China – Advertising Luxury Goods

31/07/2014    


Great Wall of China China is a vast market for luxury goods; it is home to 10,675 ultra high net worth individuals with a total wealth of more than $1.5 trillion. China has more than 8,000 billionaires and over a million millionaires. In 2013 it represented 29% of the global market for luxury goods, and by some estimates 50% of the world’s luxury spending will come from China by 2015. Taxes on luxury goods in China are high – up to 70% – so it is unsurprising that around two-thirds of luxury products bought by the Chinese are purchased overseas. In 2013, 63.5 million Chinese took international flights, this was more than 13% higher than the previous year. China’s millionaires travel abroad 2.8 times each year and have 20 vacation days. The richest among them travel abroad 3.4 times per year and have 21 vacation days. 63% of China’s high net worth individuals list tourism as their preferred leisure activity, and it is worth noting that these individuals stagger 60% of their travel to avoid the key holiday periods. Their preferred overseas destination is France, followed by the USA, and 58% of them book their vacation with shopping in mind. Estimated Revenues by Sector Preferred International Luxury Destinations HNWIs China Airports are the perfect environment to reach this increasingly discerning and cash-rich audience. We would usually recommend a “bridge” approach, targeting the Chinese at departure points in China as well as at arrivals in key European airports. For more information please phone Sarah on +44 7973 541315. Mercedes-Benz Exhibition Stand Sources: Wealth-X/UBS 2013, Hurun Report 2013, Bain 2013, Hurun Travel 2013, CAPA


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