Analysis Of China's Luxury Consumer Market

The price of luxury goods is very fast. Maybe we can only buy a small size this year.

Just as Sun Yang opened a world record gate for the Chinese swimming team, the data released by BURBERRY in July also set a benchmark for the slowdown in the sales of luxury brands in China.

Slower growth benchmarking

BURBERRY's sales growth in the first quarter dropped from 30% in the previous quarter to 11%, which is said to be numerous.

It is the most "dazzling" one.

In addition, Hugo Boss also admitted that its revenue in the second quarter from Asia increased by only 4% compared with the same period last year. We must know that the growth of the major luxury brands in Asia is basically on the Chinese market and recorded such a growth rate. This shows that the performance of the brand in the Chinese market is also lacking in vitality.

Even the wristwatch market, which has shown a steady performance, has also declared "high failure". China's largest watch retailer Hendry Holdings Limited has revealed that the growth rate of demand for high-end watches has slowed to single digits in recent months.

The first watch retailer, which was listed on the stock exchange of Hongkong, said that sales of the group fell 10% from 4 in the same period last year, although the overall performance of Hong Kong and Macao in June was flat compared with last year, but sales in the mainland dropped less than 10%.

panorama

And we went back to Guangzhou to see two of the top two.

Shopping malls, although the flow of people has not significantly reduced, but according to the salesmen of some stores, the most recent bustle is the days when the special price was in the middle of July. Customers were sent by text messages. When they entered the door, they asked the price reduction items, and once they had all changed the new products, they were hard to see. In the past few years, only a new product on the counter appeared to be very busy. Now, after the season changing, all the three attendants in the shop will greet them at the same time.

Some of the luxury brands that originally planned to enter Guangzhou have also become cautious. In the first half of the year, they announced to the media in a big way that they would be stationed in MIKIMOTO, Japan's top jewellery brand, but suddenly cancelled the plan last month. Although officials said that the cooperation with the shopping malls failed, the market participants mostly believed that their prudent behavior was influenced by the current situation of luxury consumption.

There are exceptions.

Those children who are "adverse growth".

In the market has not been greatly compressed, there are still some brands around the world can also achieve remarkable growth, and each has a magic weapon.

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China

The market is popular around the world. It is a large-scale exhibition of LV in National Museum last year. But recently, the movements of the major brands in China have become more cautious.

1, Hermes:

High price and many customers.

The data released earlier by Hermes group showed that sales in the first half of this year increased by 21.9% over the first half of this year, especially due to the strong sales performance in various regions, especially in the Asian region, especially in the Chinese market, because they have just launched a new home series, which not only gives the original consumers a sense of freshness, but also attracts a new group of followers.

2, PRADA:

Many stores and a good foundation for the masses.

Sales of PRADA, which has been favored by Chinese consumers, has been quite alarming. The brand said last week that sales in the first half of 2012 jumped 36.5%, and most of the world showed strong demand, especially in Asia, where the local growth rate was as high as 45%.

In the first half of this year, the brand has been expanding its retail network and opening 28 new stores in the first half of this year. By the end of July, the number of outlets has reached 414.

3, COACH:

Clear positioning and strong sense of freshness

The representative from the United States is also commendable. As of the fourth quarter of June 30, 2012, its sales in the fourth quarter amounted to $1 billion 160 million, up 12% from 1 billion 30 million US dollars in the same period last year.

Driven by double digit growth in new store expansion and same store sales, the Chinese market has achieved sales of more than US $300 million, an increase of more than 60%.

This is a bright prospect for the second tier brand.

Causes of cold

It is not cold for a day, but all kinds of factors lead to Pingesparklevu Jan Viv's luxury goods being cold. The feedback from local consumers is also a reflection.

1, the more shrunken wallet, the higher the price.

Example: Liu Mei, who works in the logistics industry, has increased by only 5% in the past year. However, a bag she looked at has increased three times in a year, and the total price has increased by 20%. That is to say, the price set up a year ago can buy a large bag, but by this year, the money will not be enough to buy the smallest.

Liu Mei feels that luxury can be a rare thing, but it can never be a burden to her. So she resolutely decided to save the money and pfer it to other daily consumption, because the recent rise in oil prices and even the increase of car washing fees by five yuan, she felt that under the circumstances of economic uncertainty, she should try to reduce unnecessary extravagant consumption.

Enlightenment: as we all know, the economic situation that is not ideal will affect the purchasing power of consumers, and luxury goods as the additional consumption will naturally be the most sensitive.

To add insult to injury, luxury goods prices have been rising again and again in recent years. All kinds of fine goods, such as watches, handbags and skincare products, have made many adjustments so that consumers can not help but wonder: "clothes, food and shelter must run over CPI, and luxury consumption can also afford to rise in price surges".

And now the domestic luxury consumers are becoming more assertive. They will not blindly invest their daily consumption share into unrealistic spending.

This consumption consensus is particularly evident in southern cities.

Therefore, before considering the price increase again, the brand must take into account the affordability of the target consumer group, otherwise it will be regarded as a negative example of "sitting at the starting price".

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2, regional consumers are "discriminated against".

Example: CELINE, a foreign white-collar worker in the second tier cities in the mainland, knows that the price difference between domestic and overseas luxuries is quite huge. But sometimes, when looking at the center of the local shopping mall, they are willing to spend more money to buy it, so as not to wait for purchasing.

But what made her most angry was that she had tried to buy a product of the season at the original price, and was embarrassed when she was in front of her friends.

Later, she read all kinds of news reports, only to know that she was not the only victim, which made her very angry.

Inspiration: Nowadays, the luxury flagship stores in China are more brilliant than one. Many Asia Pacific and even the largest shops in the world are located in big cities such as Beijing and Shanghai.

But in the two or three tier cities, it is not always possible to enjoy such treatment. First of all, there is a huge difference between domestic and international prices. Secondly, it is the service that is enjoyed. It is the renewal level of the products again, let alone the listing of some topic products in the world. The consumers in the regional cities generally do not enjoy the same treatment, though they spend the same or even higher price.

If the brand with long-term vision can be easily seen, such a practice is quite disadvantageous to the brand selling pressure spreading to the two or three line cities. Maybe you can get huge profits at the earliest time. Once the anger of the consumers is squeezed to a certain extent, the sales of the brand will suffer a serious blow.

3, luxury halo HOLD does not live

Example: Ms. Ren, who lives in Shenzhen, was originally a loyal user of the G brand. When she opened flagship store in Shenzhen, she was still invited to VIP customers. But now she has lost interest in the brand, and has turned to another more expensive and low-key brand.

And a group of friends around Miss Ren also gradually gave up some of the popular luxury items which are too popular in China. They would rather spend more money to enjoy the luxury of luxury.

Inspiration: when the luxury goods enter the country, the freshness and aura that consumers bring to their customers are unprecedented. However, after a period of time, the consumers will split up. Some of them will not follow blindly. They will take the initiative to explore different consumption. If the brand can not succeed in retaining the customers before they change their minds, they may lose them forever.

When luxury brands opened new stores in Taigu, the windows were once surrounded.