The Trend Of Luxury Local Expansion Is Obvious: Consumption Shifting

Stimulated by the low euro exchange rate and the warming of overseas tourism, Chinese consumers have become the world's largest luxury consumer group, buying 25% of the world's luxury goods.

In 2012, the total consumption of luxury goods in China amounted to 306 billion yuan.

Recently, Bain released the "2012 China Luxury Market Research Report", published the findings of the survey.

In the global economic downturn, many international luxury brands have felt a lot of performance pressure this year, changing frequently to make new vision and driving force.

Chinese consumers have shown strong consumer power for high-end consumer goods. It seems that international big brands have found a direction. On the one hand, they have accelerated the expansion of the stores in China, the layout of the two or three line cities, and on the other hand, the Chinese consumers who have used the price advantage in the overseas market to attract overseas shoppers.

LV's "snake skin bag" laborer package, "bath basket" bag, Chanel's "Chinese medicine bag" handbag, Bagigia's "hot water bag bag", Hermes's "five-star red flag pack"...

With the increasing purchasing power of Chinese luxury goods, luxury brands abroad are increasingly trying to please Chinese consumers, and the Chinese style of luxury goods is becoming increasingly popular.

Traditional jewellery and watch manufacturers, in addition to their brains in designing their products, have a strong sense of "Chinese element" from their appearance design to cultural connotation. In particular, the "dragon edition" limited products are launched this year.

For example, Patek Philippe launched the "white jade dragon" limited watch; count, Athens, Chopin and other world watches, in addition to dragon modeling, also introduced panda, peacock and other popular Chinese patterns to attract customers.

Similarly, Ferragamo, Barry, Versace and other brands have also attacked Chinese purse. Ferragamo has launched three limited edition "dragon year" handbags, with Chinese culture auspicious color red as the dominant color.

Versace has launched a specially designed jewellery handbag, which is made of gold. The black enclave is decorated with gold dragon ornaments, with a limited production of 210 and sold only in Asia.

PPR group, one of the world's three largest luxury goods giants and the parent company of the famous luxury brand GUCCI, has expressed its confidence in the Chinese market in the way of acquiring Hongkong kylin jewelry company, which is famous for its Chinese style.

According to McKinsey, China's luxury goods consumption will reach 180 billion yuan in 2015, becoming the world's largest luxury market.

Broad market prospects attract international luxury brands to compete for capital.

The influence of "westerly wind and eastward" has led to the emergence of many "fake local brands". At the same time, the design of international brands also uses more Chinese elements to win the favor of Chinese consumers.

However, China

The phenomenon of consumption shifting is very serious.

Bain's data show that this is huge.

60% of China's purchases are overseas, while Chinese consumers spend 31% on luxury goods overseas. The growth of luxury goods sales in mainland China has slowed to 7% from 30% last year.

It is reported that this is the lowest growth rate in China's luxury market since 2006.

McKinsey Co's report also shows that China's share of global luxury consumption has soared from 14% in 2008 to 27% in 2012, and has replaced Japan as the world's largest consumer of luxury goods.

One of the things that can not be ignored is that over the past two years, more and more consumers have moved their destinations for luxury goods abroad.

In mainland China alone, the number of consumers who buy luxury goods dropped from 65% to 38%.

Fortunately, China's Ministry of Commerce has noticed this problem.

Chen Deming, Minister of commerce at the eighteen major news centers, said that the commerce department will continue to boost domestic demand from six aspects.

He mentioned in particular the need to control imported brands, the so-called "luxury consumption" in a general sense.

Minister Chen said that the price of domestic luxury goods is much higher than that of foreign markets, which leads to excessive consumption of luxury goods when traveling abroad, so it is necessary to reduce the price of luxury goods more.