Interpretation Of Global Luxury Market And Slowing Trend In Mainland China

According to the latest global luxury market forecast report released by Bain & Company (Bain consulting company) and Fondazione Altagamma (Italy luxury industry association), 2013 Global Luxury industry It is expected to grow by only 2% to 217 billion euros, a marked slowdown compared with the 10% growth rate in 2012. Unlike previous years, the growth engine of the global luxury market is shifting from the East represented by China to the West and the south. This year, luxury sales in the US are expected to grow by 4%, and the growth in Southeast Asia and Africa is as high as 11%.

　　 China's growth slows and overseas shopping spur European and American markets

2013 the global luxury industry has grown by only 2.5% in China. "The slowdown in the growth of China's luxury market may not be a temporary phenomenon, but a new normal," said Angela Ahrendts, chief executive of Burberry, a luxury goods giant in Britain.

Although Chinese consumers account for 29% of the world's luxury consumers in 2013, they are the largest single consumer group, but they spend more time shopping overseas.

The frenzy of overseas goods has made Chinese consumers a great contribution to the outstanding performance of luxury goods in the US this year. Cities in the western United States, such as Las Vegas and Losangeles, are also increasing sales of local luxury goods, along with the increasing number of Chinese tourists. Not only in the US, but more than half of Europe's luxury goods sales are contributed by Chinese tourists, and according to Bain's estimate, the total amount of luxury goods consumed by Chinese tourists in the world has been comparable to that of the whole American luxury market, and they are providing protection for the 50%, Britain's 55% and France's 60% expensive brand accounting revenue.

But in the medium to long term, there is no fundamental change in the stagflation of Europe and the weakening market in the Americas. Although China's luxury goods market is already growing at a small scale, it can still be ranked third in the world of luxury goods consumption. China's luxury goods consumers have accounted for 1/3 of the global luxury buyers, and their status as a luxury consumer country can not be shaken.

　 Southeast Asia and Latin America will become new "high speed engines".

With the rapid growth of the luxury market in China, the luxury brands are looking for a new "leap growth point" in the world. Burberry President AngelaAhrendts said it would not rely on the Chinese market. She said that since Burberry has gradually relocated its distribution rights in mainland China, it has closed half of its old stores. Developing regions such as India, Indonesia and Latin America will probably become big consumers of luxury goods like China. Southeast Asian markets are generally favored.

But not all Asian markets will grow, especially Japanese consumers' willingness to buy overseas. The yen exchange rate has depreciated by about 20% under the influence of Andouble's economic policy. Due to the fact that the difference between the real and nominal growth of the luxury goods industry is more or less affected by the yen exchange rate, the dilemma of currency depreciation and consumer confidence is making the luxury market uncertain.

　　 Africa's "new world" is worth looking forward to.

The uncertainty of the luxury market is forcing many luxury goods groups to open up more markets. Gildo Zegna, chief executive of Zegna group, said Mongolia, Nigeria and Morocco surprised the company. Zegna also opened stores in Mozambique, Kenya and Ango before 2014.

Zegna said the company has noticed that a large number of consumers in Nigeria and Angola are spending on European brands such as Milan, Madrid and Paris, especially in Lisbon and London stores. This also allowed Zegna to decide to go to Africa to pioneer the country as early as last year. Gildo Zegna says Africa looks like China in 90s, Russia in the late 90s and Mexico in 2000.

Zegna, which owns 3030 outlets worldwide, opened its first African store in Lagos, Nigeria, in April.

The industry is looking forward to luxury gold in Africa. Before Zegna, Hugo also opened a franchise store in Lagos. In addition, Prada SpA plans to open its third African stores in Angola and Luanda capital Luanda this year. According to Tope Edu, owner of Zegna franchised store in Lagos, even though the price of Zegna Lagos franchising store is 10% higher than that of the brand London store, the local store is still in the market. He said that Zhou will become a very important luxury market, but it is still in its infancy, because most Africans are still buying in London and other places.