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    China'S Anti-Corruption Sales Hit A "Closing Tide"

    2015/6/18 18:55:00 36

    ChinaAnti-CorruptionLuxury Goods

    According to British media, the president of a well-known Swiss watch company said that before the anti corruption movement, 65 of its 100 watches sold to China.

    Nowadays, only 25 of every 100 watches are bought by Chinese.

    In 2000, Chinese consumers accounted for less than 2% of the world's luxury consumption. At that time, luxury goods consumers in the world market reached 140 million, spending about 130 billion pounds.

    According to Bain's latest world luxury market tracking, by the end of this year, the number of luxury consumers will exceed 350 million, while Chinese will account for more than 30%, and their consumption will reach 230 billion pounds.

    Reported that, but in the past two years, Xi Jinping launched a campaign to clean up the Communist Party and the government's rampant corruption phenomenon, this astonishing growth has dropped sharply.

    Over the past more than 10 years, luxury goods of some top brands have been favored by businessmen, who bribed Communist Party officials holding heavy weights in economic activities.

    In addition to reducing overall purchases, the anti-corruption campaign also changed the way Chinese people buy luxury goods.

    Stefano Connelly, general manager of the luxury men's wear brand Connally, said: "since the beginning of this campaign, Chinese buyers have become more and more interested in buying for themselves rather than buying for others."

    He added: "they become more demanding and want to know more about what they want to buy, and why they spend money on it."

    Due to exchange rate changes and high domestic prices

    Luxury goods

    Consumption tax and greater international mobility.

    Chinese?

    Start choosing to buy luxury goods abroad instead of buying them in China's blooming retail stores.

    Reported that this is a big problem for French brandy, Swiss watches and Italy handbags and other products suppliers. In recent years, they have been expanding shop in China.

    Sir Deng Yongqiang said: "Western Luxury Retailing

    China

    I'm on the decline. I expect more luxury stores will have to close.

    The next two to three years will be more painful. "

    Deng Yongqiang pointed out that about 60% of China's luxury consumption is now being carried out abroad, and the flow of consumption will accelerate as skilled consumers increasingly compare prices on the Internet.

    The report said that the purchase of luxury goods in the mainland may be much more expensive than the purchase of the same products in Hongkong, Japan or Europe because of the high luxury consumption tax, the increased cost of doing business in the mainland of China and the positive pricing strategy.

    In 2000, most Chinese could not even get a passport, let alone a visa, but now all countries can't wait to attract rich Chinese.

    At the same time, global travel has become simpler and cheaper than before.

    Analysts pointed out that, under the influence of a lot of foreign tastes, the Chinese changed the habit of flaunting their wealth in a high profile many years ago, but increasingly emphasized low key and quality.

    The rapid change in China clearly shows that the days when the global luxury brands have been making light profits in the country for a long time are basically gone.

    Analysts say that in order to succeed in this increasingly frugal environment, big brands need to focus on quality and strive to attract more discerning Chinese consumers.

    Well known brands must also understand that most of their sales will take place outside this country, so the flagship store in Beijing and Shanghai will be basically a costly marketing tool.


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