China'S Luxury Market Is Not Optimistic In 2014.

"P > a href=" //www.sjfzxm.com/news/index_c.asp "> luxury" "luxury" /a "market is not optimistic in 2014. The report released jointly by property consultant Knight Frank Lai Fang and construction firm Woods Bagot in January 2014 shows that 65% luxury brands failed to reach their Chinese expansion goals in 2013 because of failure to find appropriate opening address, China's anti-corruption and consumption slowdown.

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< p > the target of expanding luxury goods in China is not up to standard. Contrary to the fact that fast fashion brands are outside Uniqlo, all stores grow beyond their targets.

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< p > because the target of luxury stores has not been completed, and the retail real estate in China is still expanding at a high speed, this leads to vacancy in shopping malls in many cities.

CLSA Susanna Leung, a senior analyst at CLSA, says many brands only need one or two stores in some cities, and the current situation is that three or four are needed to fill commercial real estate in China.

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< p > luxury goods group Kering opened its Gucci Gucci brand in 2013. There was not even a new store in China in 2013. Although Louis Vuitton also said there would be no new stores in 2013, there were actually 4 new ones.

Burberry bolberry continued to expand its Chinese expansion strategy, but failed to reach the target in 2013.

Carol Fairweather, chief financial officer of Burberry, said in January that the reason for opening a shop in China is that when Chinese tourists go to Europe and the United States, they can generate more purchases.

CLSA Susanna Leung, a senior analyst at CLSA, also said that with the booming consumption of Chinese tourists, "a href=" //www.sjfzxm.com/news/index_f.asp "brand" /a "has no need for so many stores in many Chinese cities.

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< p > according to the report of the Knight Frank Lai Fang and the Woods Bagot of the architectural firm, the total number of shopping malls in the second tier cities such as Tianjin, Shenyang, Chengdu, Chongqing, Wuhan, Dalian and Harbin in 2013 was 68, far higher than the 52 in the same period in 2012, which also resulted in an increase in the vacancy rate of the mall.

According to the report, the rent of high-end shopping malls in second tier cities in China decreased by 2% in 2013, while the vacancy rate rose to 10.9%, up from 10.2% in 2011 and 2012.

In the first tier cities, on the contrary, luxury goods have abandoned secondary urban expansion and hope to consolidate the status of the first tier cities. This has reduced the vacancy rate of high-end shopping malls in the first tier cities in 2013 from 8.4% in 2012 to 8.1%, and the rent of high-end shopping malls in the first tier cities has increased by 8% over the past two years.

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< p > the emergence of such a situation will be more difficult for commercial real estate developers in second tier cities. In order to fill the vacancy rate, we have to lower the rent. On the one hand, we need to reduce the pursuit of luxury goods from the past to the compromise of some middle end brands.

According to Samsonite (1910.HK) Samsonite Asia Pacific and Middle East President Ramesh Tainwala, interviewed by Reuters, Samsonite has encountered unprecedented popularity in China in the past year, such as a href= "//www.sjfzxm.com/news/index_s.asp" > commercial < /a > real estate, while Samsonite has added 200 stores in China in the past year, and plans to expand the data to 500 in 2014.

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