Bvlgari Tightens Its Stores In The Mainland To Make Up For The Decline In Overseas Consumption

Due to the unstable international situation, strict customs control and depreciation of the renminbi, mainland Chinese consumers are showing little confidence in overseas consumption.

Based on this situation, the French luxury giant LVMH's high-end jewellery brand Bulgari (Bvlgari) adjusts the strategy of homeopathy, adding new stores in mainland China to make up for the downturn with sales growth in China.

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According to Reuters, Bulgari sales amounted to 1 billion 500 million ~20 billion euros, second only to the French brand Cartier of the Richemont group and the Tiffany of the United States, the top third jewelry manufacturers in the world.

CEO Jean-Christophe Babin of Bulgari said that it will add 2 more to mainland China this year after 3 new stores in China last year.

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He told reporters at the Davos World Economic Forum: "at present, the proportion of outbound tourists in mainland China has declined, and the confidence of overseas shoppers is not enough. This is precisely a good time for the luxury industry to increase investment in the mainland market."

Chinese consumers contributed more than 30% of Swiss watch sales both inside and outside the country. The depreciation of the renminbi led to an increase in overseas shopping costs and a decrease in overseas consumption.

Last year, China's economic growth rate dropped to 6.9%, the lowest level in 25 years.

All kinds of consumption, such as food and tourism, have been seriously frustrated.

The main reasons for this situation lie in:

Mainland tourists have been the mainstay of luxury consumption abroad. They will choose overseas consumption to avoid high taxes on luxury goods purchased by the mainland.

However, according to Babin, Chinese consumers expressed concern about the safety of Europe and other overseas routes after the Paris terrorist attacks that killed 130 people in November last year.

China's customs inspection is increasingly stringent.

Take the wrist watch as an example, Babin said that if tourists did not declare their watches after they bought their watches, he had to pay 30% customs duties plus large fines.

This has led tourists no longer willing to buy tens of thousands of watches in Hongkong, Zurich and Tokyo, because they can pay two times for a table to pay tax.