Luxury Market Moving Northward

According to Nelson's CR Retail report, the Chinese market is complex and changeable. The international luxury brands that want to enter the Chinese market and succeed in China need patience and do research work.

Although some retailers blame China's anti-corruption policy on the slump in the industry, the reason for the failure is not enough research to understand the complexity of the market. Therefore, if we want to succeed in the Chinese market, luxury brands must cater to consumers' preferences and set up retail and marketing strategies to attract Chinese consumers.

Although Shenyang's economy is weaker than other cities, it ranks third in the number of luxury stores.

In 1970s, the luxury industry in Liaoning grew by 9.3%, ranking second in all provinces. Now Shenyang has become the preferred destination for luxury brands to open stores or shopping malls. Today, there are 100 luxury stores on the 4 mile The Golden Corridor, but this may change.

In 2014, Liaoning's industrial added value was only 4.5%, partly affected by the growth of the national industry, and also affected by the shift from heavy industry to investment service industry and financial industry. Louis Vuitton has 4 stores in the "Golden Gallery". This year it did not renew the oldest store in Shenyang. Other retailers, like Dior, Burberry Choosing to move to different parts of the city shows that they still have confidence in Shenyang.

Since 2010, 4 different international shopping centers have been withdrawn. Shenyang Because there is no way to keep all stores on sale.

Northern Consumer It may take two hours to go shopping in the luxury brand concentrated area of Shenyang. They are different from consumers in the south. Although the proportion of luxury goods purchased by coastal consumers is relatively large, consumers who come to Shenyang to make decisions are faster because their purchase decisions are mainly driven by comparisons. But this may change, as people, especially young people, can get more and more resources through the Internet.

According to a new survey by Boston Consulting Group and AliResearch Institute, China's consumption volume is expected to increase by 2 trillion and 300 billion by 2020 even if the economy is sluggish. Household disposable income is US $24 thousand, which will further drive consumption growth and generate more demand for high-end products and services. As incomes rise, young people will acquire purchasing power and gradually spend on e-commerce sites, so brands need to adjust their strategies.