What Is The Impact Of The Economic Downturn On Luxury Fashion Circles?

The global economy will still be trapped in the slow growth quagmire, and the impact of the economic downturn will also be radiated. Luxury goods fashion The most obvious thing is that in the recent Basel watch and clock show, luxury watches are rarely available in luxury and new colors. What is the impact of the economic downturn on luxury fashion circles? What role does China play in it?

　 Put down the "high cold" luxury brand and open online shop.

After the peak of Basel watch and clock exhibition, the "cold spell" came out for several years. The 2016 Basel watch and clock show is also continuing to be embarrassed. This is dismal with the real economy and watch sales. market There is a direct relationship between shrinking. Not only the watch industry, according to a Chinese well-known regional luxury brand director who did not want to be named, the brand group's net profit as of the end of January this year was 330 million euros, down 26.6% from a year ago. The downturn is blamed for the deterioration of the Asia Pacific market dominated by greater China. As the group's most valued market, in the fiscal year, the Greater China region's annual revenue dropped by 22% to 705 million 800 thousand euros, accounting for 19.9% of the group's revenue.

Burberry, a luxury goods giant and a British top fashion company, said its sales growth in the third quarter was only 1% due to the recession in Greater China and the stagnation of European market growth. In the third quarter of December 31, 2015, Boboli retail sales amounted to 603 million pounds ($870 million 900 thousand), an increase of 1% compared to the same period last year, and a decrease of 4%.

In the past few weeks, many luxury brands and chain corporation have released their current quarter reports. Despite the growth of a few brands, negative growth is the current norm in the luxury goods industry. Leading to the emergence of luxury brands, which only shut down 6 to 7 stores in China alone. LV closed 4 stores, Armani closed 5 stores, and Prada stores reduced by 30%.

The slow down of the store has led many luxury brands to turn to the electricity supplier.

In April 2015, Chanel, the "high cold" company, first tried water business, and worked with Net-a-porter, a British electricity supplier, to set up a sales area for its premium jewelry series, and announced that it would sell for only 3 weeks. But after 6 hours of sale, the goods were snapped up. In November, Chanel opened its online sales of eyewear products in the United States. According to Chanel executives, by the third quarter or the fourth quarter of 2016, Chanel will officially launch a global electricity supplier network.

Dior has been working with Bergdorf Goodman, a luxury luxury department store in the US, to use holiday pop-up shoes store to test water suppliers.

In September 2015, LVMH group's top watch brand, tiger Heuer, took the lead in the Jingdong and opened the first flagship store of advanced watches.

The brand of the group, first launched by Van Cleef & Arpels's e-commerce platform in China, is officially opened after Cartire online boutique. Users enjoy "24 hours of luxury and convenient online shopping experience".

According to McKinsey's data, online sales account for 4% of the total market volume and two times the overall growth rate of the luxury goods industry. If we continue to grow at this rate, the online consumption of luxury goods industry will reach 20 billion euros in 5 years. So when you move your fingers at home later, all kinds of favorite cards will follow, and it will no longer be a dream.

　　 The second luxury market is heating up, and reasonable industry regulation is expected.

I wonder if you find that the business of second-hand luxury consignment shops is getting more and more popular, and even to the micro circle of friends circle. The famous brand bags, which used to be 30 thousand and 5 tens of thousands of times, can now be owned by only about 70 percent off of the price. What changes has taken place in the second-hand luxury market? Xiaobian specially interviewed Mr. Yao Lei, the boss of Beijing Xin Lei famous exchange station. Yao Lei admitted that the change in recent years is that consumers have a much higher recognition of second-hand luxury than before, and the brand is much richer than before. People do not recognize Hermes, Chanel, LV, Gucci or Prada before. Many other brands now have audiences, such as Deuvaux, Valentino and Ysl. There are also changes in customer perception. In the past, they were afraid of buying fake products online. Now some second-hand stores have quality assurance and word of mouth, and their customers have more confidence.

Yao Lei introduced, "the second-hand industry has not reached the hottest time. The feeling of the guests is that I spend thousands of dollars and can spend tens of thousands of dollars on the bag. Actually, there is no shortage of customers. Just because they are afraid of buying fake goods, most people have not accepted it. They are afraid that they will buy fake products outside the store. If there is appropriate industry regulation, I think the industry will be more vigorous. And this industry is also an environmental protection industry. The generation of second-hand stores will make these luxury goods circulate. Everyone knows that buying a bag in a counter and selling it is like keeping the item in value. Like Japan, which has a good regulatory mechanism, the second hand is very developed, and the second hand culture is very good. The owners of second-hand stores will consciously maintain the market and expect that China will soon realize it.

　　 Challenges and opportunities coexist, and China's luxury market is still "sweet potatoes".

Despite the decline in sales and the closing of stores, there is no doubt that the Chinese market is still a strategic priority for the world's major luxury brands. In addition, the relevant analysis also believes that the future development of China's luxury goods market is still worth considering under the new changes of the global luxury price gap, the emergence of luxury electric providers and the prosperity of the secondary market.

According to the estimation of the operating income of more than 20 thousand brands in the brand library, the Institute of wealth research found that in 2015, Chinese consumers spent 116 billion 800 million dollars on global luxury goods, and the Chinese bought 46% of the world's luxury goods all year round. Of these, 91 billion US dollars took place abroad, accounting for 78% of the total. That is to say, nearly 80% of Chinese luxury consumption is "overseas goods".

Such huge consumption potential naturally makes many luxury brands irresistible. Even though there has been a wave of closing stores, many luxury brands still have confidence in the Chinese market. Bernard Arnaud, chief executive of LVMH, the world's leading luxury goods group, said publicly earlier this year: "analysts underestimate China's economy and the fundamentals are good. Household expenditure is still increasing, which is very important for us.

In addition to emphasizing confidence in the Chinese market, the Chinese government's efforts to introduce luxury goods back to the mainland have also added positive colors to the future trend of China's luxury goods market. In the 2015 China Luxury Market Research Report released by Bain earlier this year, it revealed that measures to strengthen the control of the gray market, promote cross-border electricity providers to replace purchasing agents, lower import tariffs and monetary policy (the continued depreciation of the renminbi) will change the pattern of China's luxury market.

At the same time, the new changes in China's luxury market have also given birth to new hope. Taking cross-border electricity providers as an example, Bain's report shows that the rise of cross-border electricity providers and overseas websites is further encouraging consumers to buy luxury goods through e-commerce channels. Currently, consumption from cross-border electricity providers and overseas websites has accounted for 12% of China's luxury consumption.

"It is expected that the sales situation of luxury brands in China will improve in 2016, but it will also bring new challenges and new demands to brands. These requirements include digitalization and e-commerce, such as strengthening the construction of digital platforms (such as micro-blog, WeChat, APP) and digital content creation, and localizing them to adapt to the local market. In addition, the major brands should also consider expanding channels to the brand official website and the third party full price cosmetics sales platform." Bain suggested in the report.