Too Many Fake Goods In China'S Luxury Market Are Being Abandoned By International Brands?

Recently,

The Institute of wealth and quality, a research and consultancy, released the 2014 China luxury report. It said that the consumption of Chinese luxury goods has gone to a very serious level. 76% of the consumption has occurred abroad, and the fake goods visibility is more than 6 times that of the real market. China's luxury market has become a chicken ribs.

According to the survey, in 2014, the sales volume of the major luxury brands is still increasing, but the growth of the luxury brands is slowing down, and the inventory is serious. Discount and disguised discounts become the norm.

At the same time, traditional luxury brands are slowing down.

According to the report, the traditional luxury brands will become mass high-end consumer goods in the next 3-5 years and will say goodbye to the era of profiteering.

But in 2014, the total capacity of the global luxury market will still reach a record $232 billion, and the annual growth rate is expected to reach 7%.

Among them, Chinese consumers spent $106 billion (about about 640000000000 yuan), an increase of 4% over the same period last year. This shows that the Chinese bought a 46% of the world's luxury goods last year, a slight decline in their share, but still the biggest buyer in the global luxury market.

However, it is noteworthy that due to the skyrocketing tourist outbound and the spread of luxury goods at home and abroad, the consumption of Chinese consumers in the mainland has dropped significantly, to 25 billion US dollars, down 11% from the same period last year.

The consumption of Chinese consumers is increasing and consumption outflows are aggravating. Overseas consumption accounts for 76% of Chinese consumers' luxury consumption.

"Therefore, paying attention to Chinese consumers, but not paying attention to the Chinese market, has become the prevailing mentality of many international brand managers, or the Chinese luxury market is being abandoned by international luxury brands."

The report points out that

Apart from the fact that the Chinese consumer market is mainly abroad, fake goods are also one of the main reasons why many brands give up the Chinese market.

According to the wealth Research Institute, the market visibility of luxury goods is more than 6 times that of genuine products, that is, luxury brands that can be seen everywhere on the streets are mostly fake.

It's already hard to get back.

So the report concludes that China

For many international luxury brands, it has no strategic position and is on the brink of being abandoned.

According to the report, international luxury brands abandon China's luxury market mainly in 3 aspects:

1, reduce the marketing budget.

Many brands reduce their market budgets in the Chinese market in large scale, or pfer China's market budget to other countries.

What's more, many brands are beginning to recover the market budget decision making power of the Chinese market, and each expenditure must be approved by headquarters.

2, abstinence is against the bottom line of law and morality.

Because many brands do not have long-term market planning in China, and the fastest way to use the Chinese market to get the largest sales and profits is the sole goal. Therefore, it is common to report illegal data illegally, without contract spirit.

3, abandon the use of senior talents.

A large scale reduction of China's human resources cost, especially the cost of senior management, has witnessed an endless series of changes in China's top management in recent years. In 2014, the top management personnel in luxury brands in China changed by more than 60%.