Luxuries Come To China For Trillions Of Business Opportunity
The economy of China keeps strong growth, and spending power of mainland residents have also increased, thus there is huge potential for luxury goods market development which is very likely to dominate the entire Greater China region. Some organization expects that the amount of non-essential consumption of the rich in mainland China will reach 166.9 billion USD, about 1.3 trillion HKD, by 2015, accounting for nearly 80% of that of the Greater China region, and will exceed that of Japan, the present largest market for luxury consumption in the Asia-Pacific region. To ease the financial impact of economic crisis on them and to explore more high-end business opportunities, the international brands that aim at high-end products and luxury consumption have turned their focus to Asia and especially, the Chinese market.
China economy keeps strong and the consumer power of mainland people also goes on increasing. The luxury market has big potential development space in china district. Some departments predict that the consumer volume of non-necessary products for the rich in mainland will be top to 166.9million dollar (about 130 million Hong Kong Dollar), which takes up about 80% of the consumer volume in china district, which has surpassed the famous Japan market. In order to lower down the financial crisis affect and get higher card clients, the luxury top brands come to china one by one.
MasterCard cooperated with ESSEC Business School to do a Luxury Market: form History to Predict Future Trend research. The professor of ESSEC Business School and first president of LVMH course Michel Phan said although the economy of the global was still not confirmed but china economy kept a strong trend. From the data of credit card in the next year we can know the consumption of luxuries would keep increasing by 7% but that of America would drop by 10%-15%.
Non-necessary products take up 83%
Michel Phan claimed that although Louis Vuitton and Gucci had a long history but china has knew them just for ten years. The clients in mainland keep pursuing top brands and this group of clients is large. It’s predicted that in 2015 the consumer volume of non-necessary products for the rich group would reach to 12 93.48 billion Hong Kong dollars which is eight times of the 131.7billion of Hong Kong. It also will take up 83% of the 1555.4 billion Hong Kong dollars in the whole Asia-Pacific.
LV has opened 25 exclusive stores in china mainland
In recent years, every top brand store will filled with mainland clients, so many luxury brands have seen the big commerce chance of mainland and open exclusive stores in china one by one. For example, LV has opened 25 exclusive stores in china mainland, such as Shenzhen, Beijing and Urumchi. However, Michel Phan claimed that china was too large so it was difficult to open shops in every city of china. So electronic business and moving commerce was good, for the internet was a good way to build new sale tunnel. Then the livers who had shopping capacity in far province of china can buy goods any time and anyway.
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