Domestic Rise And Fall, Domestic High Extravagant Contraction Front

In a report, the World Federation of large enterprises said: "China's overoptimistic growth and consumption expectations mislead foreign investment."

Most Chinese have a long way to go into the middle class. "

Indeed, in the face of poor market performance, the top luxury brands who had hoped for the Chinese market adjusted their strategies and cautiously moved forward.

In March last year, the official selling price of Chanel dropped by 20% in mainland China. Then Prada lowered its price in Asia outside Japan. In May, Gucci sold half off more places in China. At the end of the year, LV closed three stores in Guangzhou, Harbin and Urumqi.

In 2015, China's luxury goods market was on the decline.

"2015 is a challenging year for many luxury brands, experiencing a low level.

(low foot traffic) and competitors who are hard to distinguish from themselves, "Milton Pedraza, chief executive of the Luxury Association said," however, overall business and online sales are growing steadily and will continue. "

"Luxury consumers have higher requirements for their shopping experience. They expect it to be easy and convenient, and most importantly, special."

Ken Morris, partner of Boston Retail Partners, Boston, said, "in 2016, many retailers will focus on digitalization and introduce the" Amazon shopping experience "to stores.

To rekindle the enthusiasm of domestic consumers, luxury brands should adopt a localized marketing strategy in addition to lowering their prices to reduce domestic and foreign price differences in the Chinese market. They can also try new sales channels and sales methods and take advanced customized roads.

The wealth Quality Institute report also shows that the global luxury market growth momentum is mainly the traditional high-end niche brands.

Brand, especially the rapid development of customized products and services, Milton Pedraza believes that 2016 will be a year to create a comprehensive platform to attract and seize customers across multiple platforms. Technology has a significant impact on the development of multi-channel, but personal style and strong customer relationship to promote data collection and conversion is the king. Brands should focus on optimizing multi-channel strategies, establishing a well functioning relationship network, and adjusting them.

And investment in education and training partners to increase efficiency and reduce costs in supply chain and human capital.

Bain advisory, released in January 21st, showed that China's luxury market in 2015 was 113 billion yuan, down 2% from a year earlier, extending the 1% decline in 2014.

However, the November 24th report of the wealth and quality research institute showed that in 2015, the global luxury consumption of Chinese consumers was about 740 billion yuan, an increase of 9% over the same period, but 78% of them occurred abroad. They bought 46% of the world's luxury goods. The proportion of China's luxury goods market decreased from 11% in 2014 to 10% in 2015.

Influenced by such factors as domestic anti-corruption, overseas purchasing, outbound shopping, consumption pformation and RMB appreciation, luxury goods have been declining in China's consumer market, but Chinese consumers still maintain strong purchasing power overseas.

"Marketers should focus more on real luxury and luxury brands in 2016 than in the past, and focus on 1% of the world's rich."

Ron Kurtz, chairman of the American Affluence Research Center, said.

According to the wealth Quality Research Institute, 83% of luxury brands in 2015 had various forms of customs clearance in China. It is predicted that by 2016, more than 95% of luxury brands will be strategically closed, and the existing stores will be further upgraded.