Luxury Industry: Changes In China'S Rich

As the first batch of successful business executives, Tang Tai, who has tens of millions of dollars, has not bought anything in China for a long time. The superiority of shopping in the shop more than 10 years ago has disappeared. Not only that, but the thing that made her laugh is that once a friend came back to Rong after shopping at the luxury brand flagship store. "I was laughed at for a few days by a group of our friends, saying that she was too much of a bag, so she needed to spend so much trouble showing it," Tang Tai told reporters. Not long ago, she went there and bought a necklace of LOVE series for her daughter-in-law. It only cost about 20 thousand yuan. "If it is in the country, it will be 60 thousand. You say, if I buy it in China, it will be very 'two', right?

In this kind of ridicule, it reveals the subversion of the consumption idea of Chinese wealthy people: "the rich begin to pay attention to the price performance ratio." This has been thought that is not the rich person's consideration at all, but now hangs on their lips: similarly spends 100 thousand, the several hundred thousand, 1 million buys back, can buy an oneself wants the status, the desired grade?

Nowadays, people still like to call the "local tyrants" the rich businessmen in China, with their satire on their tastes, because they used to be so fond of showing off their wealth by flaunting the big LOGO. But after 2012, most of the wealthy in China began to dislike LOGO. "They do not like to represent themselves in LOGO. They prefer a unique and honorable expression." Zhou Ting said.

Just like Miss Kong, with her brooch and Hermes's printed scarf, she sat on the Huaihai Road by a private driver's car, and looked at the window of the LV store outside the window. She told reporters that she would never use LV's bag again.

In 2015, the new crisis faced by international brands in China was that the Chinese tycoons were going to be branded. In other words, China's rich are beginning to stop consuming traditional luxury brands that they consider to be "popular". "Why pay for the already popular brand premium?" the new rich have no specific demand for consumer brands. These people are the core consumers of luxury goods.

In the first half of 2014, luxury brands, after maintaining good growth for many years, highlighted their weakness. The world's first luxury goods giant LVMH (Louis Vuitton group), Switzerland. Luxury goods The sales growth rate of the company's Richemont and SWATCH has only maintained a slight increase of about 2%, while the net profit growth rate has increased. LVMH A decline of 5%, the peak group fell 4%, the French Open Cloud group fell 9%, SWATCH group barely maintained a positive growth of 1%, only Hermes gained a positive growth rate of 6%.

When the rich in China decide not to be Brand Premium When paying prices and paying prices for products only, it seems that the financial data of international luxury magnates become "ugly". "When luxury goods are transferred from brand to product centered, the pricing power of the whole market is the first to change." Zhou Ting believes that this is undoubtedly a qualitative change: the brand decided "what I sell what you buy" this luxury goods in the field of nearly two hundred or three hundred years of gold rule, will become consumers has the final say. This is too scary for traditional luxury brands.

This terrible reason is that, who said that the Chinese liquor industry will not act again in the luxury industry? In 2014, the liquor prices that were once high were frequently frustrated, and the price cut over the whole industry. Losses and performance fell sharply, and the adjustment seemed to be bottomless. Obviously, there are some misery in luxury and liquor. The president of many high-end luxury goods groups frequently meet with Chinese market participants. The topic is always around: with the implementation and promotion of the Chinese government's anti-corruption work, how can we reformulate the development strategy of the Chinese market after the "luxury gift wave" has receded?