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    The Luxury Market Is Expected To Grow By No More Than 2% This Year.

    2016/5/27 12:44:00 16

    China's Luxury MarketLuxury MarketLuxury Handbags

    It is understood that Bain predicts that in the next few years, the luxury market is expected to expand at an annual rate of 2% to 3%, mainly driven by the Chinese market. Everyone's eyes are glued to the Chinese market, the key is that it can guide the industry to restart.


    "Let's put it this way, even though

    Luxury market in China

    The concept of consumption in China is not what it used to be.

    HSBC analyst Erwan Rambourg said at a HSBC meeting in Paris on Wednesday.

    Erwan Rambourg said that the performance of luxury goods is not good this year. There are still many things to plan if we want to grow in the Chinese market.

    According to Bain& Co, a research consultancy and Altagamma of Italy luxury goods association, the luxury market will grow by no more than 2% this year.

    Cosmetics, leather goods, footwear and accessories will be the best selling category this year, and the so-called rigid luxury goods such as jewellery and watches will not increase.

    Because of China's anti-corruption policy, it was between 2013 and 2014.

    luxury goods market

    The impact has gradually emerged, but by the mid 2015, these changes have been absorbed by the market.

    Over the past 12 months, the reason for the downturn is more psychological.

    This is also a factor that the British call self feeling good.

    "If I feel good, I will buy it."

    Unfortunately, the Chinese, who account for 40% of the luxury brands, are not feeling very well now.

    Under the influence of a series of geopolitical factors, including fluctuations in China's stock market, terrorist attacks in Paris and Belgium, Brexit talks and elections in the United States, Taiwan and even Austria, Chinese tourists are now losing confidence.

    ErwanRambourg added: "the Chinese are more inclined to stay at home now, benefiting from the low import tax and the development of the local tax exempt industry, the local consumption power has been revival, but in turn it has hurt other regional markets. For example, France, three of its turnover is earned through foreign tourists.

    In Paris, the figure is as high as 75% to 80%.

    The analysts predict that the luxury market in China and the United States will slowly revive, which will drive the growth of luxury consumption in the next five to ten years.

    He analyzed the expenditure: "even though the current consumption of luxury goods is growing slowly, it is more optimistic about the luxury consumption market in the United States than France or Italy.

    For a long time, the reason why American consumers feel frustrated is probably the mainstream of their heterogeneous cultural spirit, such as the 911 terrorist attacks and the Lehman Brothers bankruptcy.

    When everything is lost, consumers will not think that this is the right time to buy a new Rolex.

    But now, gradually, we see a new and more confident new generation of Americans and the rise of minorities, especially Hispanics and Asians, who are more willing to pay for luxury goods.

    Bain Capital pointed out that this year, Japan is expected to become the fastest growing luxury market, with a turnover expected to grow by 5%, mainly benefiting from the tourist expenditure of Chinese tourists.

    The Chinese market is expected to rebound in the three consecutive year of declining performance, but the market in Hongkong and Macao is hard to grow.

    Seeing these economic slowdown and demographic changes, analysts Antoine Belge revealed that luxury brands had better tighten their reins and not rush to expand new stores and so-called elite retail competition. Now the best luxury salesmen are fiercely competitive. They are familiar with what customers want, and 10% of salesmen can contribute 40% of their performance.

    Antoine Belge and Erwan Rambourg also point out that LVMH is more capable of adapting to the expanding consumer scope.

    "Four years ago, Louis Weedon of LVMH was also faced with credibility problems. It was considered a special brand for the secretary. It was everywhere.

    But the group has launched a product and retail space super segmentation project. Now, you enter the store and meet with a VIP area. There are special sales and service personnel to help you arrange private customized products that distinguish the masses.

    In another extreme case, you will find a special cashier specializing in the middle class, where a 23 year old youth will spend 3 minutes to buy products on his wish list, and he will be very happy.

    Louis Weedon has managed to keep the price gap between different products, and at the same time, let all consumer groups not alienate from each other.

    Among other key factors, analysts emphasize creativity, and think it is Chanel's strength. The brand is better than any other brand. Hermes also does, especially when making rare appearances, when you look for a platinum bag for four years in the shopping waiting list, you will definitely buy it when you finally receive the phone call that your handbag is ready.

    Vice versa, when Cartire starts selling super complex watches, new products and pricing are not consistent with customers' expectations.

    Erwan Rambourg said: "customers think Cartire watches are beautiful pronouns, not 30 thousand euro timing tools, you have to adapt to the psychological changes of consumers."

    Analysts also stressed that luxury goods are essentially useless.

    "

    Five years ago, Prada, Gucci and Louis Weedon thought they were each other's biggest competitors.

    But in fact, the competitors now are plastic surgery and apple mobile phones and other alternatives.

    Now, the question that customers need to decide is whether to buy a Louis Weedon handbag for 2000 euros or repair her pouch.

    "The key to luxury consumption lies in communication."

    In general, he says, brand executives don't spend too much time listening to consumers' voices, and so do business operators.

    He said: "in fact, consumers can book a book on Amazon and request it to be delivered within 24 hours or to buy a pair of Nike shoes with my name, but this is to buy.

    Luxury handbags

    The psychology is quite different. "

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