The latest McKinsey report on luxury goods is great news for exporters
go to site By 2015, it predicts that the Chinese market will represent 20% of the world market for luxury goods.
watch What are luxury goods?
Anything from clothes, wine & spirits, shoes, perfumes & cosmetics, expensive cars, basically anything that can show off a persons wealth or even expression.
The McKinsey research found the following key features;
1. Shift in attitudes, with Chinese consumers feeling more comfortable about purchasing luxury goods.
2. Chinese consumers are more sophisticated in their purchase choices that they used to be. This means more consumers recognize brand names and can distinguish quality features that define why high end brands can demand higher prices. Furthermore, these days more Chinese have travelled overseas and therefore have a better understanding of pricing and benchmarking. The really exciting news for brand owners is that there is a growing trend to own the ‘real thing’ over a ‘fake’ version.
3. The market for luxury goods is spreading inland, where previously the Tier 1 cities such as Shanghai and Beijing had the greatest demand for luxury goods, this is trending inland with Tier 2 markets increasing this exposure.
A point that was made that is of key interest to me, is the reliance of consumers on the internet. Aside from better customer service, the Internet rates as the second most import influencer to Chinese customer when making purchasing decisions. For brand owners this means much thought should go into having a sophisticated web strategy that includes online social media China.
See my previous blog on this subject, China Internet Buzz
To read the full report go to, tapping Chinas Luxury Goods Market