Why Are Chinese People So Keen On Big Names?

The latest data show that Chinese consumers

The annual expenditure exceeds 500 billion yuan, and about 1/3 of the world's luxuries are bought by Chinese people.

Why are Chinese people so keen on big names?

Chinese love to buy luxury goods.

According to the 2017 China luxury report, 7 million 600 thousand households in China bought luxuries in 2016, exceeding the total number of households in Malaysia or Holland.

Among them, the annual average household consumption of luxuries is 71 thousand yuan, two times that of France or Italy families.

According to the world clothing and shoe net, half of LV's sales in the world are bought by Chinese. Of course, it is not necessarily China.

Compagnie Financi re Richemont, which produces Cartire jewelry and MontBlanc pens, sells 1/4 from China and Hongkong.

If we reconsider that China's GDP has only 1/2 of the US, and GDP per capita is only 1/8 of the US.

The purchasing power of Chinese is amazing.

During the Beijing Olympic Games, China's luxury consumption accounted for only 12% of the world's total; nine years later, it was crazy to rush to 30%.

Luxury purchases abroad account for the main position.

With the upsurge of purchasing and overseas travel, more and more people choose to buy luxury goods abroad.

A survey of Bain & Company has shown that the Chinese are the world's number one luxury consumers.

60% of Chinese luxury purchases did not happen overseas but in the mainland.

According to statistics of the Institute of wealth and quality, in 2016, Chinese luxury goods consumption reached US $120 billion 400 million, of which $92 billion 800 million (640 billion yuan) was spent overseas.

In other words, in the past year, Chinese people have bought nearly half of the world's luxury goods, and over the past 5 years, over 70% of luxury purchases have taken place outside China.

Bertrand Legall, a purchasing agent of Paris spring department store, said: "they have more time to spend and take care of their needs when they are alone."

The company has more than 2000 high consumer customers in its list of customers.

Nearly 70% of them are Chinese.

Someone has done the following survey, what attracted you to purchase luxury goods outside the mainland? Nearly half of the people chose the price more favorable.

Compared with the same product, domestic and overseas purchases sometimes differ by about 40%. In that case, why do not the same thing choose to buy abroad?

Why do Chinese people like to buy luxury goods?

The Chinese are so obsessed with luxury that we can't help asking why.

Historical reasons.

First of all, in the big environment, China's demand for luxury goods is significantly slower than that of western countries.

In the past one hundred or two hundred years, China and even Asia have been in a passive period of world economy and politics.

In the field of clothing, luxury brands in Europe have become the invisible benchmark. Many people in China are regarded as a symbol of upper class culture and a luxury that Chinese people dream of for many years.

Therefore, people often imitate this group's dress, thus triggering the pursuit and love of this field that can not be reached.

But for the westerners, elders have all pursued it.

It is not unusual for me to come to my own generation. After all, I have long gone through the age of luxury.

For Chinese people, this is just the beginning of spring 1978.

Pierre Cardin (Pierre Cardin) was invited to hold a fashion show at the National Cultural Palace of Beijing, bringing unprecedented impact to the Chinese audience in the conservative era.

One of the main reasons why Chinese people like to buy luxury goods is that there are more and more wealthy people in China.

The number of rich people in China ranks second in the world.

According to Hu Run's data, in 2014, there were more than 10 million assets in mainland China, 825 thousand people, more than 100 million yuan in 51 thousand people, and nearly 1 billion people in the mainland.

The value of luxury goods lies not in the product itself, but in the sense of social recognition brought about by the product.

Personal values in East Asian culture need social recognition.

That's why luxury goods are particularly popular here.

This phenomenon is especially typical in Japan.

Of course, when it comes to the gap between the rich and the poor, the United States is almost the same as China. 5% of the richest families earn 27.6% of the total national income.

But consumption habits differ largely from culture.

American culture advocates individualism and advocates diversity, so it does not care about other people's eyes.

Americans advocate equality among all people and do not like to feel superior.

The mainstream of their society is the middle class who is self reliant. They do not have a lot of spare cash to spend.

These are the reasons why Americans have no sense of luxury.

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In February this year, the Italy luxury industry association released the latest "global luxury consumer insight report".

By comparing China, the United States, the European Union and Japan, we can find that only the fashionable people in the US are more willing to spend money on luxury goods, and the European experienced luxury consumers are more, and the average number of people in the whole is relatively average.

The data in Japan are somewhat strange. The main group buying luxury consumer goods is those who have the money to buy anyone who wants to buy.

In contrast, most of the main purchasing power of China's luxury goods are made from scratch, not only without the accumulation of wealth accumulated in history, but most of them are not mature enough.

Handbags are one of the luxury goods that Chinese consumers most like to buy, because conspicuous consumption is still one of the needs of luxury goods.

According to the survey conducted by RBC Capital Markets in December last year, Gucci has become the preferred luxury brand in China's wealthy female consumer groups.

In the handbag survey, Gucci became the preferred brand of the 50% respondents' desire list, followed by Chanel, Prada, Louis Vuitton and Herm s.

Respondents said that product design, brand reputation and brand charisma were the most important factors when purchasing, followed by shopping experience and reasonable prices of products.

According to the report, 90% of the women surveyed were between 25 and 44 years old, and 70% of the respondents had 2 to 5 luxury handbags. It is expected that the 30% luxury consumption of Chinese consumers will be contributed to handbags.

According to Bain report analysis, over the years, the purchase of luxury goods in China has gradually evolved into "trading" rather than "experiential".

Because of the lack of attention and training in the Chinese market, consumers are more concerned about the price by using discount, low price and other means to stimulate consumption. Discount stores are now an important channel for Chinese consumers to buy low priced luxury goods.

As for the cultural connotation, history, craftsmanship and craftsman spirit that the brand is proud of, these things that should be pursued are all blocked by price.

The United States, the European Union and Japan, as the old developed countries, are not only rich in many people, but relatively mature in aesthetics, as well as the large middle class, who occupy the majority of the population.

Driven by rich people's purchase of luxury goods, more and more ordinary people save money to buy luxury goods, and fake products appear at the right time.

"China Economic Weekly" pointed out that luxury goods in the market visibility is 6 times the number of genuine goods, the streets are everywhere visible luxury brands are mostly fake.

Hermes CEO Patrick Thomas recently interviewed French media and said, "80% the goods sold on the Internet in the name of Hermes are all counterfeit goods, which is absolutely a disgrace."

The group to be mentioned especially is the millennial generation.

Now, the millennial generation has also become one of the main forces of luxury consumption, and big names often like to "please" this group.

Consultants Bain said, "they used to buy luxury goods to show off their wealth, but now they want to show their good taste and the best products they can buy in the luxury industry."

Reported that the survey indicates that Chinese luxury consumption is increasing overseas, and their changing tastes are related to many new brands.

It's not hard to find that the rich are really many.

Especially for the middle and high yield class, the number of Chinese people who earn more than three hundred thousand a year is more and more young.

The millennials of the luxury goods industry, which are full of variables and are new and old, have been looking forward to the next luxury brand that will arouse their interest.

According to WeChat survey released by i2i group, the top three brands of Chinese young people who go abroad are Dior, Prada and Gucci.

The competition between the three luxury brands for the millennial generation has also been reflected in performance data.

Since Christian Dior announced in July last year, Maria Grazia Chiuri, a new creative director, brought feminism as the core of the younger style for Dior, and successfully won the millennial generation of consumers.

The first quarter of fiscal year 2017 reported that sales rose 18% to 500 million euros over the same period last year.

The Maria Grazia Chiuri initiative for Dior has been initially successful.

Whether it is "We Should All Be Feminists" Declaration T-shirt, or ribbon J "ADIOR cat and shoe", it has become a favorite product of social media and street shooting by young generation consumers.

Prada is also regarded as the next Italy luxury brand with the most potential for recovery.

The sales of group revenue in the major Asian market, Greater China, began to fall from the third quarter of last year, and continued to grow in the fourth quarter.

Prada reinvigorate consumers by relying on the revitalization of handbag business and the new digital strategy. The two is undoubtedly the most interesting part of young consumers.

The group's first electronic business platform is expected to open to consumers in China, South Korea, Australia, New Zealand and Russia at the end of the year. Other countries and regions will be launched in 2018.

Gucci has become the most luxurious brand of millennial consumers in the past two years, and is no longer news.

Thanks to the success of attracting millennial consumers, the millennial sales contributed by Gucci in the fourth quarter of last year surged by 70% over the third quarter.

In the entire fiscal year of 2016, the millennial generation bought almost half of Gucci's products.

In the first quarter of this year, Gucci contributed more than 1/3 of revenue to Kai Yun group.

A group of latest data from Bain showed that in 2016, Chinese consumers increasingly turned to experiential luxury consumption, and El Luxor Hotel / resorts, luxury cruise ships, luxury spa and so on became more and more popular.

With the emergence of the millennial generation with aesthetic and economic foundation, the Chinese consumption concept has been slowly getting rid of the logo upsurge tag from the initial stage of barbarism growth.

However, the fashion industry is full of variables all the time, traditions and rules will be overthrown at any time, and consumers are the real leaders.

As Gucci chief executive Marco Bizzarri said, Gucci will always be alert to the danger of consumer fatigue.

Louis Vuitton, which has been popular among consumers for the past few years, is only tenth this year.

Luxury brands will face challenges for the millennial generation who are new and old.

In addition, marketing for millennial consumers may not necessarily be rewarded.

Earlier, the Swiss Union Bank's survey of 2109 millennial consumers from China and the United States showed that the millennials were also concerned about the luxury of products, but the competition of luxury brands for young people is competition among products.

Bernard Arnault issued a warning to its group's brand. Only the brand is responsible for the quality and image of its products, so as to ensure long-term and steady growth of its performance.

More interesting reports, please pay attention to the world clothing shoes and hats net.