China buys nearly half of global luxury goods

Overseas consumption is still irresistibly further strengthened. Chinese consumers’ consumption of luxury goods abroad will reach US$91 billion in 2015, a year-on-year increase of more than 12%. That is, 78% of Chinese consumers’ consumption of luxury goods occurs overseas, and the consumer outflow situation remains a serious luxury. The “China Luxury Goods Report” released by the Institute for the Study of Wealth of Value on November 24th in Shanghai shows that in 2015 China’s global consumer spending on luxury goods will reach US$116.8 billion, an increase of 9% year-on-year, accounting for changes in exchange rates. The figure is 100 billion yuan more than in 2014.***

However, what is embarrassing is that overseas consumption is still irresistibly further strengthened. Chinese consumers’ consumption of luxury goods in foreign countries will reach US$91 billion in 2015, a year-on-year increase of more than 12%, that is, 78% of Chinese consumers’ consumption of luxury goods will occur overseas. The situation of consumer outflows is still serious. The industry believes that this is mainly because Chinese consumers think that overseas luxury styles are complete, while domestic luxury goods have high prices and quality is not guaranteed.

In the past, global luxury brands successively slammed into China, with stores located in the core business districts of China's first and second-tier cities. Today, their days are no longer so good. Not long ago, LV's first store in Guangzhou was declared closed, and the tide of luxury goods stores seems to have intensified. Research shows that in 2015, 83% of luxury brands had various forms of closing shop behavior in China.

According to the prediction of Fortune Quality Institute, luxury goods stores will become more common in 2016. It is expected that more than 95% of luxury brands will strategically close some stores in 2016, and further strengthen existing store renovations to build large-scale experiences and services. The Center replaces existing stores and opens up online and offline luxury retail O2O is an inevitable choice for all brands in the future. At the same time, more brands will strive to achieve customized one-stop lifestyle services for customers and gradually realize B2C to C2B industries. upgrade.

In the luxury market, there is a phenomenon that is particularly prominent in 2015, that is, the luxury custom service Internet project has become the biggest entrepreneurial highlight in 2015.

The custom business developed rapidly in 2015. At present, the proportion of customized businesses in the entire luxury goods industry has reached 20%, and 86% of luxury brands have launched different forms of customized services. In 2015, there were more than 400 internet platform projects of various types of main push customization services, but they were very small. Dr. Zhou Ting, president of the Wealth Quality Institute, predicts that large-scale Internet platforms such as Tmall, Jingdong, etc. will enter the customization field in 2016. The accumulation of years of upstream and downstream resources, especially customer resources, will allow these Internet platform companies to become customized services in the future. The real protagonist of the field.

Although customized internet projects have mushroomed, China’s luxury e-commerce companies have generally suffered a lot in 2015. According to the research conducted by the Wealth Quality Institute on high-net-worth individuals, only 4% of Chinese consumers are willing to choose Chinese local luxury e-commerce if they choose online shopping channels, and they are willing to choose 44% for the luxury brand official website and foreign luxury e-commerce providers respectively. 27%.

Zhou Ting believes that the circulation of luxury goods is an inevitable trend. In the end, online retail of luxury goods can only be done by luxury brands themselves, either through the official website itself or through platform-based e-commerce companies themselves.