Chinese Players In Luxury Goods Field Show An Important Position

After experiencing a "black swan" storm, the status of Chinese consumers in the field of luxury goods has become increasingly clear.

In the financial reports of the first and second quarters of 2020 issued by major luxury groups, the sales promotion brought by the Chinese market can not be ignored, including the optimistic view of Richemont group, one of the "three largest luxury goods giants in the world".

Recently, Switzerland's famous Swatch watch group also revealed its love for the Chinese market in its financial reports. The group released its annual report for the first half of 2020 on July 14. The group suffered a half year loss for the first time. Compared with the same period last year, the sales volume in the first half of the year decreased by 46.1% to 2.2 billion francs, and the net loss was CHF 308 million,

Affected by this, Swatch Group will carry out a large-scale layoff activity not seen in nearly 30 years this year. It is estimated that 2400 jobs will be cut off, and the loss in the first half of the year will be overcome through cost reduction.

During the first half of the year, China, South Korea and other markets that have lifted or partially lifted the epidemic prevention blockade showed strong demand growth. Among them, the Asian market is the largest regional market of Swatch Group in the world, and the Greater China market is the largest national market of Swatch Group, which brings the growth trend of "reverse wind and reversal" for the group's sales in June.

Nick Hayek, chief executive of Swatch Group, said the group's sales in mainland China saw double-digit growth in May and June. However, due to the political turmoil and epidemic situation, sales in Hong Kong, China, are now almost zero, and sales in the United States fell by 20% to 25% in July.

With the rapid rise of China's economy, China's market has gradually become the main force of luxury consumption. Many world-class luxury brands are trying to expand their territory in this thick land, and Chinese consumers have become the backbone of profits. In the beginning of 2020, many brands will follow the traditional Chinese Zodiac customs and release new series of the year of the rat.

Bain and Fondazione altagamma, an Italian luxury goods industry association, jointly released the Research Report on global luxury goods industry in 2019 (Autumn Edition). It shows that in 2019, the contribution rate of Chinese consumers to the sustained growth of global personal luxury market reached 90%, accounting for 35% of global personal luxury consumption.

Although the outbreak of the new crown epidemic hit China's luxury consumption in the first and second quarters of 2020, the rapid recovery of the market has also brought enough confidence to many luxury brands. Brands such as Dior, Chanel advanced handcraft workshop and balischika have entered domestic e-commerce platforms. Through online layout, online sales of most brands have achieved double-digit growth.

According to the forecast and analysis report on the market demand and investment of China's luxury goods industry released by forward looking Industry Research Institute, the scale of China's luxury market may exceed 400 billion yuan in 2025, and Chinese players in luxury industry have already possessed the consumption power that cannot be ignored.