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    Luxury Goods Consumers From China Tyrants Are Pushing Their Wallets Overseas.

    2015/2/7 22:09:00 49

    ChinaLuxury GoodsHigh-End Consumption

    In recent years, Chinese consumers have been warmly welcomed by overseas luxury goods merchants. They carry their bulging wallet and a large number of credit cards to overseas luxury stores.

    The increase in China's anti-corruption efforts has led to lower sales of high-end goods such as watches, bags, high-end red wine and sports cars.

    According to reports, Louis Vuitton recently announced that its annual operating profit for the first time since 2009 has declined because of slowing sales in China. (Vuitton)

    In October 2014, a luxury report released by Bain & Company said that the purchasing power of Chinese luxury goods in the mainland market fell for the first time in 2014, down 1% to 115 billion dollars compared with the same period last year.

    But this does not affect the unshaken position of Chinese consumers in the luxury market. Although the purchasing power of the mainland market has declined, Chinese consumers have contributed about $380 billion to the global luxury goods sales, up 9% over the same period last year.

    The report also said that compared to the traditional big names such as LV, GUCCI and PRADA, 82% of respondents said they would be more willing to try Balenciaga (Paris family), Michael Kors (Mike Cole) and Kate Spade (Kate Spade) in the next few years to attract young people with new luxury or light extravagant products, which are more in line with the appetite of young people and the money in their pockets.

    According to HSBC's report, Chinese consumers account for 1/3 of the world's total spending on luxury goods, and 2/3 of them spend overseas.

    The study, known as "global shoppers", shows that Chinese tourists will become the biggest driving force for the growth of luxury goods sales in the next few years as the Chinese people travel abroad.

    Moreover, their consumption locations are no longer confined to Hongkong, Macao and other regions, but are further extended to Europe, Australia and the United States.

    Because the euro is weakening, plus

    Europe

    The price of luxury goods is lower than that of China, and European countries have become the biggest beneficiaries of Chinese consumers' overseas shopping.

    According to research data, 40% of Chinese luxury goods purchased from abroad are from France, 35% from Italy and 25% from the United Kingdom.

    Chinese tourists will spend 80% (about $13000) on their budget when they visit Paris.

    At present,

    China

    The luxury shopping budget for visitors to the United States is only 10%, but this figure will increase in 2021 due to the increase of tourists and the development of tourism.

    In view of Chinese consumers purchasing overseas

    Luxury goods

    With the increasing demand, many luxury companies have developed a sales plan which is appalling but suitable for them. Luxury goods will be mainly sold to Chinese people, but they will not be sold in China.

    In order to stimulate more Chinese consumers to spend money on luxury goods, luxury companies are increasing the use of film and TV drama advertising implants.

    The most representative is the film "small time", which is widely criticized by the public for highly praising materialism and money worship and distorting the correct values.

    However, even if you enjoy the luxury of Xian Mu movies, you can't deny that over 4 of the 3 films created in the series of "little time" movies are over 1 billion 300 million of the box office. This is the highest box office record in the domestic movie series.

    Eyeful is the big name "little time" which reminds people of sex and the city. In contrast, "little time" has less pornography, more clothes, shoes, handbags, even sofa and wine glasses embedded in lines or revealing a huge brand of logo.

    Luxury businesses are enjoying this.

    "Little time" took three days at Fendi's flagship store in Fendi, Rome. "This has made our store different," said Pietro CEO Beccari, chief executive of Fendi. "We usually have to pay a lot of money to publicize branded products through these famous actors. We are very fortunate to be able to choose the way to implant clothes and accessories for the actors. Besides, we don't need to pay any more."

    The same goes for brands like Mike Cole, L'OREAL and Lancome. The four women in Shanghai are dressed in fur coats and champagne.

    "If you want to open up the consumer market in China, advertising implants are essential, whether you are dealing with consumers who are 80 or 90 or even 00."

    Tony Feng, Deputy brand director of vip.com, China's online fashion brand retailer, said: "traditional advertising has not been effective."


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