China'S Domestic Luxury Market Is Expected To Recover In 2016.

Under the pressure of government, brand and so on, the rapid development of luxury purchasing market has declined in the past year.

Bain, January 20th, the famous consultancy, China

The market research report predicts that the size of the purchase market in 2015s dropped from 55 billion to 75 billion yuan in the previous year, to 34 billion to 50 billion yuan.

Bruno, a global partner of Bain, said that the future purchasing market will continue to be controlled by the government, so that the consumption of luxury goods will remain in the Chinese market and be included in the GDP's calculation.

The above report shows that China's luxury market in 2015 remained sluggish, with an overall sales volume of 113 billion yuan, a year-on-year decline from 1% last year to 2%.

The follow-up impact of combating corruption and building a clean government has not yet ended, leading to the market for men's related products leading to the entire luxury market.

Data show that the sales scale of watches decreased by 13% after the previous year, down by 10% again.

Sales fell further from 10% in the previous year to 12%.

Last year, luxury brands were closed shop.

The number of brands is the most obvious: Hugo Bosse closed 11 stores, the most closed store in 24 major luxury brands, and the other men's brand Zegna closed 4 stores without adding new stores.

Bruno said that the consumption of business gifts decreased significantly, which is the main reason for the decline in sales of men's products, including watches.

Similarly, in recent years, the luxury goods market in North China and Northeast China, which has been more dependent on business gifts, has been more affected in recent years.

In addition, the slowdown in the economy and the collapse of the stock market also have a huge impact on the luxury market.

Although the consumption of local luxury goods continued to decline, the Chinese luxury consumption in the world increased by 6% in 2015, rising from 380 billion yuan last year to 405 billion yuan.

Among them, the overall increase in Chinese luxury shopping abroad reached 10%.

Over the past year, the destinations have been pferred from traditional Hongkong, China and Macao to Japan, South Korea, the euro zone and Australia.

In 2015, the total expenditure on luxury consumption in China increased by 251%, while Hongkong dropped by 25%.

But in the meantime, the purchasing market has begun to shrink.

Bain said that the rise of cross-border electricity providers and overseas websites in China has diverted the flow of purchasing agents. In addition, the major brands are committed to narrowing the price gap, and the government has stepped up control and control, which is also the main reason for the decline in the scale of overseas purchasing market.

In order to boost sales in China, Chanel took the lead in adjusting the spread in March last year. Many brands followed or explicitly followed up the price strategy.

Bruno said that after lowering China's price, Chanel's stores in China are significantly higher than other brands, which is bound to prompt more brands to adopt similar strategies in 2016.

Over the past year, the Chinese government has stepped up its control over purchasing agents.

It is understood that the customs strengthened the intercepting search since September last year, especially for travelers and parcels returned from popular shopping destinations, such as Japan and Hongkong, China. At the same time, the government was establishing a free trade area in more cities and raised the single cross-border online payment limit from 10000 US dollars to 50000 US dollars. Following the sharp reduction in import tariffs of many categories in May last year, the tariff of wool clothing and some footwear shoes decreased further in January this year. In addition, from August last year, the depreciation of the RMB continued to reduce the difference in overseas shopping.

Bruno said, whether from the brand or the government, the above unfavorable measures for overseas purchasing will continue, then it is expected that the domestic luxury market in China is expected to recover in 2016.