Serious Consumption Outflow, Luxury Price Reduction Is Conducive To Overseas Consumption Reflux

While luxury stores in China are closed, the market share of Chinese consumers in luxury goods all over the world is increasing.

According to the 2014 China luxury market report released by Bain, in 2014, luxury goods consumption in mainland China rose by 9% to 380 billion yuan, accounting for 30% of the global luxury market.

According to the report released by the Institute of wealth quality, the Chinese bought 46% of the world's luxury goods in 2014, reaching US $106 billion (or about 640000000000 yuan), an increase of 4% over the same period last year. It is the undisputed largest buyer in the global luxury market.

This has caused some problems for the layout of global luxury brands in the mainland of China.

With the increasing popularity of Chinese overseas travel and the existence of luxury price differentials at home and abroad, the price of global luxury goods has been adjusted according to the regional market, which has become the strategic direction of many brands.

In March 18, 2015, the famous luxury brand Chanel (Chanel) of France confirmed that the Chanel product line will cut its average price by 20% in the Chinese market according to its newly formulated "global price balancing strategy".

The price cutting trend of luxury goods has been lifted.

Cartire, Dior, Versace, Heuer,

And other luxury brands immediately announced a 5% to 20% price cut in China and the decision to raise prices in Europe.

In 2014, the airport duty free shop.

And domestic stores become the three most important channels for respondents to buy luxury goods.

At the same time, overseas purchase methods, including outbound shopping and other overseas purchasing, including purchase by oneself or relatives and friends, make up 56% of the absolute advantage to become consumers' future purchases.

Preferred purchase channel.

On the choice of the specific place of purchase, Hongkong became the favorite overseas purchase by 68% of the proportion, followed by 45% in the United States.

Europe and France, Italy and Japan have received strong support from tourists this year, thanks to the weak euro and yen.

Sales of many luxury brands in Europe and Japan reached double-digit growth in the first three quarters of 2015.

The "exchange rate factor" was condemned by the same people as the initiator of the luxury price cutting tide. The exchange rate created a huge regional price difference. Chanel President Bruno Pavlovsky said: "the price of the Chinese market should not exceed 5% of the euro price."

The global market is becoming more and more open, and the links become closer. "The price difference between Chanel handbags in Paris and China has caused great distress to the brand image".

What Chanel is putting forward is the new topic that the luxury industry must face in the development of China.

The price adjustment has finally brought the international market to a balanced state, as Shen Danyang, a spokesman for the Ministry of Commerce, said: "Chanel's active implementation of price cuts in the mainland of China is conducive to the return of overseas consumption.

The Ministry of Commerce will study and adopt targeted policies and measures to make it possible for Chinese people to buy high-end consumer goods with reasonable prices at the expense of their country, which is also conducive to overseas consumption reflow.