Luxury Goods Love Northeast Northeast Luxury Market Evolution For Ten Years

In recent years, when the GDP statistics of all provinces in China are released, the three northeastern provinces and the city of Shenyang always rely on the latter.

But on the other side of the coin, no matter whether the GDP data is shabby, there is no shortage of luxury buyers here.

In 1991, Hongkong businessman Dickson Poon ended his three year marriage with female star Michelle Yeoh.

Two years later, he opened a high-end shopping mall in Shenzhen -- West Wu department store.

He is fond of fine products, and people give nickname "famous brand pan".

In 2007, Dickson Poon opened the West Wu department store to Shenyang. "Working in West Wu" became an honor for Shenyang girls.

Dickson Poon may be the first luxury player to realize the consumption potential of the northeast, and this is the West Wu department store, which opened the Northeast China's luxury market for the past ten years.

Two Northeast

One night in late April 2018, Shenyang was hot.

Taxis ran high speed at the airport, dark, misty, rough sand blown into the carriage, the driver said that roadside farmland burning straw.

"The old stage of Liu Lao" is played every night. A ticket is three hundred and thirty. You may not get it.

The driver said, "but in fact, Shenyang's economy is very poor."

In recent years, when the GDP statistics of all provinces in China are released, the three northeastern provinces and the city of Shenyang are always placed on the back.

In 2016, Shenyang's GDP growth rate was -24%, Dalian's -12%, and 2017 was hard to reverse.

The northeast people are embarrassed to mention "revitalizing the northeast".

On the other side of the coin, the northeast is a major market for luxury goods in China, especially watches, jewellery, cars and so on.

This land is rich from ancient times, and there are many rich super rich people, no matter whether the GDP data are shabby, there is no shortage of luxury buyers here.

Bain: China's luxury market has achieved an astonishing overall growth in 2017 after 4 consecutive years of mediocrity and decline.

"Big gold chain small gold watch, three small barbecues a day."

This is an entry-level luxury obsession in the northeast.

The northeast people are humorous, enthusiastic about life, enjoying themselves in each other's display.

You may have heard of the legend of the northeast big brother shop, which sometimes goes to the sales and executives of the industry. They sometimes hear them whispering. "There must be no mistake in coming to the Northeast passenger flight in the evening."

This is how we decide to "go to Shenyang". Do you want to know if luxury goods are really selling well in the Northeast? Where do these people come from? Is it a gathering place of the legendary heroes or the oldest son of the lost Republic in statistics?

Shenyang, Shenyang

Shenyang is the center of northeast people, and the three eastern provinces love Shenyang.

People in Heilongjiang and Jilin will tell you that goods are "put in Shenyang". The sense of quality endorsed by Shenyang may have a history of over 100 years in Northeast China.

There are six or seven hotels in five star hotels in downtown Shenyang Youth Street, and the W hotel will be unveiled soon.

But there are also construction sites, grocery shops, string stalls, and old plaque.

Children and dogs are playing slowly in the middle of the road.

Youth Street W Hotel and string shop reflect each other.

Youth Street W Hotel and string shop reflect each other.

The Northeast elder brother who goes in and out of five star hotels is legendary.

Tight black and white T-shirts and Polo shirts, with large patterns and letters on the front, black shin, black leather belts, and belt buckles are sparkling uppercase letters.

Shenyang has the largest Hermes flagship store in Northeast China.

Hermes store, Shenyang

At ten a.m. in the Mixc, a couple of more than 50 years old had just opened the door.

The husband wore an obscure dark blue suit and H's Hermes belt buckle.

His wife randomly tied his hair into a ball, wrinkled T-shirt and sports pants, like the grocery shop owner who just got in.

They tried all the leather products of Hermes.

and

And constantly pick out what you want.

"It's amazing to wear, but there are so many guests."

A European luxury leather brand insider said so.

A Hermes fan in Shenyang has a reputation in the rich circles. The more than 40 year old woman owns a racecourse. She buys a whole set of harness from Hermes and makes friends with her.

She once bought expensive fur on the brand activities, and had countless luxuries.

There was a sale that asked the elder sister to help "end of the month rush". She immediately threw more than ten million yuan.

People only know that she has various industries and top connections.

The sale of Shenyang's Hermes has worked in Shanghai. He said that the northeast people were big and they liked to dress loosely, while the Shanghai people were always in a hurry to dress for their own bodies. The size of the Northeast Hermes store was obviously larger than that of Shanghai.

The northeast people love big handbags, and Shanghai people like small bags.

The northeast people like bright and bright clothes. Shanghai people always buy cold colors.

Zhao Benshan was wearing a Versace coat.

"Like buying a car, the northeast people like to buy a large land tiger. They seldom buy mini or Smart."

Sales said, "but in recent years, there are also old customers looking for things that are not obvious to LOGO."

There are two subway lines in Shenyang, which draw a cross in the city, and 2 vertical lines line up several landmarks in the city. From north to south, they are: City Square, Youth Park, and the Famous Five Mile River stadium in Shenyang.

There are several top shopping centers in this area. Besides the Mixc, there are two Hang Lung Plaza and a Zhuo Exhibition Center. Shangri-La and Jun Yue Hotel are also very close.

No matter where it lives in the eastern three provinces, the rich can spend three hours to reach Shenyang, to Youth Street, to eat, drink, to play, to shop and to stay.

Luxury brands have long discovered this. Shenyang has an Hermes, a Chanel and three Louis Weedon shops. The cosmos has voted for Shenyang with "open shop".

Ten years of making wealth

The movie "the piano of steel"

When did the luxury market in Northeast China sprout?

In the 90s of last century, the northeast old industrial base experienced a laid-off tide.

"The piano of steel" tells about the sour and confused days. Hailu Qin and Wang Qianyuan performed many Northeast people to cry.

For today's post-80s and post-90s, the "Shenyang Tiexi district", which suffered from shock and pain, is more like Beijing's 798.

The locals say that Tiexi is "old, new buildings."

After a few years of labor pains in Tiexi, LV sneak into Shenyang, when he could not find a satisfactory shopping center, and LV was in the five star hotel.

Hongkong merchants Dickson Poon's Shenyang West Wu department store opened in 2007, and the LV shop also appeared on the first floor.

From Shenzhen to Shenyang, West Wu department store has been waiting for 14 years, which has become a miniature of the two cities' economic development.

The laid-off tide has gradually gone, and over the next ten years, the diversified business forms in Northeast China have developed, and the ownership of enterprises has gone through chaos, gradually fading public color.

The rich began to appear, and they quickly learned to chase big cards.

How did the money come from here?

The northeast is rich in natural mineral resources, oil, coal and iron ore, some of which are state-owned enterprises. Some have long been privately contracted. No matter which way, they have created a group of northeast owners, who are financially inferior to Shanxi coal bosses.

"In nine years, my parents paid only a few hundred yuan a month.

My classmate PA bought coal from the abandoned coal mine in the state owned enterprise, and soon bought a Audi.

A 80 year old man working in Northeast Shanghai recalled that in the small town where he was laid off, there were also super rich people who had lived in luxury cars.

"The northeast is rich from ancient times, rich in natural resources, whether it is Daqing's oil fields, Hegang, Jixi's coal mines or Anshan's coal mines and iron ore. People who have studied high school geography know that."

Besides the underground resources, the Changbai Mountains in Northeast China also have endless treasure.

Many powerful pharmaceutical enterprises also rely on the medicinal herbs in the forest.

Jilin Tonghua is rich in wine, because latitude, humidity and climate are suitable.

Panjin, Liaoning is rich in rice, and its quality needs no further details.

There are similar wealth building magic in other areas: relocation, real estate, and related steel and building materials industries.

There are also coastal trade in Dalian and border trade in Harbin.

With the deepening of reform and opening up, the private economy has also developed, and there are many successful entrepreneurs.

"In a few years, I heard my friends say that luxury business is particularly hot."

The manager of a Swiss flagship store in Shenyang said, "I didn't expect that when I formally entered the industry in 2012, I met with anti-corruption."

In 2003, for the first time, the government put forward "revitalizing the northeast", and in 2016, "revitalizing the Northeast in an all-round way".

In 2003, the GDP of the three provinces in the East was about 1 trillion and 300 billion yuan, less than 2000 dollars per capita. By 2015, the GDP in the three provinces reached 5 trillion and 800 billion, and the average per capita was 8000 dollars.

Over the past ten years, the economy of Northeast China has grown dramatically. However, there are also points of view that government and business investment in the northeast is the most important factor, and the private sector is far from enough.

In 2016, among the top 500 Chinese private enterprises, there were 134 in Zhejiang, 50 in Guangdong, and only 7 in Liaoning. Only one pharmaceutical company was amended in Jilin, and only one Oriental Group in Heilongjiang.

The extreme wealth of a few people is at the same time as the economic difficulties of the three eastern provinces.

One street, four LV

Source: Bain global luxury Report

Where the rich group is rising, luxury brands will naturally go where to harvest dividends.

In 2007, LV opened its first store in Shenyang. Four years later, Shenyang appeared in a grand street of four LV shops.

In 2010 and 2011, Hongkong property developer Heng lung entered Shenyang and opened the Imperial City Heng lung and the City Heng Lung Plaza.

The Mixc, Shenyang almost opened at the same time, and this city seemed to be a battleground for luxury soldiers instantly.

The preferences of northeast people for dressing have also been concerned by fashion circles.

In the movie "sewing machine band", the Northeast Dapeng wears a "BOSS" Hugo Boss T-shirt in front of her chest.

In the play, the two generation "big long face" wore big gold chains and wrapped in mink, trying to attract the beautiful girl Ding Jianguo.

Stills of the sewing machine band

A luxury sale from Dalian tells us that the northeast people love Dolce & Gabbana, probably because the abbreviation of Italy brand is "DG".

Northeast men think these two letters represent "big brother (DaGe)", and these two letters are printed on the chest. The belt buckle is also a golden DG.

On the other hand, the design of Dolce & Gabbana is magnificent, and its color is festive and rich red and gold. It is loved by the northeast people, regardless of gender.

Another brand that northeast people love is Kenzo. Pure color, big printed T-shirts and shirts are popular. Tiger heads are even more majestic. Northeast men like the feeling of domineering and big brother.

The above European luxury leather brand insiders say, "northeastern people like big brands, especially big brands.

Stuart Weitzman boots, Gucci's T-shirt, they want to wear four or five pieces at the same time.

They are not very willing to listen to brand history and craft, just want to know if this brand is big enough or not loud enough.

Before 2012, luxury brands gained positive market feedback in Northeast China. They invested in shops and established feelings with northeast visitors.

The first place to become a luxury landmark in Shenyang is not a West Wu department store, but a shopping mall in Northeast China, which is a "shopping mall". It has gathered LV and Gucci.

Today's Zhuo exhibition has been grabbed by the Mixc and Hang Lung.

LV shops on the first floor are still in the men's clothing area of the atrium.

LV store in Zhuo Zhan mall

Changes are also taking place. "In those years, new luxury brands continued to enter the northeast, and the demand of northeast customers was higher and higher."

A luxury sale in Shenyang recalled.

The change of market atmosphere in 2012 made the whole industry unprepared.

LV adjusted the strategy nationwide. In 2014, the first LV store in Northeast China was shut down.

Bain's China luxury report released in 2015 focused on Shenyang.

The national luxury market fell 2%.

"Some cities have more business gifts and are more affected, such as Shenyang, where the number of shopping malls exceeds supply, leading to increased competition for customers and forcing brands to reconsider regional distribution."

The report says.

Absence of middle class

MCM launches new conference in Shenyang in 2015

After 2012, luxury brands seized the "demand for personal use".

The investment driven northeast economy, or the support of gifts to support the consumption of luxury goods in the northeast, makes it impossible for the luxury goods practitioners.

In Dalian, the best performing private sector in the whole three provinces, a dealer told us that in recent years, light luxury and fast fashion have been booming in Dalian. Many handbags for Coach and MCM are popular, and the two thousand or three thousand price products are well sold in Dalian.

Before, many girls in Dalian liked to buy cheap "Shanzhai" bags and "clad bags" in Victory Square.

Just graduated from a young girl, at any rate also bought a Coach to go to work.

There are regional differences in the three northeastern provinces. Coastal cities, cities with border trade and private economy are starting to have some young people who have good salaries and buy light luxury goods for themselves.

In fact, the most missing part of the Northeast luxury market is this part of consumers.

"The gap between the rich and the poor in the northeast is quite large. There are many families who buy houses on loan. There are millions of rich people who buy a watch, no less than the south."

Executives of a luxury company in the Northeast believe that the Northeast lacks the "north to the deep" group, which is the middle class of finance, Internet, modern service industry and family income.

The above executives are deeply rooted in the northeast, familiar with many of the local super rich, understanding their preferences, and even maintaining good relations with their families for many years.

The taste of the rich in the northeast is also changing: the rich generation bought the watch for ten or twenty years, and they pursued the big card and had their personality.

Many people have more than one Vacheron Constantin and Jaeger Le Coulter.

Now they have begun to study Nirupama, Jonny and Roger Du Pi, which have more personal niche tables.

Another story is a bit awkward.

There is a collector in Shenyang who speaks of loyalty and generosity. It is not new to hand over a watch worth tens of thousands to a friend.

There was a new salesperson in a watch shop who did not recognize him. He told him not enough, "a certain scale needs queuing."

The guests left the shop, and soon afterwards the manager hurriedly called to apologize.

In 2015, Switzerland's top watch brand HUBLOT Yu Bao table, the first store in Shenyang, opened in Shenyang Zhuo exhibition shopping center.

"Guests are happy to buy tables and buy socks as fast as they can.

Once being offended, it is also instantaneous to turn a blind eye.

So the reception of big guests is like walking on thin ice.

One salesperson said.

In the northeast, buying a watch is often a matter of friendship and impulse, and guests do not like to think deeply in the south.

A top watch company in Shenyang has to plan VIP activities every year.

Every time, there are hundreds of VIP guests who have very good sales records. They are invited for three days. They are comfortable in the best five star hotels in Shenyang, and each of them is accompanied by two or three guests.

Many rare rare watches are carefully placed in display.

Sugar cakes, flowers, candy, a magnificent atmosphere of enjoyment.

Beautiful Chinese and foreign models display various shapes, as well as musicians in Scotland national costume.

Once a guest agrees to take part in the activity, he usually has plans to buy a watch. For them, this is also a chance to feast their eyes.

The total sales volume of a day can reach tens of millions.

In the evening, guests will attend a brand sponsored dinner. Some people will see it as an opportunity to make contacts. Others are low-key. Before the banquet, they left with love watch.

Unique Northeast

Is it worth paying attention to luxury brands in the Northeast?

?

Yes.

From a national perspective, the bain report shows that in 2017, China's consumer luxury consumption grew strongly, accounting for 32% of the global market share.

Focusing on the northeast, the executives of the above luxury Northeast company said, "the northeastern people want to face themselves and care about their status in other people's minds."

It is a part of the Northeast People's character to wear their own money and give gifts to their friends and relatives, which is very disguised by the Northeast People's obsession with luxury goods than Guangdong and Shanghai.

The northeast people like to be stars at the party. They like to buy some special tables and become a topic at the table.

When a rich family marries, the mother-in-law will pick some big brand jewelry for her daughter-in-law, the first choice is Cartire, Bvlgari and Tiffany.

Northeast or northeast, and northeast people are changing slowly.

As the younger generation grows up, they also like hip-hop and street, and the "social" temperament of the Northeast accent is inexplicable and harmonious from the street style of the American youth group.

The preference for luxury goods is changing. In the past, the Northeast elder brother had no opinion on the small belly, and even thought it was part of the style. But today the children from rich families study abroad do not see this.

Young people no longer have a complex of mink, they wear Moncler and Canada Goose.

Ten years ago, the Northeast lady loved LV, Gucci, and now the girl in the Heng Long square, the bag is Bottega Veneta and Chanel.

The overall performance of luxury goods in the world is also confirmed in the northeast. There are clocks and watches sales hopping to the very active market activities. The monthly opening amount is considerable.

The sales of Prada went to the recently hot Gucci, and there has been a great increase in revenue.

In the streets of Shenyang, you can see takeaway brothers walking through the local home decoration website, displaying all kinds of slightly rough outdoor advertisements.

Special driver still regrets that the Northeast's economic development level and ideas are outdated.

But this also proves that the northeast is a potential market; as in the 80s of last century, multinational companies saw gold everywhere in China.

The dependence of the northeast on heavy industry and state owned enterprises is weakening, and the Internet, logistics and retail are emerging.

And constantly create new wealthy classes.

If the northeast can usher in the prosperity of the private economy, Shenyang's current three LV may not be enough.