Chinese Factors In The Performance Of Luxury Goods

Multiple factors led to changes in Chinese consumers' shopping trends, affecting the different regional performance of international luxury goods groups.

These similar trends are reflected in the fact that the Chinese government has been cracking down on luxury consumption, leading to high-end consumer spending in the past two years. At the same time, Chinese buyers have abandoned the shopping destination at a very fast pace in the past year: Hongkong and Macao, and Japan, and Europe, which are near and low in exchange rate.

Hermes's best performance in the second quarter was in Japan, where its revenue grew by 26.5% on a fixed exchange rate year by year, faster than the 15% in the first quarter.

For this performance, Hermes told analysts that a large number of Chinese consumers recently poured into Japan to buy Hermes products.

HSBC analyst Antoine Belge told foreign media that Chinese tourists are now more inclined to go to other parts of Asia, especially in Japan.

We need to know that the number of stores in mainland China is 23, 7 in Hongkong and 3 in Macao, while there are 45 shops in Japan.

In addition, 17 cities in Japan are equipped with Hermes Outlet discount, which is undoubtedly a great attraction for mainland tourists.

In this regard, Zhou Ting told reporters: "Hongkong luxury sales before the location price advantage, attracting many consumers in mainland China, but now outbound tourism is more convenient, exchange rate factors and other factors, mainland China consumers tend to luxury goods origin in Europe and the United States shopping; on the other hand, Hongkong is also affected by the competition pressure of Asian countries and regions such as neighboring Japan, Korea, Taiwan, Singapore, etc., the latter has more advantages in price or better in service experience.

And Macao did not rely on price advantage, but rather on the luxury sales driven by gambling industry. Now it is more affected by the consumption psychology brought by anti-corruption.

Thanks to the consumption of Chinese tourists in the European and Japanese markets and the continuous high discount and inventory activities in the Chinese market, the core brand Gucci of Kai Yun group rose 11.8% to 1 billion 874 million 200 thousand euros in the first half of the year, and the revenue in the second quarter increased 19.9% to 1 billion 5 million 200 thousand euro yuan.

In May 2015, Gucci launched a two month long promotional campaign of up to 50% in the Chinese market.

At that time, Gucci told reporters: "the discount rate in 2015 is similar to that in previous years. In fact, the exchange discount also represents the change of Gucci in the direction of new brand."

"In the era of brand remolding, luxury brands in China must get rid of traditional ideas and channels and follow the footsteps of consumers," said Bruno lner, author of the global partnership of Bain and the 2014 luxury Research Report. "Otherwise, they will face the risk of losing customers. This is a challenge for many brands, and those brands that know how to integrate with consumers will get rewards from it."

For the LVMH group, in the first half of the year,

Brand is global.

Climbed more than 10%, but mainland China's turnover fell by 10%.

Jean-Jacques Guiony, chief financial officer, said in a conference call: "taking into account the price problem, the company will shift its focus from mainland China to other regions, such as Japan and Europe, which are more likely to benefit from these two markets."

At the same time, LVMH combined with other luxury goods groups to renegotiate the rental price with Hongkong owners, Guiony is still optimistic about the potential of the region.

Jean-Marc Duplaix, chief financial officer of Kai Yun group, also asked Hongkong real estate developers to reduce rent to suit the current market changes.

As the Chinese government has been cracking down on luxury consumption, high-end consumption has fallen to a trough in the past two years.

He pointed out: "Hongkong is still a very potential market.

But when you walk in the best part of Hongkong, such as Guangdong Road, you will still feel the local demand for luxury goods.

In the light of

The luxury companies have adopted different strategic price adjustment measures.

In March 2015, in order to coordinate the difference in product price, French luxury brand Chanel lowered its leather and fashion prices in China, and triggered a series of luxury companies to follow suit.

Other luxury brands, though not directly pricing the world, have increased the prices of products sold in Europe and sold prices in disguised form.

LV said that in the second quarter, the sale of handbags for sale in Europe has been completed, with an average increase of 5%.

But Guiony said: "most brand new products will reflect price differences, which is not a unique strategy of LV, which is more consistent with our practice.

So we will gradually adjust the price of new products, but we do not plan to make global pricing adjustment at present. "