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Italian Luxury Brands With The Largest Market Potential In China Will Open 100 Retail Stores In China

2013/5/15 22:19:00 117

Luxury BrandChinese MarketMarket Potential

Luxury sales in China encountered a "sudden brake", but the executive director of the Italian Luxury Association said. The performance growth of several first-line luxury brands in China has slowed down significantly, but Armando Branchini, executive director of the Italian Luxury Association, said in an interview with reporters in Shanghai recently that there are still Italian luxury brands that can achieve a growth rate of 16% to 17%. In this year and next two years, Italian luxury brands will open at least 100 new retail stores in China. Mai Zhenjie, the global CEO of Earl Watch Group, also revealed that three new stores will be opened in China this year, believing that the growth potential of the Chinese market will be the largest.


   Chinese people consume 1/4 luxury goods


Armando Branchini said that at present, 25% of the global personal luxury consumption comes from Chinese consumers. In the past, China's luxury consumption market was dominated by gifts, such as men's products, which could reach 25% to 30%. However, this includes gifts to husbands, sons, boyfriends and other relatives and friends, as well as to officials. In the purchase of female consumers, Gift giving consumption reached 50%.


"From January to July 2012, the growth of luxury consumption in China was higher than expected. From August to October, there were some changes in the data, but there was still growth, but the speed was slowing down. From November to now, the data showed a decline after reaching the peak," Armando Branchini said.


According to the survey report released by the World Luxury Association in February this year, during the Chinese New Year from January 20 to February 20, 2013, the total consumption of luxury goods in mainland China was 830 million US dollars, a decrease of 920 million US dollars in sales compared with 1.75 billion US dollars during the 2012 Spring Festival, with sales falling by nearly 53%, reaching the lowest point in five years. This month, the total consumption of luxury goods overseas and in Hong Kong, Macao and Taiwan reached 8.5 billion US dollars, up 18% from 7.2 billion US dollars last year.


   Some brand strategies become conservative


According to the statistics of the Swiss Watch Industry Federation, the number of Swiss watches exported to China fell by 26% in the first quarter of this year.


Affected by this, since this year, the strategy of some luxury brands in China seems to be turning to conservatism. It is reported that Bernard Arnault, president of LVMH Group, said on January 31 this year that he would comprehensively curb expansion and would not continue to open stores in China's second and third tier cities.


The spokesman of the Italian brand Gucci also said that Gucci's market strategy in China in the next few years is not to expand rapidly but to consolidate. First, the existing Gucci stores will be renovated and facelift, and then new stores will be opened, but certainly not as fast as in the past few years.


Armando Branchini believes that the degree of slowdown of different brands in China is different. For example, some Italian brands can now grow by 16% to 17% in China, and even 24% when opening new stores. Such companies are generally women's consumer goods companies, as well as those brands that have many stores but are not fully recognized, such as Tods Fendi and Ferragamo will grow faster than other brands.


Mai Zhenjie, the global CEO of Earl Watch Group, also said that the growth rate of the entire Richemont Group (the Earl's parent company) last year was 9%, which was optimistic. It was comparable to the growth rate of China's economy, but compared with the historical high of 14%, the growth rate was slowing down. It was expected that in the next few years, it might have a slight impact, but the overall attitude was optimistic.


   Still believe in China's market potential


Mai Zhenjie said: "At present, about 50% of earl's global sales come from China, including Chinese consumers' purchases in the domestic market and foreign markets. In fact, the driving force for earl's growth in China is the growth of China's economy and wealth, and Chinese people are more and more willing to spend more money to buy exquisite products. In addition to earl The sales of Cartier brand in China are also relatively good. Although the growth rate in China may not be as fast as in previous years, I believe that the growth potential of the Chinese market is still the largest. "


Mai Zhenjie said that at present, the Earl has established three service centers in Beijing, Shanghai and Guangzhou, and will open three new stores in China this year. Armando Branchini also said that at present, Italian luxury brands have 640 retail stores in China, and it is expected that at least 100 more retail stores will be added this year and next.

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