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    China'S Luxury Consumer Market Share Exceeds The World'S 1/5

    2012/6/9 17:04:00 41

    Luxury GoodsLuxury Goods MarketLuxury Consumption In China

    This year the world

    luxury goods market

    The scale will catch up with GDP in Australia, and Chinese luxury consumption accounts for more than 1/5 of the global market share.

    June 7th: why does the consumption of luxury goods continue to grow?

    Luxury goods in China

    Is the market expanding rapidly?


    According to the latest reports from international research institutions, the scale of the global luxury market will reach 1 trillion and 500 billion US dollars this year, equal to the gross domestic product of Australia or Spain.

    Among them, the luxury goods consumed by Chinese consumers account for 22% of the global luxury market.



    Luxury girl turn


    Economic slowdown, luxury market prosperity


    With the rapid growth of the rich class, more and more people regard luxury consumption as a status symbol.

    Especially in the context of the global economic slowdown, the growth of the luxury market can be said to be a bright color.

    Why does the consumption of luxury goods continue to grow in the absence of economic growth in the world's major economies? Shen Jiru, a commentator in the economy and a researcher at the Institute of world economics and politics of the Chinese Academy of Social Sciences, commented on this.


    Shen Ji Ju:

    Luxury consumption

    The demand for physical raw materials is relatively small, and there are many other services belonging to the category. Service luxury consumption, such as hot springs, soaring tourism, beauty and so on, consumes relatively few physical raw materials. In the global economic downturn, these services increase the GDP method in line with the current situation. Therefore, when the economy is not good, luxury consumption will even be better, especially the demand for luxury goods in emerging economies is increasing rapidly.


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    Luxury should stimulate domestic demand?


    The growth of domestic luxury consumption is very fast. Shen Jiru believes that the growth of luxury consumption will play a certain role in stimulating domestic demand, but it should be treated differently.


    Shen Jiru: it can play a certain role, but it needs to be analyzed concretely.

    For example, some luxury goods are investment, gold jewelry, gold and silver jewelry consumption is equal to the existence of wealth in the folk, this wealth will increase, so for China, it should be said that it is a good thing.

    But there are some consumer products that are not like this, such as the special perfume, bags, leather shoes and fur coats. In fact, its value content and its raw material content are very low, but because it is a famous brand, it sells very high prices. At that price, it is a monopoly profit, and it has been given to foreigners. What is left behind is actually worthless, so I describe it as an unfair paction in colonial era, colonialists taking knife and mirrors in Africa to exchange gold with Africans for gold.

    Such a paction is irrational, so I think we should encourage the positive side of luxury consumption and restrict or treat its negative side rationally.


    Domestic luxury goods share the world's top experts call for rational consumption


    Judging from the current scale of luxury consumption in China, Shen Jiru believes that the Chinese concept of luxury consumption should be more rational.


    Shen Jiru: at present, China's share of consumption has accounted for 22% of the world. That is to say, the scale of our population in the world is equal.

    From this perspective, it belongs to the normal range, but from another angle, China's GDP accounts for only a little more than 8% of GDP in the world. This shows that luxury consumption has exceeded our average per capita income in the world. Therefore, I think it should be rational to treat luxury goods consumption.


    As a developing country, China still has many poor people. Our economic structure adjustment and many new technologies need to be developed. Therefore, the rich should spend more money on developing our national real economy, especially in the field of innovation. Premier Wen's speech at the Hannover industrial exhibition said that China and Europe should overcome the crisis and develop the real economy and promote technological innovation. I think this is a measure of GDP growth with stamina.


    People in the industry have made a judgement at the end of last year that this year will be a winter for China's luxury market.

    Shen Jiru believes that the future development of China's luxury goods market will slow down.


    Shen Jiru: I think it will go in a rational direction. In Paris, London, China, tourists will queue up to rush to buy bags, but this will turn to rational consumption.

    For example, the purchase of some investment luxury goods, and the cultivation of mood, such as high-end tourism, medical tourism, learning tourism, like this luxury consumption, I think it is still healthy.

    I think we should rationalization of the irrational knife and mirror for luxury consumption of gold.


    Boston group research, a leading international consulting firm, points out that the consumption growth of luxury services is faster than physical luxury goods, such as hot springs and hunting.

    At present, the scale of luxury services is about 770 billion US dollars, which accounts for more than half of the total luxury goods market, and is increasing at a faster rate than that of physical luxury consumption.

    The Boston Group expects that the growth rate of the global luxury market this year is 7%, although it has dropped from the 12% growth rate in the previous two years, but it is still far faster than the global economic growth.


    In the global luxury market, Chinese luxury consumption has attracted much attention.

    At present, Chinese luxury goods account for 10% of the global luxury goods market, while foreign consumption accounts for 12%, accounting for 22%.

    It is estimated that by 2020, China's annual income will exceed 60 thousand yuan will exceed 140 million, which is 3 times the current level; the per capita GDP of 330 cities in China will exceed the current per capita GDP level in Shanghai.

    Some have predicted that the purchasing power of the Chinese people in the luxury market may increase significantly.

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