The 2017 china luxury market study by bain & company revealed important insights into the chinese market that luxury brands should take note of after a sluggish few years for the luxury industry in china, reports have shown that the tides are finally starting to turn in bain & company’s latest. 1) there is often a natural tendency to assume that in collectivist cultures such as that in china, luxury products would not be popular a) explain how luxury products such as the bmw automobile might fulfill needs even within the traditional collectivist value set of china. Chinese luxury consumers thus account for over rmb 500 billion ($74 billion) in annual spending, representing almost a third of the global luxury market in 2008, when china hosted the olympics in beijing, chinese consumers accounted for only 12 percent of global luxury spending. Chinese luxury travelers still love to shop abroad, but this year, mainland china saw more domestic consumption, with bain & company predicting that mainland china’s luxury market will have returned to growth by the end of 2016 (final numbers are still yet to come out.
The chinese luxury car market is led by european automotive original equipment manufacturers (oems), especially the german companies mercedes-benz and audi traditional mass market brands such as toyota and nissan are attempting to expand their portfolio with launches of premium models such as lexus and infiniti. The market for luxury goods in china composes a significant proportion of all luxury goods sales worldwide in 2012, china surpassed japan as the world's largest luxury market according to a blue paper on commercial development in china,. Articulate the need for brand awareness in the chinese luxury market segment the chinese economy the chinese economy has been growing at over 10% per year for more than 20 years.
Secoo holding is a chinese online retailer of luxury goods focused on the asian market in the chinese market, the company occupies 25% of the total gross merchandise value of online sales of. The luxury travel industry will continue to grow in 2018, supported by more spending from affluent chinese tourists the united nations world tourism organization (unwto) estimates that chinese tourists consuming abroad now represent 21% of the global tourism spending. The market share of chinese consumer spending on luxury goods is set to continue growing in the coming year, projected to hit 36% in 2020 before reaching almost half (44%) by 2025, with total wealthy households in china topping 75 million – around the same number of households as the netherlands. The chinese luxury market china will count for a third of the worldwide luxury market (china’s luxury good consumption will be about $175 billions) in 2015 in 2012, china’s luxury consumption was very high (about $145 billions), despite the international economy’s decreasing.
Luxury retail brands flocked to the new market, with the result of 35% of sales for brands such as omega, harry winston and balmain coming from greater china, according to estimates by exane bnp. The chinese luxury car market is expected to witness a cagr of ~113% by the year 2023 luxury car sales, majorly fuelled by gains in household wealth and consumer confidence, are driving the surge in the chinese luxury car market. The emergence of the global chinese customer means luxury companies need to be more aware of such discrepancies between the chinese market and the global chinese demographic while crafting their business models. Luxury sales to chinese customers are increasingly taking place in their domestic market, rather than during trips abroad, driven by shrinking price gaps between china and the rest of the world.
Investors concerned about chinese consumption in the luxury retail sector could look closer at the four companies most likely to withstand contraction in this huge market, say hsbc analysts: hugo. What has happened the the chinese luxury wine market as china’s anticorruption campaign dampens demand for expensive wines, the red obsession with bordeaux vineyards is starting to evaporate. The growing fascination over the chinese market is felt in almost all industries around – especially within the luxury sector study after study reveals that china is an important market that luxury brands shouldn’t – and couldn’t – ignore. Mr lannes estimates that even as mainland rose, the global luxury market has remained broadly flat, and the share of sales made by chinese nationals has dropped about 1 per cent to 30 per cent.
For luxury brands operating in the chinese market, the bigger they are the better their chances for grabbing mindshare among consumers. The chinese luxury goods market is embracing ever-younger consumer groups, as the domestic wealthy consumer group has become younger, supported by the burgeoning millennial generation due to the high birth rate between 1985 and 1995 in china. But the luxury-goods market will remain concentrated in the top 36, which will account for 74 percent of the market’s growth and 76 percent of total luxury sales by 2015 most of the world’s luxury-goods companies are already in china or contemplating increased investment there.
Luxury shopping is a crucial market in china asia's largest economy is expected to have the most affluent households in the world by 2021, according to a china luxury report by mckinsey & company. Mainland china sales — especially online — are set to account for much of the growth in the global luxury market this year, according to a new report. 3 luxury market in china 2013 despite the weakened global economy and its subsequent impact on the luxury market, china’s consumer market continues to demonstrate huge growth potential.