China’s GDP growth in 2020 compared to other countries :
2020 GDP in Europe: -7.2%
2020 GDP in Germany: -5.4%
2020 GDP in France: -8.3%
2020 GDP in Italy: -8.9%
2020 GDP in USA: -3.5%
2020 GDP in China : +2.3%
Source : Bain & Co
China : Luxury Sales in 2020
China becomes the place to be for the Luxury market: by 2025, 50% of luxury products will be purchased in China.
Whilst the luxury market worldwide was hit hard by the crisis in 2020, China is the only country that has recorded a growth of sales in this market: Luxury sales increased by 48% in China in 2020.
Source : Bain & Co
Luxury sales evolution in 2020:
Luxury sales evolution in Europe: -36%
Luxury sales evolution in Japan: -25%
Luxury sales evolution in USA: -26%
Luxury sales evolution in the world: -29%
Luxury sales evolution in China: + 48%
Omnichannel : the rise of luxury online sales
Luxury has been hit hard by the Covid-19 crisis. From a global market worth of 275 billion euros in 2020, it has decreased to 213 billion euros in 2020.
To compensate for sanitary restrictions, retailers have strongly accelerated their digital transformation, quickly developing omnichannel services such as Click and Collect, e-reservation, live streaming, etc.
As a result, the percentage of online sales in this sector has almost doubled in 2020: from 12% in 2019, the online sales share grew to 23% in 2020.
Hainan island in China: the new duty-free destination for luxury shoppers
Hainan is a Chinese island located 4 hours away from Beijing with paradisiacal landscapes. Often called the “Chinese Hawaii”, this island attracts more and more tourists who come for vacations and, more recently, to make their luxury purchases.
Hainan is 290 km long and 180 km wide. It hosts the world’s largest duty-free shopping center with 120,000m² of retail space : the Sanya Begonia Bay International Shopping Centre.
Following the adoption of a new duty-free policy launched in July 2020, the duty free sales in Hainan have raised to US$ 3.82 billion. Since then, the duty-free sales reach b 18.3 million a day.
More than 1000 retail and luxury brands trust Cegid Retail to drive their activities in 75 000+ stores and 70 countries.
Cegid Retail is a global unified commerce and POS platform for luxury, premium and specialty retailers.
Cegid Retail customers include: Longchamp, Paul Smith, Delsey, Boucheron, Furla, Orlebar Brown.