Purchasing Overseas Consumption Is The Main Reason For The Shrinking Of China'S Luxury Goods Market

< p > February this year, Louis Weedon Arnault, President of French luxury goods group, announced that it plans to slow down the expansion rate of Louis Vuitton in China's two or three tier cities after February.

Francois Henri Pino, chairman and chief executive officer of luxury group PPR, recently announced that it was trapped in the decline in passenger traffic and profits. This year it will stop the expansion of Gucci brand stores in China. Its original construction of 10 to 15 stores in China will be reduced to 3-4 annually, and the main stores will be renovated and renovated.

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Less than P, not only that, Burberry (Bo Baili) and other international luxury goods giants have seen signs of slowing down in China.

Perhaps the weakness of sales is one reason why several international luxury giants are slowing down in China.

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< p > Xu Junsong, a luxury industry researcher at the China Information Network Industry Research Institute, sees that the expansion of international luxury giants in China is affected by the slowing down of China's luxury consumer market, and the luxury giant apparently is not willing to risk losing money to open a shop in China.

Luxury magnates are well aware of their survival in the global economic downturn.

Increasing single store income is more effective and more appropriate than rapid expansion.

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"Luxury demand includes two categories: luxury consumption and luxury investment," said Luo Gao Zhan, general manager of cultural communication at P.

In terms of luxury consumption, China's luxury consumer groups are mainly wealthy and business gifts.

In the affluent society, the concept of luxury consumption is becoming more rational. Publicity consumption is gradually replaced by higher brand and higher content. The stage of blindly pursuing luxury brands is over.

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< p > Luo Gaozhan said that in terms of political and commercial gifts, public opinion and discipline supervision were strengthened, and citizens' information dissemination was facilitated. Public opinion and efforts against social corruption were strengthened, and market consumption in this area shrinks rapidly.

In terms of investment, the stock market has been depressed for a long time, and the external environment and the follow wind effect have led to a decline in confidence in luxury investment. Investors are more inclined to invest in products with less risk and stable returns.

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< p > according to the report released by Louis Weedon, sales of all its business categories in 2012 showed a solid growth trend, with only the decline in China's performance.

In addition, the reporter also noted that Gucci's sales in the first three quarters of 2012 increased by 12%, 10% and 7%, showing a downward trend.

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Less than p days ago, according to the World Luxury Association's report on overseas luxury goods consumption during the Spring Festival in 2013, the financial statements released in 2012 showed that the year-on-year turnover increased by 30% of the total value of luxury goods in China, which decreased by 10% during the Spring Festival in 2013. The survey found that the main luxury stores in Beijing, Shanghai, Chongqing and Shenzhen still have a higher total inventory except for some well sellers.

In the Spring Festival of 2012, most luxury brand stores contributed more than 60%, regardless of personal consumption and gift purchases.

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< p > > the 2012 China luxury food research report released by Bain shows that the growth rate of luxury goods market in mainland China will be around 7% in 2012.

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< p > from the above data, it is not hard to see that in 2012, sales of luxury goods in China had already been weak, and the sale of luxury goods in China in 2013 was still a difficult year.

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< p > in Xu Junsong's view, this is mainly related to the macro-economic aspect of our country. When the economy is slowing down, wealth convergence is seldom as explosive as it used to be, leading to a reduction in consumer confidence in the previous few years.

In addition, with the frequent international tourism, many Chinese tourists go abroad to buy luxury goods, and overseas purchasing is also booming.

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< p > Luo Gaozhan said that at present, China's luxury consumption is in the stage of showing off to maturity. Next, the luxury goods industry will enter a precipitating stage.

The Chinese face saving mentality will make luxury goods more popular in China.

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P, an interesting phenomenon, is that the price of luxury goods in China is more expensive because of the rising tariffs, human resources, stores and profits, which may lead to the differentiation of luxury goods prices on global luxury prices.

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< p > take Lancome perfume as an example, a bottle of Lancome perfume in China will add 30% import goods consumption tax +17% value-added tax +10% tariff =57%.

In the United States, the same bottle of Lancome perfume, import tax 0+ consumption tax 8.25%=8.25%.

Therefore, some people also attribute the domestic luxury price to the high price of overseas luxury due to the high cost of domestic tariffs and the high price of domestic luxury goods. The price difference may be a reason for the weakness of domestic luxury consumption.

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< p > Bain also points out that Chinese consumers have become the largest luxury consumer group in the world with the low euro exchange rate and the warming of overseas tourism. They have bought the luxury of global 1/4.

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< p > Luo Gaozhan said that in the era of globalization, there are more and more people traveling abroad. The appreciation of the renminbi has also brought stronger purchasing power, which has promoted the overseas consumption of luxury goods.

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