Why Luxury Stores Are Closed

Recently, two

The news of closing the store or counter in Guangzhou has become a hot topic in the circle of friends.

Previously, a luxury item has been shut down or evacuated from some stores in Shanghai, Tianjin and Chengdu.

Faced with this phenomenon, we should treat it rationally.

It is reported that the reason that luxury goods are closed in succession is the high cost, that is, the rise of rent and labor.

And detailed analysis, high cost is only part of the reason, more importantly, luxury goods in the domestic sales, compared to the previous few years has been shrinking.

The decline in domestic sales does not mean that the purchasing power of luxury goods has declined, but that the mode of purchase has changed.

In recent years, people travel abroad is like a tidal wave, which brings amazing purchasing power (per capita consumption power has reached the forefront of the world), and luxury goods are often purchased.

Moreover, compared with the purchase in China, after deducting all taxes and fees, it can generally be reduced by 35.

If a tourist travels abroad, if he brings back one or two luxuries, he can basically offset the "travel cost".

In addition,

The rapid development has also made it easier for people to clean up luxury goods.

This greatly disperses the purchasing power of luxury goods in China, and one data can explain this problem.

According to data released by the Institute of wealth and quality statistics, mainland consumers bought luxury goods in 2014 to US $106 billion, accounting for 46% of global luxury annual sales.

Among them, only 25 billion dollars were purchased domestically, and the amount of overseas purchases was as high as 81 billion US dollars.

That is to say, overseas markets have taken away most of the purchasing power of luxury goods.

This shows that the domestic luxury stores or counters will face what kind of pressure.

Moreover, this pressure will continue to strengthen. Recently, the state decided to set up an entry duty free shop at 18 airports in the country. When the outbound tourists return home, they can buy a certain amount of duty-free goods, mainly including food, wine, cosmetics and so on.

If these duty-free shops increase the sale of luxury goods, they will obviously have a new impact on domestic luxury stores.

That is to say, domestic luxury goods.

It's just a normal phenomenon in the commercial competition environment. There is no need to make a fuss and over interpret.

If luxury stores are to survive, they will find new ways, such as lowering their prices, lowering their selling prices, striving for more consumers, and no longer can be as high as they used to be and monopolized profiteering.