Luxury Goods Collectively Fall In The Chinese Market, Who Can Save Them?

According to the reporter's observation, whether the profit growth brand or the profit decline brand, the Chinese market is their common "Waterloo".

Bain's latest research report pointed out that in 2015, China's luxury goods market fell by about 2%, and the market size dropped to about 113 billion yuan.

The decline in sales of bags and bags is the main reason for this trend.

North China and Northeast China are most seriously affected.

In 2015, luxury stores continued to decline in year-on-year sales and passenger traffic. New brands also encountered similar situations, which led to the closure of brand stores, the expansion of prudent store networks and more emphasis on maintenance and renovation of core stores.

The report points out that the trend of market slowdown is obvious. On the one hand, the follow-up effect of combating corruption and building a clean government has not yet ended. On the other hand, the economic slowdown and the stock market crash in the second quarter and the third quarter have had a huge impact.

It is worth noting that in 2015

The overall size of the market has declined. According to Bain consulting, the size of the purchase market will be reduced to about 34 billion to 50 billion yuan in 2015s, and this figure will be 55 billion to 75 billion yuan in 2014.

The Bain advisory report predicts that the leading brand led global price adjustment measures and the government's efforts to bring luxury goods back to the mainland may stimulate domestic sales growth.

However, Hong Tao also pointed out that there are many factors that affect the luxury market, including

And the impact of anti-corruption and so on, the change of single conditions may bring about improvement, but it is hard to have a big reversal.

According to a report released by the media, the luxury industry will continue to slump in the 2016 fiscal year.

This is mainly due to the global price adjustment of major brands, which reduces the profits of purchasing agents and draws some consumers back to China.

In March 2015, Chanel's European price rise in Asia led to this wave of price adjustment.

Subsequently, Cartire and other brands have followed up the Chinese market price reduction.

According to a luxury brand executive, "although some brands claim that there is no plan for large-scale price adjustment, they are very low-key in adjusting the prices of some products - brands are very nervous about any possible negative effects."

In addition, the government has stepped up its control over purchasing agents to bring luxury consumption back to the mainland and incorporate GDP into the mainland.

Customs inspection of passengers and parcels is more stringent.

From September 2015, customs clearance was strengthened, especially travellers and parcels returned from hot shopping destinations (such as Japan, Hongkong, China), including more strict inspection and supervision of professional purchase.

In 2015, the government also actively promoted cross-border electricity providers to replace purchasing agents.

Hong Tao, a commercial analyst with GF Securities, pointed out that the price of high priced goods was not so strict in the original regulation. After the supervision is strict, the price difference must be paid.

In addition, luxury brands themselves are adjusting their spreads, so there is no room for arbitrage.