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    What Is The Root Of Luxury Goods In Waterloo?

    2014/11/28 12:25:00 25

    LuxuryWaterlooRoot

    In fact, as early as 2013, the momentum of luxury consumption in China appeared a "brakes". It is reported that this year, the world's largest luxury goods group, LV, released the first three quarters of its earnings report, an increase of only 4%, while the leather goods department's sales increased by only 3%, while the sales of the wine and spirits sector dropped by 7%, all of which were the fastest growing businesses in China in the past. Louis said.

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

    Not long ago, GUCCI, the luxury brand of Kai Yun group, announced that it had appointed Merinda Yeung, the current Taiwan business leader, as the president of Greater China, while Gucci sales continued to fall 5.7% in the two quarter after falling 3.7% in the first quarter of this year.

       Reporter When visiting the Coach (Coach) store on the first floor of Wangfujing, a salesgirl reluctantly told reporters that the customers who came to the shop were basically looking at nothing. The salesmen in the shop looked forward to several "reliable" customers every day.

    When the reporter mentioned the overall sales performance of the store in the first quarter, the salesman seemed to be conservative and prudent. He did not disclose the sales figures specifically, but gave a poor answer. The caliber of the salesperson was compared with the first quarter earnings reported by Coach (Coach) in the 2015 fiscal year at the end of October, which was previously reported by the media. display Coach's performance in China has slipped.

    Industry observers said 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. According to the assessment, global luxury goods sales increased by only 2% this year, the weakest since the financial tsunami, reflecting the fact that the market for luxury goods is rather bad.

      Market judgment is not enough or performance decline. Main cause

    In the face of the decline in sales performance of luxury brands in China, apart from China's anti-corruption policy, which is frequently implied by luxury brands, causing the mainland's luxury market to slow down, industry experts say that the current luxury brand's inadequate judgement of the Chinese market and the inaccuracy of consumer demand for Chinese consumers are also important reasons for its stagflation.

    A person who has long been engaged in luxury goods industry says that domestic frugality has a certain impact. But more importantly, consumers are becoming more rational and no longer blindly follow suit and begin to pay more attention to cost performance.

    In addition, Chinese consumers' demand for luxury goods is also rising. For a long time, the logo of the luxury brand is unwise. "Full bag of logo gives people the impression that they are very vulgar. They seem to be very wealthy in their backs." A very fashionable lady Wu told reporters. This luxury brand business seems to be aware of that too. It is understood that luxury brands represented by Gucci have begun to "de logo" in recent years, restricting products with obvious trademarks to 10% or less.

    In recent years, many young brands abroad have been stationed in the Chinese market, such as MichaelKors (Mike Kors), KateSpade (Kate SAGE), ToryBurch (Tang Libaiqi), DKNY (don korna), Furla (Fu LA) and so on. These young brands are mostly secondary brands of first-line brands. Under the aura of the original brand, they are known as light luxury names, and the market recognition is high, and the design is fashionable and avant-garde and personalized.

    The rise of cross-border electricity providers and overseas purchasing agents also brought luxury goods to a "surprise attack" in the Chinese market. It is reported that the British Burberry windbreaker priced at 29 thousand yuan at the Chinese website is only 330 thousand yen in Japan, while 2395 euros in France. The price of the same LV bag, French official website and Italy official website is nearly 1000 yuan less than that of China's official website.

    Statistics show that domestic luxury goods prices are at least 50% higher than that of foreign countries. Even the luxury brands that try to make electronic commerce on Tmall international platform are much more expensive than foreign countries. This makes the purchase methods of cross-border electricity providers and overseas purchasing agents rise rapidly.

      Market demand is strong or weak for market weakness.

    An interesting phenomenon is that the Chinese luxury goods sales market is cooling down, but the demand market is strong. Statistics show that the demand for luxury goods in China has increased by 20% to 30% at a time when global luxury sales are declining. This is a fact that can not be ignored.

    There are a lot of luxury goods entering the Chinese market now. A survey on China's luxury market shows that it includes clothing, footwear, jewelry, bags, watches, cosmetics perfume, cars, etc. It is predicted that by 2015, the annual growth rate of luxury consumption in China will be about 10%, and the total consumption of luxury goods in China will be more than 11 billion 500 million dollars. The Chinese who are willing to buy luxury goods will rise from 40 million to 160 million, and the two or three tier cities will be the main support force for the luxury goods industry.

    Besides, the prospect of luxury online shopping market is improving. According to the data provided by China International Electronic Commerce Research Center, the transaction scale of luxury online shopping market in 2013 was 20 billion 820 million yuan, an increase of 34.8% over the same period last year, while the whole year of 2014 is expected to reach 27 billion 430 million yuan, which means that the potential of the market can be further excavated.

    What is even more optimistic is that compared with the entire luxury market, online shopping sales account for only 3% of the total sales, which is far from the developed countries. This gap means that the future of luxury online shopping market is still clear.

      Digging deep demands or getting better results

    The continuous cooling of the luxury sales market in China has led many big brands to come to the brink of failure, and constantly sprouting from the shopping mall to withdraw their cabinets and shelve their expansion store plans. The industry believes that luxury brands only focus on the current growth point of interest, and do not dig deep market demand. The decline of performance should be adjusted timely to conform to the mainstream development direction of the current market.

    Some experts pointed out that in the future, luxury goods would like to restore good performance in China and need to restructure channels. The Chinese market is still expanding and the prospect is optimistic, but the opportunity is to leave the brand that caters to consumer demand after market segmentation. The change of the luxury market will become a good opportunity for the transformation of the consumer market.

    It is worth learning that despite the overall downturn in China's luxury market, Hermes's first "Hermes home" in mainland China was unveiled in Shanghai in September, the fifth after Paris, New York, Tokyo and Seoul. "So far, there has been no indication that our performance has been affected," said Searl, chief executive of Hermes. Du Mai believes that Chinese consumers have gone beyond the stage of flaunting luxury brands and began to enjoy the connotation of luxury brands. "Hermes represents the style that China hopes to have."

    "The preferences of Chinese high-end consumers are changing, and they are beginning to favour less impressive things. The classic style of Hermes has just catered to this trend," said a senior retail official.

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