Global Luxury Brands Slow Down The Pace Of Opening Stores In The Mainland Of China

< p > a href= "//www.sjfzxm.com/pioneer/" > luxury brands < /a > slowed down the expansion rate in the mainland of China, because the anti-corruption movement slowed their sales growth and the rent charged by the operators of the shopping malls was also affected.

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Less than P, the "Romance" between mainland shopping centers and global luxury brands has entered a running in period, and many top brands have slowed down the opening speed in this important market.

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At P, their sales growth has been flat.

Real estate analysts say the opening rate will continue to slow this year, although these brands have made the mainland a top priority for business expansion a few years ago.

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"An important reason is that China's anti-corruption measures have reduced the use of public funds to purchase expensive gifts," said Mai zhe Wen, director of China retail research department in Shanghai, P.

Meanwhile, customers who are more interested in quality of life and more sensitive to price are increasingly buying luxury goods in Hongkong or other low tax destinations. Because of increased income, the luxury expenditure of these customers is still increasing.

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"The price gap between the mainland and other markets has become a bigger obstacle when consumers buy luxuries for personal use rather than as commercial gifts," says P, executive director of the World Bank of Asia.

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In 2013, sales of luxury goods in the mainland increased by 2% to 116 billion yuan over 2012, P said.

Sales in 2012 increased by 7% over the same period last year.

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According to a joint research report released by Laifang real estate brokerage firm and Woods Berger architectural design company last month, 65% of the international luxury brands that they surveyed did not complete their original shop targets last year.

The last Gucci family that planned to open 10 stores didn't open.

Prada plans to open 7 stores only 4.

Boboli, who plans to open 11 stores, has opened only 8.

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"We should point out that the increase in retail sales of luxury goods has decreased, but retail sales have not decreased and retail sales are still increasing," said Xia Boan, an executive director of Laifang real estate brokerage firm P.

In the largest cities, this may lead to a slowdown in the rent growth of the luxury real estate market, rather than a decline in rents.

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< p > the company expects that the "a href=" //www.sjfzxm.com/business/ "rent" of the top shopping centers in major cities will increase by 5% to 10% this year.

The growth rate in the past two years is 10%.

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< p > industry insiders say that the slowdown in the growth of luxury real estate rents is unlikely to hurt the owners of top shopping centers.

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Chen Qizong, chairman of Hang Lung Properties Limited P, said that the slow pace of opening stores meant that retailers would choose the best shopping malls.

The company has many high-end shopping centers in the mainland.

He believes that Hang Lung will become one of the select companies.

This view has been approved by Jones Lang LaSalle.

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"P," Mai zhe Wen said, "when we score various real estate projects for retailers in the mainland, first-class developers are always the best choice, including Sun Hung Kai estate, Hang Lung real estate, Tai Koo real estate and Huarun real estate.

They have the ability to build buildings, and more importantly, have the ability to run first-class projects in the long run. "

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A luxury retailer does not open new stores in two or three line cities, but rather consolidates their resources in the first tier cities, says an executive at a p foreign company.

"The basic rent may be low, but we can get a substantial percentage rent according to the turnover of merchants," she said.

Many super rich are buying luxury brand watches instead of gifts.

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< p > at the time of the slowdown in sales of luxury goods, some shopping center owners are looking to other types of businesses.

Real estate consultants say that the growth of "light" luxury goods (or so-called affordable luxury goods) retailers and fast fashion retailers is much better.

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< p > they say that the fast developing trend of the catering industry is not showing signs of abating.

More space for the "a href=" http://sjfzxm.com/DESIGN/designer/index.asp "shopping center" /a will flow from the fashion industry operators to the catering operators.

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< p > Mai zhe Wen said: "the catering industry usually pays less rent.

This will inevitably reduce the rental of the shopping center.

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