Sellers of Cum started to talk in Chinese in the calculation of the sales growth

Sellers of Cum started to talk in Chinese in the calculation of the sales growth

Translated into Chinese

TSUM Moscow and St. Petersburg, the DLT Department store (part of Mercury group) develop a tourist shopping program for Chinese tourists in Russia, told reporters Thursday the Director General of the Central Department store Alexander Pavlov. To increase the influx of Chinese buyers, the company is negotiating with Chinese travel agencies and is already working with Russian tour operators — the company “Intourist”, a professional Association in the sphere of Russian-Chinese tourism “World without borders” and some other to attract Chinese buyers. Also the Mercury management asked for support of the program to Russian officials, but what is not said Pavlov. But noted that Parisian Department stores, in particular, Galeries Lafayette has become the center of attraction of buyers from China not only because Chinese highest luxury tax, but also because “the agreements between the two countries in the sphere of tourism”.

Photo: Oleg Yakovlev/

In Europe, Chinese tourists have long been the main consumers of luxury. According to data released in December 2015 research and consulting company Bain & Company, Chinese buyers accounted for 31% of global sales of luxury goods to Americans — 24% of Europeans and 18%. While Chinese buyers of luxury goods when choosing destinations for travel shopping monitor exchange rates, the study said. Since the summer of 2014 the Russian ruble has depreciated against the Chinese yuan by half.

Now, according to Pavlov, the proportion of buyers from China of the total number of clients of TSUM is 7%, the DLT is 17%. Pavlov believes that the share of Chinese buyers in the Central Department store in the next two to three years may reach 30%.

The number of Chinese tourists visiting Russia is growing rapidly: according to Rostourism, in the first nine months of 2015 increased by 63% compared with the same period last year to 583,6 thousand people. Tourists are attracted to Russia the devaluation of the ruble in previous years the growth of tourist traffic was not as rapid at 10% in 2014 and 8.4% in 2013.

Turning to Chinese buyers require TSUM correction personnel policy. Now in the Department store already has 25 employees who speak Chinese, DLT among the staff are ethnic Chinese. In the ads of the employment of linear state boutiques published on the website in the requirements for applicants specified knowledge of the Chinese language on a conversational level. Soon the store appears navigation in Chinese, and the advertising posters in the Windows have already been translated into Chinese.

The Chinese and luxury goods

Up to 30% looking to increase the share of Chinese buyers guide Cum. Now it is 7%

At 63% (up to 583 thousand) increased the number of tourists from China to Russia in January—September 2015 to the same period of 2014

25 employees who speak Chinese, are working in the Central Department store

31% of European sales of luxury goods accounted for Chinese

15% is a tax on luxury in China

Up to $18 billion (1%) declined in 2014, the market volume of luxury goods in China. For 2015 was expected to drop another 4%

$9-12 billion — the annual “daigou” — people who live outside of China, at the request of relatives and friends to buy luxury goods and send them home

$500 bn spent by the Chinese during visits abroad in 2014

Source: Bain & Company, China Confidential, The Federal Agency For Tourism

According to the Ministry of Commerce of China, the average price of luxury goods in China is 51% higher than in the U.S., and 72% higher than in France. This difference in prices results from the so-called luxury tax, which actually consists of three taxes — the payments depend on the category of goods. Import duty ranges within 10-25% of the main price of most goods luxury category and increases to 35% on cosmetics and alcohol. Also included VAT, usually 17% and a consumption tax that can reach up to 30%.

Calculation of the traffic

A new flow of consumers must be attracted and lower prices on luxury goods, which on Thursday announced Mercury. On February 4, the group has reduced the prices of all categories of goods at 10-25%. The cost will be reduced at the expense of decreasing the margin of groups, and manufacturers, said Pavlov. In 2015 the group’s revenue increased by 2-3% in Euro and 30% in rubles, this year Mercury expects to increase by 10-12% due to the increase in traffic.

In 2014, the retailer launched the campaign “European prices in the store” and over time has reduced the cost of 90% of types of shoes and 95% of bags. “We work with clients who are used to travel a lot and make purchases in Europe, but now spend more time in the country”, — said the representative of the company. According to a study by Global Blue, in the first half of 2015 Russians spent abroad 41% less than in January—June 2014. In Russia, Bain & Company projected a decline in the market luxury goods in 2015 by 25% to €3.2 billion

The representative of the online boutique Aizel (specializes in premium and luxury goods) Artur Efremov said that the company prices are not significantly changed. “We negotiate with brands, but we were prepared in advance: a year ago the company began to move away from image seller only “hard Suite”, greatly expanding the range of things from lower price range and use all possible marketing tools. Plus originally do not do high mark-UPS, so the cost is comparable with the prices in European stores,” explains Wilkens.

Mercury operates more than 100 stores of luxury goods, Department stores, TSUM in Moscow and DLT in St. Petersburg. In the asset portfolio of the brand Giorgio Armani, Dolce & Gabbana, Valentino, Celine, Brioni, Lanvin, Rolex, Patek Philippe, Chopard and others. The band exists since 1993, the beneficiaries are considered to be Leonid Fridlyand and Leonid Strunin.