The Emergence Of Guan Chao Tide Is Not Surprising For Luxury Goods Industry.

The electricity supplier is undoubtedly a luxury but unwilling to face it.

Especially as the consumption capacity of the older generation of luxury consumers is slowing down, the "post-80s", "post-90s" or "00 after" born or growing up in the Internet age are becoming the major consumer groups of luxury goods, and their consumption habits are innate with internet color.

It is reported that in order to keep the Chinese people away from home, they can also buy reasonably priced high-end consumer goods. The Ministry of Commerce will study and adopt targeted policies and measures. Recently, the French luxury brand Louis Vuitton closed the news of the first flagship store in Guangzhou, making the luxury industry cool.

The store is also the first store in Guangzhou, China, LV, and it will not be.

Recently, the only closed shop plan has been quoted by people familiar with the matter. Louis Vuitton will close 5-6 stores in China.

In fact, Guan chao chao was not the LV shop since then.

Tigheuya, Coach and Belle have been closed. Zhou Dafu intends to close 4 stores this year. The signing of the rent and rent reduction agreement by the king watches and jewellery has already opened up the store outlet for luxury brands in the second half of the year.

However, the emergence of Guan Dian Chao is not surprising for both inside and outside the industry.

Fast growing Chinese luxury consumers have been an important force to support the rapid development of the global luxury market. At one time, there was no two growth rate at 30%.

But with the change of the overall economic environment and the landing of the eight Central regulations and a series of heavy anti-corruption measures, the growth rate of China's luxury goods market continued to decline in 2013 and 2014.

The 2014 China luxury market report released by Bain earlier this year showed that the mainland China's luxury market for the first time showed negative growth in 2014, down 1% from 2013.

In 2014, luxury stores also closed the most stores, of which HugoBoss closed 7 stores, Ferragao and Zegna closed 6, and Burberry closed 4.

Slower growth in Greater China has led some luxury brands to reduce the number of stores in 2015.

Data show that the number of Prada stores in the first quarter of this year was 33, compared with 49 in 2014, while the number of Amarni stores decreased by 5, and the number of Chanel stores was 11, which was half of the largest store period.

And in 2015,

The growth rate of the industry is still not optimistic.

In an interview with reporters, Shen Meng, executive director of Xiang song capital, said that luxury stores faced two impacts in China.

"One is the continuous improvement of domestic operating costs, the other is the actual price of offshore purchase is lower than domestic".

In operation costs, rents are the biggest expense.

There are commercial real estate service agencies data show that in the first quarter of 2014, Tongluowan, Hongkong.

As high as 43310 Hong Kong dollars / square meter, the price is close to 3 times the rent in the core area of Paris.

The high rent resulted in a failure to negotiate with the owners and eventually decided to close the store.

The central flagship store closed by Coach is HK $7 million 200 thousand per month, and the early withdrawal of the property has saved HK $180 million.

In August of this year, the store in Russell street, Tongluowan, Hongkong was closed in August. Tiger Heuer officially entered the Jingdong on September, and opened the flagship store of TAG tiger tiger.

Luxury brands such as Burberry, Chanel, La Mer, Coach, Cartire and so on have been developing new channels through self built e-commerce websites or third party e-commerce platforms in recent years.

According to the 2015 luxury industry development report, the overall market penetration of luxury goods in 2015 is only 2% higher than that in 2014. The luxury consumption budget in 2015 is only 1% higher than the actual expenditure in 2014.

Among them, the existing luxury consumers in 2014 will lose 10% in 2015, while the total consumption budget of the existing consumers in 2015 is 11% lower than that in 2014.

Bruno LAN, Bain's global partner, has predicted that luxury brands will continue to adjust their distribution in 2015, including closing discount stores and authorized stores.

In 2015, the luxury brands in the Greater China region were not very good. It is not hard to speculate that the tide of shop closing is likely to spread to the mainland.