Will China'S Luxury Consumption Crack Down On Individual Purchasing?

Jean-Jacques Guiony, chief financial officer of LVMH, the world's largest luxury group, recently said in a conference call after the third quarter earnings report that China's increasing crackdown on purchasing agents is good news for the entire luxury industry. LVMH has been doing the same thing in other markets other than China in recent years.

The new law makes clear use.

Natural persons who engage in goods and services in other ways are also natural persons.

,

。

It is generally believed that the newly promulgated "

"Released a clear signal: improve access threshold, eliminate personal purchasing behavior.

The brutal growth of individual purchasing not only infringes on the rights and interests of consumers, but also causes great losses to the state.

JP Morgan analyst said that any strengthening of law enforcement purposes may be in the fight against "purchasing".

Chinese tourists will be able to sell luxury goods purchased from abroad and earn profits after returning home, for example, goods purchased from South Korea may account for 1.5% of global luxury sales.

Korean purchasing is one of the most common purchasing agents in China.

Beauty products, and then sold to Chinese consumers.

In recent weeks, Chinese customs have been able to see signs of strengthening border checks in social media.

Jean-Jacques Guiony Guiony, chief financial officer of LVMH group, confirmed in a telephone conference with analysts that the price of the group declined as China Customs strengthened border inspection for returned passengers in the near future.

"Customs are cracking down on travelers who bring luxury goods back to China.

When they return home, they will sell some commodities for profit, which will affect our sales in Beijing or Shanghai.

Customs may be more stringent after that. "

Speaking of

Its initial stage was about 2005.

Students studying abroad or working abroad can help relatives and friends bring some rare objects when they return home, for example.

Or cosmetics.

Later, more and more overseas tour guides and flight attendants moved to join the industry and started a career shopping between the two places.

They buy goods at low prices abroad and sell them at a higher price, thereby earning the difference.

A report by Bain, a consultancy, points out that in 2014 years alone, the scale of luxury shopping industry is between 55 billion and 75 billion yuan, almost half of the sales of luxury brand stores in the mainland.

From the consumer's point of view, the restriction of personal purchase is undoubtedly a blow to the hearts of consumers.

Some people who love big names enjoy preferential purchasing prices for a long time. Nowadays, it is like spending more money on the same products. Obviously, this is a matter of letting consumers stop their hearts.

Miss Zhang, a white collar in Beijing, told reporters that restricting purchasing is also a good thing.

From a reassuring point of view, buying and selling will always worry about the true and false problems, but in the face of the price difference of several thousand dollars in China, I can't help buying it.

Guiony said in a conference call that "this will not stop real Chinese tourists from buying luxury goods abroad, while Chinese consumers are also benefiting from the narrowing of the difference between home and abroad. Therefore, we can see in the third quarter report that many consumers who have purchased luxury goods in Hongkong and Macao are now buying in mainland China."

According to its disclosure, the sales volume of the group in mainland China increased by more than 20% in the third quarter.

The main driving force for growth.

"Purchasing is never a group's welcome or advocacy. We strictly restrict the number of goods that customers can buy in shops, especially in Paris stores, so that we do not have parallel markets in Europe," Guiony said. "Obviously we can do very little, but now Chinese officials are working in the same direction as the group." this is good news for us.

For the market worried Chinese government's impact on the sale of purchasing agents, Guiony said it was not the first time it had appeared and had no impact on the company.

Terry Hong, a retail analyst at Guotai Junan (Hongkong), said luxury goods stocks are usually the most affected by the slowdown in China's consumption. When the market is weak, investors may overreact to negative news.

Terry Hong also agreed with Guiony's view that the tight Chinese government's attitude towards purchasing agents had no effect on the luxury market.

But from the perspective of luxury brand development, with the development of luxury digitization, mobile phone super application (APP) occupies more than half of China's luxury consumers.

Fashion KOL (key opinion leader) is also an important contact to touch and influence luxury consumers.

KOL recommends fashion trends, which become the target of the millennial generation.

For big heat products, the domestic price is high, and the supply of goods is not enough, it is difficult to meet the needs of Chinese consumers.

The emergence of purchasing agents has accelerated the development of luxury goods sales and led to the emergence of more consumer groups.

It has provided more creative and thought products to domestic consumers and increased sales.

Consumers Miss Ma told reporters that the current hot luxury products are hard to get at home.

The shop assistant reserved for the VIP guests.

At ordinary times, there are not many opportunities to go abroad, so the purchase is disappearing, which makes it very embarrassing for them to buy channels in the future.

The emergence of purchasing agents has also made efforts for brand promotion. Luxury goods are no longer only located in high-end groups, but also become potential customers of luxury goods.

And the domestic purchase of the attack in succession, to curb the development of online shopping, there is no doubt that

Formed a certain bad effect.

As an operator of the electronic business platform, luxury goods need to be adjusted accordingly to reduce the phenomenon of dumping, frequent smuggling, and so on. In addition to the network platform, the marketing channels of physical stores should be increased to adapt to the changes in the domestic online shopping policy.