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    Luxury Shopping Space Is Constantly Being Compressed.

    2016/5/7 22:32:00 28

    Luxury GoodsPurchasingMarket Quotation

    Recently, there are two news items about luxury goods purchasing, which is quite interesting in comparison.

    One is to say that a luxury brand will sell in Chicago. Tens of thousands of stores will be swept away in two hours and customers 99% will be Chinese buyers.

    One is Chanel's claim that it will sharply raise European prices and reduce the price balance of China's market, and it is the first battle in the battle against the purchase of gray parallel markets. Despite the weak demand for luxury goods in the large environment, the sales of the brand in the Chinese market have improved.

    Luxury shopping is in the domestic market.

    Luxury goods

    Industry can not avoid the topic.

    Data show that last year, Chinese consumers spent $116 billion 800 million on luxury goods worldwide, of which overseas luxury consumption amounted to US $91 billion, accounting for 78% of the total. Apart from consumers' personal outbound purchases, overseas purchasing is the main way for many domestic consumers to buy luxury goods.

    A report by consulting firm Bain also pointed out that in 2014, the scale of luxury shopping industry was between 55 billion and 75 billion yuan, almost half of the sales of luxury brand stores in the mainland.

    In addition to the products that are difficult to buy, or the products that are restricted by regions, etc.

    Price factor

    It is the most attractive place for consumers to buy overseas.

    Statistics show that the average price difference of alcoholic products consumed in China and abroad is as high as 64%, and the highest price difference is 85%.

    Wrist watch

    The average price difference is 33%, the highest price difference is 83%, while consumers often buy clothing, perfume, bags, cosmetics and leather shoes, the difference is about 30%.

    Huge demand has promoted the development of purchasing industry.

    Two of my friends went abroad to study, and finally stayed in Italy and France. From the beginning of "purchasing by domestic friends and relatives" to the final abandonment of their jobs, they started a full-time purchasing business. It is said that such a large number of Chinese are not in the minority, and have already formed a lucrative purchasing market and industrial chain overseas, including specialized logistics companies providing comprehensive services such as inventory, pportation, customs clearance, and so on.

    So since last year, the state has stepped up its voice on purchasing and purchasing control. It has also been reported that some top global luxury brands visited Beijing last year to discuss how to join the government in combating purchasing agents.

    The departments concerned have also begun to tighten up tighter measures, including strengthening Customs intercepting passengers and parcels, and increasing penalties for false declarations.

    At the same time, the state expands the scope of import tariff reduction of daily consumer goods, while luxury brands are further adjusting their price differences in China and other markets. The arbitrage space of purchasing groups has been gradually squeezed, and the impact on the purchasing industry in the future can be imagined. But whether it can really restore the growth of domestic luxury goods industry, purchasing is only one of the factors, so the future needs to wait and see.

    However, for luxury brands, although purchasing is driving sales, it is not what they want to see, which disrupts their supply and pricing system. Moreover, luxury brands invested heavily in the Chinese market in the early years, opening up more stores, but were affected by purchasing agents, which were idle and reduced to "showrooms", which damaged the brand.

    Data from Bain consulting show that the number of luxury stores in China dropped by about 2% last year, and sales of luxury stores continued to decline year-on-year, resulting in a series of moves to close stores.

    On the other hand, the state is not happy to see such a large consumption outflow.


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