The Major Luxury Brands Are Breaking Through.

In January 31, 2015, the Institute of wealth research released the 2014 luxury goods report in China. In 2014, Chinese consumers spent 25 billion dollars on local luxury goods, down 11% from the same period last year. The proportion of China's luxury goods market in the global luxury market dropped from 13% in 2013 to 11%. In contrast, the consumption of Chinese consumers reached $81 billion in 2014, an increase of 9% over the same period last year.

According to Zhou Ting, President of the Institute of wealth and quality research, in the release of this report, the absence of Hermes is due to the fact that all members of the team are meeting in France to reformulate the market strategy. Meanwhile, all the executives in the Asia region are meeting. In 2014, the presidents of many high-end luxury goods groups frequently meet with Chinese market participants. The topic has always been about how to reformulate the development strategy of the Chinese market after the retreat of "luxury gift giving".

The report shows that many luxury brands are abandoning the Chinese market. The wealth Quality Institute has found that the market visibility of luxury fakes is more than 6 times that of genuine products, that is, luxury brands that can be seen everywhere on the streets are mostly fake, and there are many "regular overseas purchasing" products. This is undoubtedly harmful to the brand image.

The reporter understands, from these days of market reaction, Chanel's price reduction policy is effective, domestic sales increase. The industry predicts that other luxury brands may follow suit.

Chanel China's depreciate industry earthquake has gradually emerged. According to the Changjiang Daily reporter, Dior, Patek Philippe, LVMH group's watch brand such as Tigh Hoya and other luxury goods and top watches and luxury goods have followed suit to join the price reduction ranks, the highest price cut has reached 40%.

Since 2013, HUGO BOSS, D&G, Patek Philippe, Boucheron, and even the Giorgio Armani flagship store, which has been in the past 10 years, has been quietly evacuated from the Bund, Shanghai. In 2014, HUGO BOSS closed 7 stores in China, Zegna closed 6, bolberry closed 4, and the world's third largest luxury group France. Kai Yun group Deng Wanying, President of the Asia Pacific region, resigned; in February, Patek Philippe launched the first horn in Hongkong to reduce the price of luxury goods, plus the continuous depreciation of the Swiss franc. Competition in the same industry Intensifying, other Swiss brand names are also unable to withstand pressure to start cutting prices.

According to statistics, the first brand of luxury goods and bags in mainland China last year was GUCCI, which could exceed HERMES, LV, PRADA. The demand elasticity of luxury goods is larger than that of mass goods, and the impact of price adjustment on sales volume is very large. Meanwhile, the increase of sales volume will also enhance brand awareness and share. The advantage of proper price reduction is obvious in China's luxury market.

Just in Chanel Before China's massive price cut, luxury brands had put their future strategies on the outlets. In January this year, the LVMH group announced the injection of domestic commercial real estate sand boat, intended to enter the field of orlies, and open up a new situation in the mainland channel. The Institute of wealth and quality analysis shows that Oteri J is already a sunset channel rather than a sunrise channel in luxury goods industry. Luxury brands can not be sold at low price in the long term.

As a well-known lawyer in the luxury industry, Tao Jingzhou revealed that under the shadow of the declining sales volume, foreign experts of luxury brands are studying whether luxury is popular. But what the Chinese high net worth people care about is: where is the boundary of luxury goods? What kind of brand is rare?