Luxury: Industry Slowdown, Rational Consumption Still Waiting For Time

After the exposure of the true and false events of the World Luxury Association, Luxury goods It has become the focus of attention, not only has led to another round of thinking about China's luxury consumption. It has become an indisputable fact that China has become a big consumer of luxury goods. Is this development good for us? We interviewed the leaders and experts of the association with thoughts and conducted in-depth discussions with luxury consumers.

Slowdown in luxury consumption growth

For a long time, the huge demand for luxury goods by Chinese people is staring at foreigners. Before the LV shop on Champs Elysees street in Paris, many Chinese tourists spend hours and hours of valuable sightseeing in queuing. When they enter the store, they even buy some valuable bags without asking price. They will never return empty handed. "China will be the fastest growing market for luxury consumption in the world" has become a consensus among industry experts. It is predicted that China will occupy more than 20% of the global luxury market by 2015. But with the impact of the European debt crisis, the world economy has been on a downward trend, China's foreign trade has been greatly affected, the real economy has begun to decline, and luxury consumption is also cold in China.

Recently, the United Kingdom Fashion brand Boboli group announced that its sales growth in the Asia Pacific region (mainly in China) fell from 67% in the first quarter to 16% in the first quarter. According to sales figures, Zhou Dafu, who listed in Hongkong, released the Wealth Report on the evening of July 11th. The revenue growth in the latest quarter ended June was only 16%. The proportion of jewellery jewelry with higher profit margin in sales fell to 22% from 27% at the end of March.

Meanwhile, China's largest watch retailer Hendry Holdings Limited has also recently reported that the growth rate of demand for high-end watches has slowed to single digits in recent months. CEO Cartire, a clocks and jewellery brand in the Swiss group, also revealed that China's demand for high-end Cartire watches is slowing.

This series of phenomena shows that China's luxury consumption growth is slowing down, no longer showing an explosive growth of consumption.

The reporter interviewed in advance. Chinese clothing Wang Zhuo, Secretary General of the association, said: "the consumption of luxury goods has declined in China, which is closely related to the decline in the total retail sales of commodities. Because of the economic reasons, the sales of shopping malls are in a downward trend, and the sale of luxury goods will also be the same. Of course, China is still a big consumer of luxury goods, which is very much related to China's population base. "

Wang Zhuo also mentioned that luxury began to enter China in the early 90s of last century, but the real sales growth was rapid. After 2000, when China's per capita GDP consumption was over 3000 dollars, consumers began to upgrade their consumption. People began to enhance their sense of quality and brand awareness. Luxury sales were greatly improved in this wave of consumption upgrading.

Luxury consumption with Chinese characteristics

What does luxuries mean for Chinese people? A reporter interviewed Nana, a former luxury goods consumer, and Nana had a very deep understanding of clothing consumer goods in the clothing industry for many years. For the well-off family, Nana is not a very difficult thing to buy luxury goods, but luxury consumption has different understandings for Nana at different stages. "I used to buy luxury goods," she said. "The reason for buying is because I feel that the quality of luxury brand products is high and public recognition is high, which is in line with my stage needs. But now I don't buy it, because in the clothing industry for so many years, the understanding of clothing is more and more profound, and feel that luxury goods surpass the attributes of commodities too much.

Nana said that at a relatively young age, there will be a stage of worship for luxury goods. Now many luxury consumers will have this phenomenon. Therefore, many consumers are keen on luxury consumption and completely surpass rationality. This also reflects a kind of values. "Now China's luxury consumption seems to be a universal consumption desire. Many wage earners will accumulate a lot of money to buy luxury goods. This phenomenon is particularly prominent among young people. This is undoubtedly a manifestation of immature Chinese consumers. In foreign countries, luxury goods are relatively fixed user groups, but they must not be universal. Foreign consumers also think that luxury is high, but they do not chase high, because they think everyone has their own uniqueness, and find the most suitable one is the best.

Nana also said that foreign consumption maturity is also reflected in the fact that consumer consumption is not the best, only the uniqueness, and that the protection of their uniqueness is the most important. At this point, domestic consumers are not fully aware that in domestic consumption, consumers will also think that they must use the best in order to embody their own value.

With the rapid development of China's economy and the increase of purchasing power, the consumption of luxury goods will also develop. For luxury consumption, it is necessary to guide the concept of self esteem by showing off wealth, which can only explain the lack of intrinsic value. If the people of a country fall into the extreme worship of material, especially luxury goods, they will mislead and distort the values of the whole society.

During the interview, Xiong Yi, an expert in commodities planning for many years in the clothing industry, said: "I think the attitude of Chinese consumers to luxury goods is impulsive and immature at present. Look at Jocie Guo, who shows off her wealth on the meagre, and the young girls such as Yang Zilu and An Zixi. They are the extraordinary reflection of luxury in their minds. They feel that luxury represents their status and status, while ignoring the taste of luxuries. Let's look at so many friends who buy fake goods and goods. They are also confused with the vanity after seeing and hearing.

Similarly, Yao Xiaoyun, who has been studying abroad for many years, believes that "many Chinese consumers buy luxury goods to express their status or wealth status by luxury brands. At least half of the luxury buyers have such a" rich mentality ", and not purely because they recognize the cultural concept or quality of luxury brands. Luxury goods also have a special phenomenon in China, that is, as a gift consumption, this is also very Chinese characteristics.

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It takes time for consumption to return to reason.

In the interview, Wang Zhuo, Secretary General of China clothing association, said that Chinese consumers' understanding of luxury goods needs a process. He believes that luxury is one of many terminal consumer goods, and there is no difference in the function of buying a luxury brand bag and other brands. "Of course, luxury brands do have higher brand value and brand contribution rate than other brands, and the brand quality and sense of honor that consumers bring are stronger than ordinary brands. Under such circumstances, the growth of luxury consumption in China is a normal phenomenon, which shows that the living standards of Chinese consumers are improving, and they have the ability to consume better products. At the same time, he also said that many luxury goods abroad attract consumers mostly with their cultural stories, but ignore the value of their products. With the gradual maturity of Chinese consumers, people's awareness of luxury goods will become more and more rational and clearer.

Luxury brands are bullish on the Chinese market, so they have made great progress in the two or three line market in the past one or two years. This brings luxury goods to a slow growth in the Chinese market in the face of the economic downturn.

Xiong Yi, a clothing merchandising expert, talked about the changes in the consumption of luxury goods in China. He believes that the global economic downturn may have an impact on luxury consumers in China. But because luxury brands are bullish on the Chinese market and more stores are opened in the mainland, some consumers will also increase. This is also the reason why luxury sales are still growing in China. Consumer spending is also more convenient because it is closer to more consumers.

Xiong Yi believes that for Chinese consumers, the attitude towards luxury consumption needs time: "quite a large part of Chinese consumers should wait and see about luxury goods. A lot of people who can't afford to spend money learn what luxury is in the wait-and-see situation. After all, consumers can afford luxuries. She also said that China is a big consumer of luxury goods. It is a good thing at least to prove that the Chinese people are rich and wealthy. Chinese consumers recognize famous brands and respect intellectual property rights.

Yao Xiaoyun also holds similar views on this. She said: "in recent years, many international luxury goods are stepping up to China's two or three tier cities. If we look at the trend of growth, the growth rate of luxury goods in China is definitely high in the US and Europe. Although China's luxury consumption is slowing down, we believe that the sale of luxury goods will not be greatly affected."

As for Chinese consumers' rational return to luxury goods, Xiong Yi said: "luxury goods will have many secondary cards in the future. Every big luxury Brand Company will make use of the fame brought by luxury brands after they own a small part of luxury goods, and make products more accessible to the low-end side cards of the people. After all, making money is the absolute principle. In the face of the economic downturn, luxury brands are also changing their direction from only the cutting-edge crowd to the broad masses. China's luxury consumption will also tend to be rational and peaceful as China's national strength is strong, people's educational level is improved, and their consumption consciousness is changing.

Yao Xiaoyun believes that because China is still in the stage of economic development, Chinese people are still in the stage of luxury goods, or in the stage of irrational consumption. If we look at the long term development, China will become a big country of luxury consumption. It is not a bad thing, because only after this stage, will the consumption concept of luxury goods become mature. Only when people have experienced good things can they have good taste. The popularity of luxury goods will gradually cultivate the taste of Chinese people.

"At the same time," she said, "in fact, many middle class people are the mainstream consumers of luxury goods, but with the economic crisis after 2008, the consumption of the middle class has become more rational. Luxury goods are now in China, and they are not unattainable. Many of the top income groups can afford luxuries. I believe that with the development of China's economy and the rising per capita income, luxury goods will become more affordable products.

When it comes to the possibility of a luxury brand in China, Xiong Yi thinks: "in this flashy society, the brand should be calm down, and it is not easy to maintain a sustained and developing state. It will take a long time for China to develop its own luxury brand. After all, luxury goods can not be built overnight. The reason why it can become a luxury product is not only the cultural foundation and the accumulation of time, but also the top quality guarantee.

Yao Xiaoyun's time for the emergence of luxury goods in China is like this: "the luxury, brand, which is recognized by the world, such as Italian, French, British and American, is because these countries have a fairly strong economic foundation. Their consumption is quite mature, and they have the soil produced by the luxury brands. These countries also have strong cultural creativity and cultural heritage. Only when economic culture develops to such a stage can China produce a real luxury brand.

As for the future development of Chinese brands, Wang Zhuo Secretary General talked about the development of China's economy and culture and the gradual development of the brand. At the appropriate time, China will also have its own luxury brand, but this predictable future will take a long time.