China – the World’s Largest Market for Luxury Goods.
The Chinese now spend more than any other nation on luxury goods.
Once overseas spend is taken into account they are responsible for 25% of global purchases of luxury goods, this according to a recent report by Bain. McKinsey China puts the figure slightly higher, at 27%, and expects this to increase to 34% of the global market as early as 2015. The Bain report indicated that consumers in Shanghai and Beijing are starting to behave differently from those in the rest of China; they are less label conscious, behaving more like luxury consumers in the western world. McKinsey’s findings echo this, with two-thirds of respondents to the 2012 survey preferring luxury brands that are “low-key or understated”.
Hurun’s Chinese Millionaire’s Wealth Report 2012 indicates there are now more than a million millionaires in China. Unsurprisingly they are concentrated in Beijing, the Guangdong region (incorporating Guangzhou, Shenzhen and Dongguan) and Shanghai.
This country of 1.3 billion inhabitants is home to several of the world’s busiest airports. Combined passenger traffic across China’s ten busiest airports was more than 358 million in 2012. After Beijing, the busiest of these are Guangzhou Baiyun International in the south as well as Shanghai’s two international airports, Pudong and Hongqiao.
China’s ten busiest airports by passenger traffic 2012 (Source: ACI)
According to the Hurun report, China’s millionaires took 20 days’ holiday in 2012, 33% up on the previous year. France is the most popular overseas destination, followed by the US. Airports are a great place to reach this highly influential audience.