The Rich Economy Of Nowhere In The Past Ten Years

In December 18th, Bain jointly published the 2019 Global Luxury Industry Research Report (Autumn Edition) with the Italy luxury goods industry association Fondazione Altagamma. The report shows that the luxury industry continues to grow in an environment of global geopolitical uncertainty and increased economic recession. In 2019, the overall sales of the global luxury goods market increased by 4% to 1 trillion and 300 billion euros, and the overall sales of luxury goods in the mainland of China increased by 26% to 30 billion euros.

Bain global partners Bruno pointed out that globally, Chinese consumers have contributed 90% to the sustained growth of the global personal luxury market, accounting for 35% of the total global luxury consumption.

According to the 2019 China Private Wealth Report, China's private wealth market will continue to grow steadily in 2019. The total scale of personal investment assets in China will reach about 200 trillion yuan, an increase of 6% over the same period last year. China's high net worth population will reach 2 million 200 thousand, an increase of 11% over the same period last year. The total net worth of the high net worth population will reach 68 trillion yuan, up 11% over the same period.

There are more and more rich people in China. Why is it not so good to do business with rich people? In December 16th, the four day feast of the sea, the 2019 tenth yacht, aviation and fashion lifestyle exhibition, ended in a slightly contrasting fashion with the expectations of exhibitors. The record of billions of transactions in four days has passed.

In the tenth year, what is China's first luxury exhibition?

In the tenth year, what is China's first luxury exhibition? - China News Service

From hobby to business

The Sanya River enters Haikou. A bright moon hung in mid air. In the lower Bay, dozens of yachts parked at the entrance to the sea and flags fluttering on the berths. In the past ten years, the Sanya river bend will be so lively every time of the feast.

Sanya's brilliant sunshine, blue coast and pleasant climate are quite similar to those of Vieira, France. The Vieira area is the general name of the French coastal and the Principality of Monaco and the Principality of the Principality of Monaco. This area with 115 kilometers of blue coastline has been a holiday resort of European aristocracy since ancient times. Now it is also an exhibition of various activities, such as the Cannes Film Festival, nice Carnival, and the world's largest yacht show, the yacht show. The Economic Development Department of the blue coast area has counted that the annual super yacht fleet in the region accounted for 50% of the total number of the world, while 90% of the Super Yachts visited the area at least once in their lifetime.

"We want to build a Chinese version of Vieira in Sanya." Wang Dafu, chairman of hung Chau Group, smoked a cigar and recalled the original purpose of creating a feast in smoke.

Everything seems to have a predestined relationship. Wang Dafu actually had nothing to do with yachts and mice. Before he founded the Haitian feast, he was just an ordinary real estate businessman. He had developed many real estate projects and old city renovation projects in Shenzhen and Haikou, and he had 13 companies and hundreds of millions of people. From hobby to business, it comes from keen business feelers and various kinds of coincidence.

As early as 1990s, Wang Dafu had been in yacht in Hongkong. Wang Dafu, who was born in Hainan and loved the sea from childhood, has always dreamed of having his own yacht. As early as 2005, Wang Dafu bought two 37 foot long yachts at one breath, six motorboats, and built the concept of yacht club in China, adding value to their own real estate projects. Customers can be served by yachts, drinking and meeting, enjoying luxury. This "gimmick" really works well. In the same area, the price of the property of a yacht club is higher than that of no one. Although there are few Chinese rich people who really like to go out to sea with their yachts, this kind of scarcity is a way to impress them.

In 2007, Wang Dafu spent 40 million yuan to buy the world's top yacht "PERSHING 72" from Italy. He later admitted to the media that the most important purpose of buying the top yachts is to "pull the attention of the industry". Sure enough, when the news came out, many friends in the circle called for congratulations, and more and more celebrities of the society joined him in the yacht club.

Wang Dafu made many connections through yacht, and became friends with other rich people through yachts. Sometimes friends would go to the overseas yacht show to see the boat buying ship and go to the boat show several times. Wang Dafu was impressed by the Monaco yacht show and the Cannes yacht show. During this period, he met a French media publicist, Li Wenwen, who lives in China. Li Wenwen's husband is the owner of the China Yacht, a professional publication of the yacht industry, and has many resources of yacht manufacturers and distributors. Li Wenwen has been immersed in the luxury industry for many years, and the top tycoons have extensive resources. Wang Dafu and Li Wenwen are caught up in the same breath. They set up the Haitian feast with the French Vieira area as the benchmark, and introduced the French yacht, aviation and fashion lifestyle to the wealthy class in China.

Ten years of ups and downs

In 2010, the global economy was still slowly recovering from the impact of the 2008 financial crisis. In that year, the global economic growth rate was only 3.3%. China's growth rate of GDP was 10.6% as a result of the 4 trillion investment in stimulating the strong economic growth. It was also in this year that China's economy exceeded Japan officially and became the second largest economy in the world.

On the other hand, in January 4, 2010, the State Council issued the State Council's opinions on promoting the construction and development of Hainan's international tourism island. Hainan has been blowing up an international tourist island. Only 3 months later, from April 2, 2010 to 4, the first Haitian banquet was launched, attracting 150 exhibitors and nearly 5000 spectators. Wang Dafu's eyes are not harsh.

Haitian banquet staff told the twenty-first Century economic report that Wang Dafu and Li Wenwen each did their duty. Wang Dafu provided Sanya venues, Hainan political and economic resources and all necessary expenses, and Li Wenwen was responsible for investment promotion and publicity. The two sides are positioning the Haitian banquet in the high-end lifestyle exhibition. Luxury transaction is not the most important core, and more importantly, it is the opportunity to provide a top-level social occasion for all parties. Around this exhibition, there are many official, business and private annual gatherings.

At that time, China also lacked a formal and relaxed top gathering occasion. The French luxurious lifestyle undoubtedly accurately cut the needs of the new class. Therefore, Wang Dafu and Li Wenwen invited the world's top business jet companies, luxury yachts and jewellery watches brands to jointly create a grand feast.

"At that time, the VVIP customers who directed the invitation were all over 2 billion. The early staff of hung Chau group revealed to reporters that the first few Haitian banquet did have a very colorful customer resource, especially in the first three sessions, the stars and rich people were in hot pursuit, and the world's top business jet brands such as Airbus, Boeing, Bombardier, csena, Dassault and Gulfstream, as well as the top yacht manufacturers such as Sunseeker, Benity, Shun Shun, Fei Di Xing and Beneteau all participated in it, bringing the latest models and yachts to the rich people for trial driving. Louis Weedon, Chopin, Lamborghini and other top international brands also bring new products.

Starting from the first feast in 2010, exhibitors, spectators and turnover increased year by year. To the third session, it has become the more than 200 exhibitors participating in the exhibition and about 20000 spectators. The fourth Haitian feast reached its peak. There were as many as more than 270 exhibitors. The total orders amounted to several billion yuan, and the total number of visitors in the exhibition area exceeded 20 thousand.

A yacht industry insider, who declined to be named, revealed to reporters that before 2015, Chinese wealthy people and companies once bought yachts or private airplanes for a time. Compared with wind and gift giving, the yacht trade was very popular in those years.

Sometimes prosperity is just a flash.

During the 2013 Haitian feast, an indecent video of the rich in Sanya began to spread to the Internet and exploded the Internet in an instant. Some people linked the video to Haitian banquet, so that all the rich and famous businessmen who participated in the feast were grieved. Li Wenwen was in charge of publicity, but the matter was not handled well or she had a bad relationship with Wang Dafu. It was reported that the two sides finally split up because of the interests division. In 2014, the feast of heaven and sea was carried by Wang Dafu and hung Chau Group.

Since 2014, celebrities, celebrities and rich people have been reluctant to attend the Haitian feast. There were only 72 exhibitors, and the most obvious reduction was in the exhibitors of super running and business machines, from 2 in 2013 and 13 in 13 to 4.

Boeing was one of the exhibitors who chose to evacuate. "(leaving the main reason) not because of obscenity." Boeing official China executives explained to the twenty-first Century economic report that in fact, the activities of the Haitian banquet were quite standard. However, the organizers of the Haitian feast had been in conflict. The two sides had fought a lawsuit over the brand ownership of the "Haitian banquet". In order to avoid risks, the exhibition was not a professional business show, and the result was not good. The executive believes that the cost of exhibitors is too expensive, so opt out.

After the exit of the top public business mechanism, many yacht brands have also been withdrawn. By 2019, except for Beneteau, the Haitian feast actually had no auras of top yachts and business aircraft brands, and the exhibitors of famous cars, jewellery and famous liquor were far inferior to the original ones. Synchronization with the absence of top brands is the loss of trade volume.

How can the yacht economy continue?

The prosperity and decline of Haitian banquet is not related to the consumption power of the Chinese wealthy.

The 2019 China private wealth report predicts that China's private wealth market will continue to maintain steady growth in 2019. The total scale of personal investment assets in the whole country will reach about 200 trillion yuan, an increase of 6% over the same period last year. China's high net worth population will reach 2 million 200 thousand, an increase of 11% over the same period last year. The total net worth of the high net worth population will reach 68 trillion yuan, up 11% over the same period. Bain expects the luxury market in mainland China to continue its strong performance over the past few years in 2019, with overall sales growth of 26%, reaching 30 billion euros.

Bain's luxury statistics actually do not include luxury goods such as business machines, yachts, famous paintings and artworks, but in fact, the luxury consumption of Chinese rich in this respect is not low. The head of China's official business group revealed to reporters that in the past two days, a business jet, which was designed by top designers and filled with French Monet style decoration, was about to be delivered in the mainland. The price was over $200 million.

"Super Yachts also have Chinese tycoons, but the location is not in China." A yacht dealer revealed that at present, the yacht trade in China, especially the super yacht, has not been released, resulting in the yacht trade becoming cold in recent years.

Wang Dafu also admitted that because the tax and fees of imported yachts were as high as 43.67%, and the cost of domestic yachting was high, many Chinese rich people went overseas to buy yachts and yachts, and then flew out to play boats when they were free.

"There are still many Chinese buyers from the world's major yacht exhibitions." The yachting industry believes that how to guide the emergence of rigid demand in China is a question worthy of consideration by the government and the industry.

The Hainan provincial government and the Sanya municipal government have always attached great importance to the high-end passenger flow brought by Haitian banquet. In 2019, the Hainan Provincial Transport Department even hosted the tenth Haitian feast for the first time. Two vice governors of Hainan province came to see the exhibition, and the departments of communications and Commerce of Hainan province came to support.

But these are far less effective than policy support. Li Zhiqiang, deputy director of the Hainan Provincial Communications Department, told reporters that the yacht Jones, Hong Kong and Macau free administration strategy has achieved positive results. Since 2018, yachts have entered and exported to Hainan up to 155 times since 2018, which has promoted the consumption of Hong Kong and Macao yachts, and directly promoted the development of traditional industries such as civil aviation, commerce and so on. It has effectively promoted the development of related industry chains such as yacht trading, marketing, exhibition, maintenance and training. According to statistics from Yacht Association, 6 new yacht clubs were added from June to November this year, an increase of 50% over the same period and 95 registered yachts, an increase of 33% over the same period last year. During the eleven national day of 2019, the number of people entering Sanya alone reached 16871, an increase of 71.8% over the same period.

Letting foreign yachts in and out of freedom is the first step towards the yacht industry in the free-trade port. The next step will be to deregulation of yacht transaction taxes and fees. Fu Caixiang, vice governor of Hainan Province, revealed exclusively to the twenty-first Century economic report during the tour. The tax and other policies that are conducive to the development of the yacht industry are being worked out and will be made public next year. "We can not say now, wait patiently, there will be good news." Fu Caixiang laughed.

In twenty-first Century, the economic report was also informed by the Sanya natural resources and Planning Bureau. Hainan has approved the Sanya cruise ship Yacht Industrial Park planning. Sanya will have a new planning area of 12.03 square kilometers of cruise ships, yachts, cruise industry gathering areas, as well as free trade services, culture and arts consumption area.

He Dazhe, chief planner of the Sanya natural resources and Planning Bureau, said that the total land area of the plan is about 48.99 hectares, and 1200 yacht berths will be set up, including many public berths. Not only will tourists experience yacht life and water sports, they will also hold world-class water sports events, but will also build a yacht Trade Exhibition Center.

"I believe that the future of yacht development is still clear under the policy of FTA." Wang Dafu said optimistically that although today's Haitian feast is facing short-term difficulties, its prospects are promising. "We will never be able to find one after another".