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    China EU Luxury Market Has Narrowed Its Pricing Gap.

    2017/9/22 12:07:00 81

    LuxuryMarketBrand

    In the past 12 months, China and the European market

    Luxury goods

    The price gap has narrowed by about 1/4.

    More and more Chinese consumers are turning from overseas to domestic consumption.

    According to the world clothing and shoe net, recently, Deloitte Finanicial, a world-renowned auditing and consulting firm, published an analysis of luxury pricing in China and Europe on the British financial media Finanicial Times.

    The analysis shows that the price of luxury goods in China and France is, for example, a year ago.

    market

    The price of luxury goods is 41% higher than that of the French market, and the price of luxury goods in the Chinese market is 32% higher than that in the French market a year later.

    DDT's survey of luxury goods prices based on 2000 shows that the price of luxury goods in the Chinese market is gradually decreasing. Now many consumers are gradually returning to the Chinese market and increasing the luxury consumption in the domestic market.

    Today, Chinese consumers' luxury consumption accounts for nearly 1/3 of the global luxury goods market. This figure is very impressive, so Chinese consumers have always been the major luxury industries.

    brand

    The main target customers competing to win.

    In the past, because of the high import tariffs and the price premium of major brands in the Chinese market, many luxury consumers in China often choose to leave the country for luxury purchases, and Paris is one of their favorite shopping places in Europe.

    The yuan has depreciated about 8.5% against the euro this year. DDT analysis shows that if the exchange rate remains unchanged in the past year, the price of Chinese luxury goods is 40.5% higher than that of France.

    In terms of subdivision, clothing and footwear are the most obvious differences in the price gap between China and Europe in many luxury categories. The price of such products in China is more than 50% a year ago compared with that in Europe, and this gap has narrowed to around 1/3 this year.

    More and more coordinated prices have largely affected the trend of the luxury market and stimulated the buying behavior of Chinese consumers back home. These factors have contributed to the revival of the global luxury industry in recent years.

    French luxury giant Herm s said that in the second quarter of this year, the company's consumption driven by the Chinese market realized the growth of 10.5% in Asian sales.

    DDT analyst David Tite said: "retailers have so far been satisfied with the" erosion "of the exchange rate movements on the price premium of China's luxury goods market.

    Besides the exchange rate changes, the pricing of luxury goods in the Chinese market is also affected by the rise of e-commerce.

    E-commerce has become one of the most important channels for luxury goods sales. The emergence of e-commerce platform has also made the price comparison easier, which has also led to the increasing mobility of consumers.

    David Tite explains: "with the increase of e-commerce and international mobility, price comparison and commodity pportation are becoming easier than before. It is foreseeable that the price of luxury goods in China and Europe will be more similar in the near future."

    Although China's luxury consumption has warmed over the past year, it does not expect China's luxury consumption to return to its highest level, given the slowdown in China's economic growth and the containment of corruption around 2012.

    "Luxury has never been an industry that can respond quickly to changes in consumer demand," said Nick Pope Pope, another analyst.

    I am looking forward to having some luxury brands that will take more time to adjust the situation and adjust the pricing and product decisions around the existing economic trends.

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

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