The Negative Growth Of Luxury Goods In China Is Inevitable.

"No entry into OUTLETS" or "no discount" is a strong gesture of luxury brands such as Chanel, LV and Hermes.

"I have entered the luxury industry since the early 1990s," said Liu Zhao, a representative of the French Federation of fine arts. "During this period, no matter whether the euro exchange rate is rising or falling, the luxury goods in China have never been adjusted."

However, under the pressure of 30% to 40% higher than the European market, China's

The counters have been "experiential" stores for more than ten years. "Customers enter the store and basically look at the good styles and prices, or try the numbers well, then go to Hongkong and Europe to buy them."

Miss Liu, who worked as a salesperson in Chanel, recalled.

In March 2015, Chanel was about to arrive.

The news spread like wildfire.

Liu Zhao said excitedly at the time: "

If active price reduction becomes a reality, it will become a milestone.

We will look back 5 years later. This price cut will affect the development of the entire luxury industry.

If it is true, I will appreciate it very much and admire them very much! "In April 8th, Chanel used nearly 10 thousand yuan's" diving "price to return everyone's guess.

According to statistics, the total consumption of China's luxury goods market in 2014 was about 18 billion 500 million US dollars, down 1% from the same period last year.

In 2014 alone, all the luxury stores in Beijing except the stores with landmark and flagship stores, such as Xinguang Tiandi and China World Trade Center, almost all stores dropped by 50% to 60%.

Meanwhile, luxury consumption in mainland China increased by 9%, reaching 380 billion yuan, accounting for about 30% of the global luxury market.

Such data enable the consortium behind the luxury goods to start reviewing and evaluating the strategy of the Chinese market.

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Brand management, although everyone has said that the emerging consumer group is a two or three tier city, its brand communication and marketing activities are still concentrated in the northern Guangzhou and other first tier cities. The region has a large number of luxury brands and high-end customers, and has not effectively integrated management and marketing in China, which has affected the development of new customers.

"Although the new media is becoming more and more popular, how can a brand show held in Beijing accurately affect the users of Zhejiang Xiaoshan?"

"No one can ignore the needs of the Chinese market," a head of the German watch brand China told reporters. "The gradual realization of the global price of luxury goods will become an industry trend, and this trend has brought many new challenges to the management of luxury goods in China.

Compared with overseas stores, consumers in China's stores are "buying more and buying less", and even many consumers in China's stores are optimistic about the style and the number of goods, and then go to overseas stores to buy them. The overseas purchasing of electricity suppliers has made many brands love and hate interweave -- putting aside profits, and the spread of fake commodities will also derogate the brand image.

No brand can throw away the Chinese market, but how to take the consumer behavior as much as possible in the locals? This becomes an important factor for the brand to consider. Otherwise, how can the local market operate and develop healthily in the long run?

Although the industry has repeatedly stressed that "price sensitive consumers are not the core consumers of luxury goods", but in the face of price differences at home and abroad, even "Tu Fei" has swept the goods in Europe.

The downturn in China's performance and the global purchase of Chinese consumers have finally left the management far away from Europe's headquarters, and the euro exchange rate has continued to go down. Brand leaders have made a tough decision to raise prices in Europe and reduce prices in the Chinese market.

With the increase of China's anti-corruption efforts and the extravagance of consumers, luxury stores in China have been left behind for a long time. It seems that even the managers of the stores did not anticipate that the day was so fast that they would become the norm in China.

This new change has brought huge management challenges to the entire luxury industry.

Zhou Ting, President of the luxury goods industry and President of the Institute of wealth quality, believes that the lack of knowledge management in China's overall strategy and the absence of market research departments in the market sector are the reasons for the loss of strategic deviations from some of the consumers in the past China's stores.

In fast moving consumer goods or 3C and manufacturing industries, the market research department's task is very arduous, not only commissioned by major institutions, consulting companies to do detailed user needs, consumer habits research, the company itself is also constantly watching, and this feedback to the product development, marketing and other related departments.

But Zhou Ting, who has studied the development of luxury brands for a long time, has found that there are few such departments in the luxury goods industry in China, which rely more on the annual survey data of consulting firms.

As a result, there are many chain effects. She pointed out that although China has constantly increased its training for front-line salesmen, and from the perspective of brand and corporate culture, it has strengthened the training of brand knowledge, but compared with the jewelry wrist watch industry, the overall quality of the basic staff in the field of clothing and apparel is relatively low, and the level of personnel management is not high.