The World Luxury Association Holds The 2013 International Luxury Round Table Summit In Beijing

On the 5 th of this month, P IQPC held the 2013 international luxury round table summit at the Renaissance Beijing Capital Hotel in conjunction with the World Luxury Association (World Luxury Association). It carried out multi industry discussions for the luxury market in the new situation of China, and many representatives of international luxury brands in China participated in the summit.

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"P > IQPC was founded in 70s in the United States, and is dedicated to providing professional conference solutions for suppliers around the world. Currently, it has branches in nearly 70 countries.

The World Luxury Association is an international non-profit organization founded in the United States. It is committed to the market research of luxury goods and consumption. It is currently the most influential luxury industry organization in the world. Its representative in China was founded in Beijing in 2008.

The two sides jointly held the 2013 International Luxury Summit in China, aiming to conduct a new round of market analysis and positioning for the luxury market under the new situation in China, so as to help international luxury goods companies implement new market strategies for China.

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Patrick Thomas, global president of Hermes, said that the luxury market forum of China under the new situation held by the World Luxury Association was highly valued. China has become the world's most important luxury market. 30% of its sales last year came from China.

If Chinese tourists are counted overseas, China's contribution to its sales will reach 30%.

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< p > no doubt, Chinese consumers are most likely to be rich and luxurious in Europe and America.

According to the latest ten year official report released by the World Luxury Association, as of the end of December 2012, the total annual consumption of China's luxury goods market has reached US $12 billion 600 million (excluding private aircraft, yachts and luxury cars), occupying 28% of the global share. China has become the largest luxury consumer country in the world, compared with 10% only three years ago.

If we calculate the consumption of Chinese people outside Boston, the American consulting firm of Boston gives another data: the 40% of the global luxury industry is created by Chinese consumers, and by 2015 China is expected to become the world's largest luxury market.

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Bernard Fornas, joint CEO of P, believes that the overall slowdown in China's luxury goods market does not mean that luxury brands stop moving. Instead, they hope to attract more quality consumers by creating more sophisticated high-end lines and high-end services to create long-term high profits.

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< p > the conference discussed the current situation and market prospect of the luxury industry in the form of anti-corruption in China's new government. The World Luxury Association's luxury consumption data for the 2013 Spring Festival show that from January 20, 2013 to February 20th, the total consumption of luxury goods in mainland China amounted to US $830 million, which was nearly 53% lower than that in 2012 during the Spring Festival sales, and the sales of Chinese luxury goods market had slowed down significantly.

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< p >, Ouyang Kun, chief representative of China Representative Office of the World Luxury Association, pointed out that the cold consumption of luxury goods will make the Chinese consumer market gradually return to rational consumption, and the government's vigorous anti-corruption efforts will also return the luxury consumption to the original demand market, instead of focusing on the gift market. Instead, the gift market has led to the negative significance of luxury goods. The brand should strengthen its training of its own individual consumers instead of the group buying market and the gift market. For the future market forecast, Ouyang Kun said that such a bureau would be a good thing at the moment in terms of the structure of China's consumption.

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Wang Qiyan, Professor of Renmin University of China and doctor of economics, also expounded his view at the meeting. A harmonious society needs some industries that can guide people to pursue. The rapid development of the luxury market provides this kind of pursuit for the successful people in the society. However, the media's excessive speculation on Chinese consumers' pursuit of the luxury brands abroad is biased. This may be because the prices of foreign luxuries are much cheaper than domestic ones. People who have the ability to consume travel abroad to buy local luxuries as one of the itinerary of going abroad, plus some of the acts of "buying on behalf of others", have created the illusion that Chinese consumers pursue luxury goods.

For China's GNP in 2012, the luxury consumption of $14 billion 600 million in China in 2012 was still a bit low.

This is a relatively normal figure in the history of luxury consumption in countries with rapidly developing economies.

Under the new situation of China, if the government departments make more appropriate consumption policies, the focus of luxury consumption will gradually return to the domestic market.

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The dialogues indicated that in 2013, the Chinese government first issued the "eight rules for improving the work style" and then issued the prohibition order. At the same time, the Chinese media equated the luxury goods and corruption of officials in the Chinese market. This is a warning to the prospect of China's luxury market in 2013. After all, when China has a negative attitude towards luxury consumption, a group of people who have wealth and power will have an impact on domestic luxury consumption, thus expanding the impact of the "Domino dominoes" effect, which will have a great impact on China's future luxury consumption. The custom of courtesy in China is to breed luxury goods as the root of the corrupt props, and once the gift market is lost, he does not expect 2013 luxury goods to be sold in China. < p > Guo Baocheng, Deputy Secretary General of China Market Association, and Ouyang Kun

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Less than P, in fact, the Asian luxury market growth has already affected the global luxury brand performance.

Hermes's latest quarterly report shows that as of March 31st, the company's sales volume was 857 million euros, an increase of 12.8% over the same period last year, less than 17.6% of the same period last year.

Prior to this, LVMH group's first quarter earnings report also showed that sales increased by 6%, far less than 25% of the same period last year.

Patrick Thomas, the global president of Hermes, believes that this is only a painful period for the market and will be eased at the end of the year.

In fact, most luxury brands have slowed the pace of expansion in China.

LVMH Group Chairman recently said that LV will completely inhibit expansion and will not continue to open stores in China's two or three tier cities.

PPR group chief executive also announced that it will no longer shop in new cities this year.

The group also said it would slow its expansion in China.

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According to the World Luxury Association's report on China's first quarter luxury market, before 2013, the gift market occupied 72% of the market in the sales of luxury goods in China, and the number of gifts used for officialdom gifts accounted for 50% directly and indirectly. In 2010, the share of luxury goods in the holiday gift market was increasing. In China, gift giving luxury goods has become the mainstream trend. But in the first quarter of 2013, the situation has been broken. Officials are far away from luxury goods as the best way to avoid public opinion calamities. Judging from the luxury consumption report during the Spring Festival in 2013, the absence of official market is the main reason for the heavy market share of domestic luxury goods, which leads to fierce competition among brands in China. On the day of "P", Louisa Hutton, the principal representative of China Representative Office of the World Luxury Association, released the "2013 China's luxury market report on the new form of anti-corruption".

Therefore, it is concluded that anti corruption has led to the loss of official market and heavy losses in the gift market, which has lost 53% in the same period of 2012, and the market has obviously slowed down. However, the World Luxury Association believes that this phenomenon is very conducive to the rationalization of the luxury market and will accelerate the return of China's luxury consumption to healthy development.

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< p > reporter suggested that in the new situation, whether the luxury brands will continue to rise in price, Louisa Hutton believes that in the current situation, the price of luxury brands may continue to rise in price, the purpose is to optimize the precise crowd, and strengthen the high-end image of the brand. In the face of the new needs of customers, brands must pay more efforts and costs. She also said that at present, the major luxury brands in China have nearly 1/3 of the shop is a loss.

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< p > so the World Luxury Association also predicts that 2013 will become an adjustment year for all luxury brands to China. The adjustment of the appearance of the merchandise will be more low-key. The suspension of opening stores in China will also be a bottleneck period for luxury goods in China in 2013. The major luxury brands will focus on serving the personal demand market.

Ouyang Kun suggests that the development of terminal customers must start with centralized flagship store service.

Optimize the precise crowd and strengthen the high-end image of the brand. In the face of customers who are constantly pursuing new needs, the brands must pay more efforts and costs.

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