Chinese customs severely crack down on buying and buying, causing major luxury companies in Europe a

Marco Bizzarri, CEO of Gucci, an Italian luxury brand owned by French luxury giant Kering (Kaiyun Group), made an in-house video about four minutes after Paris Fashion Week. He spoke to employees about the possibility that Gucci might face a slowdown in growth.
In the video, Marco Bizzarri tells employees: Don't be intimidated by any signs of slowing growth or daily change. It's normal to experience a slowdown after rapid growth. Under high base comparison, maintaining growth will become more and more difficult.
However, Marco Bizzarri still expressed confidence in brand development, saying that Gucci was stronger than ever and maintained its advantage over all its competitors. Brand growth is still & ldquo; very good & ldquo; and tell employees & ldquo; enjoy the journey & rdquo; and mention that you are happier than two years ago, & ldquo; very, very confident & rdquo;.
Since 2016, Gucci, under the leadership of Alessandro Michele, the new creative director, has made bold innovations and reforms, outperformed most of its peers. By the second quarter of 2018, sales grew by more than 35% year-on-year for six consecutive quarters, becoming the main growth engine of Kaiyun Group. But in the second quarter of 2018, Gucci sales grew by 40% to 190 million year-on-year, a slower-than-expected increase, triggering speculation that Gucci began to decline (up 48.7% in the first quarter, higher than expected). Like many other luxury brands, sales of the Gucci brand are partly driven by strong demand from Chinese consumers. In the first half of fiscal year 2018, the management of the group pointed out that there was no sign of slowing down demand in the Chinese market.
Coincidentally, on Thursday, the world's major luxury goods groups suffered heavy losses and share prices fell sharply as China Customs stepped up its crackdown on consignment purchases.
Europe
British luxury group Mulberry shares fell 7.1% to close at 3.29 pounds per share.
British luxury group   Burberry shares fell 5.7%, to 19.13 pounds per share.
Shares of Gucci parent company and French luxury goods group nbsp; Kering (Kaiyun) fell 5.4% to 437.8 euros per share.
French luxury group LVMH shares fell 4.9%, to 287.95 euros per share.
Hermè (s) shares fell 3.1% to 540 euros per share.
Over the same period, the share price of the US luxury market also declined after government bonds were sold.
Coach's parent company, Tapestry Inc., fell 3.4 percent to close at $48.43 a share.
The parent company of Calvin Klein and Tommy Hilfiger, American fashion retail group PVH Corp., fell 3.3 percent to close at $134.15 a share.
American luxury jewelry company Tiffany & Co. shares fell 2.9%, to close at $120.75 per share.
Michael Kors Holdings (to be renamed Capri Holdings) fell 2.2% to $66.6 a share.
Oct. 1 to Oct. 7 is the golden week holiday of the National Day of China. It is also the peak time for Chinese people to go out for travel and shopping. It is also one of the busiest seasons for those who plan to bring overseas goods back to China for resale in order to earn the difference.
Because the prices of high-end goods abroad are generally lower than those at home, many Chinese consumers will buy large quantities of high-end goods when they go to overseas destinations such as Tokyo, Seoul and Paris.
According to Bain & CoThe 2017 China Luxury Market Research Report released:
In 2017, the growth rate of luxury goods market in mainland China reached 20%, which exceeded the overall growth rate of overseas luxury goods market.
Chinese consumers account for 32% of global luxury market sales, accounting for the highest proportion of all countries and regions.
But Chinese consumers still buy luxury goods in the world, with only a quarter of their purchases taking place in the mainland of China, mdash and mdash, accounting for only 7-8% of the global market.
Stephanie Wissink, an analyst at Jefferies, also pointed out in a recent study that, in dollar terms, 70% of the increase in global retail sales of tourism is directly related to Chinese tourists.
However, in recent years, China Customs has intensified its crackdown on consignment purchases, triggering further concerns among investors about the sustainability of China's luxury consumption boom. The intensification of Sino US trade war has made consumers worry about the slowdown of China's luxury market.
As early as September 28, before the start of the Golden Week, the news of Shanghai Pudong Airport's strict inspection of overseas shopping has caused a sensation. It is reported that more than 100 passengers on a flight at Shanghai Pudong Airport Terminal T2 were asked to open their suitcases for review.
In this regard, Chinese netizens generally speculate that Shanghai Pudong Airport has recently increased the inspection of overseas shopping entry, but Shanghai Customs responded that there has been no recent change in official policy.
According to Chinese law, Chinese passengers carrying goods worth less than 5,000 yuan (US$737) can be allowed to enter the country duty-free. If they exceed the duty-free limit, they have to declare and pay taxes according to the customs regulations on their own initiative.
In addition, the Chinese government has been trying to encourage domestic consumption, hoping to bring luxury consumption back to the domestic market. In July this year, the Chinese government also lowered import tariffs on luxury goods.
Luca Solca, an analyst at Exane BNP Paribas (BNP Paribas), said in an e-mail: & ldquo; strengthening Customs enforcement may be the second stage of China's efforts to bring consumer spending back to China. ”
Erwan Rambourg, global co-director of consumer retail research at HSBC, said: & ldquo; it is not new for China Customs to strengthen oversea shopping censorship. Although the strengthening of censorship may reduce the activity of purchasing on behalf of customers, it is not necessarily a bad result from the point of view of maintaining close ties between brands and consumers. ”