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    Luxury LV Is No Longer Spoiled In China.

    2015/4/25 12:55:00 26

    Luxury BrandLVChina Market

    Most of the respondents in the first tier cities said they should avoid buying other people's large number of brands. When scoring the reasons for buying luxury goods from 1 to 5, they scored 3.92 points for "expressing my personal taste". The higher the score, the more agreement it is.

    The tendency of Chinese high-income citizens to buy luxury goods abroad also reflects these trends. Last year, only 12.9% of families with annual income of more than 350 thousand yuan were buying LV brands during their recent trips abroad, compared with 24.3% in the previous year.

       China Confidential According to the data, only 18.8% of the respondents in northern Guangdong think that LV is the brand they most want to have, and three of the respondents in the three line cities hold this view. although LV It is China's most popular luxury brand, but among the first tier cities, the number of respondents who want to buy Prada (Prada) has exceeded LV.

    Even without such a dilemma, LV led the way. Luxury brand In mainland China, the market also faces the "adverse wind" of policy.

    Last month's Wall Street article said that the sales of international luxury brands in China last year failed to maintain a high growth rate as in previous years, due to corruption and middle factors. Italy luxury goods company Prada's net profit fell by 28% last year.

    In February this year, the LVMH group of LV's parent company announced that its core profit in the 2014 fiscal year fell for the first time in five years, a drop of 5%. After excluding the impact of the exchange rate, the Asia Pacific region is the only negative revenue growth market for LVMH group, with a year-round drop of 1% and a 6% fall in the fourth quarter.

    This week's Wall Street article also mentioned that BMW motor plans to cut production in China in order to prevent inventory accumulation. In recent weeks, foreign automakers such as Ford and Volkswagen have also cut prices by 10%.

    Sanford C. Bernstein & Co, an investment management company, believes that the growth rate of China's international brand market is almost zero. China's anti-corruption campaign and the slowdown in economic growth have depressed demand for luxury goods.

    Bain, a global management consultancy, released a report earlier this year that the market size of the luxury market in mainland China dropped by 1% over the past year, and for the first time there was a negative growth in the market in 2013. The government's anti-corruption campaign has continued to affect the "luxury gift wave", and the slowdown in economic growth has exacerbated this phenomenon.


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