China Is Likely To Become The World'S Largest Luxury Goods Market In 5 Years.

According to the latest data from Euromonitor International, global luxury sales are expected to continue to grow in 2017, but growth will slow down in other parts of Asia.

Among them, the rebound in luxury sales in the Chinese market is the key to maintaining growth in Asia.

The LVMH group's fashion leather business, including Louis Weedon, slipped in the first half of the year, but its revenue grew by 5% in the third quarter, which is 2.5 times the analyst's forecast growth rate of 2%.

The report shows that the Chinese region

After three consecutive years of negative growth, revenue has begun to recover gradually this year.

This year, luxury goods sales in China are estimated to be $76 billion, which will become the second largest luxury market in the world.

The luxury industry in Western Europe and North America has been slightly affected by factors such as Britain's off European and French terrorist attacks, and the sharp decline in the number of tourists has led to the continued weakness in consumer demand for luxury goods in these regions.

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The composite annual growth rate of sales, including brand-name clothing, leather goods and other accessories, has increased to 3%, and the total sales will reach 388 billion dollars this year.

In 2017, analysts said the global luxury industry is still challenging, but sales performance in India and Mexico will be strong, while the Asia Pacific region will increase by 5% in the Chinese market sales growth, much higher than 1% in 2015.

Full channel marketing and digital social media innovation will continue to become the major brands to strive for development and upgrading.

In the next five years, China will surpass the United States to become the world's largest luxury goods market. At present, luxury goods sales in the United States account for 21% of the world's total sales.

At the same time, luxury online sales will continue to flourish. Online platforms are seen as the key battleground for major luxury groups in the next five years.

Data show that global luxury online sales increased by 9% in 2016.

However, the social and political turmoil in the Asia Pacific region in 2017, the economic recession in Latin America and the conflict in Eastern Europe will, to a certain extent, curb the growth of luxury goods in major emerging and developed markets.

In addition, according to the Pambianco Strategie di Impresa statistics of Milan consulting company, the first half year running data of global luxury goods also show that the industry is recovering.

Among the luxury fashion brands belonging to Italy, the strongest growth in revenue was Moncler (French brand listed in Milan, Italy), an increase of 17.1%, followed by Brunello Cucinelli, an increase of 9.8%, and a third increase of Aeffe or 7.1%.

In addition to Italy, the luxury fashion brands belonging to Europe include LVMH group, Zara parent company Inditex, H&M group, Adidas, Kai Yun group, Hugo Boss and Jimmy Choo. The total revenue is 68 billion 140 million USD, up 5.8% over the same period last year.

The fastest growing was Pandora, a Danish jewellery retailer. 26.9% was second, Adidas recorded 15%, and third was Inditex 11.1%.

What is noteworthy is that Gucci, the most important luxury brand of Kai Yun group, has fully recovered. Compared with the first quarter sales growth of 3.1%, the brand showed an accelerated development in the second quarter, and its sales recorded a strong growth of 7.4%.

In the first half of this year, Gucci business revenue recorded 1 billion 948 million euros, an increase of 3.9% over the same period, an increase of 5.4% in organic income, and an increase of 7% to 536 million 900 thousand euros in operating profit over the same period, which outperformed most luxury brands.

Bain company partners Claudia D Arpizio pointed out earlier that the current luxury market will stay in a slow but growing period, and the mainland market will become the key to the recovery of the luxury goods industry.

According to the analysis of Boston Consulting Group, thanks to the digital marketing strategy, the performance of luxury goods industry is getting warmer in the first half of this year, which means that the digitalization of luxury brands is an inevitable trend.

In October 6th, the French American Chamber of Commerce held a seamless luxury experience: retail and digital strategy conference. Most people in the industry believe that the whole channel retail marketing strategy is the key to the future development of luxury goods.

Robbin Mitchell, partner and managing director of Boston group, said that the consumption of 25% to 35% of American consumers in the next few years will be borne through Internet channels.

He stressed that this is a period of pition between luxury and luxury consumer relations. "Luxury consumers tell us that they want to redefine this new relationship."

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At the performance level, the relevant agencies monitored 100 samples of the global luxury fashion brands, and 75% of the luxury brands recorded higher share prices this year, and the overall stock price rose by 9% in the rising brands.

Since June 1st, the stock price of Gucci parent group has increased by 30%, while LVMH and Hermes group have increased by about 16%.