World Luxury Association Report: China is becoming the world's principal force in luxury goods consumerism

According to the “World Luxury Association 2011 Blue Report” published in March, the Chinese luxury goods market’s total consumption reached US$107 billion (not including private jets, yachts and luxury cars), amounting to a quarter of the global sum. It is estimated that Chinese consumers will spend over 146 billion USD on luxury goods by the end of 2012, overcoming Japan as the world’s number one luxury goods market. Which groups does this massive number of consumers consist of? What are they buying and what are their requests? Let us enter China and have a look at the tendencies of the world’s future number one luxury consumers.

Purchasing Power Provokes Consumers’ Lust for Luxury

When mentioning top luxury consumers in China, this usually refers to the generation born between 1990 and 1999, or the first wealthy generation since China’s opening. Because of China’s one child policy, the resulting generation born in the 90s consists of a large number of privileged children who have not been affected by any unsettling political or economic events. Wealthy Chinese parents are happy to fulfill their children’s material needs. It is expected that over the next 30 years, with the annual city population increase rate at above 1,000,000, the number of individuals with high purchasing power will continue to increase. Foreign luxury goods manufacturers are increasingly aware of this fact and are strongly focused on the growing China market. On April 2 of 2010, the Baby Dior collection officially entered mainland China. Situated in Shanghai’s prestigious Heng Long shopping center, this children’s wear clothing line was the first brand of luxury children’s goods to enter China, and many more are sure to follow.

The Influence of Living Conditions

In the ‘open’ China of today’s fast developing information age, Chinese peoples’ knowledge and appreciation of high end brands is rapidly increasing as they have the means to express their individuality. As a result, foreign luxury brand businesses have swept into China to claim their share of this vast market.