How Luxury Goods Get Out Of The Predicament Is A Key Point.

Although China's domestic economic turmoil and stock market slide, the bain report shows that in 2015, Chinese consumers still made the biggest contribution to global luxury consumption, accounting for 31% of the world's total, followed by American consumers (24%) and European consumers (18%).

Chinese consumers account for nearly 1/3 of the world's high-end fashion, jewellery and handbags. It is important to note that Chinese luxury goods account for 80% of China's total consumption of luxury goods.

For the development trend of luxury market and brand in 2016, Professor GachouchaG.Kretz believes that luxury brands need to be more aware of the balance between fashion and eternity.

Of course, not all luxury brands follow the same pattern, especially when they have different cultural backgrounds.

The luxury brands that are recognized by the market and have rich historical heritage are brands that span the time and are unique and made by outstanding craftsmen. Brands like Herm s or Chanel, Bulgari and VanCleef follow this pattern.

Those short history brands and light luxury brands, such as RalphLauren, Burberry, MichaelKors and Coach, will continue to offer casual style luxury products. In the future, they need to ensure that they can not make the brands too popular. Therefore, such brands need to tell interesting and inspiring stories to consumers.

Nevertheless, the above report shows that sales of luxury goods in China have declined for second consecutive years, and demand for handbags and high-end clothing has dropped sharply. Traditional luxury brands such as LouisVuitton and Burberry have been struggling in the Chinese market.

In 2015, LouisVuitton shut down 3 Chinese stores and planned to close 20% of its stores in China. Other luxury brands also had similar shop adjustment plans.

"This trend mainly occurs in China, China.

So many brands are allowed to do so, "Prof GachouchaG.Kretz found." in addition, store rentals have become very high and it is hard to ensure that every store can make profits.

In the highly competitive luxury market, brands need to pay attention to the cost, so it is entirely understandable that they make such a choice because in China, too many retailers just make the brand closer.

And running these retailers will bring high operating costs. "

There are also customs shops in the United States.

The professor said, but the reason is very different from China: competition is increasing.

For example, Coach closed a large number of retail stores, because MichaelKors and KateSpade entered the light luxury market and affected the Coach business.

Of course, this decision also looks at brand characteristics and is determined by the group. Not every company will make the same choice when facing similar situations.

On the contrary, all retail outlets in China have the risk of reducing brand profits, allowing brands to bear higher and higher cost of housing and rental. This is also the reason why brands are closed.

In contrast, Professor GachouchaG.Kretz believes that emerging markets are the source of risk for luxury brands because they need to invest in retail and staff training, and that many areas are not always political stability or exchange rate stability.

Consumers in newly rising countries learn quickly in a limited period of time, making them hard to please consumers.

Therefore, she predicts, "luxury goods will pay more attention to the mature market, and in these markets branding can make it easier and better to handle the relationship between cost and consumers."