Hidden Dangers Behind Japan'S Prosperity In The Second Luxury Market

Consumers who cling to their wallets, unstable economic growth and even more serious population decline are now in a state of incongruous relationship with Japan.

But everything is changing in Tokyo Ginza, which is comparable to Fifth Avenue in Paris and Fifth Avenue in New York. The recently opened Ginza Six shows that Japan is still a huge luxury market. Every year, the Japanese market is Chanel , Dior , Prada Luxury brands, which contribute nearly $22 billion 700 million in sales, remain the second largest luxury goods market in the world after the US.

Since its opening last week, Ginza Six has attracted a large number of people. 2500 people queued up before the first day of business, and the number of people on the first day was 90 thousand. Carrying the Fendi bag, Toshiko Obu, 79, said: "luxury goods may be priced at a high price, but their workmanship is excellent."

According to the world clothing and shoe net, Japan has a large number of discerning customers, and is regarded as one of the most expensive retail markets in the world. Chanel is trying to separate local customers from those who are "Crazy". In order to ensure that Japanese customers are far away from the "nouveau riche" consumers, some Chanel stores in Tokyo have opened up a separate beauty and perfume space. These stores will also inform local customers of their arrival time in advance and help them avoid the crowd. Richard Collasse said: "loyal customers in Japan try to avoid impolite customers, who are not dressed properly or lie on the sofa and touch them everywhere."

Christian Dior Couture's board chairman and CEO Sidney Toledano said: "don't forget that a large part of the luxury customers come from Japan. (Japan) is also an important strategic market for luxury goods. I mean "real luxury". Dior held Gao Ding in the opening ceremony of Ginza Six. The inspiration of this series of works is from Japan, which is enough to show the importance of the brand to the market.

Last year, global sales of personal luxury goods increased by almost zero. Dior hopes that Japan's luxury market will grow this year, while rival Chanel is optimistic about 2017. Chanel Richard Collasse, head of Japanese market, said: "we haven't lost our quality. Many brands are facing difficulties. Some of them have stopped investing in the Japanese market at a certain stage, focusing on China's new "Golden State". Nowadays, they are helpless. "

Almost no brand can predict that wealthy Chinese tourists will boost the growth of the Japanese luxury market. It is reported that nearly 1/3 of Japanese luxury goods sales come from overseas tourists. Japan hopes to receive 40 million tourists in 2020. Compared with 2 million 400 thousand of Chinese tourists in 2014, the number of Chinese tourists visiting Japan in 2016 reached 6 million.

"In the past, (Japan) was a very isolated luxury market, and locals contributed 90 to 95% of luxury sales," said Jo LLE de Montgolfier, director of consumer and luxury research at Bain consulting (Bain&Company).

In 2015, luxury goods sales in Japan increased by 9% over the same period last year, but the purchasing power of tourists declined because of the strong yen last year, down 1% in 2016. Sidney Toledano said that it is now an opportunity to focus on Japanese customers again. "We are not ignoring tourists, but after all, we are not duty-free shops."

Although the surface is prosperous, we have to pay attention to the hidden dangers behind it. In the past ten years, Japan has been in a state of economic recession. The decline of population has aggravated the shortage of labour and led to a decline in the number of luxury consumers in the future.

Kuga Naoko, a consumer lifestyle analyst at NLI Research Institute in Tokyo, said that many young generation had no steady income, no ability and no interest in consuming luxury brands, especially at present, they could still rent luxury products through the Internet. Institute "From the perspective of consumer buying behavior, young people spend less on luxury brands than the previous generation."

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