The Sale Of Luxury Brands Is At A Foregone Conclusion. Sales In China Are Much Worse Than Before.

The price performance of luxury brands across the border is not necessarily good, but to some extent, it breaks the monopoly and benefits consumers. A few days ago, Armani signed a luxury residential project in the prime location of Beijing. After LV's acquisition of Chinese food and beverage enterprises, foreign luxury brands continued to play a cross-border role in China.

This year, the dazzling brilliance of luxury brands has gradually faded. First of all, Chanel announced the price reduction in March. The price of its counters has been reduced by 20%. The price of many products has been reduced by thousands of yuan. Since then, more luxury brands have been following the trend. Luxury brands have begun to walk down the "altar" in the Chinese market.

In May 20th, CUCCI began its half off sale. It is reported that almost 4 of the products are involved in the promotion, including bags, shoes and many other products. The 50 percent off activity is spread across the CUCCI national store for 2 months. Dior (Dior) also lowered prices in China for two bags of Miss Dior and Dior Soft.

It is not only luggage products, but also lists. The Swiss high-end watch brand Philippe (Patek Philippe) also took part in the round of China's price cut; LVMH group also adjusted its watch brand TAG Heuer to about 8%-13%.

In the case of price cuts, foreign media reported that the growth of luxury goods sales in China is under pressure. The size of China's luxury goods market accounts for about 1/3 of the total size of the global market. Take the world's largest luxury goods company Lu Wei Mo Xuan group as an example, in the first quarter of this year, Asian endogenous sales decreased by 6% compared to the same period last year.

And according to recent data, May Hong Kong The total retail sales value is estimated at HK $39 billion, down 0.1% from a year ago, much less than the expected decline of 2.7%. Hongkong is known as a shopping paradise. Many mainlanders went to Hongkong to buy luxury goods.

However, Chinese consumers are still buying luxury goods, they just do not buy in China. In 2014, sales of local luxury goods in China dropped to about $25 billion, a drop of 11%. However, located in Shanghai At the same time, Chinese consumers' spending on luxury goods overseas increased by 9% to $81 billion, according to the Institute of wealth quality.

The founder of the consultative group, he Mun, thinks that Foreign brands Finally realized that when entering the Chinese market pricing strategy has reached the time of adjustment, "too high price itself is unreasonable, and it can not be long."