2016, The Luxury Market Will Rebound.

Famous management consulting firm Bain recently released the 2015 China

The Market Research Report (hereinafter referred to as the "report") shows that luxury consumption in mainland China continued to decline in 2015, but there are signs that the luxury market will rebound this year. Luxury brands need to develop flexible pricing and strong digital marketing strategies and focus on them.

In order to win consumers in the local market.

According to the report, the scale of China's luxury goods market in 2015 was 113 billion yuan, down 2% compared with the same period last year.

And leather goods.

In 2015, Chinese consumers were still keen on luxury consumption, and the heat from overseas purchases continued to rise.

Among them, the growth of outbound travel and the impact of Chinese consumers

The dependence and trust of overseas websites has stimulated the development of offshore outsourcing, which has led to the overall decline of China's luxury goods market.

After studying about 1500 Chinese consumers, Bain found that in 2015, Chinese consumers had changed a lot in the choice of luxuries.

Among them, overseas luxury shopping increased by 10% overall, and consumers flocked to it.

Shopping has increased by more than 200%, and the advantages of exchange rate and competitive luxury pricing have made Korea, Europe and Australia a popular shopping destination for Chinese consumers in 2015.

By contrast, luxury consumption in mainland China has dropped by about 25% in China's Hongkong and Macao, China.

It is worth mentioning that, with the increasing popularity of overseas tourism, the dependence of Chinese consumers on purchasing is gradually decreasing, and the scale has been reduced to 43 billion yuan.

According to Bain's analysis, there are two reasons for this phenomenon: first, the price adjustment of luxury brands, resulting in a decline in purchasing profits; two, the government's supervision over the import channels including purchasing agents, the weakening of the renminbi and other shopping channels, especially

And the rise of overseas shopping websites has led to a decline in purchasing scale.

"Our research finds that the luxury goods industry is rapidly adapting to these challenges, and promotes domestic luxury consumption by adjusting global pricing, focusing highly on fashion and other strategies."

Bain, global partner of the company, said Bruno, author of the report.

According to the report, the fall in domestic sales will inevitably lead to the reduction of the number of stores by most luxury brands, and more attention should be placed on a few larger and better location stores.

Many brands realize that they need to find the brand uniqueness that is blurred by excessive expansion.

Bain's survey also found that nearly 80% of respondents generally received luxury information from the Internet or application software; 60% of them surveyed social media channels such as micro-blog and WeChat as online sources of luxury information.

Based on this, the cost of the brand in the digital channel is up to 35% of the total marketing budget, and this figure is still rising.

Looking ahead, Bain believes that this year, China's luxury market is still facing these problems, but with the emerging middle class becoming more mature and their increasingly rich understanding of luxury goods, there are still opportunities for development.

On the one hand, the global price adjustment initiated by the leading luxury brands and the efforts made by the Chinese government in guiding local consumption will stimulate domestic consumption growth; on the other hand, other luxury brands are likely to join the global price adjustment operation.

Faced with this development, luxury brands should strengthen the construction of digital platform (such as micro-blog, WeChat, application software) and digital content creation, and attach importance to localization of brands to reflect market preferences.

At the same time, luxury brands should further strengthen the younger and fashionable brands to attract the younger generation of consumers pursuing fashion.

In the product design and store layout, we need to further highlight the uniqueness of the brand.

"Although there are many macroeconomic, economic and industrial challenges in the Chinese market, this does not mean that there is little hope for luxury brands."

Bruno believes that "a large number of brand growth opportunities will come from more unique and fashionable brand series, digital platform interaction, digital content creation and pricing that can encourage Chinese consumers to consume locally."