The Decline In Luxury Consumption Is Not Caused By Corruption.

Is it true that Prada and other luxury goods are cold?

Reported that over the past 10 years, Chinese consumers have grown into the world's largest luxury purchasing group, consuming around 1/3 of the world's luxury goods.

According to CNN website July 21st, China has seen a new billionaire every week for the past six months. Since 2010, the number of millionaires in China has doubled, breaking 1 million.

As a result, many people predict that the luxury craze in China will continue.

Unfortunately, the opposite is true.

According to the China market research group, the growth rate of luxury consumption in China has declined in the past 12 months.

Italy luxury brand Prada said its profits in the two quarter of 2015 shrank by 44% due to poor sales in China.

The French Open Cloud group, which owns Gucci, Alexander Maqueen and Stella Macartney, found that sales in the Asia Pacific region decreased by 10% in the first quarter of this year.

Many analysts believe that the decline in profits stems from the anti-corruption campaign.

Is that so?

Reported that the anti-corruption does have a certain impact, but sales decline is not entirely caused by anti-corruption - sales decline is the result of changes in Chinese consumption preferences, people are buying from tangible goods to buy life experience.

We must make adjustments based on this new situation.

For example, the Chinese market research group interviewed dozens of Chinese rich people who had reached US $12 million over the past year, for example.

Those respondents said they no longer displayed their identity by buying expensive bags.

These people turn to their social status in other ways, including buying third or fourth apartments in California and Sydney, or taking a lifetime trip abroad, like a French wine tasting trip.

Reported that in China, sharing such experiences with friends in social media such as WeChat, rather than buying the latest Louis Weedon bag, has become a new identity symbol.

Many areas are expected to make considerable progress; first of all, travel abroad.

The Chinese want to go to places that have never been taken up by other Chinese people.

Last year, a billionaire was interviewed at a six star hotel in Dubai.

Although the hotel was luxurious, the lady looked gloomy.

She said it was because there were too many Chinese around.

She hopes to go to a place where few Chinese people have been able to share this experience with WeChat friends.

It is reported that the Chinese are actively pursuing all kinds of adventure activities once in a lifetime.

They went to Africa to study and live in the best hostels.

They even went to the South Pole.

In fact, China is becoming one of the fastest growing markets in the Antarctic tourism business. From November 2011 to March 2012, more than 2300 Chinese tourists visited the Antarctic circle.

The average number of Chinese tourists in the US

They also rank among the top countries in the world, spending the most during the 2012 London Olympics.

In addition to tourism, Chinese people also want to buy unique items, according to the report.

For example, Chinese are pushing up sales of high-end art market in the world.

Wang Jianlin, the richest man in Asia, who spent more than 35 billion dollars, spent $28 million 200 thousand to buy a famous painting by Spanish artist Picasso.

Wang Zhong Jun, founder of Huayi Brothers, spent $62 million to buy a masterpiece by Van Gogh, a Holland painter.

It is reported that Chinese people do not buy anything simply to show off.

They combine investment more with show off.

They now value life style very much.

Now, wealthy Chinese are happy to spend money on life experiences and unique items rather than luxuries.

Although many analysts are looking for reasons for anti-corruption campaigns, the decline in luxury sales profits is really due to the fact that consumers are becoming more mature.

Brand should understand the latest development of Chinese consumer preferences.

Adjust your strategy accordingly.