From Pula to Louis Vuitton, more and more global luxury brands are beginning to develop young people in China's second and third tier cities. This is due to the increasing demand for luxury goods by young Chinese, who account for 30% of luxury sales in China.
“There are more and more middle class and upper elites in China,” said Jean-Paul Agon, chairman and CEO of L'Oreal, a cosmetics group. “The Millennials from these classes. It doesn't hesitate to Soufeel Coupon Codes buy luxury brands.” Industry experts also say that these young people are born to the only children of wealthy families, who are increasingly using money for luxury goods such as jewelry, fashion, cosmetics and handbags. Purchase on.
“After 90s, it’s definitely a young generation that spends money on luxury goods. In the first half of this year, China’s luxury goods industry’s revenue growth was about 15%-20%.” McKinsey Senior Partner Daniel Zipser Said. According to McKinsey's report, Chinese consumers spend more than 500 billion yuan ($73 billion) on luxury goods, which is equivalent to contributing nearly one-third of the global market.
The reduction in prices is another incentive for increased consumption of luxury goods. Previously, the price of buying luxury goods in China was much higher than in Europe and the United States. Today, the Chinese government has reduced import tariffs by 7%-17%, which has prompted foreign companies to reduce the price of luxury goods in China. The French luxury jacket manufacturer Mengcun (Moncler) has cut the average price by 3.5% since July, while Gucci, Louis Vuitton and Hermes have also lowered prices.
Due to rapid industrialization and urbanization, many “millennials” have chosen to stay in second- and third-tier cities in China, avoiding first-tier cities with higher consumption levels. In order to seize the fast-growing youth market, global luxury brands are increasingly opening stores in second- and third-tier cities in China. For example, Prada opened seven stores in Xi'an; Louis Vuitton opened a store in Wuhan; jewelry The brand Shangmei Paris opened a store in Wuxi; Hermès will open a store in Xi'an in September.
In addition, major luxury brands are Newchic Coupon Code paying more and more attention to the sales of online products. Louis Vuitton and Gucci launched online shopping services on their official website last year, and Hermes also plans to launch online shopping this year. Louis Vuitton also cooperated with Baidu of China to launch its first perfume promotion event in China.