luxury consumer

Chinese Luxury Market looks after its own

Isaac Mostovicz writes that home-grown Chinese brands may have the opportunity to overtake their European counterparts in the near future...

A recent article in Black Friday Magazine talks about how, for the first time, luxury Chinese brands could be overtaking overseas companies in terms of popularity with their domestic audience. The old guard of Hermes, Gucci and Louis Vuitton could see themselves ousted by Chinese luxury brands like Shanghai Jahwa United, which sells highly regarded yuan perfumes, and Eve Group, which offers luxury menswear to high-profile customers such as martial arts actor Jet Li.

Image courtesy of Stock.XCHNG

The article goes on to discuss how Chinese consumers are becoming more interested in reattaching themselves to their country’s heritage and culture, so there could be significant opportunities for domestic brands looking to take a slice of the $33 billion luxury market.

“China’s manufacturing was very backward 30 years ago, and consumers worshiped and pandered foreign goods and ideas,” Jahwa Chairman Ge Wenyao said. “Foreign products are still good but the aura surrounding their brands is no longer there.”

A previous post in this blog talks about the new standard for “Made in China” goods, where brands are committing to providing quality goods for its domestic consumers. It will be interesting to see if China is able to produce some home-grown luxury brands that in time will appeal not only to the Chinese audience but have global allure.

 

You say of this article...

Bookmark and Share

Online Chinese luxury market looks set to soar in future

Isaac Mostovicz writes that Chinese consumers will buy more luxury goods online in the future, according to a new report ...

A recent article in China Daily reports that for the first time, the e-commerce luxury market in China has exceeded 10 billion yuan (USD 1.59 billion.)

Image courtesy of Stock.XCHNG

The article, citing research by the firm iResearch Inc., sees this success looking set to continue expanding at 30% year on year over the next several years.

 

Previous blog posts have discussed the seemingly unending Chinese love affair with luxury goods, and this research shows that sales through luxury brands online have surged by nearly 70% compared with 2010.

 

However, although growth looks set to continue in the future the market is by no means as developed as it could be. As of last year, the turnover of luxury goods accounted for only 1.41 percent of China’s total online shopping industry.

 

“So far, China’s online luxury market remains small. We are waiting for it to explode,” Chen Xiao, founder of the luxury goods selling website ihaveu.com, told Chinese-language newsmagazine, China News Weekly.

 

High tariffs, consumption tax and import duty all contribute to the market being currently underdeveloped. Whether this is set to continue or the Chinese love for luxury will overcome these barriers remains to be seen.

 

 

You say of this article...

Bookmark and Share