Luxury Market Downturn, Consumers Favor Personalized Brand

The industry believes that luxury goods in the Chinese market is gradually moving towards a downturn.

In the past month, the earnings report of major luxury groups has confirmed this judgement.

Burberry[micro-blog] recently released its first half earnings report, showing a 7% rise in performance, a slowing trend in the ring ratio, and a moderate to low single digit decline in the second half of the year.

Prada's medium-term results recently announced that net profit fell by 21% over the same period last year.

The first three quarters of 2014 released by the giant LVHM group showed a sharp decline in sales growth of only 4%, compared with 25% in 2012 and 3% in LV leather sales.

Some analysts believe that the downturn in luxury market in China is due to the Chinese government's anti-corruption actions.

According to the analysis, the changes in the Chinese market are not only related to the reduction of gift consumption resulting from the "frugal order" in China, but also by more and more Chinese consumers.

For example, the British Burberry windbreaker priced at 29 thousand yuan at the Chinese website sells only 330 thousand yen (about 6.1248 yuan, -0.0014, -0.02%) 19 thousand yuan in Japan, while 2395 euros in France (about 18 thousand and 800 yuan).

The same LV bag, French official website and Italy official website.

It is nearly 1000 yuan less than the official website of China.

Miss Li, a fashion buyer who lives in Milan, Italy, agrees: "anti-corruption is only one reason, and more importantly, consumers are becoming more rational and no longer blindly follow suit and start paying attention to cost-effective."

Once upon a time, Chinese tourists were queuing up outside the luxury stores. "We are buying buyers, and we have to rush for goods with our compatriots in the tourist season."

Miss Li said, "there is seldom such a scene of domestic tourists buying. Many customers buy luxury goods.

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In addition to being more and more rational, consumers are also starting to pursue personalization instead of blindly worshipping luxury brands.

"LV of the main street is hard to distinguish between true and false.

And Gucci[micro-blog, logo is boring. "

Consumer Wang told reporters.

It is true that the classic logo of luxury brands is no longer a gaze, but rather a glare.

"Because the full bag of logo is very popular, for fear that others will not know what brand they are carrying."

Ms. Wang said.

Not only consumers, luxury businesses have also found that the tastes of Chinese consumers are changing.

Armando Branchini, vice chairman of the Italy luxury goods industry association, said in an interview that the quality of Chinese luxury goods is rising from the small pieces with the brighter trademark as the bigger the better.

In this regard, the major brands are different.

Gucci's products began to "de sign" in recent years, actively developing more exclusive leather products, using more non-traditional colors and avant-garde designs, and at the same time limiting the products with obvious trademarks to 10% or less.

LV's leather products also started more darker designs. In addition to some classic styles, they still used classic presbyopic patterns, and embossing and water ripples began to be applied to the latest product design.

In October 28th, the largest luxury brand Coach (Coach) announced the first quarter of fiscal year 2015: the continued weakness in the US led to a year-on-year decline in overall sales of 10%, while sales in North America dropped by 19% to $634 million over the same period.

As a representative of light luxury brand, Coach was once touted by the North American and Chinese market.

However, this year, besides the sluggish local market, the performance of the Chinese market is not satisfactory.

"In the past few years, Coach was very popular in China, and many American purchases were made on behalf of Coach."

Yang Meng, who specializes in purchasing American goods, said, "but this year, Coach is not as popular as it used to be.

Coach has indeed been hit by the presence of more young brands in the Chinese market.

The Internet is becoming more and more developed, and the exchange of information is getting more and more smooth. Chinese consumers are more and more sensitive to the global market.

Michael Kors, Kate Spade, Tory Burch, DKNY, Furla, these young brands have become rising stars.