Cross Border Consumer Rise, China'S Luxury Market Or Down Again

Bain & amp; Bain (Co. & amp; Co.) and the Italy Luxury Goods Association (Fondazione Altagamma) jointly released the global spring market monitoring 2015 spring report.

According to the fixed exchange rate, the global personal luxury market is expected to grow by 2 - 4% this year, which is close to 3% last year (excluding the exchange rate factor is 4%).

The depreciation of the euro suddenly brought about this.

12-13% growth in the first quarter, but excluding inflation, the growth rate shrank by 2 to 3 percentage points.

Changes in cross boundary passenger flows and consumption patterns brought about by exchange rate changes may be the main thrust of this cycle of growth, which has continued since the end of last year.

In the early spring of 2015, the strong performance of the European and Japanese markets gave the market a good start, and the latter ran a good 5 - 7% increase in the first quarter.

Behind this can not be separated from the success of Chinese tourists. According to Bain, Chinese consumption accounts for 20% of the total Japanese market, and local consumer confidence has not yet come out of the shadow of last year's value-added tax increase.

Curiosity daily discussed this in a previous article.

In the devaluation of the European market, the consumption of tourists from China and the United States will increase to 3 - 5% growth in the whole year, but the market is still in the doldrums and Russia is still not improving.

Compared to the inspiring European and Japanese markets,

The group is still struggling in the Chinese mainland, which is expected to decline by 2 - 4% this year, after its first 1% decline.

Limited to the pricing strategy and marketing channels of the mainland market, Chinese people become more sensitive to prices, and most of them choose overseas shopping tours and the offshore platform.

Hongkong and Macao are also a big "Waterloo" in the luxury industry because of the loss of mainland tourists. The neighboring China, Taiwan and Korea are "fishing for profit".

Under the new normal of the exchange rate dominated passenger flow, there are also the Americas. The appreciation of the US dollar has led to the slow growth of the American market by 1 - 3%, and domestic demand can only alleviate some market pressure.

At the end of last year's "global luxury market research" 2014 autumn and winter report, Bain consulting has seen the trend of "cross-border consumer rising" - most Japanese like to shop at home, and the yen has fallen by 30% since 2012.

At the same time, Chinese

More than three times of domestic consumption.

Regional sales volume can no longer reflect the real demand of the country. The marketing strategy of luxury brands is time to turn from a regional distribution to a global perspective.

Today, consumers in mainland China account for 30% of global luxury consumption and push tourism consumption to 50% of total consumption.

Exchange rate and price consciousness are forcing the pformation of the whole industry. Luxury groups that have always maintained the image of high prices have to reduce their posture.

As the industry leader Chanel (Chanel) formally implemented the price adjustment strategy in the Chinese market in April 8th this year, the leading brands of the giants were wavering, and the high-end brands such as Gucci, Prada, Dior and Versace had adjusted their prices. The pricing strategy became a sensitive topic affecting the market nerves.

At present, 30% of global luxury income is realized through price cuts.

"The current market dynamics clearly reflect changes in the industry over the past 15 years". Bain partners and Claudia DArpizio, the chief executive of the report, are saying, "pricing, distribution and customer strategies remain the top priority of the luxury group, but the old mode is being questioned.

Under such a new environment,

If we want to win the market in the future, we must fundamentally reform. "