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    Chinese Consumers Are Very Important To The Global Luxury Industry.

    2015/6/23 17:17:00 65

    ChinaConsumersLuxury Goods

    The rapid change of China's luxury market shows that the days that the global luxury brands have been making easy profits in China has basically become the past.

    Analysts say that in order to succeed in such a more severe environment, major brands need to focus on quality and strive to attract more discerning Chinese consumers.

    Brands must also recognize that most of their sales will be realized outside China, so the flagship stores they offer in Beijing and Shanghai will be mainly used as expensive marketing tools.

    The chief executive of a Swiss watch company, the leading company in the industry, said that before launching the anti-corruption campaign in China, his company sold 100 watches, 65 of which were sold in China, and only 100 of the 100 watches were bought by the Chinese.

    The chief executive wishes not to reveal his name.

    In 2000, 140 million luxury consumers in the world spent about 130 billion euros on luxury goods.

    Among them, Chinese consumers account for less than 2% of the total expenditure.

    According to the latest global luxury market monitoring report of Bain & Co, by the end of this year, the number of global luxury consumers will exceed 350 million, which will cost 230 billion euros, of which Chinese consumers will spend more than 30%.

    But in the past two years, since the launch of Chinese President Xi Jinping

    Anti-corruption campaign

    In an effort to eliminate rampant corruption within the party and government, the alarming growth of luxury spending in China has slowed sharply.

    In addition to reducing Chinese purchases of luxury goods, the anti corruption movement also changed the way Chinese consume luxury goods.

    Stefano Canali, general manager of Canali, a high-end menswear brand, said: "since the beginning of anti-corruption, Chinese customers have become more buying for themselves than buying for others". (Stefano)

    He added: "they are so picky now that they want to know more about what they want to buy, and why they should spend money on a certain commodity."

    Due to exchange rate changes, China's domestic counterparts

    Luxury goods

    High taxes and opportunities to go abroad are increasing. They also choose to buy luxury goods overseas instead of buying out retail stores in China.

    Manufacturers such as French brandy, Swiss watches and Italy handbags have opened up chain stores in China in recent years, and now the problem is coming.

    Insiders say that in China, many large international luxury brands have been shut down in more remote locations.

    store

    This trend is expected to continue.

    Sir David Tang, a writer, said: "Western retail sales in China are rapidly declining, and I expect that many luxury stores will be closed down in.

    The industry will suffer more in the next two or three years.

    Deng Yongqiang is the founder of several luxury brands including Shanghai Tang.

    Deng Yongqiang pointed out that about 60% of the luxuries purchased by Chinese people are bought abroad. With the increasing number of technology people on the Internet, the purchase of luxury goods from abroad will become more common.

    Luxury goods prices in mainland China may be much higher than those purchased in Hongkong, Japan or Europe, due to the high tax rate of luxury goods in mainland China, the rising cost of business in China and the aggressive pricing strategy.

    In 2000, most Chinese did not have passports, let alone visa. Now many countries are trying to attract the rich in China.

    Meanwhile, market watchers point out that travel abroad has become more convenient and cheaper than ever before.

    Analysts pointed out that a large number of contacts with foreign tastes also helped Chinese people change their preferences. From the high-profile display of wealth a few years ago, they turned to pay more and more attention to low-key and quality.


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