According to the Money Week magazine this week, a survey has shown that 2% of the 1.3 billion Chinese people, which means around 27 million people, are consuming one third of the world’s luxury goods.
In such a situation, China has become the backbone of the whole luxury industry all over the world.
The largest part of this market consists in foreign goods, China luxury goods are only estimated at 40% of this market in China, and the figures involved are huge, with one of the most important actors of this sector, LVMH has a turnover of around 100 billion dollars.
Every passing day, this purchasing power of Chinese people increases evry day, and the companies reckon that the Chinese tourists are the major driver behind sales growth.
Chinese cosumers are changing their luxury cosumption habits, becoming more curious about the quality and the culture of the products.
This share has dramatically increased during the 2009 recession, when Chinese muxury consumption rose by more than 6% when the rest of the world was more cautious.
Chinese people feel at ease dispaying luxury goods, having wealth is not something hidden anymore in China. The consequence is that luxury goods are seen as attractive down the economic ladder, now this is a market which is not limited to the very rich any more.
The growth of Chinese middle class in the incoming years is perceived as a great potential, especially the upper class which represets 12% of the market, a share which is ever growing.
Another large trend is the importance of luxury services, the market is not limited to the goods, it can be real estate as well.
The Chinese consumer is becoming more savvy about luxury goods, less people consider that the most expansive object is necessarily the bet one. They are more aware of design and quality issues.
The counterfeit goods are less and less popular, consumers are convinced that peple can spot fake objects and they do not want to buy them anymore.
New cities are being concerned with the luxury market, after Tier I and Tier II, the Tier III cities have seen openings of luxury retail.
Many things will change in the incomin years, the Chinese consulers are being more attracted with Chinese goods, and want moe and more details about the brand and culture history.
Sources:
Want China Times
Marketing Chine
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