chinese consumerism

Will China be the luxury industry’s saving grace?

Isaac Mostovicz writes that China's Lambda personalities could hold the key to jump-starting the global luxury industry...

chinese_wealth

According to this recent Wall Street Journal blog post, Only China Can Save Luxury Sales, the answer to that is a resounding yes.

An updated forecast from Bain & Co. out this morning shows a stronger-than-expected rise in luxury sales for Asia–especially China. It said it expects luxury-goods sales in mainland China to jump 12% this year.

In the U.S. the luxury market is retracting as one-time big spenders are becoming more aware of how others perceive their spending in a time of a global recession. However, in China, that appears not to be the case.

Meanwhile, the Chinese are discovering their inner conspicuous consumer. Sales of everything from private jets to watches and jade-inlaid Ferraris are soaring.

I wrote previously about this phenomena in Asia. Attention is shifting to Asia – and China in particular – as a growing number of people are becoming more affluent. In a country with a population of more than 1.3 billion, a growth in the number of affluent people, even small, will have an impact. Especially so if some of them are Lambda personalities, whose interests are in the most unique and specialized product, at the highest price.

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