Luxury Goods Are Not In A Predicament. Performance Is Expected To Remain Sluggish In The Second Half Of The Year.

A few years ago, a wave of overseas Amoy was launched in China, which made luxury goods a necessity. Today, luxury goods industry is in a doldrums. The second half of the year is still going on.

Although many luxury brands are very optimistic about the economic situation in the current financial year, many brand CEO also believes that the brand will continue to grow. But from a report recently, it is estimated that the sluggish luxury industry will continue to slump in the current 2016 fiscal year.

It is reported that in the 2015 fiscal year, the global luxury industry recorded an increase of 1.5% to 250 million euros, but as a result of the low growth of luxury goods, the US and China market will forecast a decrease of about 1%. The foreign media who conducted the survey said that the 2016 fiscal year will be a year of low growth in the luxury goods industry. In the past few weeks, many luxury brands and chain corporation have released the report of the current quarter. Although a few brands have recorded growth, negative growth is the current norm for the luxury goods industry.

In addition, the report also points out that American consumers All began to treat luxury consumption with wait-and-see status, and even many consumers waited for the discount season to start buying. In the past, the characteristics of "buy and buy" were catalyzed by the reasons of economic slowdown and strong dollar, and turned to a calm and cautious attitude. To a certain extent, this reflects the prudence of consumers, and it also proves that the main reason for the negative growth of the luxury goods industry in the current fiscal year 2016 is recorded.

At the same time, due to the impact of the US dollar exchange rate, the consumption desire of European and Chinese consumers continued to slump. This report predicts that in the current fiscal year 2016, 35% of the decline will be reflected in the sales volume of these markets, and in the coming days, the decrease may be reduced to 25%. In the report, it is pointed out that the price of Chinese luxury goods is far higher than that of overseas markets because of the disunity of global sales of luxury goods. Even though some brands have adopted the strategy of lowering prices, the price of the market in Europe and America and the Asia Pacific region still has a gap of 30%, and because the market for Hongkong has now become a "freezer", it will further reduce the number of visitors to Hong Kong. At the same time, the increase of European customers has promoted the growth of luxury goods sales in Europe. However, this trend has also led to a further reduction in luxury consumption in the Chinese market.

For this, many Luxury brand They have chosen to lower market expectations in the current 2016 fiscal year. For example, UBS investment bank reduced Cartire and Swatch group's profit target by 7% and 9% respectively.