The Luxury Consumer Market Has Stopped Its Explosive Growth. Where Will It Go?

In recent years, the luxury consumer market has been sluggish and the explosive growth has stopped.

In September, people were shuttling Barberino Designer Outlet 30 minutes away from Florence. In the restaurants and cafes, which are inlaid between famous shops, the Chinese faces with big bags around them are particularly eye-catching.

On the one hand, the overseas luxury shopping craze brought by the surge of outbound tourists in China is, on the one hand, a wave of price cuts launched by luxury stores in China and the tense competition atmosphere caused by the rising fashion business providers to the international outlets shopping mall, which is different from the elegant and leisurely consumption atmosphere deliberately created, and the days of international shopping villages do not look so good.

Since March this year, CHANEL, DIOR and other international luxury brands have adjusted prices in China. The French luxury group Kering (Kai Yun) brand GUCCI is also not calm. Since May and June, a substantial discount has been launched nationwide. At the end of July, luxury brand Prada announced price adjustment to many regions including China, and clothing, luggage and other main commodities were in the price adjustment. The price adjustment has spread to almost all areas of Prada.

The domestic luxury consumption market has stopped explosive growth and is becoming more stable. Major luxury groups have joined the price reduction force. What will happen to the international outlets, which are selling brands with discount prices?

"From the operating data of the second quarter and the third quarter, our shopping villages seem to be not affected by the price cut of luxury stores in China." Anthony Rippingale, head of tourism group at McArthurGlen group, a European design brand shopping village leader, pointed out in an interview with the twenty-first Century business reporter. "But in view of this trend, we are really thinking about new ways to attract Chinese consumers. Because Chinese customers are almost the top three consumers of every international shopping village.

In order to enlarge the strength.

Contrary to the worries of the media, the major shopping village groups have chosen to expand their property in the sluggish nodes of the luxury industry. Mc Arthur Glen recently announced that it will join hands with Turkey Fiba Group, the leading international financial and retail group, and the two largest outlets in Istanbul, the largest city in Europe, built in Istanbul's New International Airport near Europe and the fast growing university suburb of Asia, serving two independent settlements with a population of over 7 million. With the completion of the North Marmara highway crossing Bosphorus's third Strait Bridge in 2015, the two centres will be able to benefit from it.

In the birthplace of outlets, the largest commercial real estate operator in the United States and the Simon real estate group, the largest retail real estate company in North America, also announced the launch of a new outlets. In Europe, Italy's most famous Serravalle Designer Outlet, orlies, recently announced its expansion plan, opening 70 new stores and positioning itself as Europe's top fashion destination and Milan's one day leisure destination.

"I am not worried about our expansion prospects. There are two reasons: first, the property we choose is always close to a famous tourist city or tourist attraction. For example, Noventa di Piave and Barberino centres, the two shopping villages are located in the tourist city of Venice and Florence, which are favored by tourists. They have always been sought after by international tourists. We never worry about their sales. Secondly, our Asian colleagues have surveyed the price of all kinds of hot items in luxury stores in China, even in the discount season, their discount price is still higher than that in the shopping village. Anthony Rippingale said so.

" Luxury goods The industry is sluggish, the sales of genuine shops are not smooth, and the inventory of products is increasing. Accordingly, more and more off-season and lower shelves products will flow into the outlets, which will increase the chance of consumers to choose and increase the attractiveness of Oteri J. Linda Ray, the fashion industry, said. After the great depression, there has been a thrift trend among consumers in Europe and the United States. People's consumption behavior has changed from extravagance to frugality, and they want to buy products with higher cost performance. Oteri J met this need.

Adjustment structure

But relying solely on the price advantage to ensure the development of outlets is risk-taking. Especially now that luxury goods are being cut down, more and more luxury brands begin to test the water suppliers through various ways, and many target customers turn to the online shopping environment. As an entity Shopping Village attracting consumers at low prices, Ortles undoubtedly suffers from double challenges. In this regard, many positive measures have been taken in Oteri J's industry.

In a previous interview, TIAA Henderson Real Estate Co., Ltd. European Andrew outlets manager Andrew Rich said: Oteri J's shop rental is shorter than traditional stores, generally in about 10 years, giving tenants and investors a great deal of liquidity. Generally speaking, short term is not conducive to attracting investment. But on the other hand, such a leasing framework can also make poor tenants be replaced quickly. During the great depression, the turnover rate of merchants will reach 110% to 180%. The flexible leasing framework means that the operators can react quickly to changes in the global retail market and local demand. This is the key to optimizing sales performance, increasing the diversity of shops and enhancing shoppers' experience.

On the other hand, orter hopes to increase the diversity of shopping centers' brand presence to cater to the increasing consumer interest of consumers. As Anthony Rippingale said in the interview, "the brand of our group shopping center involves luxury brand, high-end brand and lifestyle brand. Each shopping center has different brand names. At the same time, we are also holding various fashion and cultural activities in shopping villages, such as fashion week, antique goods market and concerts to attract people. The idea we want to convey is that this is not only a place of sale for fashion items, but also a sharing place for lifestyle. People come here not just to shop, but to enjoy their own way of life. "

Electricity supplier's impact

In traditional shopping centers Online retailers In the face of the impact, analysts believe that orlet shopping village is the most likely to withstand the impact of electricity providers. Andrew Rich believes orter shopping village is designed for people who enjoy shopping experience. People want to feel and feel the merchandise, and they also value the shopping atmosphere.

"In addition to buying cheap, tax-free goods, we also provide visitors with the highest level of shopping experience. In Europe, whether it's for sightseeing or business travelers, our shopping center itself is one of the destinations and a part of the local tourist attractions. In Barberino centres outlets, we even organized an old city tour route guided by experts. We work with local cultural heritage protection organizations to provide consumers with an opportunity to gain an in-depth understanding of local culture. "Florence, Anthony Rippingale, for example.

In a previous interview, RDM CEO Jacopo Mazzei, a European high-end retail giant, said that people could spend the whole day in a comfortable and beautiful shopping center. They could not only buy cheap products, but also take photos of their friends and play with their children in public entertainment facilities. Shopping Part of experience.

And when it comes to rumors that "most of the products of otter's products are special, and their quality is not the same as the quality of their stores", Anthony Rippingale said that according to his personal experience, such a statement is not credible. Because most of the products appearing in Ortles are off season goods or unsalable products transferred from the exclusive stores, when the factories are producing these products, the workers do not know which ones will be sold directly in the exclusive stores and which will enter Oteri J.