asian luxury market.

Reporters learned that LV, the world's largest luxury goods group, recently released its first three quarters earnings report, which only increased by 4%, while leather goods sales increased by only 3%. Sales of wine and spirits sector dropped by 7%.

These sectors are the fastest growing businesses in China.

Mulberry, the UK's leather goods brand, also reported a sharp decline in its revenue in the first half of the year. In the first half of last month, Italy's luxury Prada (Prada) grew 1.3% and its profit fell by 20.6%.

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.

Since 2010, due to the subsequent impact of the financial crisis, the European consumer market continues to slump, and China has always been called the Savior of global luxury goods.

In 2014, the size of China's luxury goods market will be reduced from third to fourth.

Therefore, the slump in the Chinese market seems to be the "fuse" of the global luxury market performance for a time.

Consumer demand change or the main reason

Reporters learned that China's luxury market sales increased by 9 billion 600 million dollars in the 5 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.

Foreign media analysis said.

Apart from the reduction of gift consumption resulting from the "frugal order" in China, more and more Chinese consumers began to have a close relationship with overseas purchases of lower tariffs and VAT.

For example, the Burberry windbreaker, priced at 29 thousand yuan at the Chinese website, is only 330 thousand yen (19 thousand yuan) in Japan, while 2395 euros in France (about 18 thousand and 800 yuan).

Reporters believe that changes in the market, in addition to these factors, mainly related to consumer demand for goods directly related to change.

China's emerging consumer groups are gradually becoming mature, and the demand for luxury goods and fashion consumer goods has become more rational. The pursuit of luxury brands is no longer the mainstream. Personalized designer brands and niche brands are rising.

The continuous cooling of China's luxury sales market has led many big brands to lose their confidence in selling in China. However, in the process, the major brands only focus on the current interest growth point, but have not excavated the deep market demand.

Despite the general decline in sales of luxury goods, there are still a few companies that can seize the opportunity and take advantage of it.

It is understood that in April this year, the British luxury brand Burberry settled in Tmall, in the latest financial report, the group also said that online business and beauty make a high growth sector.

Therefore, timely adjustment strategy to conform to the mainstream development direction of the current market is the key to brand marketing.

Some experts pointed out that the future luxury goods in China to restore good performance need to carry out channel restructuring, the Chinese market is still sustained expansion and optimistic outlook, but the opportunity is left to the market segments to cater to consumer demand brand.

The change of the luxury market may become a good opportunity for the pformation of the consumer market.