The Chinese Market Is Becoming A Chicken Market? Luxury Brands Are Cold In China.

"In the hearts of Chinese luxury consumers, Hongkong is losing Asia.

Some analysts believe that in the next few years, Hongkong will face a series of luxury stores such as LV, Gucci, Prada and so on.

In the global luxury market, in 2014, the total amount of gold hit by consumers in mainland China rose by 9%, to 380 billion yuan, accounting for 30% of the global luxury market share. However, such as anti-corruption, overseas consumption, purchasing and other reasons, the Greater China luxury market was frozen.

Bain's "2014 China luxury market report" showed that the mainland China's luxury market for the first time showed negative growth in 2014, down 1% from 2013.

In October 1, 2012, the Chinese government issued new regulations to prohibit government departments and officials from buying luxury goods above designated standards, a policy that could significantly affect the luxury market in China.

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Gift giving is an integral part of business in China, and luxury gifts such as watches and famous cars are a good way to consolidate business relations, but the new policy will fundamentally hurt this luxury consumption.

The new policy is aimed at putting an end to government officials' wasteful spending and rectifying officialdom. Officials who do not comply with this rule will be severely punished and may lose their jobs.

Coach, who has just released its earnings report, said that Hongkong and Macao were affected by a significant decrease in the number of mainland tourists and weaker sales performance. This affected the growth of China's regional growth for the first time in the fiscal year Coach2015 to a single digit increase of 9%, while the four quarter growth was only 5%. Burberry also showed that at present, the signs of weak market in Hongkong did not improve, so the group issued an early warning in May. The Hermes group also said Hongkong and Macao were still in "difficult circumstances".

As China's mainland sales fall, Jean-JacquesGuiony, chief financial officer of LVMH group, said in a conference call: "taking into account the price problem, the company will shift its focus from mainland China to other regions such as Japan and Europe, which are more likely to benefit from these two markets."

At the same time, LVMH also joined other luxury goods groups to renegotiate the rental price with Hongkong owners.

In addition to closing some of the physical stores, luxury brands are adjusting their strategic priorities in China.

A major trend is that with the pressure of same store sales (the average sales of many luxury brands and stores in 2014 declined by 5%~6%), traditional luxury brands are relatively conservative in the expansion of new stores, and brands adopt stricter store selection criteria. They focus on opening or refurbishing the larger flagship stores, while closing the smaller satellite stores in the lower tier cities.

Bruno Lan said.

"We have slowed down the expansion of new stores, and are now decorating and closing many stores and shifting their focus from the three line market to the second tier market."

A luxury brand executive said.

Another trend is that luxury shopping centers are more concerned about lifestyle related consumption concepts.

In order to cope with the increasing competition pressure of the electricity supplier and the declining trend of the Luxury Retailing industry, the entity shopping center has provided more stores related to the consumption of life.

"In

Under the influence of luxury brands, we must consider the adjustment of online and offline channels, including the adjustment of price system and retail mode, "Zhou Ting said." now is not the era of winning more stores, so some luxury brands replace the original stores through new sales channels.