China'S Luxury Goods: Focus On High-End Brand &Nbsp; Regional Change Will Now Be

On the one hand, the consumer goods industry

Since 2008, China's luxury consumption ranks first in the world in three consecutive years, reaching 6 billion 500 million US dollars in 2010.

Current China

Within the industry, it is predicted that in the next 5 years, the potential customers of China's luxury goods market will rise from 40 million to 160 million.

With the rapid growth of the consumer goods market, the major brands are rushing to speed up the expansion of stores in China, including a series of luxury brands such as Dunhill, Hugo, Bosch, Louis Weedon, Cartire, Versace and so on, and have more than 100 new outlets in mainland China, and show that the sales of new stores exceed the sales trend of the original stores.

The rapid development of the luxury market also reveals the increasing demand of Chinese consumers for the brand, quality, and the corresponding purchase experience and after-sales service, which also reminds China that the consumer goods industry should strengthen the sales service construction.

The large increase in luxury consumption is actually a microcosm of China's overall consumer goods industry's centralization of high-end brands.

In 2010, brand concentration increased in many sub sectors.

For example, the market share of medium and high-end brands (such as BELLE) has grown the most in the shoe market. For example, in the three or four tier market, the frequency conversion air conditioner with a slightly higher price has also achieved explosive growth this year. The state information center data show that in 2010, the inverter air conditioner already occupied nearly 1/4 of the air conditioner market share, and the market sales volume increased by more than 2 times compared with that of the previous year.

In addition, clothing, food, beverages, Cereals, oils, cosmetics, tobacco and other industries all showed the characteristics of concentrating high-end brands.

Regional change will be present

Since 1990, China has entered a period of stable population growth. Population growth presents a "three low" trend of low birth rate, low mortality rate and low population growth rate. The annual compound growth rate of population has decreased to 0.7%. China's working age population accounts for the majority of the total population, and their social experience, economic base and life stage affect the consumption structure.

It can be seen from the proportion of urban household income in China that the proportion of middle and high income groups in China is increasing, and the proportion of China's middle and high income groups is increasing.

The urbanization rate of our country has increased from 30.48% in 1996 to 46.5% in 2009, and the urbanization rate is steadily increasing at 1 percentage points per year.

The process of urbanization is closely related to the development of consumption.

Every one percentage point increase in urbanization will increase the urban population by about 13 million to 14 million.

In 2009, the per capita consumption expenditure of urban residents in China was 17175 yuan, and the per capita cash expenditure of rural residents was 5153 yuan.

Based on this, we can roughly calculate that the urbanization rate of three cities and below cities will increase consumption expenditure by 150 billion yuan per increase of one percentage point.

At present, the retail market of Beijing, Shanghai, Shenzhen, Guangzhou and other first tier cities is fiercely competitive. The market is basically saturated, and the competition of retailers begins to spread to the suburbs.

As far as the retail market is concerned, most retail businesses are mainly concentrated in the provincial capital cities. There are relatively few outlets in the other three or four cities of the province, and the competition is relatively relaxed.

The relatively low cost of living and lower real estate prices and the country's policy guidance for urbanization will make these three or four line cities more attractive to the rural population and other developed urban population, and the urban population is expected to expand.

In addition, the lower cost of opening stores in the three or four tier cities will also attract retailers to expand their stores in the local area.

Many multinational retail giants began to shift the focus of development in China to the three or four tier cities.

For example, the proportion of new stores in the three tier cities of WAL-MART accounts for 2 / 3.