Sales Of High-End Watches Fell Sharply In China, 30% Luxury Brands Were Forced To Rush To "Just Need".

A series of financial reports revealed in early November showed that the avalanche of the Chinese market even dragged down the global performance of the luxury group carriers, so that Swiss watchmakers began to worry about losing their jobs.

At the same time, the so-called "light luxury" brand is in.

The scenery is so good that wealthy Chinese white-collar workers love the luxury goods at the right price in a fastidious and smart way.

Ordinary watches and high-end fashion brands are slightly higher than the pace of China's economic growth.

Luxury brand performance decline

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Friends are very anxious now, from front-line to senior executives, some are considering changing careers.

Sandy, who worked in the luxury retail department for ten years, said that everyone had been worried about the recent gathering with friends in the circle.

Luxury Retailing is becoming more and more difficult, data is sluggish, some people want to open a restaurant, some people plan to quit writing books, and the golden years of luxury industry seem to stop abruptly for ten years.

Sandy has always been optimistic that the luxury industry in the past two digit or even three digit growth every year, "this life can not see."

In the third quarter, the performance of Hermes in China was weak, and its growth rate in the region was lower than that of the group.

The worst case is the Hermes watch, which has been dragging down the sales of the entire category by 14.4%.

In the first half of this year, Prada profits fell by 20.6%.

The annual net profit of the top brands of the top watch brands declined by 23.5% as of the end of September, with sales in China falling by 4%.

The third largest luxury group in the world says that China's declining consumer demand is one of the main factors that affect the overall revenue of the group.

TIG ha ya, the world's largest luxury group LVMH, recently announced layoffs. Cartire, the cash cow of its peak, announced a cut in production to reduce the work hours of watch factory employees.

Looking at the whole industry, it is easy to find that the performance of watches and jewellery, which is generally regarded as "hard luxury", is the most obvious.

The decline of the Chinese market has become the main factor of unsatisfactory performance.

A high-end watch brand insider of a large luxury group told reporters that almost all high-end watches brand appeared in China this year, the performance cliff type fall, the range of 30% to 50%.

Dealers are under pressure. They are eager to digest the accumulated stock and are hesitant in entering new products.

In October, the US consulting firm Bain and the Italy luxury goods industry association released the latest global luxury market monitoring report. This year, the global luxury market personal consumption will only grow by 5%, and it is expected to increase to 223 billion euros, or about 282 billion dollars, after the exchange rate factor has been increased by only 2%.

Bain predicts that sales in the Chinese market will fall by 2% this year, and this figure has increased by 7% last year.

The executives of the luxury brands unanimously expressed their support for China's anti-corruption and hoped that the industry would return to reason. However, the night selling of corrupt consumption gave them strong pain.

Insiders of a top men's clothing brand in Italy have told reporters about their flexibility.

Sometimes, a tailor will be sent to the tailor to measure the size and size of the suit at the appointed time and place.

The brand LOGO is completely hidden, so we must create the effect of "looks good, but no one knows the brand and price".

Sometimes the brand is willing to provide more convenience, that is, to allow customers to buy suits for others, and promises to change the styles and sizes of the recipients in the future.

This is still unable to offset the deterrent effect of anti-corruption. Luxury brands have to turn their attention to financial workers, multinational executives, lawyers, accountants and other high-income groups.

They understand that there must be painful pformation in China.

The consensus now is to invest more in social media.

An executive at the biggest watch dealer in China told reporters that the current group's idea is that the shop must be more precise and accurate, and those stores that need to be eliminated in the non core business circle should invest more resources in the high-quality outlets.

In marketing, straightforward advertising is not necessarily effective, and the spread of social media becomes even more important.

Compared with traditional hard and luxury brands, the performance and posture of light luxury brands are optimistic.

The brand of single products priced below 10000 yuan is sought after by young Chinese white-collar workers.

In the third quarter of this year, Coach sales in China increased by 10%.

The chief executive of French handbag maker Longchamp announced that it will expand its business in China this year, and Tory Burch announced plans to open more boutiques in China after its largest flagship store in Shanghai in July.

Burberry business revenue increased by 14% year-on-year at the end of September.

He Bin, director of Italy luxury brand Tardini, told reporters that luxury brands have realized that in the long run and healthy development of the Chinese market, the market of "self use" must be excavated.

IDG capital partners, Yan Yi Sheng, who focuses on fashion and luxury goods industry, told reporters that capital is currently interested in China's brands that are more active and better integrated on the Internet.

Observation shows that in Shanghai, China's first tier cities, consumers are no longer blindly superstitious in traditional big names, they are more interested in low-key, personalized brands, and know what is suitable for themselves.

The white paper on wealth of the Chinese people, published by Forbes, is expected to reach 14 million 40 thousand by the end of 2014.

The expanding scale of the Chinese affluent population is the engine that drives China's luxury market.

As Chen Qizong, chairman of Hang Lung Group, said, the next growth momentum of luxury goods comes from China's white-collar workers and golden collar groups.