It’s been reported that China will become the top luxury market in just five to seven years because of an increase in income and a desire to purchase from the top luxury brands. Chinese customers (2,550 to be exact) were surveyed by the Boston Consultancy at the height of the economic fall, and it was discovered that many young people were the group most likely to buy from luxury labels with their high incomes.”Right now, Chinese consumers are relatively younger than most of the clients luxury companies have in other places, most of them are in the 25 to 35 age span,” said Vincent Lui, The Boston Consultancy Group principal. It is because they are young within the luxury market, they will in turn purchase more luxury goods in their lifetime. “And second is the mobility, meaning many people have increasing income, so yesterday they couldn’t afford the luxury products, but one, two or three years down the road, they will have a means to afford (luxuries),” Lui said.
“In a world increasingly preoccupied with sustainable consumption, China is the last great bastion of bling, not only luxury but flashy luxury,” said David Wolf, president of Wolf Group Asia, who believes that Chinese consumers are much more adventurous and impulsive than others.
The Boston Consultancy Group also stated that by next year, high net-worth households will rocket from 417,000 to 609,000. Because of this, luxury brand competition will be most evident in China’s developing inland cities.
Via: Luxury Insider