Luxury Brands Are No Longer Luxury For Chinese Consumers.

According to the world clothing shoes and hats net, at the beginning of this month, an article about Hongkong

The market article "A Shopping Spree in Hong Kong: The Past and the Future" refers to the wrist watch.

Zenith real power CEO Julien Tornare's remarks on Chinese consumers are thought-provoking.

Julien Tornare says that many Chinese consumers do not need to flaunt their wealth at all, because they are rich in the two generation and are born with money. They just want to buy something they like.

Because of the differences in economy, consumption habits and consumption psychology, luxury goods in China

Consumers are younger and poorer than the international market. Even young people who enter the workplace and are 20-25 years old often become consumers of luxury brands.

For the rich two generation of China, it is natural to have money without having to conspicuously consume, because they are usually born in luxury goods stores, and luxury goods naturally lose their important attributes of showing off, but conspicuous is still an important attribute for the non wealthy group of the other half luxury goods consumers.

Wang Sicong, who is known as the "national husband" in China's social network, was once the richest man in China.

According to the fashion industry research and consulting investment agency No Agency released earlier this year, the China Consumer Index for luxury goods shows that "brand" is still the first factor for Chinese consumers to buy luxury goods, accounting for 73%, followed by "popularity" and "design", accounting for 56% and 40% respectively.

Tang Xiaotang, founder of No Agency, said conspicuous consumption is still in demand in China, especially in the two or three tier cities with strong spending power.

In the New York Times article, Jayce Zhao Zhao, a Chinese consumer who works in the New York investment bank, said that the watch he bought wanted to show that he was only 26 years old, not a traditional watch that could be questioned by his friend "why do you wear your father or grandfather's watch?"

According to the analysis, the new generation of wealthy men in mainland China is coming. Their taste for watches is more changeable than their elders.

Over the past three years, as the luxury market, especially the Chinese luxury market, has changed from declining to flourishing, "youthful" has become the industry's highest rate of reference.

After the two quarter earnings conference in late July, Fran Francois ois-Henri Pinault ois-Henri Pino said that in the latest quarter, 50% of Gucci's Gucci sales came from the Millennial millennial generation and the Generation Z era under 35 years old, while Saint Laurent Laurent sales came from that age segment.

Fran Francois Pinault ois-Henri said that it means that the high-end products of the group are more attractive to the consumers of the age group than the old customers (because the consumers are younger), so the attraction can continue. "Ois-Henri"

Fran C ois-Henri Pinault is the chairman and chief executive officer of Kering SA (KER.PA) Kai Yun group.

Due to the slowdown in anti-corruption and China's economic growth, China's luxury goods market has experienced nearly 3 years of slump, and the second half of 2016 is coming back. No Agency data show that in 2016, China's personal luxury market grew by 6% to RMB 165 billion, and in the first half of 2017 it soared to 10.6%.

Similarly, the Rui watch industry, which also experienced a 3 year downturn in anti-corruption, also had a turning point in 2017. In 2017, the export value of Rui table reached 12 billion 637 million 600 thousand Swiss francs, an annual increase of 1.2%, but it still had a 9.8% decline compared with 2015. During the period, the Hongkong market with the largest export of Rui watches rose 2.9%, compared with the same period in 2015, but fell by 25.5% compared with the same period in 2015. The export market in China only jumped by 19.4%, compared with the same period in 2015, with a 7.9% increase over the same period in 2017.

Swiss watch industry federation said that at present, the driving force of the Swiss watch is mainly 3000 Swiss francs above the precious watches, and the middle end and parity list is still subject to market inhibition. The industry believes that the sales of the first Apple Watch smart watches affect the market of low-end watches. For this reason, recently, many Rui watches and Louis Vuitton Louis Weedon have launched smart watches, and also cater for intelligent and young consumption.

Tang Xiaotang said, "younger" is not a product trend, the fashion industry should realize that this is the trend of consumption.

"The younger generation of China has no ability, or no need to buy property from their parents or the 70\80 generation. In addition, China's consumption changes from savings to credit consumption showing violent changes, which all contribute to the vigorous consumption of the younger generation."

He also said that Jayce Zhao's choice of watches is "just another kind of conspicuous consumption."

Interview 26 year old Chinese watch player Jayce Zhao

Under the tide of "younger age", luxury goods, including many valuable jewellery and watch brands, have introduced "small meat" in the Chinese market to endorse or act as ambassadors for publicity.

Louis Vuitton Louis Weedon's latest smart watch Tambour Horizon is to promote Lu Han's publicity. Lu Han is also a "brand friend" of Cartier's Cartire. In addition, Bulgari Bvlgari also launched Wu Yifan as the spokesperson for the Chinese market in 2016.

"The consumption psychology of young consumers in China's first tier cities is indeed changing, which is full of comprehensive factors such as housing prices, marriage and love". Tang Xiaotang said that with Tiffany &Co. &Co. as a symbol, young consumers in the first tier cities are changing traditional "conspicuous consumption" to "flaunting consumption" which advocates economic independence and love themselves.

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