What Is The Future Trend Of Luxury Goods' Farewell To Golden Ten Years In China?

China used to be the main support for global luxury brands' global sales.

China's 10 year official report, published by the World Luxury Association, shows that by the end of December 2011,

The total annual consumption of luxury goods has reached 12 billion 600 million US dollars (excluding private aircraft, yachts and luxury cars), occupying 28% of the global share. China has become the largest luxury consumer country in the world.

According to the analysis of Bank Securities Department in Paris, France, when luxury brands are sold in China, the sales of Burberry 1/4 and Prada global 1/5 all come from Chinese consumers.

Swatch group's brand Omega, Harry Winston and Balmain account for 35% of its global sales from mainland China, Hongkong and Macao.

But in the past two years, luxury brands are no longer "brilliant" in the Chinese market, influenced by many factors.

According to media reports, Jean-Jacques Guiony, chief financial officer of LVMH, pointed out in a conference call that if there are two stores in China's second tier cities, perhaps one of them will be shut down. Considering the price issue, the company will shift its business focus from mainland China to other regions such as Japan and Europe.

In addition, domestic consumers' pursuit of luxury brands is far worse than before.

Zhou Ting, President of the Institute of wealth and quality, said that in recent years, Chinese consumers' consumption choices have become more and more diversified and personalized, and are no longer willing to pay for big LOGO brands.

At the same time, as more and more light luxury brands and niche brands enter the market, the pressure of luxury brands is increasing.

"In fact, consumers now prefer different personalized products instead of blindly pursuing too high profile brands like LV and Prada."

Some industry insiders said.

However, some industry experts are still optimistic about the development of China's luxury market.

Tang Xiaotang, founder of No Agency, a luxury goods and apparel retailing industry research consultancy, believes that the status of China's luxury market will not be shaken by the current market situation. Even if sales continue to fall, luxury goods will remain a showcase in the Chinese market, and the core business district of the first tier cities is still the best choice.

Shen Meng, executive director of Xiang song capital, also pointed out that China's outbound tourists, especially those in Japan and Europe, have increased their luxury purchases in part, which partly offset the purchasing power of luxury goods in China.

In addition to outbound travel, purchasing and purchasing in recent years

The rise of luxury brands has also hit sales in the Chinese market.

Peng Dandan, a consumer, said he had friends working overseas. He usually bought some light luxury brands to buy friends, and the price could be two or three cheaper than the domestic stores.

Reporters chose more than ten.

Compared with its price in various domestic channels, the price of a single product is the highest in China's official website, followed by Amazon and Jingdong.

A LV metal leather buckle VOLTA handbag is priced at 28500 yuan on the official website of China, and only 25200 yuan for purchase. A Burberry lattice bloom is priced at 15500 yuan in the official website of China, and only 12400 yuan in Amazon and Jingdong, which is only 9300 yuan.

Although the purchase may not be able to buy genuine products, but also diverted a number of luxury consumers.

Faced with the impact of multiple channels, some luxury brands have tried new sales channels and sales methods in China.

Insiders pointed out that nowadays, the performance of the major luxury brands in China has slowed down, and it is also reasonable to set foot in the electricity supplier.

Zhou Ting said that the business model of the entire luxury brand is changing, and the electricity supplier has become a trend of pformation in the luxury goods industry, though this adjustment will have an impact on the operation of the physical store in the short term.

First, luxury brands can build their own e-commerce platforms, and the two is to set up flagship stores based on third party e-commerce.

The luxury brand enters the electronic business platform. It wants to use the third party platform to deepen the Chinese online luxury market and pform the flow of the third party platform into the brand's own traffic.

Reporters learned that the British luxury brand Burberry, Danish luxury audio-visual brand B&O, Italy high-end kitchenware brand La Cotini and so on have been settled in Tmall.

Another part of the luxury brands authorized in the temple library, glamour benefits, treasures network and other vertical luxury electric providers do special sale.

Self built e-commerce platform luxury brands are also rare, including Fendi, Hermes, etc. Chanel also plans to launch a global electricity supplier network next year.

In addition to setting foot in the electricity supplier, luxury brands have begun to try to cross the border, adapt to the new market environment and enhance customer experience.

For example, Gucci opened a restaurant across Shanghai, and LV opened a new store in West Lake, Hangzhou.

Huang Wenjie believes that luxury brands are breaking through the simple product sales through cross-border operation, and at the same time docking with the electricity supplier to break through the limited operating space of the stores, and strengthen the luxury brand's attachment and affinity to consumers from the depth and breadth.