China'S Luxury Market Is Unlikely To Rebound.

In the past two years,

From a boom to a downhill.

From the current situation, the luxury market in China is not likely to be warmer, which is not only determined by the two factors such as the macroeconomic weakness and the price difference between China and foreign countries.

Looking at Japan's neighbouring countries, which is also a big consumer of luxury goods, we can understand that exchange rate and economic stimulus policies can solve the problem of consumption weakness. After Abe Shinzo came to power, Japan's luxury and consumer market is quite prosperous, but the same policy is hard to achieve in China.

Why do we say so? Of course we must start with Chinese characteristics.

So-called

To the earth, it is actually following the wind. After this kind of craziness or idolize, it is the great leap forward.

Chinese people who are keen on group life are best at the "great leap forward".

If the "great leap forward" in the late 50s of the last century was just a political movement, China's large-scale development of urbanization, real estate, the Internet and even the football industry today has spawned the "great leap forward" of China's luxury market in the past ten years, and the big events such as the Olympic Games and the Expo can be regarded as a catalyst.

As a result, a large number of high-end shopping malls have sprung up in China's 123 tier cities, which do not rent out for years, only to attract LV and Gucci, and then to arbitrage in small brands.

This is the external cause.

Of course, there are, of course, many luxury brands in China's large business district, and a variety of special marketing tools and strategies to cater to Chinese consumers. The cultural and historical signs of luxury goods have been declining in the Chinese market for many years, leaving only a lot of dark labels such as upstarts, corruption and so on.

The Chinese "Shanzhai" ability is so strong that even "grade" is the same.

When western research institutions released the report on "China's taste upgrading and boredom Logo", many luxury consumers really thought that this is the upgrading of Chinese consumers' taste, and began to consume the hidden Logo brand. In fact, this is just another kind of "Logo", or the so-called "great leap forward".

Luxury goods

The essence of this is conspicuous consumer products. Even if the developed countries are like that, how can China be exceptional? When the number of luxury stores is more and more, the exposure of real and fake products is getting wider and wider, both physically and psychologically, the core users of luxury goods will reach a state of nearly saturation, and the conspicuous behavior of consumer behavior will be greatly reduced.

According to a survey of the latest wave of luxury goods prices in China, "no fashion Chinese net" also shows that Chinese luxury consumption abroad is not only due to lower prices, but also an additional "conspicuous tourism" lifestyle which promotes consumption.

This is why Chanel dares to first open its price in China, because it has fewer stores in China, and in the composition of its brand income, leather products are only a small share of the brand and the sales itself is rather weak and so on, making it the "first crab eating" brand.

The following two characteristics of luxury consumption in China and the great leap forward in China's luxury market make China's luxury market unsound, and its brand is extremely short of endurance in the Chinese market.

On the contrary, most of the Japanese luxury market that affects China's neighbouring countries is only macroeconomy.

Let's go back to the price.

Luxury goods prices in the Chinese market this year is also difficult to play a role in saving the market.

On the one hand, price adjustment is not a product adjustment on the whole. The reason why it is vigorous is largely due to the large volume of consumer consumption and the shrug of news.

So far, I doubt the authenticity of the Chanel Shanghai store because of the price reduction, because this kind of thing did not appear at least in Guangzhou.

The legend of using "water army" in luxury marketing is not two days a day.

On the other hand, price is not the most important factor in the paction. Especially in the luxury industry, price sensitive luxury consumers may be more concerned about similar price adjustment, and add a lot of obstacles and troubles to the future price strategy of luxury goods in the Chinese market.

Is this price cut not a "great leap forward"? Two years ago, the big brands' vigorous Logo went to the rescue role.

When we talk about the "great leap forward" of luxury goods, we should not forget that another "great leap forward" may strike China's luxury market in a short time.

Today, 123 line cities, or even 4567 line cities, have sprung up various kinds of buyer shops, and brokers have begun to market all kinds of brands that are totally unknown inside and outside China in the form of showroom.

Although this fashion "kill Matt" culture is hard to influence most luxury consumers at present, it may soon make people hesitate to hold hands with a small amount of cash.