Luxury Water Retrograde Is Not Easy To Get Out Of.

If you think that the reverse of the luxury industry is over, that's wrong.

Barclays Bank analysis shows that the second half of this year is still tough.

"The potential growth is rather weak. It is expected that only Japan and some parts of the Asia Pacific region will grow."

The report reads.

The collapse of Rui's watch and the high inventory of Hongkong jewellery are also worrying the industry.

"The global luxury market will replicate the growth trend of the last year's low digit number in 2016."

From Bain consulting company, there is a lament over the latest prediction in the future.

In its latest global luxury report, it said 2016 of global sales growth in the first quarter was expected to be only 1%.

"Compared with 6 months ago, this 2016 forecast is not so optimistic."

Armando Branchini, vice president of luxury goods association, said: "Japan's fastest growth is likely to reach 5%~7%."

Despite the increasing consumption of tourism, the total amount will still be negatively affected by the political situation, economic environment and terrorist attacks.

This is consistent with most previous reports of luxury brands.

Kai Yun group's first quarter earnings report released in April showed that 2.7% of its revenue growth came mainly from Western Europe and Japan's retail market.

The other French luxury group LVMH, which announced its earnings with its front and back feet, did not meet analysts' expectations, but "sales in Japan continued to grow".

Bain expects the Chinese market to increase by 2-4% this year, Europe 1~3%, US -2~0%, and the rest in 0~2%.

According to category, clothing is expected to grow by 1%. Jewelry, watches, pens and so on may not change significantly; leather products will rise by about 4%.

The terrorist attacks that broke out in the fourth quarter of 2015 caused great damage to European luxury goods industry, and the strong US dollar also hit the US tourism industry, thereby affecting the local luxury market. At the end of the year, sales discounts eroded the profits of retailers.

If you think that the reverse of the luxury industry is over, that's wrong.

Barclays Bank analysis shows that the second half of this year is still tough.

"The potential growth is rather weak. It is expected that only Japan and some parts of the Asia Pacific region will grow."

The report reads.

The collapse of Rui's watch and the high inventory of Hongkong jewellery are also worrying the industry.

In the view of Bain partners Claudia D 'Arpizio, the luxury industry can only grow slowly in the next 5 years.

Until 2020, the global luxury market's annual revenue may be between 280 billion -2950 billion euros, and its growth rate will remain at 2-3%.

Consumer groups have long shifted from Baby Boomers to their next generation (Generation X), and Generation Y, born in 1970-2000, is fighting against the latter.

The most obvious case is China -- rising.

Most of them are not only young, but also have relatively strong spending power.

Bain believes that within the next few years

The specific growth rate depends on China. If China's luxury market has been dim in the past period, the faint glimmering of the present situation has made the whole situation delicate.

According to the bain report, the Greater China region showed a rebound trend in the first quarter: the total revenue grew by 2% over the past year, almost losing the last three years.

Burberry, a British luxury brand that has just released its preliminary results for the fiscal year, said sales in mainland China were growing year on year, and plans to open 3 new Chinese stores in fiscal year 2017.

Richemont, a luxury group that is about to release its 2015-2016 full report, has also found "strange" in the Chinese market.

Group Chairman Johann Rupert revealed in advance that the Asia Pacific region has not been able to get better because of the drag from Hongkong and Macao.

However, the mainland of China issued positive signals, "revenue in April rose 26%."

"All eyes are once again on China," explains Bain partner Claudia D Arpizio, "China is the main consumer of luxury goods globally."

According to the report, China's luxury consumption will account for 34% of the total in 2020, and behind it is 40 million emerging buyers from the middle class. YouGov, a market research firm, thinks that

It may be possible to find breakthroughs in the way of consumers and communication: millennials and VR are worth conquering.

"Millennials do not feel very pressure on the economic situation. They are more concerned about their future."

The Joanna von Felkerzam report says that the brand should take advantage of this opportunity to get a deeper understanding of this group.

And her other finding is more interesting: the millennial generation of 1/3 has become a parent, so it is easier to win their hearts through children, such as holding exhibitions, sponsoring parent-child activities, etc.

Generally speaking, Chinese people's preference for advertisements is basically negative.

The survey also showed that 1/3's Chinese respondents wanted brands to stop advertising, while 1/4 believed they should make more use of social platforms or spread information related to the people.

VR technology, which has been increasingly popular recently, is regarded as a new type of communication weapon.

"The market should not wait until the situation is stable and join them. On the contrary, they should join in the trial and learn from them."

Joanna von Felkerzam takes history as an example: "as we evolved from the PC era to the mobile era, it's time to show it with VR."