China'S Luxury Market Is Still Booming But Not In Mainland China.

< p > Bobo Li has boundless scenery in China.

The first quarter of 2013, reported by the famous British brand, showed a 11% rise in sales, with mainland China and Hongkong leading the way.

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"P", according to the weekly website May 5th, boboley expects that with the increasing number of stores in the world's largest consumer country, the future revenue will still be considerable.

However, the prospects for some other high-end brands are not so optimistic.

For example, PPR group, which owns three brands of Gucci, Saint Laurent and Po Tejia, did not sell well in the first quarter. It is expected that the performance of the world's largest luxury market will not change in the future.

"We can't see any signs of improvement in China," Jean Mark Duple, chief financial officer of the group, said at a conference call at the end of 4.

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"P" reported that the count of famous watches and jewellery brands is expected to increase sales in China in 2013, not exceeding 10%, the lowest level in 8 consecutive years.

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Thomas Buyonnek, President of the company's China region, said, "the days of two digit growth are gone forever."

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< p > reported that Bbu Jung Neck's words are certainly reasonable, but only in the mainland of China.

Outside China, the prospects are amazing.

The World Luxury Association reported that China's luxury consumption fell sharply during the lunar new year in 2012, but it also indicated that Chinese luxury goods consumption rose by 18%, mainly in Europe.

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< p > the diversion of China's luxury market is very popular.

Data from the bain company show that 60% of Chinese luxury consumption is outside the mainland of China, which is basically the same as that estimated by Vincent Lou, executive director of the Boston Consulting Group in Hongkong.

Liu said that Chinese luxury consumption is mainly concentrated in three major areas: Mainland China, Hongkong and Macao and overseas, each accounting for 1/3.

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< p > reported that one of the reasons for the momentum of the offshore market is its relative price advantage over the mainland of China.

On the one hand, the appreciation of the renminbi has led to a higher price of luxury goods in the mainland of China.

More importantly, the high tariffs and the "Mongolian Chinese" pricing strategy have pushed up prices.

The most popular LV in China is about 40% higher than that in Hongkong, and the price in Hongkong is much higher than that in many other cities in the world.

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< p > price differentials make the profits of luxury stores in mainland China decline significantly.

Christina Lo, chief executive officer of "affinity China", said: "many luxury brands may not earn money under the high rental pressure of Shanghai or Beijing, but that is the market cost."

She said that opening stores in the mainland of China is mainly aimed at gaining "brain share", that is, letting the rich see these brands and thereby affecting them.

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< p > Philip Leopold, the chief executive of the Earl company, in April, indirectly proved Lu's statement.

He said profits in China are "really not so important" and their companies are trying to attract Chinese consumers abroad.

The count company is slowing down the pace of opening new stores in China.

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"P" reported that in fact, many brands have gradually slowed down the pace of expansion in China, and began to reconsider the role of stores.

Renee Hartman, China luxury consultants, said: "their real stores are in Hongkong or Paris, and shops in the mainland of China are just faces."

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Less than P, the stores in the mainland of China are increasingly becoming part of the tourism industry.

Consumers pay deposits in the mainland and pick up products at stores in Hongkong.

Sometimes some rich people are sent abroad (for tourism and shopping) even when the deposit is not paid.

Retailers of watches, jewellery and handbags are playing the role of "travel agencies".

Torsten Stoker of DDT said: "for real VIP customers, they will do anything they feel is necessary."

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< p > reported that China's luxury market is still booming, but not in the mainland of China.

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