Despite a deteriorating environment in their country, the Chinese still represent a future customer for the luxury industry. It is the belief of HSBC's analysts unveil their recommendations on key values of French industry.
Luxury market slowdownEconomic growth slowdown, property market at half mast, stock indexes were down: the rich Chinese have to worry about, and with them, the big luxury sector groups worldwide.
Over the past decade, these companies, French (LVMH, Hermes, Kering), Italian (Prada, Tod's, Ferragamo, etc.) and Swiss (Richemont, Swatch Group), took the extraordinary appetite of Chinese to prosper. And for most of them, China is now the number one market.
Macroeconomic difficulties are pervasively present in a year. But industry players are sullen longer. The anti-corruption campaign launched by the authorities in 2012 severely affected both segments of the industry from 2013: luxury watches and high-end spirits, choice of objects for the "business gifts" in practice that the Chinese authorities want to stop now.
Photos source @Agence Marketing Chine
Thus, sales of watches, for example, or cognac Remy Martin, probably fell more than 30% in 2013 and 2014 in the China
Bling Dynasty is overHowever, a financial analyst, the luxury sector specialist at HSBC and author of a book on the luxury in China, "The Bling Dynasty," this market is full of promise. The year 2015 should, he said, mark a return to healthier fundamentals, with the end of destocking, particularly in watches and spirits.
Especially the Chinese will continue to travel. Now this is abroad they realize much of their luxury goods purchases. A reality that also reflects the share of sales made by the major groups with Chinese nationality customers. source
Revenue share realized with Chinese customers
- Louis Vuitton (LVMH) 33%
- Gucci (Kering) 34%
- Hermes 29%
- Prada 38%
- Swatch 57%
- Richemont 38