Luxury Tycoons Are Very Unhappy At The End Of The Year.

Not far from the Kowloon table in Li Yuan Shan Road, the clerk was delighted to welcome the first wave of the day's guests.

Businesses that have been out of doors for a long time expect the Chinese new year to make their business better. Sales during the Spring Festival are considered to be the wind indicators of medium and long term sales of luxury goods.

The business of table business is still not comparable with the past.

Compared with the craziness of people buying daily necessities, the list is far from clear.

On the way to Hongkong, Mr. Shaw, an executive in the mainland of China, was warmly received by the salesmen when he was on a business trip to Hongkong. "People are really not many, and Mandarin is obviously scarce," he finally bought a more than 30 thousand Hong Kong dollar watch.

Just a few years ago, China's luxury industry was a thriving industry.

In the 2011-2013 year, the average annual growth rate of luxury goods sales was more than 11%, which was mainly driven by the Greater China region's performance. Especially in 2012, the sales of luxury goods in Greater China increased by 19%.

In January 20th, the US management consulting firm Bain published the 2014 China luxury market research. The total consumption of luxury goods in the mainland of China was 115 billion yuan, an increase of -1%, the first negative growth in the luxury market in mainland China.

The growth engine of the global luxury market is shifting from the "Eastern battlefield" represented by China to other regions.

In the second half of 2014, Xie Min, a pseudonym in Shenzhen, and her friends did not dare to go to Hongkong to buy a watch again.

Xie Min's husband worked in state-owned enterprises and was repeatedly urged by the leadership to "keep a low profile now."

Xie Min likes watches, and everything goes to the watch shop in Hongkong. Her husband lets her go to the table less, and does not buy tens of thousands of watches, so as not to be told "behind their back".

In order to keep a low profile, Xie Min's husband is wearing an old Swiss radar watch of about 5000 Hong Kong dollars, which is not expensive compared to his salary.

"The style is very generous, not expensive, even if it is seen, it will not be taken out."

Xie Min said, she also revealed that the table was praised by leaders because of its "low key".

In order to keep a low profile, Xie Min even sold her beloved 10 thousand yuan OMEGA watch to her younger sister in business, and she wore a Seiko watch with a price of around 1000 yuan.

"In fact, we can afford tens of thousands of dollars for our income, but when you wear them, you will be told by others that it is better to keep a low profile at this time."

Xie Min said.

Public opinion is widely believed that after September 2014, the sale of luxury goods in Hongkong was affected by many factors, making the situation of luxury brands worse in 2014.

As the second largest luxury group in the world, its sales growth stagnated in the three quarter of 2014, the worst performance in six years.

Boboli group also warned in the three quarter earnings report that Hongkong's sales had gone backwards, and the gross profit of the whole year was under pressure.

"But the decline in Hongkong's luxury sales is essentially China's economic and anti-corruption environment, as well as the friction between the two places."

Tang Xiaotang, founder of the non stylish Chinese network, which has long been concerned about the luxury goods industry, has analyzed the times weekly reporter. Clocks and watches as an example, Hongkong has no customs duties. It is the largest watch market in the world. The market share accounts for 20%-25% of the Swiss watches. "But in recent years, the friction between the two places has intensified, leading to some wealthy people in the mainland who are reluctant to go shopping in Hongkong.

The clock is hard and luxurious, and the consumption of the rich will never be reduced, so some wealthy people in the mainland prefer to go shopping in Europe and America.

The clocks and watches of Hongkong in the past year are all on sale, some of them are in stock, and they are not willing to take any more.

"The third point is the outflow of fertilizer and water.

Despite the decline in total sales of luxury goods in China, the overall consumption index of the Chinese people is still rising.

The difference between home and abroad is relatively large, so many people do not want to.

They buy things by buying and traveling abroad, including international websites such as Amazon, Hai Tao, and even some Chinese e-commerce websites.

Tang Xiaotang believes that more and more convenient purchasing and traveling abroad have shaped the mature shopping mode of Chinese people.

According to Bain's report, the total consumption of luxury goods in China in 2014 was about 380 billion yuan, of which the overseas purchasing market size was estimated at 55 billion -750 billion yuan, mainly in cosmetics purchasing, followed by

Bags, watches and jewellery, the total market is about 50% of the sales of Chinese stores.

If the data from market research institutions look too macroscopic, the more intuitive data is that Bain's 2013 luxury research report surveyed more than 20 brands. In this year, the number of new stores in the Chinese market dropped from about 150 in 2012 to around 100, with a decrease of about 1/3.

"Fewer than 100 last year."

Tang Xiaotang said.

The cold wave did not come overnight.

China

The turning point of the market appeared in 2013, and the market growth rate slowed down in that year.

Tang Xiaotang said: "thanks to the 2008 Olympic Games and later World Expo, foreign brands entered China in large scale and grew by 15%-20%.

Until this watershed in 2012 - the year of government change, the GDP growth dropped to less than 8%. Under such a big environment, China's luxury consumption is also low.

According to the recently released figures, China's GDP grew by 7.4% over the previous year, and the growth rate slowed down further in 2014.

"30% of the consumption of high-end department stores in China was gift card consumption, and now it has dropped to 10%."

Tang Xiaotang analysis.

Besides gift card consumption, another factor is business gifts.

Under the prohibition of luxury, some brands have launched measures such as logo free products, but the effect is not ideal.

However, for luxury goods giants, it is not only these worries.