Luxury Market Facing Severe Winter Gucci Lv Suspends Shop In China

< p > < strong > farewell to "Chinese banquet" < /strong > /p >

< p > how long will this cold spell last? Lu Xiaoming, the former managing director of MontBlanc China, is not optimistic: "if China's < a href=" http://sjfzxm.com/news/index_s.asp "> luxury market < /a > is winter in 2012, then the market in 2013 will enter a severe winter.

And the severe winter will continue for a period, and then return to the normal and mature consumer market.

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< p > a "cold current" is spreading over the Chinese luxury market. In the past, the compound annual growth rate of about 30% per year dropped to the single digit figure in 2012.

With the performance of luxury brands in China in the past year slowing down, the crazy expansion of the past has come to an abrupt end.

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< p > it is reported that Francois, PPR, chairman and CEO of luxury goods group, said that in 2013, the expansion of Gucci (Gucci) brand in China would be stopped.

Not long ago, Bernard Arnualt, the head of LV, a luxury brand Kingdom, also sent out a signal that it would not continue to open stores in China's two or three tier cities. LVMH

At the same time, Richemont, one of the UK's Burberry and one of the world's three largest luxury goods groups, said it wants to slow down its expansion in China.

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< p > "if the Chinese luxury market is cold in 2012, the market will enter a severe winter in 2013."

Lu Xiaoming, former managing director of MontBlanc China, was not optimistic when he was interviewed by reporters.

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< p > < strong > the shop starts to brake fast < /strong > < /p >.

< p > "at present," a > Gucci < /a > brand should not be basically set up in the new cities of China.

Insiders close to Gucci told us this reporter.

Jean Francois Palli, managing director of PPR, said that Gucci would not open stores in new cities in China in 2013 instead of refurbishing and expanding existing Chinese stores.

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< p > Gucci's strategic adjustment in China is consistent with its old rival LV.

In January 31, 2013, Bernard Arnualt issued a signal that it will completely inhibit expansion and focus on high-end products, and will not continue to open stores in China's two or three tier cities.

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< p > a German menswear brand China PR also told our reporter: "the number of new stores in 2013 will be greatly reduced and will focus on the quality of individual stores."

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< p > 2012 performance is enough to explain why a > luxury brand < /a > why should China brake in China.

From the first half to the second half of 2012, the sales growth of PPR group's major brands in the Chinese market decreased year by year, while the market was weak in the first half of 2012.

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In the first half of 2012, sales of all the business categories of LV luxury group grew steadily, but sales in the Chinese market declined slightly in the first half of P.

Burberry, the old British brand, announced that its sales growth in Asia Pacific region, which is mainly in China in the first quarter of 2012, dropped from 67% in the same period last year to 16%, which is a shadow over China's luxury market.

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< p > then, the weak growth of luxury brands such as Gucci and LV in China in the third quarter aggravated the market anxiety: China's luxury market is slowing down.

Bain's report corroborated the fact that Bain predicted that the growth of China's luxury market in 2012 dropped from 30% in 2011 to 7%.

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< p > "the poor performance of the domestic market has led to a lot of pressure on the luxury stores in the past.

Lu Xiaoming said this analysis.

In trying to improve the same store sales, slowing the expansion of the Chinese market is also a strategic adjustment that luxury brands have to make.

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< p > < strong > control and wasteful spending < /strong > /p >

"P", why did the Chinese luxury market, which was once thriving and regarded as the sales engine by all luxury brands, spread "cold current"?

The Francis Gouten, the chief executive officer of the Asia Pacific region and the founder of Gu Teng consulting, said that he was in an interview with reporters.

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< p > according to Bain's statistics, 60% of the total consumption of luxury goods in China occurred overseas in 2012, and only 40% of the total consumption came from the local market.

The increasing price of overseas tourism and the widening of the euro's value at home and abroad are all factors driving the rapid rise of overseas consumption.

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< p > "slowing down China's economy has a certain impact on luxury consumption. Entrepreneurs and executives have suspended the luxury purchase behavior from gifts, because companies no longer support them to spend money lavishly."

Michel Guats, director of MBA and EMBA, Marseille School of Commerce, France, said in an interview with this newspaper.

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< p > in addition, the new policy of restricting the government's luxury spending in the past has also restrained the consumption of luxury public funds to some extent, as well as the government's crackdown on corruption, so that the consumption of luxury gift gifts in the past has shrunk.

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< p > how long will this cold spell last? Lu Xiaoming is not optimistic: "if the Chinese luxury market in 2012 is a cold winter, then the market in 2013 will enter a severe winter.

And the severe winter will continue for a period, and then return to the normal and mature consumer market.

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< p > the reasons for Lu Xiaoming's judgement are as follows: "China's luxury market is desperately developing in an immature situation. Once the economy is bad, the consumers here will mature at once, so in 2013 and 2014, those too empty faces and conspicuous consumption will be reduced, and the government's anti-corruption will make public spending and gift consumption less and less."

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The consumption fever outside P seems to continue for some time.

Just as the industry pointed out to reporters, "for luxury brands, we should consider whether Chinese consumers' overseas consumption craze is sustainable and control their cost in China."

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