China'S Luxury Market Is Hit Hard By Corruption And Can Only Be Low-Key.

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Xiaobian of the network introduces the anti-corruption to China's luxury market into a "low-key era".

Ding Meng, an ordinary cadre of the land acquisition office in Shapingba District of Chongqing, although he ranks in the "fly" level of "greedy", but has the top single crown, is the most fashionable and corrupt official. He even "sprouts" to the public prosecutor for "questioning the class". He said, "my suit has no more than 10 thousand yuan."

You are a woman. You don't have any shoes in my shoes. Keep your shoes regularly. Buy hundreds of moisturizing cream to wipe them. "

Ding Meng also did not brag, investigators found 200 pairs of leather shoes and more than 100 sets of top brand suits in his family.

However, Ding Meng's "fashion" was placed in the eyes of Jiang Runli, former Deputy Secretary General of the Fushun municipal government of Liaoning province. It was regarded as a P. The "Queen of LV" is known as Jiang run Li, who uses 190 square meters house to store luxury items, including 48 Rolex watches, 253 LV handbags, and 1246 sets of top brand clothes.

For a while, the "cousin", who was sacked by the netizens, "one after another", has been heated up by public opinion about whether it is necessary to train the discipline inspection cadres in luxury knowledge training to enhance the ability to identify luxury goods and better carry out anti-corruption work.

Everyone knows that in China, the ups and downs of the luxury goods industry can not be related to China's anti-corruption efforts.

Dark clouds in luxury market

The relationship between luxury goods and China's anti-corruption on big data, almost all of them are noticed by Chinese and foreign media and industry consulting and analysis companies.

At the end of 2012, the central government promulgated eight regulations to improve the style of work. In 2013, the fight against corruption was real, and its strength continued to increase unprecedentedly. "Flies and tigers fight together". The inspection group system formed a high intensity of demining, and the big tiger was arrested in succession. The deterrent effect was extraordinary, and many people's greed was missed.

With the continuous emergence of anti-corruption achievements, almost at the same time, the Chinese market of luxury goods industry began to decline.

The latest data came from the global luxury market surveillance released by the US consulting firm Bain and the Italy luxury industry association in October 15th.

According to the report, the growth rate of global luxury consumption in 2014 will be only 2%, which is 223 billion euros at the current exchange rate, the lowest growth rate since 2009, and the first negative growth in luxury market since entering the mainland of China.

Bain predicts that sales of luxury goods in the Chinese market will fall by 2% this year, and this figure will increase by 7% in 2013.

The report also made it clear that China's aggressive anti-corruption measures have caused market slump.

In fact, as early as February this year, the American New York guest magazine wrote: don't let the positive smile of the luxury industry deceive you, this is their most difficult period.

Thanks to the Chinese government's efforts to combat corruption, from Beijing to Geneva to Paris, the fine linen and exquisite clocks have long been overshadowed.

Indeed, compared with the high spirits of the Chinese market in the past few years, the global luxury industry has been quite frustrated in the past two years.

The luxury watch industry is undoubtedly "hurt" most deeply, and even some industry consultants say "suffered a devastating blow".

Bloomberg reported that in the "golden age" of 2011, the sales of high-end watches in mainland China increased by 40%, compared with 11% in 2013.

More detailed data came from the Swiss Watch Industry Federation. In the first quarter of 2013, Swiss exports to China decreased by 26% compared with the same period a year ago. This is an important sign of "bad momentum", because this data reverses the ten year growth trend of the Swiss premium watches in the Chinese market.

As a result, the total number of Swiss watch exports in Hongkong and Mainland China fell by 5.6% and 12.5% respectively over the whole year.

The news from January 2014 to April is still falling. The total number of watches exported to Switzerland decreased by 4.4% compared with the same period in 2013, down 27.6% from the same period in 2012.

Faced with weak demand and large inventory in the Asia Pacific market, the Cartier watch production and assembly department of the group has decided to cut production from November.

Foreign wine is also associated with watches.

Some media commented on the report of the world-renowned wine maker Paul lolliga in the 2013 to 2014 fiscal year, saying: "Martell bubble burst in China".

Statistics show that sales of many famous French brandy in China, such as Martell, such as Martell, dropped by 23%.

The sharp decline made the echo of France echo: "in the Chinese market, the sale of valuable brandy has ended at the age of two digits."

By the way, the local high-end liquor industry is also having a hard time: the luxury Moutai (600519, bar) wine, the operating income in the first quarter of 2014 has increased by nearly 4% compared with the same period last year, but we should know that the first quarter of 2013 increased by 19%, and the first quarter of 2012 increased by 42.5%. The difference is very sad. If the net profit growth is attributable to less than 3% in the first quarter of 2014, and 21% and 57.6% in the 2013 and 2012 figures, respectively.

In the past month, the earnings reports of major luxury goods groups have confirmed the market downturn.

The report showed that the performance rose by 7%, the ring ratio showed a slowing down trend, and the second half of the year was expected to decline from mid to low digits. The first half of the report released on the 15 month of Mulberry10, the leather luxury brand, claimed that the income dropped by 7%. The 2014 quarter three quarter earnings report, which was called the "mother of China Street bag" by the Louis Weedon luxury handbags, showed that sales growth fell sharply, only 4%, and this figure was 25% in 2012. The sales of leather goods in its engine department were lower than 3%. Only a few years ago, the proportion of Asian sales of leather goods accounted for more than 35% of the total sales of the group, while the interim earnings released by Prada of the Prada group announced that its net profit decreased by 21% over the same period last year. The Burberry group, which has been in good momentum in recent two years, released its first half financial report in October 14th.

Gucci (Gucci)'s parent company, another luxury giant Kering, showed a complex performance. In the three quarter earnings report released in October 23rd, it showed an increase of 4.4% over the previous year, and its YSL and Bottega Veneta still maintained a good momentum of two digit growth. Gucci resumed in the two quarter, while the three and third quarter respectively rose 8% and 4% respectively in the Asia Pacific and Western European markets.

Today, the poor performance of the major luxury groups has largely been "blamed" for the "inability" of the Chinese market.

In those days, in 2009, under the influence of the international financial crisis, the luxury consumption market in Europe and the United States was generally weak. However, the total consumption of luxury goods in China increased to 9 billion 400 million US dollars, and the global share was close to 30%, ranking second in the world.

The Chinese market is also known as the "global luxury savior".

China's luxury market sales increased by 9 billion 600 million dollars in the 5 years before 2014.

Only the absolute growth of the United States is above China, and no other country can get close to this growth rate.

To this day, for the reasons for the slowdown and the expected negative growth, anti-corruption has become a key issue.

The Wall Street Journal (blog, micro-blog) reported that China's domestic

The most notable feature of the consumer group is "male dominated", which is quite different from other luxury consumer countries such as Japan.

In China, male businessmen are the core consumers of luxury goods, and they buy luxury goods mainly for gifts rather than for their own use.

"The culture of gift giving in China is the main source of our income."

Speaking to investors about the main reason for the recent decline in corporate performance, Stacey Cartwright, chief financial officer of Burberry, once said so frankly.

In the report, Bain pointed out that China's "anti-corruption campaign" has hit the culture of gift giving, and the most important driving category for advanced watches and senior men's wear is officialdom.

Evidently, the heavy and heavy anti-corruption struggle, which has been repeated more and more, is continuously running the bubbles in the luxury Chinese market.

On the Tencent website with the largest number of visitors in China, there is a news survey about "do you think luxury goods are not sold mainly because of corruption?" among the 52 thousand respondents, more than 80% of them identified the answer to "yes".

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Is the Chinese market still promising?

Luxury goods no longer sell well, which is probably the new normal for the Chinese luxury market brought by the anti-corruption catalyst.

Is the big man of international luxury group worried about this?

In July this year, Francois Pinault, chairman and chief executive officer of Kering group, told reporters in Paris headquarters of France that the Chinese government's anti corruption Campaign has sent a good message to the world in July.

Judging from the history of economic development over the past 150 years, some countries' development curve is that the economy is rising fast and falling fast, such as Argentina.

I think that an important reason for this phenomenon is that the law is not sound, or there is no law, and the law is powerless to control corruption.

In my view, a strong rule of law in a country is an important foundation for sustainable development.

Therefore, in this sense, China's effective anti-corruption action is very good, and is conducive to the long-term development of luxury goods in the Chinese market.

Pino added that in the face of the fact, the ongoing anti-corruption campaign has "little impact" on the performance of their major brands in the Chinese market, "because our products are not typical gifts products".

Like Pino, in fact, the global luxury goods business is still optimistic about the Chinese market after "de foaming". They are optimistic about the prosperous Chinese. They believe that they will find more business opportunities from the healthy development of Chinese society.

Credit Suisse released the 2014 Global Wealth Report in October 14th, giving the luxury goods business a shot in the arm.

The report points out that the number of the global middle class is 1 billion, and its wealth is between 10 thousand and 100 thousand dollars. The number of middle class in China has doubled since 2000, accounting for 1/3 of the world's total.

The average net assets of mainland China have increased rapidly since 2000, from 5670 US dollars to about US $21 thousand and 300 in 2014, and the median value of personal assets is US $7033. The main factor that has increased since 2010 is RMB appreciation.

The total household wealth in China is third, the second day.