As wealthy increase, luxury sales boom

09:17, May 05, 2010      

Email | Print | Subscribe | Comments | Forum 

Global luxury brands have flocked to the Shanghai World Expo, hoping to get a boost in one of the world's top emerging markets for their goods.

Prada launched a special Shanghai World Expo handbag, while Chanel introduced a Shanghai World Expo accessories series and offered a dragon totem in its jewelry line.

"Seventy million visitors will choose to go shopping after watching the Expo, and this will be a great opportunity for the labels," said Ren Qixiao, director of the Shanghai Commercial Economic Research Center.

Sales of world jewelry and cosmetics brand reached $9.4 billion last year in China, equivalent to 27.5 percent of global luxury spending.

According to the World Luxury Association (WLA) report, total consumption of luxury goods in China hit $9.4 billion at the end of December 2009, as the country maintained its place as the runner-up in global luxury consumption.

The association forecasts China will become the largest luxury goods market and sales volume will reach $14.6 billion in five years.

China's economy grew by 8.7 percent last year with 6 percent growth in the number of millionaires, who now total 875,000 individuals, according to the Hurun Report, a monthly magazine known for its "China Rich List," a ranking of the wealthiest individuals in China.

The Beijing Auto Show, which closed Sunday, has become a showcase for luxury carmakers. A 40 million yuan ($5.86 million) Bugatti sports car was sold in two hours after the opening of the show, and nine Roll-Royce luxury sedans were ordered on the first day.

Mercedes-Benz has seen its China sales more than double so far this year compared with 2009. BMW announced at the show that it was boosting its sales target this year in China from 100,000 to 120,000 units, which would make the country its third-largest market.

According to the latest forecast by the Bain consultancy, sales of luxury goods on the Chinesemainland are expected to grow 12 percent this year, while the US market will drop 16 percent and Japan will fall 10 percent due to the global economic crisis.

The average annual consumption of Chinese tycoons in 2009 was 1.7 million yuan ($248,902), according to the Hurun Report, which defined the group as "40-year-old Chinese men, having three pricey cars, four luxury watches, (and) planning to buy private jets or yachts."

Source: Global Times
  • Do you have anything to say?


Special Coverage
Major headlines
Editor's Pick
  • Russian fighter jets rehearse for grand Victory Day parade
  • Meeting in sky
  • Unasur Summit: Fromer Argentine president appointed secretary-general
  • Folk art performance at UAE Pavilion in Expo Park
  • Shirtless Cristiano Ronaldo covers "Vanity Fair"
  • Chinese peacekeeping forces return home from Haiti after 10-month mission
Most Popular
Hot Forum Dicussion