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    Luxury Goods Increase, Chinese Consumers Contribute 70%

    2015/8/21 13:26:00 75

    LuxuryConsumersData Growth

    The Chinese have been global in the past ten years.

    Luxury goods

    The contribution of consumption showed an upward trend, rising from 3% in 2004 to 29% in 2014.

    In other words, over the past ten years, the share of Chinese luxury consumers has increased by seventy percent.

    However, the proportion of different brands is also different.

    For the watch brand, the contribution rate of Chinese consumers to sales can be as high as 50%, such as Omega or Cartier, and for leather clothing brands, the ratio is about 20% to 40%.

    If from

    Brand sales

    The absolute value of Louis Vuitton and Cartier is obviously the most popular brand of Chinese consumers. Its sales volume is 1.7 times that of Gucci, 1.8 times of Burberry and Hermes, 2 times of Prada, and 5 times of Bottega Veneta.

    To a certain extent, this explains why Louis Vuitton has been able to keep rising prices.

      

    Luxury goods

    The industry has been tested in the past two years. Although the most difficult days have passed, the future is still full of challenges.

    Today, Louis Vuitton and Cartier still occupy the most important position in the industry. From this time, we can see the increasing purchasing power of the Chinese middle class.

    At the same time, for many "relatively small emerging luxury brands" (Chinese consumers do not yet know the luxury brand) in China, this fertile soil still has great room for growth.

    As for how to attract and seize the changing Chinese consumers, especially the middle class, there are still many problems to be solved for luxury companies: product mix, innovation, update speed, price positioning, changes in consumption habits, changes in consumption and tourism, excessive price differences, purchasing, counterfeit goods, inventory handling, rapid store expansion, sequelae (especially in Hongkong), webpage and online sales development, and so on.

    Ensuring growth in same store sales is the key.


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