The Slowdown In Luxury Consumption Pressure On Domestic Shopping Centers

< p > > a href= "//www.sjfzxm.com/news/index_c.asp" > luxury goods < /a > brand growth in China is slowing down, and more and more people are spending abroad. This has no impact on domestic shopping centers.

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In 2013, the goal of the high-end brand of < p > 2/3 failed to be completed.

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On the contrary, fast fashion brands such as H&M and Zara perform better than P.

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This trend is partly due to the Chinese government's efforts to crack down on luxury gifts. At the same time, many Chinese people like to buy luxury goods overseas because taxes are less, and in the end are related to the phenomenon of the increasing middle class's pursuit of reasonable price brands. P

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< p > for Samsonite (Samsonite) and other brands, this change is welcome.

The bag manufacturer opened 200 stores in China last year, and plans to reach 500 new stores this year.

But for those shopping center developers who believe that China will have more luxury consumption, a miscalculation may cost them up to 25 billion dollars.

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The James Hawkey of the P Cushman Wakefield commercial real estate group estimates that it is now developing 700 shopping malls and shopping centers in the thirty largest cities in China, of which 1/4 is likely to go bankrupt, which will bring 150 billion yuan loss to developers.

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< p > James Hawkey indicates that the development of mid-range brand stores is fast but not enough to fill all shopping centers.

For the luxury brands that have made great efforts to enter the Chinese market, stores have become windows that need high maintenance. Customers come here to look at the right products and then go abroad to buy them overseas.

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< p > counterfeit commodities are rampant and domestic taxes are as high as 40%. These factors have always allowed the richest people in China to spend overseas.

But now they are no longer the only ones. Because of the relaxed visa conditions, Chinese people are more and more fond of going abroad.

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< p > therefore, in 2013, a total of 100 million Chinese went abroad, an increase of 20% over 2012, and the Clsa Limited expects to reach 200 million by 2020.

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Susanna Leung, an analyst at Clsa Limited P, said, "considering the slowdown in luxury sales and the increasing number of Chinese tourists going abroad, domestic stores are more like a window display.

This will not open three to four stores in all cities, or only one or two rooms. "

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< p > now the newly planned < a href= "//www.sjfzxm.com/news/index_s.asp" > shopping center < /a > is concentrated in the smallest city, where the average income is low, customers are pursuing a popular brand.

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Less than P, luxury brands prefer Beijing or Shanghai. This is due to popularity.

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< p > the growth of LVMH, the world's largest luxury group, has slowed to 4%-5% in China, which is about half as low as in 2013.

Prada also did not want to develop the Chinese market rapidly, while GUCCI of Kai Yun group limited to refurbish existing stores and renegotiated the lease when it expired.

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< p > this last point can cause damage to the profits of commercial real estate developers.

Knight Frank and Woods Bagot indicate that the average rent of small city shopping centers dropped by 2% in 2013, but the average occupancy rate increased to 10.9%.

But in big cities, the opposite is true.

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< p > Steven McCord (Jones Lang LaSalle) said, "the new shopping center located in the non-traditional zone, the owner is totally unable to control the price.

To fill shopping centres, they must be flexible in terms of rent.

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So p, Coach and Michael Kors are popular but are popular among real estate developers.

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< p > real estate developers must adjust to this deep trend in the next few years.

Paul Hart (Knight Frank) said, "I think there are some people in the real estate industry who do not have a correct understanding of the dynamics of the a href= //www.sjfzxm.com/news/index_f.asp industry.

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