The Luxury Goods Market in China revolves around the revenues made via retail sales from retailers who particularly trade in Luxury Jewellery & Watches, Bags & Accessories, Apparel & Footwear and Cosmetics & Fragrances. Chinese consumers have been an integral factor responsible for the progress of this market. In China, the new generation is very interested in luxury goods since the Chinese middle class are continuing to evolve and spend accordingly. The Chinese consumers account for a third of the total customers for this market globally and they have managed to record a considerable rise in the sales all over the world for numerous reasons.
The report, “Luxury Goods in China” provides all the necessary resources for top-line data and analysis that covers the China luxury goods market. It includes many variables including market size and segmentation data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information. Luxury Goods in China industry profile offers a qualitative and quantitative summary as well as contains descriptions of the leading players with proper inclusion of key financial metrics and analysis of competitive pressures in the market.
The Chinese luxury goods market has come a long way and has managed to register a compound annual growth rate (CAGR) of about 4.1% between 2013 and 2017. The jewellery & watches segment has been the “most lucrative” segment of the market in the year 2017. On a whole, the luxury goods in China have showcased the fastest growth momentum in retail current value terms.
The Chinese luxury goods market is able to record higher profits year after year due to its ever-younger consumer groups, supported by the proliferating millennial generation because of high birth rate between 1985 and 1995 in China. Moreover, as the number of middle-class consumers in China has seen an increase, the producers have endeavored to further ameliorate their product lines, especially to cater to the younger consumers, many of whom are well aware of what they want to purchase having a relatively limited purchasing power.
There is no doubt to the fact that China has relished success in terms of sales of luxury goods. Categories like fine wines/champagne and spirits, luxury cars and super premium beauty and personal care have registered a massive growth in current value terms over the years, supported by the affirmative factors including- reduced duties on some imported luxury goods, stable demand for wedding gifts and a stringent policy to crack down on the grey-market daigou, or personal shoppers overseas. There is a significantly sophisticated pool of luxury shoppers in China which is expected to support the luxury goods industry to prosper in the coming years though the brands are also required to come up with new ideas and approaches for keeping them interested with the passage of time.
There are some brands such as Alibaba, which have lately come up with ideas like the Luxury Pavilion, an invite-only platform strictly for top brands that are specific to their T-mall business-to-the-consumer venue, that would obviously appeal more and more Chinese consumers and if such innovations continue to come up as the years roll by, no one can stop the luxury market in the country from mushrooming and reaching heights.
China is a home to some of the most creative digital services and platforms like WeChat and TMall and the consumers here are ardent users of social media wherein about 35 percent of them prepare online content on a daily basis. Chinese luxury consumers are thereby expected to raise their online luxury expenditure from 2017 onwards. Currently, the expenses made by these consumers have seen a positive rise though the change is not very high. Nevertheless, if the luxury brands further plan well as to how they will develop their initiatives; a seamless experience would definitely be enjoyed by the consumers and it would be highly likely that more luxury sales are conducted online in the years to proceed.
The significance of luxury-goods market in the country is well highlighted through the statistics that follow: The number of Chinese millionaires is forecasted to exceed that of any other nation by the end of 2018 and by 2021 China is foreseen to have the most opulent households in the world. In 2016 itself, it was estimated that around 7.6 million Chinese households bought luxury goods—a number much larger than the total number of households in Malaysia or in the Netherlands, even at that time. When compared with average Chinese consumers, wealthy consumers have reported a much better positive outlook about their future spending: one out of two wealthy consumers anticipates to spend more in 2018, while only one in four average Chinese consumers plans to spend more.
Reinforced by confident perspective of consumers; we can expect the wealthy ones to be looking to trade up, either to more expensive brands or to more expensive products from their current brands. As a result, an incremental expenditure from the existing consumers can be expected. Thus by 2025, it is forecasted that the value of the global luxury-goods market will amplify with about RMB 1.0 trillion being added over the next nine years and the Chinese consumers will persist to account for a majority of this growth, covering near about 44 percent of the total global market. So, the luxury market in China is all set to bolster the growth across the globe as time passes.
Key Topics Covered in the Report:
China Luxury Goods Market Research Report
China Luxury Goods Market Size
China Luxury Goods Trade Market
China Luxury Car Market Manufacturers
China Digital Camera Market Analysis
Global Luxury Goods Production Output
China Luxury Wine Market Demand
China Luxury Goods Import Volume
China Luxury Goods Export Volume
China Portable Laptops Market Research
China Luxury Goods Market Future Outlook
China Luxury Goods Market Competition
China Portable Bluetooth Speaker Market
China Smart Phone Market Revenue
China Consumer Electronics Industry Future Outlook
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Ankur Gupta, Head Marketing & Communications