1) Jewelry
Based on factors such as the price range, target customers and products of jewelry, the jewelry accessories industry is divided into heavy luxury jewelry, wedding jewelry and light luxury jewelry.
High-priced luxury goods and light luxury fashion accessories are mainly foreign European and American brands, such as Tiffany, Cartier, Bulgari, as well as Swarovski, Pandora, etc. The brands have a history of more than 100 years, with profound brand cultural barriers and non-replicability, and occupy a favorable position in the domestic jewelry market in the form of cultural input. In China, wedding jewelry brands include Chow Tai Seng, Chow Tai Fook, Jin Tai Fook, Jin Dasheng, etc. On the other hand, Swarovski, Pandora and other brands have a lot of exquisite and affordable products, which are favored by light luxury.
China's luxury industry chain
Brand owners become the link with the highest profit margin
The luxury goods industry chain mainly involves the supply of raw materials, design, manufacturing and circulation.
The upstream link of the industry mainly includes raw material supply, design, preliminary processing and other services for manufacturers. In view of the scarcity of luxury raw materials, as well as the fact that brand owners use raw material scarcity to attract customers and other factors, the upstream raw material link has sufficient bargaining power, so it is particularly important for brand owners to control raw materials in the upstream stage. The middle part of the industry is the luxury manufacturing link, where brands create top brands and products in high-end shoes, jewelry, luggage, cosmetics, high-end clothing and watches in various industries. For low-tech luxury goods such as bags and garments, authorized manufacturers are mostly presented in the form of outsourcing/OEM. The downstream link of the industry is the circulation link of luxury goods. Retailer sales model can be divided into online and offline two kinds. Offline models are mainly divided into high-end shopping malls, brand stores, duty-free stores and comprehensive department stores.
Chinese luxury industry business model
Luxury marketing strategy
Internet + Luxury
At present, China's luxury industry in terms of business model, luxury purchase channels show a trend of diversification, online luxury consumption has gradually become the mainstream, the Internet as a complementary means of marketing channels. Online channels of luxury brands are becoming more diversified, and more and more brands are trying to establish integrated online and offline marketing and service systems. Store digitization and digital retail have become the main direction of retail development of luxury brands in the future.
Global luxury industry market size
China's luxury consumption ranks first in the world
The development of global economy drives the upgrading of luxury consumption demand. According to data released by VIP Research Institute, the global consumption of luxury goods has exceeded 380 billion US dollars before the epidemic. Since the outbreak of COVID-19, the global luxury goods market has suffered a major setback, with the market size of about $260 billion in 2020, down 30% from 2019. As the epidemic situation has eased in recent years, global luxury consumption will return to the $300 billion level in 2021. From the perspective of regional consumption structure, according to the data of Bain & Company, China's domestic market will account for about 20% of the total global luxury consumption in 2020, and Chinese people's luxury consumption ranks first in the world and the proportion is increasing year by year.
Market size of China's luxury goods industry
As the epidemic becomes normal, domestic luxury consumption heats up
Before the outbreak of COVID-19, about 70 percent of China's luxury consumption went to foreign markets. After the outbreak of the epidemic, due to the obstruction of overseas consumption, the return of luxury consumption has been accelerated. According to the statistics of VIP Research Institute, in 2020, the outbreak of the epidemic, the consumption data of luxury goods in China and abroad are very different: in 2020, the consumption of luxury goods in China is nearly 70 billion US dollars, an increase of more than 45%; In 2021, this figure is close to $100 billion. In 2020, the amount of Chinese overseas luxury goods consumption fell from $100 billion in 2019 to about $54 billion, down nearly 50% year-on-year. In 2021, with the normalization of domestic epidemic prevention work, the connection between domestic consumer groups and the overseas luxury market has not yet recovered, and affected by this, China's overseas luxury consumption has continued to fall to about $52 billion. The sharp decline in Chinese overseas luxury consumption has also become an important reason for the global luxury market to suffer a setback during the epidemic.
Global luxury industry competition pattern
Pay attention to cultural and historical deposits, high brand barriers
Luxury brands often have deep cultural heritage, and the building of brand image requires historical precipitation, and the head brand often has a noble background, high brand barriers, industry mergers and acquisitions are more common, and the trend of collectivism makes the pattern relatively solidified. Swiss Richemont group in addition to Cartier Cartier, there are VanCleef & Arpels VanCleef & Arpels, jewelry business accounted for 42% of group revenue; Kering Group's luxury jewelry includes Boucheron and Pomellato; The LVMH Group owns Bulgari Bvlgari and Tiffany (acquired in January 2021). The three luxury groups focus on the Asia-Pacific region, which accounts for more than 40 per cent of revenues.
China's luxury industry policies and regulations
Customs declaration process and tax rate
Imported consumer goods from the import link to the hands of end consumers, generally divided into four ways: general trade after customs clearance into the retail channel is the most common, whether it is the brand official self-management, or brand agent distribution, are imported in this way; Cross-border e-commerce import retail (narrow import cross-border e-commerce), represented by Tmall International and Kaola Overseas shopping; Duty-free retail, represented by China Free and other duty-free groups; And personal items direct mail, that is, commonly referred to as "overseas shopping."
