Luxury Richness Has Achieved Good Results In Shanghai Over Hongkong.

The world's largest commercial real estate service and investment company, CB Richard Ellis, released a report in Shanghai on 12 October. After statistics on the penetration of 52 international high-end brands in the major cities in the Asia Pacific region, it was found that Shanghai's international high-end brand richness has surpassed Hongkong, ranking first in the Asia Pacific region, and Beijing and Chengdu in seventh and ninth places respectively.

In recent years, the rise of overseas shopping and the introduction of anti corruption measures by the Chinese Communist Party have brought unprecedented challenges to China's luxury industry. The sluggish domestic sales force forced luxury retailers to slow down the pace of expansion in China.

Against this background, the expansion strategy of international luxury brands began to change. In the Beijing Shanghai region, the core business circle with the city's coverage is the first choice for luxury retailers. Between 2012 and 2014, the number of new stores in these core businesses accounted for 80.8% of the total increment.

Low price is consumer choice. Overseas purchasing The most important reason for the channel is that the purchase price of the same commodity is usually more than 20% above that of the domestic entity store.

CB Richard Ellis considers overseas purchasing. channel Standardization, luxury brand to commodity Global pricing The three reasons for the unification and the reduction of import tariff will lead to the unsustainable advantages of purchasing channels in price. However, some purchasing agents who are good at innovating in services will get the chance to develop and have the chance to transform into professional luxury buyers.

Because luxury retailers value the expansion and maintenance of several types of markets and properties such as Beijing, Shanghai, the core business circle and the light and high-end ones, the performance of these high-quality properties is even higher than that of other types of properties. Data show that the rent of Beijing Shanghai property is superior to that of the regional central market, which is 25% higher.

At the same time, the implementation of anti-corruption campaign in China has also promoted the middle and high-income class to replace the high net worth crowd as the main force of luxury consumption. In the face of price sensitive and smarter middle and high income consumers, luxury retailers have to keep them in domestic stores and increase their purchase frequency, so we must narrow the price differences between domestic and foreign stores, so as to promote the long-term development of the huge domestic market in China. As a result, some international luxury retailers have started price adjustment.

At the beginning of 2015, a wave of luxury price cuts started in China's domestic market. After the launch of the price reduction strategy, the market reacted strongly. Chen Zhongwei, head and executive director of the research department of the world bank Richard Wilson, believes that the slump in the mainland market is not a lack of market demand. Once the gap between domestic and foreign prices is narrowed to a certain extent, the demand for Chinese consumers to buy goods in local stores will be released.

The report also pointed out that with the rise of emerging consumer groups, business models and technology innovation are ushered in the "new normal", and luxury shopping channels are increasingly diversified. Among them, the overseas purchasing force is becoming a new force that can not be ignored in China's retail industry.