Luxury Goods Are Frustrated In China's Market Strategy, Declining Performance

In 2015, more than half of the time, Chen Kai, a sales manager of the Northern District of Italy menswear brand, used "bad" to describe the operation of the brand this year.

Chen Kai told reporters that 3 years ago, the brand's annual compound growth rate was about 40% to 50%. Now 10% is good.

Anti corruption, domestic and foreign price difference, overseas shopping extravagance, electricity supplier impact......

These commonplace reasons make life difficult for many luxury brands, stocks continue to fall, and performance reports are even worse.

As a matter of fact, the above is only a superficial reason. Nowadays, with the slowdown of economic growth, many luxury brands rely too much on single market, and these problems are gradually exposed.

Two years ago, light extravagance was in fashion, and its results were quite brilliant. "Spike" had many luxury brands, but the problem was that the brand lacked the "soul" and followed fashion instead of leading fashion.

Recently,

A number of media reports said that the United States leather brand

Due to poor sales performance, it decided to withdraw from the store in central.

This has also become the first brand to withdraw from the core retail market in Hongkong.

It is reported that the flagship store in Coach started renting in 2008, when the rental price was HK $2 million 600 thousand, while the rentals in 2012 amounted to HK $5 million 600 thousand.

Plus the external wall advertising rent.

Almost 3 times that of 2008.

But over the past year, for various reasons, Hongkong's Luxury Retailing industry has been in a state of "neglect of cars and horses in front of the door", which has not been improved for a long time. Hongkong's luxury retail industry, which has been driven by the Chinese mainland market, has been hit hard.

In fact, luxury stores in Hongkong are not the only ones in Coach. It is reported that the LVMH group's Heuer Watch also plans to close the store in Russell street, Tongluowan, Hongkong.

According to industry analysis, Hongkong is losing its status as an Asian luxury center. Many brands including LV, Gucci and other major brands plan to close some shops in Hongkong or trigger a chain reaction.

For many young consumers, Coach has always been a representative of its "entry-level luxury". The first bag and wallet are almost Coach, and friends around the world are the most purchasing brands.

Subsequently, including Michael Kors, Kate Spade, MCM and other brands have joined the ranks, the industry has re defined this brand as "light extravagance", Zhou Ting, President of the Institute of wealth quality, described the characteristics of light luxury industry with "fast up and down".