Luxury in China – The Facts
In 2008, China had 415,000 High Net Worth Individuals with at least US$ 1million in financial assets, an increase of 20% over the previous year.
The Chinese spend three times longer shopping than those in the US or France.
China is the only market in the world where the market for ready-to-wear for men, exceeds that of woman’s wear.
75% of all watches purchased are gifts.
Dry red wine represents 68% of all wine sold in China.
On February 26th FDKG ran a half-day conference focused on “Luxury Brand Management in China”. Held at the RIBA in London, the speaker was Dr Pierre Xiao LU, Professor at Fudan University in Shanghai and Visiting Professor of Marketing in LVMH Chair in ESSEC Paris, a twice-published author in the subject, a speaker at conferences and advisor to international brands for their China affairs.
The first session focused on the market and its potential for luxury brands, while the second session considered the more practical issues of how luxury brands could address the market. Attendees were given facts and figures about the size of the luxury market in China, and the associated challenges they would face in gaining a strong position in the market. This was followed by a review of luxury clients and consumer typographies.
In the second session Dr Lu discussed the subjects of distribution, selective retailing and brand positioning and communications, which were followed by comments and observations with regard to brand protection and legal issues. The figures and graphs used by Dr Lu are available in his two books; Elite China and Luxury China.