To the power consumption of high-end luxury
Posted By admin on January 11, 2012
According to the McKinsey report, by 2015, China will become the world’s largest consumer of luxury goods, accounting for more than 20% of the global luxury market. China 13 million households (annual income of 100,000 to 200,000 yuan) is the largest luxury goods company source growth opportunities. They have accounted for approximately 12% market share, there will be 76 million in 2015 into the family income ranges.
China’s economic growth for the luxury industry to accommodate a huge market. How much capacity in this market is still not completely revealed, making the endless public coveted luxury goods company. The end of 2010 according to KPMG’s market research in China, 44% of respondents (upper middle class) is expected to maintain or increase their level of consumption of luxury goods. At the same time, although 38% of respondents cautiously optimistic for the future, but still that will not give up in order to treat yourself or as to improve their status.
Polarized consumer
Consumer market is polarized, showing two trends: increasingly low consumption and high consumption trend. On the one hand, jump in consumption of luxury goods; the other hand, online shopping, cheap shopping trend is also being formed.
Why do consumers seeking high? Because they want to prove that “I am smart shoppers” — I would choose the most noble life, and all this should be reflected in the high-quality products, cutting-edge technology, fashion, style and profound cultural connotation.
Why do consumers seeking low-cost? They also have to prove “I am smart shoppers” — shopping and driving and consumption has become as indispensable or computer skills, and buy high quality products are worth showing off skill. All this has an important prerequisite is that the purchase of the product category is already quite mature, less quality and features.
The formation of these two trends, not simply the result of the social divide between rich and poor, but the consumer’s “dual personality” dictates. Their high-end market through the purchase of high quality, can show off the products to prove their worth, at the low end rack their brains to buy cost-effective products to show their brilliant.
In this regard, the East capacity (China) Ltd. Cai for that luxury consumers in China is more out of curiosity about brand awareness, followed by curiosity to meet consumer demand. China since the planned economy to a market economy since the 30 years of rapid development of personal wealth and values, while the international brands to enter the domestic market, relatively limited time, the Chinese and foreign social patterns are different, our level of class society is not obvious, No matter which level or purchasing power from the consumer point of view there is a big difference. Meanwhile, the Chinese property prices are too high, fewer and fewer middle-class consumers, the major luxury brands stationed in China is not to win, is to price to win, so that it can only survive, but the face of such a situation of domestic consumption, body-off middle group will gradually disappear. Chinese clothing culture has a long history, but failed to create an international brand, and its lack of brand culture and way of Chinese history and cultural heritage and social class level of uncertainty are closely related. Future depth of China’s international fashion brand new road development, business model and international brand of deep cultural construction of the road a hundred years.
Tsai Ming for that matter the Chinese luxury consumer class psychologically, or from the behavior point of view, the trend is turning increasingly mature. Which is mainly reflected in two points, the first is cognitive, the customer will not be for the blind pursuit of luxury in itself, but more focused on the traceability of the product of culture; The second is the behavior, that is, purchasing power, the starting point will be weight is the collection of brand values, it can be said in general is a big leap, it would be a qualitative improvement.

Louis Vuitton 2011 spring and summer women’s large
Continued expansion of the luxury market
Logistics in the Chinese market for luxury brands operating in the direction of the major high-end market has to be one, two, three market radiation, a type of market will be the main focus of the brand advocacy of cultural transmission, and two, three market mainly the value of the product line extension.
After the luxury goods industry in the shadow of 2009, after the recovery in the economy help to re-under, and finally reproduce the “yesterday’s” brilliant. 2011 luxury market will continue to be optimistic, but analysts expect growth will be relatively modest, the growth rate of about 4% to 5%.
In the construction of super-large-scale shopping malls, and ultimately the debt crisis, Dubai had to bow to defeat. Surprisingly, China has become one of the big winners. The beginning of 2010, the vigorous development of China did not let analysts down. Hermes launched in September specifically for the Chinese market tailor-made “ShangXia” brand, marking the most important and the market. There is no doubt, other well-known brands will follow suit. On the other hand, the Italian company’s publicly stated plans Prada in Milan and London financial markets, and several other companies listed in Hong Kong as a location selected.
China’s vast size, growth opportunities everywhere. But recent months, the luxury industry are staring at these two places in Beijing and Shanghai. Within a few months, many boutiques opened one after another. Hermes, Tod’s, Louis Vuitton, Cartier, Salvatore Ferragamo, Zegna, the flagship store just opened here, there and in the modern shopping center to open large stores. These brands are competing for the Chinese city to create a new look.
Cai as it comes, in recent years, the characteristics of luxury goods in China can be summarized as “turf war”, in which competing luxury brands have tried to get through as quickly as possible sites to build their own position. As of today show that, in the Chinese market logistics operations within the direction of the major luxury brand high-end market has to be one, two, three market radiation, a type of market will be the main focus of the brand advocacy of cultural transmission, and two, mainly three types of market value of the product line extension.
In fact, the war will continue to shop. Most groups are looking to form the store grow again, and whether they are operated stores, cooperative stores or franchise stores, the key is the ability to brand their own neon light out in the street. Announced in 2010 a number of brand new store to open in 2011 (Louis Vuitton, Bottega Veneta, Gucci, Versace, etc.) and renovation of stores (Christian Dior, Chanel, etc.), investment will continue to set on the development of sales network.
Louis Vuitton in a record performance in 2010, sales topped 20 billion euros, net profit for the first time more than 3 billion euros; Richemont sales in the first half of 2010/11 increased by 37% to 3.259 billion euros, Tod’s in 2010 In the first half increased by 4.2% to 377.5 billion euros, Hermes in the first half of 2010 increased 20% to 1.07 billion euros, Prada in the first nine months of 2010 increased 31% to 1.386 billion euros, the luxury group’s turnover in 2010 in global markets are fully up. North America, Western Europe, Eastern Europe, particularly in the highly competitive market in Asia (excluding Japan), and the Middle East market, the best performance.

















