McKinsey: Chinese make up one third of global turnover in luxury goods

Some of the stands at the Xiamen Stone Fair 2017 showed that there is a category of consumers looking for timeless style. See the <a href=""target="_blank">Zun Group Ltd</a>-booth.

Consumers are aware of value for the money and keen on well-known brands, timeless style and quality products

One third of world-wide turnover in luxury goods was chalked-up to Chinese consumers in 2016. Until 2025 an anticipated 44% of the market amounting to one trillion Renminbi or 131 billion Euro (157 billion US-$) will be in the hands of Chinese consumers. This is the result of McKinsey’s „China Luxury Report 2017“ now in its eighth edition.
The number of Chinese millionaires continues to grow in staggering proportions: 2018 will see more of them than in any other country in the world according to the analysis.

Chinese buyers of luxury goods are fiercely loyal to brand name goods: 93% of purchase considerations are concentrated on buyers’ two top preferred brands. And the main reason for purchase of a particular brand is the same across the board: global recognition of a particular brand. Luxury clothing, accessories and watches are chosen for „quality material“ and „timeless style“.

Whereas Chinese make most of their purchases online, luxury goods are an exception to the rule. One of the main reasons for reservation in purchasing online where luxury goods are concerned is fear of plagiarism.
Well-to-do Chinese are aware of value for the money and skeptical as far as special offers at home are concerned. Which is why shopping trips are so popular. They value the great palate of products, the shopping experience in retail outlets and customer service.

China Luxury Report 2017

See also:

(11.10.2017, USA: 10.11.2017)