The Development Environment Of Wind And Water Is No Longer Exist. The Luxury Industry Is Facing Structural Crisis.

In 2016, the world's luxury market ranked first in the luxury car market, with a growth rate of 8%.

In addition, luxury hotels, yachts, high-end cosmetics, high-end food and beverage markets and other markets are relatively good.

But the core of the luxury industry is personal luxury (clothing, shoes, hats, bags, jewellery and watches).

The days of wine and flowers have become the past!

The growth rate of sales has slowed down significantly, and the development environment of wind and water is no longer there.

This is a huge market with annual sales of nearly 1 trillion and 500 billion euros, involving one hundred thousand jobs.

According to a report recently released by Boston consulting and Asset Management Co, the global luxury market will face the first structural crisis in its history after 10 years of growth.

The new status of the industry is to maintain an annual growth rate of 2% to 5%, much lower than the annual growth rate of 10% over the past 10 years.

According to a report released by Bain, the global luxury market has only increased slightly for 3 consecutive years, which highlights the fact that the market environment for luxury goods companies has changed in the current new situation.

The willingness to buy luxury goods has been significantly reduced.

Britain's "off Europe", US government succession, international terrorism and other factors have brought about great uncertainty and greatly affected the confidence of global consumers.

In addition to these unfavorable factors affecting the luxury industry last year, experts from Citibank luxury industry analyst Thomas Shove pointed out that the industry is facing a structural crisis rather than a cyclical one.

This is first related to China.

Data show that Chinese consumers buy products of 30% to 35% of global luxury goods every year.

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No "hard landing" was most feared, but its economic growth has slowed considerably over the past decades.

Beatrice Catalan, an analyst with the Spanish bank of Iberia, said: "a large part of the demand for luxury goods comes from China, and the impact of China's economic slowdown on this industry is very obvious."

On the other hand, the development of the global luxury industry depends to a large extent on the flourishing of "shopping tour".

Therefore, terrorist attacks such as the "luxury capital" and other major tourist destinations in Paris have also caused heavy losses to the luxury industry.

Francesca Dipas, an analyst at Deutsche Bank, pointed out that in the third quarter of 2016, the number of Chinese tourists travelling to France and Germany dropped by 34% and 17% respectively.

This has led to a marked decline in sales of luxury and duty free shops in France and Germany.

Under this trend, the consumption of luxury goods in China in 2016 was 5 percentage points higher than that of overseas consumption. This is the first time since 2001.

Compared with the crisis experienced by the financial industry and the real estate industry, the obstacles faced by the luxury industry are obviously much smaller.

But for such an industry from the day of its birth, it is difficult to reappear its past glory.

From 1994 to 2007, 87% of luxury goods enterprises continued to grow, and half of the luxury goods enterprises grew at an average annual rate of more than 10%.

Last year, less than 50% of luxury goods enterprises grew year by year, while only 14% of them achieved two digit growth.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.