Luxury Market: Further Guide Overseas Consumption Reflow

The era of luxury goods entering ordinary people's homes is coming. The Ministry of commerce should not only express "welcome" to the "low price tide" of foreign luxury goods, but also need to take the initiative to regulate the pricing and sales of foreign high-end brands in the mainland of China. At the same time, we need to crack down on violations of market rules against consumers' interests.

Chanel handbags depreciate in the Chinese market in March, becoming a signal. At the Basel watch and clock show, Louis Weedon (LVMH) announced a 18% cut in the mainland market. Italy luxury brand Versace also told the media during its 2014 earnings report that "closely watching" competitors' actions, if the pricing mechanism is adjusted, will be implemented in May.

In addition, a few days ago, Hongkong media exposed. Prada (PRADA) during the group's earnings management, the management mentioned in the investor conference call the price cut in Asia. It is reported that HSBC global consumption and retail director told the media that Prada executives have suggested a plan for reducing prices, saying that "there is indeed room for reduction in Asia" and said that any price adjustment would be announced in two weeks, and that the price reduction action in Asia will only exclude Japan. In addition, unlike Chanel's pricing strategy in Central Europe, Prada will not raise prices in Europe.

Italy's luxury brand Prada is not just Chanel's price cuts, but also the sales pressure of bad performance. Data showed that in the 2014 fiscal year, its net profit fell by 28.2%, and its sales fell by 1%. The worst hit area was the Asian market, which accounted for 35.7% of the group's sales. Its sales fell by 4.5% at a fixed exchange rate.

Shen Danyang said that in recent years, the consumption of overseas Chinese residents has been increasing. In 2014, China's outbound population exceeded 100 million people, and residents' overseas shopping is also growing rapidly, forming an overseas consumption boom. There are many reasons, but one of the main factors is the price difference between home and abroad. An important aspect of the price difference between domestic and overseas is the pricing policy of foreign brands to the Chinese market. "Chanel's active implementation of price cuts in the mainland of China has greatly reduced the difference in sales prices between China and Europe, and we welcome this. We believe this is conducive to overseas consumption reflow. "

Stability and expansion Domestic consumption It is one of the key tasks of the Ministry of Commerce in 2015. Shen Danyang said, next, the Ministry of Commerce will continue to study and analyze related policy issues with relevant departments, and take targeted policies and measures to further guide overseas consumption reflow.

The sale price of luxury goods differs from one another to the other. In the final analysis, it is a disregard for the huge consumption potential of the mainland by high-end brands abroad, and is a discrimination against mainland consumers. After more than thirty years of rapid development, China's total economic output has leapt to the second place in the world. Luxury consumption is no longer the joy of a few people. High-end luxury goods entering ordinary families are enjoyed by ordinary people. The luxury consumption process of Chinese people has gone through the stage of not buying blindly. It is the blind consumer behavior of mainland consumers that has prompted foreign brands to set high sales prices. Mainland consumption People are regarded as "silly caps".

As Chinese people gradually become more rational about luxury consumption, the rise of domestic high-end consumer goods and the rapid growth of overseas travel, a large number of luxury goods sales in the mainland have plummeted. If foreign high-end brands do not adjust their prices, mainland consumers will choose to vote with their feet. These luxury brands will not be able to stay in the mainland market.