Declining Consumer Confidence In Luxury Goods Is Not Expected To Become Mainstream In Retaliatory Consumption.

In March 21st, the Rhodes communication group and the precision Market Research Center jointly released the survey results of luxury consumption in mainland China during the epidemic period. Compared with the survey results in December last year, the survey showed that the consumer confidence of the respondents showed a further downward trend.

Simon Tye, executive director of the center for precision marketing research, said that the impact of the new coronavirus pneumonia on Chinese luxury goods market will be more challenging than expected. In a special period, brands need to consider satisfying consumers' needs while finding suitable ways to get consumers' sympathy and help to reduce the negative psychology caused by the epidemic. "

According to the survey, 82% of respondents believe that the new coronavirus has a negative impact on China's economy, of which 36-45 years old respondents hold the highest number of views, reaching 88%, and the second and three line cities are especially prominent in the age group, accounting for 100% and 95% respectively. Meanwhile, 36% of respondents said they would increase the consumption expenditure of luxury goods in the coming year, down 8% from three months ago, while the proportion of people who planned to reduce their expenditure increased from 10% to 19%, and the percentage of people who planned to reduce expenditure in all age groups increased significantly. The 36-45 year old respondents were the most significant, reaching 23%.

Compared to the survey data three months ago, jewellery, bags, beauty cosmetics and cars in the next year plan to increase the proportion of respondents who spend more money, the jewelry dropped from 48% to 35%, bags from 43% to 29%, cosmetic products from 57% to 44%, cars from 33% to 26%, and other categories in addition to watches, there were also varying degrees of decline. On the other hand, in addition to electronic products, the proportion of other types of products has increased, with more respondents decreasing leisure travel, increasing from 8% to 25%, reducing the number of people going to high-end restaurants from 9% to 20%, and reducing the proportion of consumers who take up high-end leather goods from 10% to 21%.

At the same time, more than half of the respondents will consider arranging more trips after the end of the epidemic. In the first tier cities, the number of leisure travel increased by 85% and 79% respectively among respondents aged 21-25 and 26-35, and 64% and 56% in the second tier cities, respectively.

In addition, 23% of the respondents said they would spend retaliatory after the outbreak. Among them, the number of respondents in the first tier cities, 21-25 years old, first tier cities, 26-35 years old respondents and second tier cities over 46 years old accounted for 33%, 34% and 35% respectively. Respondents chose to spend more on high-end clothing, shoes, jewelry and cosmetic products. Leisure travel, high-end dining, watches and drinks followed.

Gao Ming, senior vice president of Rhodes Communications Group and managing director of luxury goods business in Greater China, said that the phenomenon of consumer demand accumulated after the end of the epidemic will exist for certain luxury categories, but the survey shows that this will not become the mainstream. The increase in the total number of people expected to reduce costs is a bigger challenge for brands. When the epidemic is over, how to build a better relationship with consumers at the first time requires that the brand take precautions and start from now on.