Luxury Brands Have Encountered An Unprecedented Cold Wave In The Chinese Market.

In recent years, the domestic outbound travel market has been quite active. People who have gone abroad have found themselves in the overseas market after the huge price gap between luxury goods at home and abroad.

Sales in China.

"I often travel abroad on holidays, and buy some bags and cosmetics back by the way."

Liang Wenjing, former New Oriental English teacher, told reporters.

Despite the fact that many luxury brands have lowered their prices in China in order to balance global prices, there are still significant differences in the price of luxury goods at home and abroad after the price cuts.

Take Chanel's 11.12 handbags as an example, after the price adjustment, the price in the domestic market is RMB 30 thousand yuan, while the price in the European market is only about 23 thousand yuan / two, and the difference between the two is about 7000 yuan.

The same is true of high-end cosmetics.

For example, a bottle of 50 ml of Estee Lauder special muscle repair essence, for example, although the price adjustment in the domestic market from RMB 950 yuan / bottle to 850 yuan / bottle, but still higher than the European market price 328 yuan / bottle; higher than the United States 279 yuan / bottle.

"For those who travel abroad frequently, such a decline is not enough to shake up their habit of buying luxury goods from abroad."

Liang Wenjing said.

In 2014, the major luxury brands encountered an unprecedented cold wave in the Chinese market.

The 2014 China Luxury Market Research Report released by Bain, a global consultancy, shows that in 2014, China's luxury market for the first time showed negative growth, and its growth rate was 1% lower than that in 2013.

In sharp contrast, the growth rate of luxury goods in China in 2013 was 2%, which was 7% in 2012 and 30% in 2011.

Why did the luxury goods that had always been good at HUAFA exhibit a sudden setback? I'm afraid this is not related to the impact of the Chinese government's anti-corruption policy.

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Gifts have always been an important part of luxury consumption in China, but since the promulgation of the "eight regulations", the phenomenon of gift giving has been restrained for a long time, and the number of people buying large quantities of luxury goods for the purpose of gift giving has obviously decreased.

According to Tang Jianjun, an angel investor in the daily chemical industry, the average consumption of the Chinese affluent group decreased by 15% in 2014, and the luxury consumption for gift giving was 25% lower than that in 2013.

In the luxury of declining performance,

It's the hardest hit area.

Tang Jianjun said that the sales growth of high-end watches in China has dropped to 11% in 2014, and by 2011, it has maintained an astonishing 40% per year.

The slowdown has also helped the once optimistic Swiss watchmakers tighten China's market share.

According to reporters, since 2014, the Swiss watch enterprise Audemars Pigeut has closed 6 retail stores in China, "China's Gold Rush has ended."

Francois, the chief executive of the brand, has publicly stated that "we will slow down the pace of expansion in China, and now we must be very careful in every step."

The data also confirmed Liang Wenjing's statement.

The 2015 spring report of global luxury market surveillance released by the Italy luxury goods industry association in May 25, 2015 shows that the fluctuation of exchange rate, the pricing strategy and distribution channels of luxury brands in various markets are the main reasons for the massive outflow of luxury consumption in China.

Affected by this, the Asia Pacific luxury market led by China was almost stagnant in the first half of 2015.