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Luxury  The Chinese

   Market

 A V I S U A L S T O R Y
THECHINESELUXURYMARKETTHECHI
NESELUXURYMARKETTHECHINESELU
  Editor’s Note:
THECHINESELUXURYMARKETTHECHI
NESELUXURYMARKETTHECHINESELU
THECHINESELUXURYMARKETTHECHI
            The growing fascination over the Chinese market is

NESELUXURYMARKETTHECHINESELU
            felt in almost all industries around – especially within

 THECHINESELUXURYMARKETTHECHI
            the luxury sector. Study after study reveals that China
            is an important market that luxury brands shouldn’t –
 NESELUXURYMARKETTHECHINESELU
            and couldn’t – ignore. According to the latest Chinese

THECHINESELUXURYMARKETTHECHI
            Millionaire Wealth Report by Hurun, there are now

NESELUXURYMARKETTHECHINESELU
            more than a million millionaires in China! However,
            confronting the realities on the ground could be
THECHINESELUXURYMARKETTHECHI
            challenging, albeit necessary, for a brand to truly

NESELUXURYMARKETTHECHINESELU
            succeed in this market. What are the types of Chinese

THECHINESELUXURYMARKETTHECHI
            millionaires? Where do they live? How do they make
            their purchase decision? Take a look and find out.
NESELUXURYMARKETTHECHINESELU
THECHINESELUXURYMARKETTHECHI                Darwin Jayson Mariano

NESELUXURYMARKETTHECHINESELU                         IQPC Worldwide



 THECHINESELUXURYMARKETTHECHI
 NESELUXURYMARKETTHECHINESELU
Today, Chinese
    consumers account for
    about 2% of worldwide*
    luxury consumption
    *estimated at around $145 billion




Source: http://www.industryweek.com/global-economy/china-claim-one-third-luxury-market
In 2015, China will
     account for one-third
     of the global market*
     for luxury goods
     *estimated at around $175 billion




Source: http://www.industryweek.com/global-economy/china-claim-one-third-luxury-market
1,020,000
 number of millionaires in China
That’s a million
Millionaires
    in China
The Millionaire Types
  Stock
  Market
  Investors



  High-
  Salaried
  Executives


  Private
  Business
  Owners


  Real
  Estate
  Investors
Where do Chinese
millionaires live?
Top 10 cities with the highest
concentration of millionaires
(pax in thousands)



   Beijing                                179
   Shanghai                               140
   Guangzhou                               55
   Hangzhou                                53
   Shenzen                                 52
   Nanjing                                 24
   Wenzhou                                 22
   Suzhou                                  20
   Ningbo                                  20
   Dongguan                                18

Source: The Chinese Millionaire Wealth Report 2012
Luxury Preferences of
Chinese Millionaires
Top Things Chinese millionaires spend on
1.      Travel
2.      Child’s Education
3.      Daily Luxuries
4.      Entertainment
5.      Gift Giving
6.      Collection

        Collection         7%

        Gift Giving         9%

   Entertainment                 14%

     Daily Luxuries                    21%

Child’s Education                            25%

            Travel                           25%

                      0%    5%         10%         15%   20%   25%   30%


Source: The Chinese Millionaire Wealth Report 2012
Luxury Brands: Preferred Jewellery



               1
               2
               3

Source: The Chinese Millionaire Wealth Report 2012
Luxury Brands: Preferred Apparel



                 Men

             Women


Source: The Chinese Millionaire Wealth Report 2012
Luxury Brands:
                       Preferred Accessories/Writing Kits




              Accessories


             Writing Kits




Source: The Chinese Millionaire Wealth Report 2012
Preferred Brands for Gifting


                                                     1. Louis Vuitton
                                                     2. Cartier
                                                     3. Hermés
                                                     4. Chanel
                                                     5. Moutai
                                                     6. Apple
                                                     7. Dior
                                                     8. Prada
                                                     9. Rolex
                                                     10. Armani



Source: The Chinese Millionaire Wealth Report 2012
Marketing Luxury
Brands in China
To get the Chinese millionaires’
     attention, Luxury brands are
     investing in these media:




                                                                         Unit: Million RMB
                                                                  Data Period: Year of 2011
Source: The Chinese Millionaire Wealth Report 2012   Data Source: CTR, CODC and iResearch
The Top 3 Media
  spenders are
Cosmetics brands
Top 10 Luxury Brand Media Investment




                                                                         Unit: Million RMB
                                                                  Data Period: Year of 2011
                                                     Data Source: CTR, CODC and iResearch




Source: The Chinese Millionaire Wealth Report 2012
Wealthy Chinese love to
shop at fancy stores
They also love to shop online
A lot of them!
Do you shop online?                             14%




                 Yes               86%
                 No                14%                     86%




          86% of millionaires indicated
          that they engage in online
          shopping, spending an
          average of RMB 20,000 a
          year.




Source: The Chinese Millionaire Wealth Report 2012
How much do you spend shopping online?
                RMB <1000                            20%
             RMB 1,000-19,000                        31%
             RMB 10,000-50,000                       37%
               RMB>50,000                            12%




          37% of millionaires indicated
          that they spend between
          RMB 10,000 and 50,000 in
          online shopping.




Source: The Chinese Millionaire Wealth Report 2012
Digital Products           61%
                                                  Books                 49%
 Preferred                                       Clothing               47%
 Online                                     Home Appliances             39%
                                            Daily Necessities           33%
 Shopping                        Virtual Products (game/rechargeable)   31%
 Products                                     Luxury Goods              24%
                                                   Food                 18%
                                                Cosmetics               14%




         A significant 24% of
         millionaires indicated that
         they shop for Luxury Goods
         online.




Source: The Chinese Millionaire Wealth Report 2012
In a nutshell
There is a growing
population of wealthy
              Chinese
with a strong appetite for
Luxury Goods
To succeed, Luxury brands
must confront the realities of
the Chinese market.
Message from Rupert HOOGEWERF
 Chief Researcher, Hurun Report | Chairman, Luxury Marketing China Summit


Dear Colleague,

It is my pleasure to invite you to the Luxury Marketing China Summit 2013 (24-25
April 2013, Beijing, China). A recent study showed that China is set to become the
largest luxury and luxury e-commerce market by 2015. There is no denying that
China is going to be one of the biggest luxury markets in the next five years.

Featuring dedicated presentations on how luxury brands in China utilize branding
and e-business strategies to penetrate and expand market share in the Chinese
luxury industry, this event will provide you with the latest insights on how you can
strengthen your position within China’s luxury market. Luxury Marketing China
Summit 2013 is set to surpass all expectations.

I personally am very excited to be chairing the Summit this year. Let us meet in
Beijing this April.

Rupert HOOGEWERF
Be part of the finest luxury marketing conference in China




   CHINA LUXURY MARKETING SUMMIT
     24-25 April, 2013 | Renaissance Beijing Capital Hotel, China

  OPTIMIZING MARKET SHARE AND BRAND AWARENESS IN CHINA
THROUGH EFFECTIVE LUXURY BRANDING & E-BUSINESS STRATEGIES


To attend the conference, email enquiry@iqpc.com.sg or call +65 6722 9388
      www.luxurymarketingchina.com
DISCLAIMER
Please note that we do all we can to ensure accuracy and timeliness of the information
presented herein but errors may still understandably occur in some cases. If you believe that
a serious inaccuracy has been made within the text, please email
darwin.mariano@iqpc.com.sg. This content is provided for information purposes only. IQPC
accepts no responsibility whatsoever for any direct or indirect losses arising from the use of
this report or its contents.



REFERENCE
The Chinese Millionaire Wealth Report 2012 by Hurun Report
To access the fulll report, visit: www.hurun.net
Hurun Report Inc. is a luxury publishing and events group based in Shanghai, China. Hurun
Report Inc. has a stable of four luxury magazines, the Hurun Research Institute and an
active business events division targeting China's entrepreneurs and high net worth
individuals.

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The Chinese Luxury Market - A Visual Story

  • 1. Luxury The Chinese Market A V I S U A L S T O R Y
  • 2. THECHINESELUXURYMARKETTHECHI NESELUXURYMARKETTHECHINESELU Editor’s Note: THECHINESELUXURYMARKETTHECHI NESELUXURYMARKETTHECHINESELU THECHINESELUXURYMARKETTHECHI The growing fascination over the Chinese market is NESELUXURYMARKETTHECHINESELU felt in almost all industries around – especially within THECHINESELUXURYMARKETTHECHI the luxury sector. Study after study reveals that China is an important market that luxury brands shouldn’t – NESELUXURYMARKETTHECHINESELU and couldn’t – ignore. According to the latest Chinese THECHINESELUXURYMARKETTHECHI Millionaire Wealth Report by Hurun, there are now NESELUXURYMARKETTHECHINESELU more than a million millionaires in China! However, confronting the realities on the ground could be THECHINESELUXURYMARKETTHECHI challenging, albeit necessary, for a brand to truly NESELUXURYMARKETTHECHINESELU succeed in this market. What are the types of Chinese THECHINESELUXURYMARKETTHECHI millionaires? Where do they live? How do they make their purchase decision? Take a look and find out. NESELUXURYMARKETTHECHINESELU THECHINESELUXURYMARKETTHECHI Darwin Jayson Mariano NESELUXURYMARKETTHECHINESELU IQPC Worldwide THECHINESELUXURYMARKETTHECHI NESELUXURYMARKETTHECHINESELU
  • 3. Today, Chinese consumers account for about 2% of worldwide* luxury consumption *estimated at around $145 billion Source: http://www.industryweek.com/global-economy/china-claim-one-third-luxury-market
  • 4. In 2015, China will account for one-third of the global market* for luxury goods *estimated at around $175 billion Source: http://www.industryweek.com/global-economy/china-claim-one-third-luxury-market
  • 5. 1,020,000 number of millionaires in China
  • 7. The Millionaire Types Stock Market Investors High- Salaried Executives Private Business Owners Real Estate Investors
  • 9. Top 10 cities with the highest concentration of millionaires (pax in thousands) Beijing 179 Shanghai 140 Guangzhou 55 Hangzhou 53 Shenzen 52 Nanjing 24 Wenzhou 22 Suzhou 20 Ningbo 20 Dongguan 18 Source: The Chinese Millionaire Wealth Report 2012
  • 11. Top Things Chinese millionaires spend on 1. Travel 2. Child’s Education 3. Daily Luxuries 4. Entertainment 5. Gift Giving 6. Collection Collection 7% Gift Giving 9% Entertainment 14% Daily Luxuries 21% Child’s Education 25% Travel 25% 0% 5% 10% 15% 20% 25% 30% Source: The Chinese Millionaire Wealth Report 2012
  • 12. Luxury Brands: Preferred Jewellery 1 2 3 Source: The Chinese Millionaire Wealth Report 2012
  • 13. Luxury Brands: Preferred Apparel Men Women Source: The Chinese Millionaire Wealth Report 2012
  • 14. Luxury Brands: Preferred Accessories/Writing Kits Accessories Writing Kits Source: The Chinese Millionaire Wealth Report 2012
  • 15. Preferred Brands for Gifting 1. Louis Vuitton 2. Cartier 3. Hermés 4. Chanel 5. Moutai 6. Apple 7. Dior 8. Prada 9. Rolex 10. Armani Source: The Chinese Millionaire Wealth Report 2012
  • 17. To get the Chinese millionaires’ attention, Luxury brands are investing in these media: Unit: Million RMB Data Period: Year of 2011 Source: The Chinese Millionaire Wealth Report 2012 Data Source: CTR, CODC and iResearch
  • 18. The Top 3 Media spenders are Cosmetics brands
  • 19. Top 10 Luxury Brand Media Investment Unit: Million RMB Data Period: Year of 2011 Data Source: CTR, CODC and iResearch Source: The Chinese Millionaire Wealth Report 2012
  • 20. Wealthy Chinese love to shop at fancy stores
  • 21. They also love to shop online
  • 22. A lot of them!
  • 23. Do you shop online? 14% Yes 86% No 14% 86% 86% of millionaires indicated that they engage in online shopping, spending an average of RMB 20,000 a year. Source: The Chinese Millionaire Wealth Report 2012
  • 24. How much do you spend shopping online? RMB <1000 20% RMB 1,000-19,000 31% RMB 10,000-50,000 37% RMB>50,000 12% 37% of millionaires indicated that they spend between RMB 10,000 and 50,000 in online shopping. Source: The Chinese Millionaire Wealth Report 2012
  • 25. Digital Products 61% Books 49% Preferred Clothing 47% Online Home Appliances 39% Daily Necessities 33% Shopping Virtual Products (game/rechargeable) 31% Products Luxury Goods 24% Food 18% Cosmetics 14% A significant 24% of millionaires indicated that they shop for Luxury Goods online. Source: The Chinese Millionaire Wealth Report 2012
  • 27. There is a growing population of wealthy Chinese
  • 28. with a strong appetite for Luxury Goods
  • 29. To succeed, Luxury brands must confront the realities of the Chinese market.
  • 30. Message from Rupert HOOGEWERF Chief Researcher, Hurun Report | Chairman, Luxury Marketing China Summit Dear Colleague, It is my pleasure to invite you to the Luxury Marketing China Summit 2013 (24-25 April 2013, Beijing, China). A recent study showed that China is set to become the largest luxury and luxury e-commerce market by 2015. There is no denying that China is going to be one of the biggest luxury markets in the next five years. Featuring dedicated presentations on how luxury brands in China utilize branding and e-business strategies to penetrate and expand market share in the Chinese luxury industry, this event will provide you with the latest insights on how you can strengthen your position within China’s luxury market. Luxury Marketing China Summit 2013 is set to surpass all expectations. I personally am very excited to be chairing the Summit this year. Let us meet in Beijing this April. Rupert HOOGEWERF
  • 31. Be part of the finest luxury marketing conference in China CHINA LUXURY MARKETING SUMMIT 24-25 April, 2013 | Renaissance Beijing Capital Hotel, China OPTIMIZING MARKET SHARE AND BRAND AWARENESS IN CHINA THROUGH EFFECTIVE LUXURY BRANDING & E-BUSINESS STRATEGIES To attend the conference, email enquiry@iqpc.com.sg or call +65 6722 9388 www.luxurymarketingchina.com
  • 32. DISCLAIMER Please note that we do all we can to ensure accuracy and timeliness of the information presented herein but errors may still understandably occur in some cases. If you believe that a serious inaccuracy has been made within the text, please email darwin.mariano@iqpc.com.sg. This content is provided for information purposes only. IQPC accepts no responsibility whatsoever for any direct or indirect losses arising from the use of this report or its contents. REFERENCE The Chinese Millionaire Wealth Report 2012 by Hurun Report To access the fulll report, visit: www.hurun.net Hurun Report Inc. is a luxury publishing and events group based in Shanghai, China. Hurun Report Inc. has a stable of four luxury magazines, the Hurun Research Institute and an active business events division targeting China's entrepreneurs and high net worth individuals.