Many Luxury Brands Are Suspending Stores And Consumers Are Turning To Overseas Buyers.

< p > from the performance of 2013, many luxury brands still grow feeble in the Chinese market. McKinsey said in a report that in addition to continuing to expand the rich population of the two or three tier cities, the Chinese middle class with annual household disposable income between 50 thousand yuan and 250 thousand yuan will be a huge driving force for the future luxury market. < /p >
Less than p last year, China's "a href=" //www.sjfzxm.com/news/index_c.asp "luxury" /a "market has been on the decline. Many luxury brands are caught unprepared. In the first quarter of 2012, the sales growth in the Asia Pacific region, which dominated by China, dropped to 16% from 67% in the same period last year. In the second half of 2012, the government's attack on extravagant winds made it worse for the luxury industry, which was affected by the macroeconomic slowdown. < /p >
In addition to the impact of the Chinese government's anti-corruption actions and the slowdown in the Chinese economy itself, more importantly, Chinese consumers began to shift their growth from < a href= "//www.sjfzxm.com/news/index_c.asp" > overseas to "/a" > luxury goods, and in the consumer concept they prefer to pursue luxury goods with unique and personal characteristics. P Some brands, including GUCCI, have begun to slow down or even suspend their store expansion plans in China. < /p >
< p > although the Chinese market is going downhill, Euromonitor, a market analyst, is optimistic about the overall growth of luxury consumption in 2014, which is reflected in the Luxury Goods Report luxury report. Euromonitor expects global luxury goods consumption to exceed US $318 billion this year (about 19461 billion yuan), thanks to the active market in the Asia Pacific region. < /p >
< p > "the most interesting finding is that in the next five years, according to our forecasts and regional realities, the Asia Pacific region will become the first place in global luxury sales." in the dialogue with the fashion trade website Business of Fashion, Fflur Roberts, the survey director of Euromonitor, said, "this is mainly due to China, although emerging markets such as Malaysia and Indonesia are also flourishing." Business Meanwhile, the active India market is also an important reason. " < /p >
< p > this conclusion is supported by Burberry's CEO Angela Ahrendts. She told the French newspaper Les Echosthat that the booming markets such as India, Indonesia and Latin America will become "the next China," and she believes that brands should not be too dependent on the Chinese market. "Perhaps the slowdown in the development of China's luxury market is not a temporary phenomenon, but a long-term state," she explained. Our sales are slowing down, but we don't want to start thinking so bad. " < /p >
P, McKinsey, published in a report last year entitled "no boundaries in luxury market: escalating Chinese consumers", pointed out that the rapid growth of China's luxury market mainly benefited from very rich families with annual disposable income exceeding 1 million yuan. They expect that the number of consumers will increase by about 20% every year in the next 3 years. By 2015, this figure is likely to double. Apart from the increase in volume, this group also presents a trend of consumption upgrading: like buying more expensive and more luxurious products. By 2015, the group's total consumption of luxury goods will account for 28% of China's market. < /p >
< p > but the report also points out that the growth of luxury consumption in the future will be more dependent on new buyers of luxury goods. Most of them belong to the fast growing middle class with annual household disposable income between 50 thousand yuan and 250 thousand yuan. Although the consumption of single middle-class families is much lower than that of ordinary wealthy families, their growth is astonishing. McKinsey predicts that the contribution of middle class families will be important by 2015. Many new buyers of luxury goods come from China's second tier cities. < /p >
< p > when the list of middle class consumer desires in traditional developed countries has changed from Hermes to a href= "//www.sjfzxm.com/news/index_c.asp" > H&M < /a >, but a group of "new generation" consumers who come from emerging markets and holding large amounts of cash are unable to restrain their desire to spend money. There is a lot of depressed demand and purchasing power, which may be the biggest opportunity for the luxury industry to grow. < /p >
The trend seen by P is very important for luxury brands that have been cautious in China. As we keep mentioning, the traditional second tier cities are rising rapidly, and people in these cities have begun to have a life style closer to the first tier cities. < /p >
Less than P, the middle class in China will probably become a middle class with ambitions and economic potential in 10 years. But before that, Chinese buyers were very similar to consumers in India and Russia. They were willing to spend a lot of money on some luxury goods, but they were still sensitive to the prices of other products. < /p >