The Chinese Luxury Market - A Visual Story
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A V I S U A L S T O R Y Luxury Market The Chinese
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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. However, confronting the realities on the ground could be challenging, albeit necessary for a brand to truly succeed in this market. What are the types of Chinese millionaires? Where do they live? How do they make their purchase decision? Take a look and find out.
Transcript of The Chinese Luxury Market - A Visual Story
A V I S U A L S T O R Y
Luxury Market
The Chinese
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Editor’s Note:
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. According to the latest Chinese
Millionaire Wealth Report by Hurun, there are now
more than a million millionaires in China! However,
confronting the realities on the ground could be
challenging, albeit necessary, for a brand to truly
succeed in this market. What are the types of Chinese
millionaires? Where do they live? How do they make
their purchase decision? Take a look and find out.
Darwin Jayson Mariano IQPC Worldwide
Today, Chinese consumers account for about 2% of worldwide* luxury consumption *estimated at around $145 billion
Source: http://www.industryweek.com/global-economy/china-claim-one-third-luxury-market
In 2015, China will account for one-third of the global market* for luxury goods *estimated at around $175 billion
Source: http://www.industryweek.com/global-economy/china-claim-one-third-luxury-market
1,020,000 number of millionaires in China
That’s a million
Millionaires in China
Private
Business
Owners
Stock
Market
Investors
Real
Estate
Investors
High-
Salaried
Executives
The Millionaire Types
Where do Chinese
millionaires live?
Top 10 cities with the highest
concentration of millionaires (pax in thousands)
Beijing 179
Shanghai 140
Guangzhou 55
Hangzhou 53
Shenzen 52
Nanjing 24
Wenzhou 22
Suzhou 20
Ningbo 20
Dongguan 18
Source: The Chinese Millionaire Wealth Report 2012
Luxury Preferences of
Chinese Millionaires
25%
25%
21%
14%
9%
7%
0% 5% 10% 15% 20% 25% 30%
Travel
Child’s Education
Daily Luxuries
Entertainment
Gift Giving
Collection
Top Things Chinese millionaires spend on
1. Travel
2. Child’s Education
3. Daily Luxuries
4. Entertainment
5. Gift Giving
6. Collection
Source: The Chinese Millionaire Wealth Report 2012
Luxury Brands: Preferred Jewellery
1
2
3
Source: The Chinese Millionaire Wealth Report 2012
Luxury Brands: Preferred Apparel
Men
Women
Source: The Chinese Millionaire Wealth Report 2012
Luxury Brands:
Preferred Accessories/Writing Kits
Accessories
Writing Kits
Source: The Chinese Millionaire Wealth Report 2012
Preferred Brands for Gifting
1. Louis Vuitton 2. Cartier 3. Hermés 4. Chanel 5. Moutai 6. Apple 7. Dior 8. Prada 9. Rolex 10. Armani
Source: The Chinese Millionaire Wealth Report 2012
Marketing Luxury
Brands in China
To get the Chinese millionaires’
attention, Luxury brands are
investing in these media:
Unit: Million RMB Data Period: Year of 2011
Data Source: CTR, CODC and iResearch Source: The Chinese Millionaire Wealth Report 2012
The Top 3 Media
spenders are
Cosmetics brands
Top 10 Luxury Brand Media Investment
Unit: Million RMB Data Period: Year of 2011
Data Source: CTR, CODC and iResearch
Source: The Chinese Millionaire Wealth Report 2012
Wealthy Chinese love to
shop at fancy stores
They also love to shop online
A lot of them!
Do you shop online?
86%
14%
Yes 86%
No 14%
86% of millionaires indicated
that they engage in online
shopping, spending an
average of RMB 20,000 a
year.
Source: The Chinese Millionaire Wealth Report 2012
How much do you spend shopping online?
RMB <1000 20%
RMB 1,000-19,000 31%
RMB 10,000-50,000 37%
RMB>50,000 12%
37% of millionaires indicated
that they spend between
RMB 10,000 and 50,000 in
online shopping.
Source: The Chinese Millionaire Wealth Report 2012
Digital Products 61%
Books 49%
Clothing 47%
Home Appliances 39%
Daily Necessities 33%
Virtual Products (game/rechargeable) 31%
Luxury Goods 24%
Food 18%
Cosmetics 14%
Preferred
Online
Shopping
Products
A significant 24% of
millionaires indicated that
they shop for Luxury Goods
online.
Source: The Chinese Millionaire Wealth Report 2012
In a nutshell
There is a growing
population of wealthy
Chinese
with a strong appetite for
Luxury Goods
To succeed, Luxury brands
must confront the realities of
the Chinese market.
Message from Rupert HOOGEWERF Chief Researcher, Hurun Report | Chairman, Luxury Marketing China Summit
Dear Colleague, It is my pleasure to invite you to the Luxury Marketing China Summit 2013 (24-25 April 2013, Beijing, China). A recent study showed that China is set to become the largest luxury and luxury e-commerce market by 2015. There is no denying that China is going to be one of the biggest luxury markets in the next five years. Featuring dedicated presentations on how luxury brands in China utilize branding and e-business strategies to penetrate and expand market share in the Chinese luxury industry, this event will provide you with the latest insights on how you can strengthen your position within China’s luxury market. Luxury Marketing China Summit 2013 is set to surpass all expectations. I personally am very excited to be chairing the Summit this year. Let us meet in Beijing this April. Rupert HOOGEWERF
24-25 April, 2013 | Renaissance Beijing Capital Hotel, China
OPTIMIZING MARKET SHARE AND BRAND AWARENESS IN CHINA
THROUGH EFFECTIVE LUXURY BRANDING & E-BUSINESS STRATEGIES
www.luxurymarketingchina.com To attend the conference, email [email protected] or call +65 6722 9388
Be part of the finest luxury marketing conference in China
CHINA LUXURY MARKETING SUMMIT
Please note that we do all we can to ensure accuracy and timeliness of the information
presented herein but errors may still understandably occur in some cases. If you believe that
a serious inaccuracy has been made within the text, please email
[email protected]. This content is provided for information purposes only. IQPC
accepts no responsibility whatsoever for any direct or indirect losses arising from the use of
this report or its contents.
DISCLAIMER
The Chinese Millionaire Wealth Report 2012 by Hurun Report
To access the fulll report, visit: www.hurun.net
Hurun Report Inc. is a luxury publishing and events group based in Shanghai, China. Hurun
Report Inc. has a stable of four luxury magazines, the Hurun Research Institute and an
active business events division targeting China's entrepreneurs and high net worth
individuals.
REFERENCE
