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    Chinese Luxury Goods "Unusual" Prosperity &Nbsp; Consumption Is "Low Age".

    2011/6/2 15:56:00 74

    Luxury Consumer Market

    According to the latest official report of the World Luxury Association 2010 - 2011, as of the end of 2010, the total consumption of luxury goods in the mainland of China has risen from 9 billion 400 million US dollars in 2009 to US $10 billion 700 million in 2010.

    China has become the fastest growing country of luxury consumption in the world, and is expected to surpass the United States in 2012 to occupy the leading place in the world's luxury consumption.

    For global luxury goods manufacturers, China represents not only the two digit sales growth per year, but also the future.


     

     

    luxury goods market

    "Unusual" prosperity


    Since this year, international securities companies and major consultative research institutions have released luxury reports, and sing more for the next ten years in China

    Consumer

    Luxury demand.

    But overall, China is still in the initial stage of luxury consumption, showing many characteristics different from the traditional luxury consumption market in Europe and the United States.


    On the structure of consumers, Chinese luxury consumers show a "younger age" feature: 73% of Chinese luxury consumers are less than 45 years old, and 45% of luxury consumers are between 18 and 34 years old.

    This ratio is 37% and 28% respectively in Japan and the United Kingdom.

    On the way of consumption, although the major brands are striving to narrow the price gap between the Chinese market and other markets, the overseas consumption of luxury goods still accounts for 56% of the total share price. The low price and the wider choice of products are the two most important reasons for overseas purchases.

    On the consumer mindset, a large proportion of consumers in China are still showing off their identities.

    Professor Sun Shijin, director of the psychological research center of Fudan University, said that China's economy has just taken off and the society has entered the era of mass consumption. With the development of commodity economy, the purchasing power of the Chinese people has increased, and people will inevitably appear impetuous in material pursuit.

    This conspicuous consumption phenomenon in the period of social pformation is the inevitable process of social development, which requires tolerance and guidance from society.


    Explosive growth in two or three tier cities


    China's rapid urbanization and the growth of wealth outside big cities have bred a large number of luxury consumers in two or three line cities.

    At present, only 30% of China's rich class lives and lives in the first tier cities such as Beijing and Shanghai, and more than 70% live outside the first tier cities.

    As the main market of luxury consumption, the two or three line cities will have broad prospects for development.

    "In 2010, about 67% of the mainland's luxury market growth came from new consumers, and two or three tier cities were becoming the new battleground for big brands to fight. The consumer's brand awareness and consumption intention were close to consumers in the first tier cities such as Shanghai and Beijing.

    The amount of consumption is almost equal to that of consumers in the same tier of cities.

    Bruno LAN, partner of Bain company, said.


    Because of this, more than 100 international top brands are accelerating the layout of the luxury market in China. The total number of franchised stores has reached 1000. Apart from big cities such as Beijing, Shanghai and Guangzhou, the branches of central and western cities have mushroomed.

    The French luxury brand LV has opened 27 stores in 22 cities in China, including Changsha, Xi'an, Qingdao, Xiamen, Wuxi, Wenzhou and other two or three cities, while Ningbo and Hangzhou have gathered almost all of the international luxury goods.

    Roger Farah, President of the US top luxury brand Ralph Lauren, recently said at a luxury forum that consumer demand in many two or three line cities is being released, and new markets must be opened up in addition to increasing investment in the first tier cities.


    From daily necessities to lifestyle


    Today, luxury consumers in China are becoming increasingly mature. Their expectations for brands are no longer comparable to those 5 years ago and 10 years ago.

    Taking consumption content as an example, although most of the Chinese luxury consumption is still concentrated on clothing, perfume, jewelry, watches and so on, Travel Inn Personal, top furniture, art investment and luxury yacht are gradually attracting the attention of Chinese buyers.

    This change shows that this consumer group has begun to shift from consumption luxury to consumption and luxury lifestyle.


    At the same time, the growth of the middle class also makes China's luxury consumption gradually return from the symbol of power, wealth and relationship to a generation's pursuit of a better, more dignified and quality happy life.

    It is this pursuit that enables Chinese people to integrate with the world more closely, not only in their quality of life but also in their fashion and taste, and even lead the world in certain aspects.

    Peking University's luxury management project director insists that the growing middle class is an important force in China's luxury consumption. "They come from economically developed areas and are social backbone with high spending power, economic strength and influence.

    They pay attention to brand consumption, are willing to accept new things, pay attention to the taste and quality of life, with stronger purpose, higher loyalty, greater consumption power, rationality and maturity.

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