Chinese Luxury Market

In 2005, Ernesto and Yang announced reports on China's luxury market, China became the third largest consumer of luxury fashion, accessories and other luxury goods in the world, accounting for 12% of worldwide sales. 2005). In addition to other similar reports on the Chinese economy, especially the rapidly growing luxury market, many luxury brands from Western European countries such as France, Italy and the United Kingdom have entered the market and luxury not yet entered the market I have plans for brands to enter. .

The report analyzes China's luxury market based on supply and demand. According to analysis of supply structure, Chinese luxury goods depend mainly on imports. China's luxury brands are very limited. As the European luxury market declines, more and more international luxury brands are entering the Chinese market. Almost every luxury brand has its own store. Furthermore, from a demand perspective, Chinese consumers are different from other European and American consumers. Chinese consumers are more concerned about social position and vanity, especially young white collar workers. Chinese consumers with high income and advanced degrees are often between 30 and 45 years old. Figure 2 below shows the product category in China's luxury market. Clocks, cosmetics, perfumes are obviously a larger proportion than other products.

In 2005, Ernesto and Yang announced reports on China's luxury market, China became the third largest consumer of luxury fashion, accessories and other luxury goods in the world, accounting for 12% of worldwide sales. 2005). - As a communist country, China is at the intersection of reform and traditional communist values. In fact, in 2012, the World Bank announced an impressive report that the People's Republic of China needed reform, or that it is facing a complete destruction (Brinkley 26). It has been shocking that since 1978, China has taken the path to ultimate destruction and relief.

Many market participants and academic researchers believe that by 2015 China will become the world's second largest consumer of luxury goods. Under the understanding of development trends in China's luxury goods market, it can help clarify this idea (Ministry of Commerce) to determine the following figure: In 2007, China's retail spending was 8.9 trillion yen (1.3 trillion dollars), an increase of 17 from 2006. Meanwhile, China's retail sales in 2008 reached 10.9 trillion yen (US $ 1.6 trillion), an increase of 21.6%. China's personal consumption growth may slow down in the first half of 2009, but it will still be fairly steady. In other words, we have still achieved double-digit growth in this market, which offers great opportunities for domestic and international luxury companies. Therefore, China will become the second and only country in Japan.