Luxury Brands & Some Super-Rich People

Related entries: Consumer Market, Corporate News, General, Research

Time Magazine has reported on a luxury brand survey that covers China, India and Russia. The China section is based on interviews with “411 affluent Chinese respondents” at upscale locations in Beijing, Shanghai and Guangzhou. The respondents are reported to earn over RMB15,000 a month.

    Best-Known Luxury Brands:

    1. Rolex (76%)
    2. Lacoste (72%)
    3. Valentino (71%)
    4. Chanel (66%)
    5. Dior (55%)

Of course, not everybody can actually afford to buy a Rolex, so the most-owned brands among this elite urban group are a bit different, with Lacoste (which may not make it on to many international luxury lists) at the top of the pile:

    Most Widely-Owned Luxury Brands

    1. Lacoste
    2. Valentino
    3. Chanel / Bally

While the target market for these luxury goods remains relatively small in terms of the total population, the article notes that China “is the third largest consumer of luxury goods, accounting for 12% of global sales, according to a December 2004 Goldman Sachs report”. It could become the largest, with Japan, by 2015.

So what sort of consumers are buying these expensive goods? According to an estimate from a Merrill Lynch-Capgemini report in 2006, some of them are earning a lot more than the RMB15,000 a month minimum noted in the survey:

    “the mainland has 320,000 superrich-people with at least $1 million in net assets-who collectively possess $1.59 trillion of assets. Their average net worth is nearly $5 million. Merrill puts the number of people with a net worth of more than $30 million at about 4,540.”

It just goes to show that brands can be cleverly re-positioned in China, and that even niche markets, in the China context, can be very significant in absolute terms. However, it should also be remembered that it is not easy, and can take a long time, to reach critical mass.

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3 Responses to “Luxury Brands & Some Super-Rich People”

  1. Regional blogs » Blog Archive » Luxury Brands & Some Super-Rich People Says:

    […] KTDC / Wall Street Journal Briefing Оригинал сообщения от Administrator тут… This entry was posted on Tuesday, […]

  2. ChinaContact Says:

    Affluent Chinese also spend on travel as part of their status setting, check out this article in the China Britain Business Review:
    http://www.cbbc.org/the_review/features/5.html

    Roy

  3. Archive » The Nouveau Riche Niche| China Business Blog Says:

    […] aim indeed, but it is (or was) also glorious to be rich. We already know something about what the merely wealthy like to buy, but Forbes gives some insight into who those at the top of […]

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