The document outlines the growth of the luxury market in China, projected to become the largest globally by 2015, with an annual growth rate of 18% from 2010 to 2015. It highlights that the majority of Chinese luxury consumers are under 45 and emphasizes the increasing importance of digital channels, with online luxury sales expected to reach RMB 37.24 billion by 2015. The document also notes the significance of social media and internet influence on consumer behavior and retail strategies in the luxury sector.

1. Digital Luxury Conference with P1.CN
The social network for affluent Chinese consumers
Organized by L’Atelier BNP Paribas
In partnership with
P1.CN

2. DIGITAL LUXURY LANDSCAPE
IN CHINA

3. Digital Landscape
 Largest & Fastest Digital Market in the world
© Copyright L’Atelier BNP Paribas. 2011 3

4. Luxury Market
 Today the 2nd world largest market
 Projected to rank 1st by 2015
 18% annual growth from 2010 to 2015
 accounting for over 20% of the global luxury market by then.
2010-2015 Transaction size of China luxury market
Source: Mckinsey Insights China - Understanding of China’s Growing Love for Luxury
© Copyright L’Atelier BNP Paribas. 2011 4

5. Market specificities
1 Chinese luxury market is projected to grow 18% (CAGR) from 2010 to 2015
80% of Chinese luxury consumers are younger than 45 years of age
2 (compared to 30% in the U.S. and 19% in Japan).
3 Gifts represent 30% of the luxury market
4 Male buy more than Female
Overseas purchase represent almost 50% of the market
5 (but CAGR is lower. Cosmetic is very domestic vs Watches and jewelry more overseas)
6 China’s luxury industry will probably be driven not by the middle-aged
urban super-rich but instead by the country’s fast-growing middle class
© Copyright L’Atelier BNP Paribas. 2011

6. Internet is driving sales
 Internet is now the second most important touch point for luxury buyers
© Copyright L’Atelier BNP Paribas. 2011 6

7. Driving clients to Stores
 Internet is also a key driver to bring consumers into physical stores
SOURCE: Altagamma: Online survey, conducted over 1,500 respondents in June 2011, based on luxury consumer panel
© Copyright L’Atelier BNP Paribas. 2011

8. High influence of Social media
 Blogs and social media are increasingly important in online research in China
1 In China considered social networks as Xiaonei
SOURCE :Altagamma: Online survey, conducted over 1,500 respondents in June 2011, based on luxury consumer panel
© Copyright L’Atelier BNP Paribas. 2011

9. Beyond the store: shopping online
 Few number of stores in China and poor quality of service drive many HNWI to
shop online
SOURCE: Altagamma: Online survey, conducted over 1,500 respondents in June 2011, based on luxury consumer
panel
© Copyright L’Atelier BNP Paribas. 2011

10. E-Luxury Market in China
 Total transaction size in 2011 should be hitting value RMB 10.73 billion (Euro 1.3 billion), growing
68.8% from 2010.
 It is estimated to reach RMB 37.24 billion (Euro 4.5 billion) by 2015
2010-2015 Transaction size of China online luxury market
Source: iResearch, Nov, 2011 Global online luxury market 2010:
© Copyright L’Atelier BNP Paribas. 2011
Euro 4.5 billion 10

11. Company Introduction
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12. Company Introduction
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Assist your organization to understand and engage online
consumers, design and optimize efficient digital strategies
(communication, marketing, sales, internal organization) and
detect the latest disruptive trends arising within your industry
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15. Contact us
Patrice.Nordey@mail.atelier.net
L’Atelier Consulting Management (Shanghai) Ltd.
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1118, West Yan'an Road
200052 Shanghai - China
(8621) 62810333