Traditional Luxury Goods Are Losing Their Favor In China. How Will They Break Down In The Future?

Luxury brands still have room for growth in China, especially those with long history and special crafts.

But these brands need to develop in the high-end professional market. They must be able to customize products and services according to their needs.

Chinese consumers are the largest consumers of luxury goods in the world, according to US media. But the latest industry survey shows that more and more Chinese luxury goods are mostly purchased overseas.

This is bad news for luxury brands that are open in China, but it's not bad either: it means Chinese buyers are becoming more sophisticated and sophisticated.

Shanghai's Luxury Market Research Institute, the Institute of wealth quality, says Chinese buyers are better at avoiding being influenced by marketing methods and finding better quality products.

In 2015, China's luxury goods report said that Chinese accounted for 46% of global luxury goods pactions this year, unchanged from 2014, and remain the world's largest luxury buyers group.

Luxury goods buyers account for 19% of the world's total, ranking second.

About 78% of Chinese luxury goods have been purchased overseas, a slight increase from 76% last year, the report said.

Chinese consumers' purchases of global luxury goods increased by 9% over the same period last year, to $116 billion 800 million.

But the report said that their overseas luxury consumption increased by 12% to 91 billion dollars, faster than the growth of total consumption.

Zhou Ting said in a telephone interview that the main reason why Chinese people used to buy luxury goods overseas is that Chinese buyers feel that the price in the Chinese market is much higher than that in overseas markets. But now, Chinese people are increasingly paying attention to the latest styles and more choices in overseas markets, and they can get better service overseas.

Reported that

Efforts have been made to revive the depressed local market, and the import tax on clothing, fur and footwear has been cut by half this year.

However, it faces some difficulties, such as the complicated economic situation, the devaluation pressure of RMB, the vigorous anti-corruption efforts of the government, and the increasing trend of outbound tourism.

Data released by the State Administration of foreign exchange showed that overseas Chinese tourists spent 74 billion 900 million dollars in the third quarter, an increase of 61% over the same period last year, a 27% increase in the ring.

Zhou Ting said that for wealthy people, they are at home.

Overseas shopping is cheaper, more reliable and enjoyable.

She said that Chinese people now have their own investments overseas, their own real estate and education overseas.

Reported that China's imports were affected by tariffs

It is still 25% more expensive than overseas products, but this is much lower than 60% nearly four years ago.

Traditional luxury brands are losing favour in the Chinese market.

Louis Weedon has closed three stores in China this year.

In the past two years, Prada closed about 1/3 of its Chinese stores, and Chanel closed about half of it in the past two years, the report said.

There is also a big loser: only 4% of Chinese high net worth people say they regard the domestic e-commerce website as the main channel for online shopping.

44% of the respondents were shopping online through the official retail websites of luxury goods companies. The problem of counterfeit goods in China's online retailers is always worrying.