Luxury goods demand may peak by 2015
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Move over Japan. China is poised to become the world's largest luxury goods market in the next five to seven years, according to Boston Consulting Group in its latest survey of Chinese consumer trends released in Beijing yesterday.
"By 2015, 29 percent of global luxury product consumption will come from China, making it the world's largest luxury market," Vincent Lui, principal of Boston Consulting's Hong Kong office, said at a news conference yesterday.
China, which presently consumes about 25 percent of the world's luxury products, is the second largest luxury goods consumer after Japan, according to earlier reports.
The survey entitled "China's Luxury Market in a Post Land-Rush Era", surveyed more than 2,550 consumers across the country last year, of which 26 percent said they spent more on luxury items in 2009 than in 2008.
"Although Chinese consumers may continue to be somewhat cautious in their spending, they still aspire to own luxury brands," Lui told China Daily.
China's booming luxury goods market makes it an oasis of hope for global luxury brands, which are losing ground in other markets.
At present, Shanghai and Beijing have as many luxury point-of-sale locations per capita as both New York and Chicago. Plus, the two Chinese cities have a slightly higher concentration of luxury watch outlets than other major city in the world.
For luxury purveyors, a big part of China's allure is the rapid pace of wealth accumulation.
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