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    Greater China Performance Slowdown, Luxury Luxury

    2015/8/10 7:53:00 68

    Greater ChinaAchievementsLuxury Goods

    Although the Chinese are still "luxury buyers" in the global luxury market, China's luxury goods market is getting cold, and has increasingly become the "worst" of international luxury goods.

    In the global luxury market, in 2014, the total amount of gold hit by consumers in mainland China rose by 9%, to 380 billion yuan, accounting for 30% of the global luxury market share. However, such as anti-corruption, overseas consumption, purchasing and other reasons, the Greater China luxury market was frozen.

    Bain's "2014 China luxury market report" showed that the mainland China's luxury market for the first time showed negative growth in 2014, down 1% from 2013.

    In the first half of this year, this trend continues to ferment. In the latest quarterly earnings reports of major luxury brands, China, especially Hongkong and Macao, has become a headache area.

    COACH, who has just released its earnings report, said that Hongkong and Macao were affected by a significant decrease in the number of mainland tourists and weaker sales performance. This affected the growth of China's regional growth for the first time in the fiscal year COACH2015 to a single digit increase of 9%, while the four quarter growth was only 5%. Burberry also showed that the signs of Hongkong's market weakness were not improving at present, so the group issued an early warning in May, and the Hermes group also said Hongkong and Macao were still in "difficult circumstances".

    "In China

    Luxury goods

    In the minds of consumers, Hongkong is losing its status as an Asian luxury center. Analysts believe that Hongkong will face a series of luxury stores such as LV, Gucci and Prada in the next few years.

    Bain global partners

    Bruno Lena

    It is estimated that luxury brands will continue to adjust their distribution in 2015, including closing discount stores and authorized stores.

    Dean of wealth Quality Research Institute

    Zhou Ting

    It is also considered that the trend of luxury stores will continue in 2015. "Some stores fail to perform well, too many stores have little effect on performance improvement, but assume more costs, and the need to pform traditional stores' sales channels is the reason why luxury brands are closed," she told reporters.

    Hongkong's sluggish retail sales and rising rents make it a headache for luxury brands who once made big profits in this market.

    According to foreign media reports, the French luxury group LVMH's watch brand TAG Heuer (tiger Ya Hao) is planning to close the shop in Russell street, Tongluowan.

    Not only is TAG Heuer, the jewelry merchant Zhou Dafu Hongkong branch's stream of people and the business started to decline continuously in the second half of last year, although the decline in recent months slightly slowed down, the overall flow of people still fell 20%-30% compared with the same period last year.

    Huang Shaoji, managing director of Zhou Dafu, said the group will start the integration of the branch and discuss with the landlord about the rent reduction, and will close 1-2 stores in Taiping peak and Tongluowan in the near future.

    The slower growth of performance in Greater China has led some international luxury brands to reduce or slow down the number of stores.

    Data show that in the first quarter of this year, the number of Prada stores in China reached 33, compared with 49 in 2014, while the number of Armani stores dropped from 49 to 44, while the number of Chanel stores was 11, which was half of the largest number of stores.


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