Chinese Hyper Luxury Products on Move
China’s growing wealthy consumer section is attracting all over the world hyper luxury products for very long time. LV, Gucci, Zegna, and other top luxury brands tapped in Chinese market in early nineties, and long before that started generating the revenues. Quite rightly, as over 300,000 Chinese have net worth of over US$1 million. Mainland’s millionaires control US$530 billion in the assets and 170 million Chinese will afford to purchase top tier brands. Indeed, that seems very clear that Chinese luxury costumer market that didn’t even exist mere twenty years ago, and is on path to dominate the top end retail.
However, what about the domestic luxury brands?
China has long history in appreciation of the luxuries — for instance, jade, tea, and silk – and given an impressive growth of the domestic consumption of all luxury products, local brands must have lots of chances to grow.
Despite Chinese costumers thirst for the luxury, some local hyper luxury products have taken off. Actually, some analysts have already observed that while it comes to the luxury Chinese costumers are likely to purchase the products made anywhere outside China.
Still, in case it is absolutely true that in the industries such as top fashion garments as well as accessories that foreign brands dominate, and in other industries, having deep line in China’s tradition and heritage, Chinese luxury brands have very good options to gain upper hand.
Indeed, same survey has already found that the high end Chinese costumers rank quality ahead of some other considerations with notable 92.7% of the respondents citing quality as first criteria while buying the luxury items, well before the brand recognition, scoring good 68.3%, and fashion design, with around 58.5%5.
