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    Luxury Goods Grow, Where Do Chinese Consumers Contribute 70% Of Their Money?

    2015/8/26 9:25:00 92

    Global Luxury ConsumptionLuxury GoodsLuxury Goods IndustryBrand SalesInventoryPurchasingIndustry NewsBig Data

    The Chinese have been right in the past ten years.

    Global luxury goods

    The contribution of consumption rose from 3% in 2004 to 29% in 2014.

    In other words, the growth of the luxury industry in the past ten years has contributed 70% to Chinese consumers and 30% to other countries.

    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%.

    Chinese contribution to luxury brand sales

    Due to the obvious price difference between Mainland China and Hongkong, it is easy to see from figures 5 and 6 that Chinese consumers choose to buy relatively high priced products abroad.

    If you look at the absolute value of brand sales, it is obvious that Louis Vuitton and Cartier are the most popular brands of Chinese consumers. Their sales are 1.7 times the sales 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

    industry

    In the past two years, we have been tested by all kinds of challenges. 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 brand

    There is still much room for growth in the fertile soil of China.

    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 goods companies: product mix, innovation, update speed, price positioning, changes in consumption habits, changes in consumption and tourism, excessive price differences, purchasing, fakes,

    Stock

    Deal with the sequelae of rapid store expansion (especially in Hongkong), the development of web pages and online sales, etc.

    Ensuring growth in same store sales is the key.


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