China's Luxury Market Will Continue To Cool Down.

Recently, Bain consulting and Italy luxury industry association jointly released the global luxury market survey report. According to the content, the consumption growth rate of luxury goods market in mainland China was 10% in the first 8 months of 2014, which decreased significantly compared with the same period in 2013.

By the end of 2014, sales of luxury goods in mainland China will reach RMB 117 billion 800 million yuan, down 2% from 2013. This is the first time since the launch of the survey in 2000. negative growth Result. The industry expects that changes in the Chinese market will lead to slower growth in the Asian luxury market.

As a matter of fact, the weakness of luxury brand performance has already come to an early start in the first half of this year. According to the latest three quarter earnings report released by LV, the world's leading luxury brand, its sales increased by 4% in general, with sales of leather goods increased by 3% and sales of wine and spirits dropped by 7%.

According to Italy's luxury brand Prada (PRADA) released its first half results in September, its overall profit in the first half of this year was 20.6% lower than the same period last year. In addition, the number of new stores it plans to open this year will also be reduced from 80 to 65.

Britain Luxury goods Burberry group (BURBERRY) has just released the first half of this year's earnings report, although sales increased by 14%, but the year-on-year growth rate fell by 5 percentage points, and the sales of the famous luxury brand Gucci (GUC-CI) continued to fall 5.7% in the two quarter, following a 3.7% decline in the first quarter of this year.

Zhou Ting, President of the Institute of wealth research, said that the main reason for the poor performance of luxury goods in China is the change in consumer demand. "In the past few years, the rapid growth of luxury goods sales in China has been driven by market demand, and the brand operators have not done any credit.

Now, with Internet The popularity of information is becoming more and more transparent. In addition, China's emerging consumer groups are gradually maturing, and their demand for fashionable consumer goods has become more rational.

At this point, the brand operators do not do well in service and transformation, leading to the subdivision and cooling of the luxury goods market. "The continuous cooling of China's luxury market has led many big brands to lose their confidence in China and withdraw. However, in this process, the major brands only focus on the current interest growth point, and do not dig deep market demand.