China'S Luxury Consumption Has Cooled Sharply, And Consumption Of Public Funds Has Been Curbed.

< p > in recent years, China's luxury consumer market has become increasingly prosperous, and the sales volume of many large luxury brands has increased significantly in China.

However, since last year, the speed of expansion of luxury goods in China has shown signs of "brakes".

The World Luxury Association's latest report shows that between January 20, 2013 and February 20th, the total consumption of luxury goods in the mainland of China amounted to 830 million US dollars, down nearly 53% from the sales during the Spring Festival in 2012, and the sales of Chinese luxury goods market had obviously slowed down.

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< p > < strong > luxury consumption, virtual fire, /strong > < /p >

< p > experts believe that in recent years, high-end consumption, including luxury goods, has been growing rapidly in China, which has the consumption choices of the affluent, but there is also the "false fire" element of public consumption.

At the end of last year, the central government promulgated the "eight provisions" to improve work style, which has reduced the abnormal consumption.

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< p > according to the World Luxury Association's report on China's first quarter luxury market, before 2013, the gift market accounted for 72% of the total sales of luxury goods in China.

In China, giving gifts to luxury goods has become a mainstream trend, but in the first quarter of 2013, this situation has been broken. Officials are far away from luxury goods as the best way to avoid public opinion calamities. The absence of official market is the main reason for the heavy market share of domestic luxury goods.

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< p > "brand at this time should strengthen the training of their own individual consumers, rather than the past group buying market and gift market."

Ouyang Kun, the chief representative of China Representative Office of the World Luxury Association, pointed out that the cold consumption of luxury goods will make the Chinese consumer market gradually return to rational consumption, and the government's vigorous anti-corruption efforts will also bring luxury consumption back to the original demand market and no longer focus on the gift market.

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< p > < strong > "combination boxing" restraining consumption of public funds < /strong > /p >

< p > "the cooling of luxury goods is not an accident. There are many reasons for this."

Jing Linbo, vice president of the Financial Strategy Research Institute of the Chinese Academy of Social Sciences, told our reporter that the current global economy and China's economy have not maintained relatively sound growth.

From the fourth quarter of last year to the first half of this year, China's economy is facing some downward pressure.

The weakness of the overall economy is expected to affect consumer confidence, so it is also reasonable for the public to cling to their wallets.

Two, since the end of last year, the central government promulgated the "eight regulations" and "six injunctions". A series of "combination boxing", which inhibited public spending and opposed extravagance and waste, had been in force.

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Sun Lijian, vice president of the school of economics, Fudan University, said that from the market share of luxury goods, the consumption capacity of Chinese luxury goods has been weakening over the past few years, which reflects that China's entry into the luxury consumer market is very limited. P

A few high-income groups in China have already held commodities through pre investment, which has brought pressure on the subsequent expansion of the luxury consumer market.

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< p > industry insiders point out that the spread is still the biggest driving force for the continuous growth of luxury consumption in China.

The average import tax rate of luxury goods in the Chinese market is 16%.

In contrast, the average import tax rate of international luxury goods in the North American market is 10%, while that in the European market is only 6%.

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< p > < strong > promoting consumption requires institutional innovation < /strong > < /p >

< p > according to the world bank's data, China ranked eighty-sixth in the per capita GDP ranking in 2011.

Correspondingly, China has replaced Japan as the second largest luxury market, second only to the United States.

The experts suggested that we should seize the opportunity of a major turning point in the consumption concept after the introduction of the "eight provisions", promote the pformation and upgrading of the consumption structure, and advocate moderate consumption and sustainable consumption.

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< p > "at present, the consumption of public funds is strictly restricted, and the consumption behavior aimed at showing off wealth has also cooled. It is through the policy guidance that we cultivate our own brand and advocate a moderate and sustainable consumption opportunity, while the middle-income group will be the main consumer group of this product."

Zhao Ping, a researcher at the Ministry of Commerce and Trade Department of the Ministry of consumer economics, believes that consumption of services is the direction of consumption upgrading.

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< p > "from the two aspects of supply and demand, first, we should actively cultivate and expand public consumption. The industry which used to rely heavily on public consumption has been affected. In the future, we should actively expand the consumption of residents from the perspective of increasing residents' income. Two, different industries should aim at the specific circumstances, aim at the market, subdivide customers, and strive to improve product quality and service level."

Jing Linbo said.

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