The Chinese are also located in third place behind the Americans and the Japanese in the ranking of the world’s largest buyers of this sector. But according to several studies, China could become the first global luxury market between 2015 and 2020!
At first glance, this seems limited clientele because it is not even 1% of the Chinese population. But according to the Bain & Company’ survey, households earning a monthly income between 5,000 and 15,000 RMB in the so-called first rank cities (Beijing, Shanghai, …) are able to spend 21,000 RMB per year on luxury goods. There are now 875,000 Chinese who have a fortune of more than 1 million, 70% of them reside in the “secondary” cities (cities whose name is often unknown abroad but with several million of people). These consumers fond of overpriced products with virtually unlimited budgets are generally aged 25 to 44 years. Better educated than previous generations, trained for careers in business and communication, and often unique children, young Chinese have money to spend. A significant opportunity for major brands such as Dior, Vuitton, Hermes and Versace …
In 2010, the Chinese luxury market accounted for 40 billion euros, 20 billion spent on person goods (fashion, jewelry, watches and above) and 17 billion earmarked for luxury travel. Wines, champagnes, cars, cigars or helicopters and yachts are rising in China. In 5 years, the sale of fashion products has tripled that of luxury cars fivefold, and the market for villas and luxury apartments has been multiplied by seven.
Nowadays, the only real black spot in the golden age of luxury in China is counterfeit, especially present in China, which is an obstacle to the expansion of the privileged sector.
TOP 10 OF LUXURY BRANDS OF CHINESE PREFERENCIES
N°1 : LOUIS VUITTON
N°2 : CHANEL
N°3 : GUCCI
N°4 : DIOR
N°5 : HERMES
N°6 : CARTIER
N°7 : PRADA
N°8 : OMEGA
N°9 : LONGINE
N°10 : ESTEE LAUDER
Article proposed by INS Consulting for Daxue China Market Research