The "Luxury Before Luxury" Causes The Abnormal Development Of The Luxury Market.

China brand The strategic Association Research Report shows that in 2010, China could easily buy International. name product The number of consumers is as high as 250 million. The latest Asia Pacific consumption data released by Goldman Sachs showed that almost all of them landed in China in 2010. extravagant Fashion brands have gained two digit growth, China's share of the global luxury goods market has reached 15%, an increase of 3 percentage points over 2009, and the LV of the main street has been more than enough.

Some people are "not rich and extravagant".

Purchasing power excuses western people.

The astonishing purchasing power of Chinese consumers has stimulated more and more westerners to become a competing group for luxury brands in all countries. Bain, a consultancy, released the 2010 survey of luxury goods in China, which showed that luxury goods suppliers took 68 billion 400 million yuan from the Chinese Pocket last year. The biggest luxury items in China are cosmetics, perfume and personal care products, and leather goods. Chinese people spend 16 billion 900 million yuan on these three items. The second place is watches, which cost 15 billion 500 million yuan.

It is reported that "upmarket" is the most solid fan in China's luxury market. After more than 30 years of reform and opening up, China's new generation has only been born for ten or twenty years. But the taste did not rise with the same year, and the upsurge of the upstart still exists.

China is a new luxury consumer market, and it is not surprising that it is full of nouveau riche. When most people do not understand luxury goods and blindly follow suit, the phenomenon of luxury goods in China is bound to degenerate.

The huge expansion of foreign luxury goods in the Chinese market originated in 2004. China fulfilled its pledge to join the World Trade Organization (WTO). The implementation of the "foreign investment business area management method" was implemented. Foreign brands were no longer restricted by the chain stores, and they resumed the agency power in succession. That year, Italy's Armani (Giorgio Armani) entered China with a high profile and Cartire launched at the Shanghai Museum. In the last few years, Patek Philippe and Rolex (Rolex) have opened stores in China, and the flagship stores of first line brands have opened in Beijing and Shanghai.

2010 is a bumper year for all luxury brands. China has become the second largest market in the world of Porsche (Porsche), selling 14785 cars a year. China is also the largest market for Cayenne in the world. Louis Weedon is still the most luxury brand that Chinese consumers want most. Switzerland's Swatch (Swatch) group has set a record of revenue and profits in 2010. {page_break}
 

"Vanity" has been magnified.

Paul Forsell, a famous American cultural critic (Paul Fussell), mentioned in the book "Class" that in the west, members of the royal family of royalty in Europe are "visible top class", while each business owner is "senior class". Traditionally, the traditional luxury brands have always been guided by the Royal aristocracy, while the "productive class" will also "vanity with luxury brands". In China, this broad vanity has been magnified.

According to the Research Report of China Brand Strategy Association, in 2010, the number of Chinese consumers who could afford international brand names reached 250 million. The Bain consulting firm's report predicts that China's luxury market will reach the annual growth rate of 20%-35% in the next 5 years. The Ministry of Commerce predicts that by 2014, China will become the world's largest luxury goods market, accounting for about 23% of the global total.

Luxury goods are located at the top of commodity Pyramid. This is the way of life and consumption that a social elite can choose. In western developed countries, luxury consumers spend only 4% of their wealth on their purchases, while Chinese luxury consumers, especially some young people, pursue 40% or even more of their income. Even those rich Chinese who have the luxury of spending money on luxury goods are mostly in the upsurge stage.

Christoph Daniel, who can speak fluent English and Chinese, is a research liaison of Daimler Benz Corp in China. He studied at Zhejiang University in 2002 and began to travel to China in 2004. In 2006, he formally settled down with his wife in Shanghai, and had in-depth research on the middle class and wealthy people in China. Jia Side, Jia said that those rich people who are rapidly becoming rich in China want to spend some money to satisfy themselves and allow others to admit themselves, and buying luxury goods is a good way.

Jia Side has met many Chinese people. He thinks that because the Chinese are not necessarily rich people who buy luxury goods, the rich and white-collar workers are quite familiar with luxury stores. "For example, many Chinese people now care about the skin care of natural materials, but they may only know that L'OCCITANE (L" occitane) has entered the official sales brand in China. In fact, the brand like "Dr.Hauschka" is very good in this field, and the price is not as expensive as Chinese people think. "

On the other hand, some of China's billionaires are beginning to have a taste and a low profile. Jia Side knows such a group of people. Luxury goods are no longer limited to clothing, accessories, jewelry watches and famous cars. For example, many Chinese do not know that Miele, the top 100 kitchen appliance brand in Germany, is worth tens of thousands of yuan, and the kitchen must be large enough. If you want meyne to design your whole kitchen, it costs at least a million yuan, but your kitchen can't be seen by ordinary people. The people who use meyno are often the real rich, and have passed the stage of showing off their wealth.

Love the same brand.

Jia Side believes that Chinese consumers are not the same as Japanese consumers in the 80s and 90s of last century. The former is very sensitive to the price of luxury goods, so there will be a phenomenon of sweeping goods overseas, and even online shopping has become popular in recent years. The Japanese pay more attention to the symbols of luxury goods. They mainly shop in Tokyo. On the other hand, despite the increasing number of Chinese upstarts, the Gini coefficient is rising, while Japan's purchase of luxury goods is mainly the vast middle class, and there will be no strange phenomenon of different brands with different financial resources like China.

Ouyang Kun, the chief representative of the China Representative Office of the World Luxury Association, also issued a similar sigh: "take cars, in developed countries, Lamborghini is usually sports stars, entertainers buy Ferrari, lawyers like to buy Mercedes Benz, many doctors are Porsche, and families like to buy a high-end SUV. Unlike in China, buying good cars is a swarm of bees, blindly follow suit, do not care about the positioning of this car is suitable for yourself.

Although most well-known luxury goods are in Europe, the World Luxury Association is born in the United States, because it was once the largest consumer market for luxury goods. Today, the top two consumers of luxury goods are the two Asian countries, Japan and China. At the end of 2008, the World Luxury Association officially entered China. In addition to standardizing the market and doing research, it also provided better help for luxury goods in China.

"In fact, there are more than 700 luxury brands from all over the world registered in our association, including the Middle East and South American countries, but the more than 270 most important ones who enter the Chinese market are mainly from European and American countries." Ouyang Kun, for example, is very famous for Saudi jewellery. In the view of some local luxury brands, Cartire can be regarded as "jewelry" at best, but the brand of Saudi Arabia has not yet entered the Chinese market.

Irrational "extravagance"

China's luxury consumers are slightly "frog in the well". Although more and more people are shopping abroad, they still choose the so-called "big names" that they can see at home. Ouyang Kun said that China does not exist as a noble class in Europe, nor does it have a large middle class like Japan, nor does it have much financial resources as the United States does. Luxury consumption has more "impulsive" factors. According to the 2010~2011 annual official report of the World Luxury Association, the mainstream consumer group of luxury goods in China is between 25 and 45 years old. It is 15 years younger than European luxury consumers and 25 years younger than American luxury consumers.

The popularity of luxury consumers in China means that there are two generations in the group, many of which are derived from parental support, or small white collar workers who are frugal. This is not healthy for the development of luxury goods industry. This is why many minority luxury brands are hesitant to enter the Chinese market. "Luxury brand is just like a big girl who wants to get everyone's attention and not to be too eye-catching. "Ouyang Kun admits that every luxury brand is facing such a dilemma in the Chinese market.

However, luxury brands will not discourage those Chinese consumers who are not in line with their positioning. After all, "open door business is always a customer". Who will be unable to get along with real gold and silver? These brands thought they had blocked most Chinese consumers with high prices (probably the highest price in the World), but they underestimated the purchasing power of Chinese people and the irrational attitude of "not rich and extravagant". Coupled with the limited investment channels of the Chinese people, luxury goods have become one of the channels for asset preservation in the context of Limited car market and sluggish stock market.

Ouyang Kun said that some luxury goods will become a necessity someday, and then there will be new luxury brands instead. He advised the Chinese people not to pursue luxury goods too much, which was just a "necessities" for the small number of rich people. The actor was serious and the actor was embarrassed.