Di Yi Cai Jing·2025-11-05 04:28Core Insights - The luxury goods market in China and the US is experiencing a significant downturn, with China's market recording negative growth for six consecutive quarters, leading to a projected decline in global luxury sales by 2% to 5% by mid-2025 [2][3][4] Group 1: Market Trends - After a period of explosive growth, luxury consumption in China has stagnated, prompting brands to seek rent reductions and operational support from shopping malls [2][3] - The shift in consumer preferences towards experience, emotion, and cultural relevance is causing a transformation in consumer profiles, making them more integrated and less distinct [2][10] - The luxury market is transitioning from a focus on material possession to experience and emotional consumption, indicating a profound change in retail dynamics [9][10] Group 2: Brand Performance - Major luxury brands are reporting disappointing financial results, with LVMH's revenue down 4% and net profit down over 20%, while Kering's net profit plummeted by 46% [4] - Brands are increasingly closing underperforming stores to concentrate resources on key locations, with Kering's closure plan rising from 50 to 80 stores [5][4] Group 3: Retail Strategies - Shopping malls are under pressure to support brands through rent reductions and marketing subsidies, as luxury brands demand more from mall operators [6][8] - Malls are adopting diverse promotional strategies, including immersive experiences and collaborations with artists, to attract consumers and enhance brand performance [7][11] - The market has shifted to a tenant-driven landscape, where the departure of a significant brand can trigger a chain reaction affecting other tenants and overall mall attractiveness [8] Group 4: Future Outlook - The introduction of non-traditional luxury brands and experiential offerings is seen as a positive shift, helping malls attract a broader customer base and mitigate the impact of declining luxury sales [11] - However, this diversification poses challenges, as it may dilute the distinct positioning of high-end malls and lead to increased competition among similar offerings [11]