Luxury goods are back in fashion in China
However, the industry is very different from 2012, when the explicit spending of officials cutting contracts was a key driver, spurring a crackdown on immigration. Today, emerging affluent consumers, unrestricted by the government, are picking up the pace. China’s emerging middle class is so important that it will be the main driver of global luxury growth, bain said in a recent report on the outlook for 2020.
BNP paribas luxury research director Luca sol card (Luca Solca) on September 25, said in an E-mail: “anti-corruption movement has been eliminated the market bubble, because now very reasonable consumption and consumption.
The composition of high-end Chinese consumption has also changed in the past five years. Gift giving used to be the master of men’s shopping, and luxury watches are a special favorite. An anti-mobile push has led to this decline in sales. Now, the focus has shifted to the consumption of women in designer handbags and expensive perfumes.
The Swiss watch industry federation says the Swiss watchmaker’s favourite destination for Chinese buyers, Hong Kong, fell 25 per cent last year and its market value has halved in four years.
France La Rochelle Business School (La Rochelle Business School professor, Serena, (Serena Rovai) in the the “Luxury China road” (key-2 Luxury the Chinese Way), wrote in China’s Luxury market mainly dominated by men. She wrote: “women’s purchasing power is rising, and anti-corruption campaigns are often gifts for men, and women are now more prominent.
The companies that have done well in China this year include:
Burberry Group (Burberry Group PLC) in April to June quarter and retail sales in the pointed out that “under the age of fifteen percentage growth”, including WeChat social media platform of exposure to promote the sales.
Kering, the owner of the Gucci Group, said that in the first half of this year, China’s luxury-brand revenues were up nearly 50 per cent from the first half of last year. Yves Saint Laurent sales are up almost 67%.
Louis Vuitton’s Louis Vuitton reported that the continued strength of wine and spirits was partly due to sales of the New Year celebrations at Hennessy Cognac.
HSBC bank (HSBC Holdings PLC) global consumer and retail research, co-head Erwan Rambourg said, its performance has been very strong, he said, his bank has forecast China’s luxury market growth of 10% this year, and 7% of the world’s growth rate may be over.
With China’s exchange rate improving, with real estate and stocks rising, the turnaround that began in the fourth quarter of 2016 boosted consumer spending across the country.
“You already have some overpurchases, reversing very low purchases, and we don’t think it will last forever,” Rambourg said in a telephone interview from New York City this week. “By definition, mandatory requirements cannot be maintained.”
However, the expanded mass market is driving up some high-end goods, such as the high-end Chinese liquor segment that has been hit since 2012. Aidan Yao, senior emerging market economist at axa, said this week that the growth of baijiu and the broader strength of domestic demand, retail sales and consumer spending