Every year's Double Eleven is a focus battle, and this year's Double Eleven is a protracted battle.

With the hard work of the party's army, the turnover of major e-commerce companies in the "Double 11" this year exceeded 774.7 billion yuan, achieving substantial growth compared with previous years.

  Yes, everyone accidentally participated in a large project of hundreds of billions.

  It is worth noting that this year's "Double 11" luxury brands are particularly lively.

It was sold out when it opened, and it was sold out for the second time after replenishment, and it had to be urgently transferred from overseas. 65 hard luxury brands including Chloe, IWC, Balenciaga and other "rich brands" are all transferred globally.

  In addition, since August, there has been a "queuing wave" outside luxury stores across the country.

Especially after the news about luxury brands such as LV, CHANEL, Cartier and so on that will increase prices on September 1, consumers' desire to buy has been stimulated again.

  In contrast to foreign countries, many luxury stores in Europe and the United States have closed due to the epidemic, while the domestic luxury consumer market is still booming.

Luxury brand

Those who win China win the world

  The international definition of luxury goods is "a consumer product with unique, scarce, and rare characteristics beyond the scope of people's needs for survival and development."

Economically speaking, luxury goods are products with the highest ratio of intangible value/tangible value.

  Simply put, it is expensive, and the price is much higher than our daily necessities.

  In recent years, with the increase in national income, the luxury goods of the rich have been standard, and the public can also touch them on their toes.

  Especially for women's big-name bags, first-line cosmetics, and high-quality clothing, the entry price is only a few thousand yuan, a little more than tens of thousands.

This is not an unattainable price for urban white-collar workers, and a little bit of frugality can successfully "choose hands."

  With people's high desire to buy, China has become the world's largest personal luxury goods market.

  In 2012, China's personal luxury goods consumption market accounted for only 12% of the world. In 2018, it had reached 872 billion yuan (calculated based on the exchange rate at that time), accounting for 33%.

  In six years, 50% of the global growth has come from China, and according to BCG Consulting's forecast, this number will increase to 75% by 2025.

By then, China's luxury goods market will account for 41% of global consumption.

  At the beginning of 2020, the new crown epidemic has swept the world, and the luxury goods market has been hit hard. It is expected to fall by 25% to 45% from 2019.

However, the domestic market is the first to pick up due to the proper control of the epidemic. It is expected that the Chinese luxury goods market may achieve a growth of 20% to 30% throughout 2020.

  In order to compensate for the performance losses affected by the epidemic, many big names have raised their domestic prices.

In recent days, Fashion Business News quoted multiple sources as revealing that luxury brand LV will increase the price of its products by approximately 15%.

If the price increase news is true, this will be the fourth price increase for Louis Vuitton this year.

  Whenever news of luxury goods price increases, it will trigger a wave of panic buying.

In March, May, and September of this year, as soon as the price increase of luxury goods was reported, there would be a queue scene at the entrance of related luxury goods stores.

  "He who wins China gains the world" has become an indisputable fact in the luxury goods industry.

Who is buying?

What did you buy?

  Consumption in China's luxury goods market has grown substantially, and young people have contributed.

They are all "digital natives", optimistic and hopeful about the future, and they are extremely easy to grow the latest trends. Xiaohongshu and Douyin are their permanent residences.

  Compared to other age groups, they are more willing to follow the latest trends, buy high-end products, and improve their quality of life and social status in the new era.

  Young "shoppers" believe in "you get what you pay for" when shopping, and they don't usually care about saving for the future in advance, which gives them strong purchasing power.

  It can be seen that the 26-35 year-olds can contribute 62% of the consumption of high-end luxury goods. These people happen to be born in the 80s and 90s who are at the birth peak of the population and account for a relatively large proportion of the total population of China.

  According to the birth data released by the National Bureau of Statistics, there are 220 million people born in the 1980s and 210 million people born in the 1990s, which is much higher than 160 million people born in 00 and 160 million people born in 10 years.

Compared with their parents, these young people have greatly improved their material conditions, so they have a higher marginal propensity to consume and individualized consumption needs, and are more willing to pay a premium for high-quality goods.

  In terms of the types of goods purchased, clothing, watches, jewelry, handbags and other categories have the most consumption.

  According to the “2019 China Luxury Consumer Digital Behavior Report” conducted by BCG Consulting, in 2018 my country’s luxury goods market consumption, clothing, watches, jewelry, and handbags all contributed RMB 50-60 billion in retail sales, with an average sales share. It accounts for more than 20%, and the sales of other accessories and shoes account for 16% and 15% respectively.

  Brand is the main reason most consumers choose to buy luxury goods. For consumers, brand is the representative of quality.

The brand is the credibility established by the company for many years, so when the brand manufactures the products, it will spend more time to design, and the works are fashionable and novel.

  But for young people, the importance of branding is not as high as for older generations.

As the influence of social media promotes the maturity of luxury consumption, more consumers begin to recognize and appreciate elements such as design, fabrics and craftsmanship.

  Understanding more knowledge beyond the brand has become a social capital for young people to communicate.

  On the other hand, in the purchase of luxury goods, relative to design, craftsmanship, and fabrics, price seems to have become less important.

This is mainly because the income of Chinese people is getting higher and higher, their consumption power is getting stronger and stronger, and consumer demand is also showing a diversified structure.

Increase in income and increase in consumption

Demand for luxury goods has also increased

  Looking back over the past 10 years, the overall growth of the Chinese consumer market has been changing rapidly.

Ten years ago, 92% of urban households had an annual disposable income of RMB 140,000 or less.

Today, half of Chinese households are among the wealthier families, with disposable income reaching RMB 140,000 to RMB 300,000.

  Income growth has allowed people to pursue a higher quality of life after meeting their basic life needs.

  Consumption power has increased. People are paying more and more attention to brands, advocating health, pursuing fashion, and highlighting individuality when choosing products. The requirements for product quality have greatly increased, and they are more willing to pay premiums for high-end consumer products and better service experience.

  Of course, if you want to buy, you have to buy some.

  Due to the different tax rates for luxury goods at home and abroad, many people will go abroad to buy luxury goods. The purchasing agent industry was born in this environment.

  In recent years, the state has implemented a number of measures to reduce tariffs, lower value-added tax and postal tax rates on consumer goods, and also lower the threshold for domestic high-end luxury brands.

  In April 2019, the State Council announced that it would lower the postal tax rate for some consumer goods, including some valuable jewelry and jewellery, high-end watches, high-end cosmetics, etc. The tax rate for these luxury items was reduced from the previous 60% to 50%.

  At the same time, Hainan’s “tourism + tax exemption” policy has been further upgraded this year, and luxury consumption has returned, which has fully released the consumption potential of mid-to-high-end income groups and has also played a positive role in boosting high-end consumption.

  In addition, in recent years, Internet applications have been deeply rooted in the hearts of the people, the digital transformation of luxury marketing channels has greatly improved the reach of high-end consumption.

  When the luxury consumption path presents a highly digital and fragmented state, young consumer groups can obtain information through social media and online platforms, and shopping is no longer limited to physical stores, looking for people to purchase agents, online shopping malls, brand official accounts, and small shops. Purchase methods such as programs and social media are emerging one after another.

  Especially this year, due to the impact of the epidemic, consumers' online purchases have increased significantly. Domestic offline consumption has almost replaced foreign purchases and purchases, and the cost of acquiring various luxury goods by Chinese people has been greatly reduced.

  The Chinese market is described by luxury goods companies as a "complex and challenging market." More and more luxury brands continue to open up domestic sales.

  However, with the complete industrial system, complete facilities, and advancement in manufacturing technology, my country has also continuously launched some private brands and some exquisite domestic products, whether in terms of production or artistic sense, even some international brands.

  Moreover, to a certain extent, luxury goods were once tied with pronouns such as "face engineering and advanced consumption".

At present, to eliminate waste, moderate consumption has increasingly become the main theme of society, and rational consumption is also more worthy of pursuit. Only practical and cost-effective objects should be our first choice for life shopping.

  Although luxury goods are good, everyone should do what they can, and consume rationally and rationally.

  Data News Editor: Chen Hualuo