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    Face Culture Has Created The First Place In China'S Luxury Consumption.

    2011/11/21 9:01:00 10

    Luxury Market Pierre Cardin

    From 1979

    Pierre Cardin

    Entering China, the major brands have been competing to seize the Chinese market. In just 30 years, China's

    Luxury goods

    The speed of consumption is advancing by leaps and bounds.

    A report released by HSBC last month said China will surpass Japan this year to become the world's largest demand for luxury goods.


    As of the end of March 2011, luxury goods in China

    market

    Total consumption has reached $10 billion 700 million (excluding private aircraft, yachts and luxury cars), accounting for 1/4 of the world's total.

    Among them, jewelry market 2 billion 760 million, luggage 2 billion 510 million, fashion 1 billion 830 million, clocks 1 billion 940 million, cosmetics 970 million, other fields 7.8 billion, accounting for 27.5% of the global total.


    Who is the main force of luxury consumption?


    According to Bain's global luxury Research Report, luxury consumers in China can be divided into three categories: rich group, high-income group, and senior white-collar group.


    Among them, the affluent group is a typical luxury consumer. Over the age of 40, these people have considerable wealth accumulation. Their consumption of luxury goods is mainly for flaunting and symbolizing their identities. Luxury houses, yachts, private aircraft and famous cars are their main buyers.


    The two is high income groups, including businessmen, entrepreneurs and celebrities.

    They are between 25 and 40 years old, and luxury goods are mainly show off, conformity and social interaction.

    They are the new rich class. They need to use luxury goods as "identity authentication" to flaunt their success and wealth.


    Finally, the high level white-collar group, the income of the consumer layer is the lowest, the majority of female consumers.

    They buy luxury goods mainly by showing off, hoping to show their elegant taste through luxury goods.

    They mainly buy watches, clothing, perfume, leather bags and other relatively luxuries.


    Show off culture creates "China scale"?


    The rapid growth of luxury consumption in recent years is undoubtedly the most direct reason for the rapid development of China's economy.

    According to the statistics of the 2010 Hurun wealth report, 1363 of China's personal wealth exceeds 1 billion yuan (US $157 million), and the number is 36% higher than that of the previous year.

    About 189 of the total personal assets reached or exceeded $one billion.

    The scale of China's affluent society is expanding rapidly.

    A survey of bank customers shows that the number of Chinese millionaires with assets above ten million yuan (RMB) has increased from 361 thousand in 2006 to more than 1 million. It is estimated that by 2015, this figure will reach 2 million 190 thousand.


    Another reason that can not be evaded is China's wealth culture.

    "Face" is a combination of Chinese traditional culture, traditional values and social culture.

    To some extent, consumption has realized the communication function between people, so we must not lose face in consumption.

    Many people regard luxury consumption as a symbol of status, strength and status.

    As a result of such vanity, the luxury became a spokesman for its own identity.

    In this report, HSBC also pointed out that showing off wealth has become a trend in China, which will continue to be reflected in the increase of personal luxury consumption.


    HSBC's report also referred to historical reasons.

    In the past, in a socialist country like China and the Soviet Union, the government did not allow individuals to have wealth.

    Traditionally, private property is very suspicious.

    After the opening of the economy, a series of social strata system has emerged. Your position in this system depends on how much money you earn, and having luxuries helps to show you how rich you are.

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