Who Is The Less Expensive Chinese Luxury Goods?

According to the world clothing shoes and hats net, in the past year,

The price difference between China and Europe has shrunk by 25%.

This has become one of the important reasons for promoting luxury consumption to return to China's mainland.

The result came from DDT's recent survey of more than 2000 luxury goods sold around the world.

According to reports, luxury goods in China

The price gap with France has dropped from 43% to 32% in the past year.

Among them, the biggest change in premium is clothing and shoes. If you bought a product like this in China a year ago, you would have to pay a premium of 50%, and now you only need to pay 1/3.

The second is accessories, bags, watches and jewellery, and their spreads are reduced to 10% respectively.

Premium changes of luxury goods in China from 2016 to 2017

Premium changes for luxury products from 2016 to 2017

In May of this year, the Research Institute of wealth quality, a Research Institute of wealth quality magazine, released a similar survey report.

They studied the price changes of luxury goods in the Chinese market from 2011 to 2017, and found that the overall average price difference of luxury goods in China and abroad dropped from 68% in 2011 to 16%, and the difference narrowed by 52%.

Zhou Ting, President of the Institute of wealth and quality, told the media at the time that the average price difference between 53% of the international luxury brands at home and abroad was less than 15%. 29% of the luxury brands in China were narrowed to 15% - 20% in foreign countries and only 18% of luxury brands, with an average price difference of over 20% at home and abroad.

However, in this report, the highest price difference at home and abroad is the high-end watches. In 2011, the average price difference between domestic and international prices was as high as 161%, while in 2017 it dropped to 6%.

In addition, the price difference between skin care products and cosmetics products is also very obvious, from 84% in 2011 to 20% in 2017.

Fortune Quality Research Institute 2017 guest luxury global price index report

An important reason for the reduction of the premium is the depreciation of the renminbi against the euro.

According to DDT analyst David Tite, the average premium for China's luxury market will remain at around 40.5% if the exchange rate remains unchanged.

But this is not the fundamental reason for the narrowing of the spread.

In essence, luxury

Turn your attention to the middle class population with increasing disposable income.

Therefore, in emerging markets such as China, they began to adjust their prices from the beginning of 2 years ago with tariff changes.

In June 1, 2015 and October 2016, on the 1 day of the year, the Chinese government lowered tariffs on imports of clothing, shoes, skin care products, cosmetics, perfume and other items. Luxury goods also lowered the price of the Chinese market.

According to the report of the Institute of wealth and quality, the 8 watches brands, such as Earl, Patek Philippe, Vacheron Constantin, Chanel and so on, have been lowered in the price of China in 2015 to 8 to 5%.

The highest decline of Burberry and Prada was 20%.

Another reason is the rapid development of luxury electric business in Chinese market.

According to the report of the 2017 new retail era luxury consumption trend released by the first financial business data center (CBNData) and Tmall, luxury China online sales market share will grow from 6% in 2015 to 10% in 2019.

In June this year, Jingdong invested in luxury electric business Farfetch, launched the high-end logistics service "Jing Zun Da"; in the 8 month, Tmall launched luxury Channel Luxury Paviilion and online flash shop Tmall Space; in the early September, the local luxury goods business Temple library announced plans to go to the US IPO.

All this means that the parity between different markets across the world will become easier.

Hang Lung real estate rental income changes in the first half of 2017

This wave of luxury consumption reflux brought by factors such as the decrease in the price of luxury goods is also driving the recovery of high-end commercial real estate.

According to the first half year earnings report issued by Hang Lung real estate in early July, Shanghai's Hang Lung Plaza shopping mall, known as the "luxury retail vane", was outstanding, with retail sales surging by 29% in the first half of the year.

In a media interview in May of this year, Wang Yuqiang, director of the SHANG Jia center, once known as "LV tower", said that from last July to now, "the high-end luxury goods consumption of Jiaxing Center keeps an average growth rate of 50% per month."

Outside the first tier cities, consumption reflux is more on line.

In the half year earnings report of Hang Lung real estate, the total rental revenue of 6 shopping malls located in the second tier cities (located in Shenyang, Ji'nan, Wuxi, Tianjin and Dalian) decreased by 2.2%.

According to the report on the trend of luxury consumption in the new retail era in 2017, the fastest growth rate of online luxury consumption in the top 10 cities is three to six cities.

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