Overseas Luxury Goods Prices Are Almost Half Bought By Chinese.

2014

The global luxury goods consumption reached US $106 billion, nearly 46% of the world's luxury goods, but on the other hand, the consumption in the mainland decreased significantly, to 25 billion US dollars, down 11% compared to the same period last year.

Since 2015, in the face of the weakness of the euro, and in order to balance the share of global sales, European luxury brands have adjusted their pricing strategies and adopted the marketing method of "Asian price reduction and European price increase".

But in spite of the fact that the total consumption of luxury goods in China accounted for 46% of the total global consumption in 2014, only a quarter of the domestic luxury consumption was consumed.

Why is the domestic price cut, and everyone's enthusiasm for offshore purchase is still undiminished?

This is due to the fact that Chinese consumers pay more attention to price factors in pursuit of luxury consumption and pursue the high cost performance of luxury consumption.

However, due to tariff, exchange rate and other issues, the sale price of luxury origin is quite different from the price in China. This also urges Chinese luxury consumers to find a more cost-effective way of consumption abroad.

More importantly, there are many ways to consume overseas, including sea panning,

Tourism consumption and so on.

Luxury online consumption as a self-service consumption mode, product information is more clear and intuitive, so that luxury consumption is more rational, specific and independent. At the same time, it can generate more convenient customized services, thereby expanding the scope and category of luxury goods sales.

In recent years, well-known luxury brands have been testing the field of water electricity providers, actively break through the slow growth period of sales growth, and seek alternate supplement of entity and network marketing, which has fully proved that the luxury consumption mode is breaking through the tradition and heading for the times.

Therefore, the luxury market in China is not only in the price cut, but also should strengthen the Chinese consumer experience, so that consumers can feel the same luxury cultural connotation at home, and ensure that China's luxury consumption experience is more complete and comprehensive.

However, the industry is skeptical about the Chinese buying half of the world's luxury goods, and the report does not elaborate on specific statistics.

The report released last year by the industry research institute showed that the global market share of luxury goods in Japan accounted for 34%, 25% in China, 15% in the United States, 16% in European countries, and 9% in the Middle East and other regions.

The statistics also cover the consumption of luxury goods abroad.

Fortune research found that the price difference caused by the exchange rate and the popularity of outbound travel are one of the objective reasons for Chinese to choose overseas consumption.

Over the past year, the euro has depreciated more than 20% against the renminbi, which has further increased the luxury price gap between the overseas market and the domestic market.

In 2014, the number of outbound tourists in China reached 117 million. The United States, Canada, Japan, Korea, Australia and many other countries relaxed the visa of Chinese tourists, and promoted the outbound travel of the Chinese people. Shopping has also become one of the important journeys for overseas travel.

According to the wealth and Quality Research Institute, the total consumption of Chinese luxury goods abroad reached 81 billion US dollars in 2014.

A large number of consumers chose to buy luxury goods outside the mainland of China, which accounted for 88.9% of the "better price", while the genuine factor ranked second, accounting for 83.5%.

Fake and ultra A goods once flooded the Chinese luxury market, including B2C e-commerce platform, luxury vertical e-commerce providers.

And other emerging channels have become the worst hit areas of fake commodities, which is a deterrent to most Chinese consumers.

Despite the strong consumption power of the Chinese people, but the consumption of public funds is strictly limited, and consumers tend to be rational. Luxury brands are forced to change the Chinese market strategy and expand their profits in China through price reduction promotion.

Among the main reasons for the luxury survey, "buying most luxury goods", the proportion of choosing "self use", "gifts for friends and relatives" and "commercial gifts" accounted for 72.8%, 19.8% and 5.8% respectively.

Among them, the proportion of "self occupied" has been increasing year by year for three years, 72.1% in 2014 and 63.2% in 2013.

In contrast, the "commercial gifts" have been decreasing year by year in the past three years. In 2014, the data were 6.7% and 8.2% in 2013.

Zuo Yanque, brand director of China Yikang Market Research Co., Ltd. believes that the era of luxury gift consumption in China has passed.