Luxusmarken in China mit weiterem Wachstum in 2013

Henning Schwarzkopf von der Hongkong ansässigen CHEURAM Consulting Group wies auf folgenden Artikel in in Jing Daily (via Bloomberg) hin Darin wird der anhaltende Trend zu Luxusmarken in China beschrieben:

With observers of China’s luxury market looking for signs of a rebound this spring, following muted growth in the second half of 2012, early indications are already pointing to a better year ahead for some brands. Despite a much-publicized crackdown on conspicuous consumption by the central government in Beijing, mainland Chinese consumers are showing up in growing numbers in their old haunts, most notably Hong Kong luxury boutiques. Coming off a tougher summer — during which mainland Chinese tourist-shoppers either held back or did more of their high-end shopping on vacations in Europe, South Korea, or North America — Hong Kong retailers recorded a 13.7 percent increase in sales of jewelry and watches after a 2.9 percent decline in October. According to Bloomberg, given the backdrop of the onset of China’s leadership transition last fall, some luxury brands are betting that Chinese spending will take off again around Chinese New Year.

Though the year is only a couple of weeks old, positive signs are already emerging that brands may indeed see a brighter 2013. Earlier this month, Salvatore Ferragamo — which currently operates around 60 locations in mainland China — announced plans to increase its stake in China joint ventures for distribution from 50 to 75 percent over the course of 2013. This, as the AP pointed out, follows recent agreements with the Hong Kong-based brand management and distribution company Imaginex Holdings as well as Imaginex Overseas. In the year ahead, we expect to see Ferragamo’s prospects in China boosted by the brand’s growing presence in second- and third-tier cities. Even if consumers in top-tier cities hold back, or do a significant amount of high-end shopping online or overseas, the changing tastes of inland consumers could be a very good development for the Italian brand. Salvatore Ferragamo CEO Michele Norsa said this week that he expects a “positive” 2013, helped by demand from Chinese, as well as Latin American, consumers in the year ahead.

China is a critical market for Zegna

Another brand that has long been popular with China’s corporate ladder-climbing male demographic, Ermenegildo Zegna, is also poised for a better 2013, having seen demand snap back in the fourth quarter of last year. According to CEO Ermenegildo Zegna, “The slowdown in China lasted for about a quarter,” with the company buoyed by consumption in smaller cities that continue to outperform Beijing and Shanghai. Added Zegna, “Overall, I hear good news from other brands too in China.” Via Bloomberg:

Chinese travellers, motivated by large price differentials and favorable exchange rates, contribute about a third of luxury sales in Europe, Fujimori estimates. Overall, tourists account for 40 percent of global luxury spend, according to Bain & Co. Zegna said he expects that rate to increase.

The closely-held clothier plans to open about 30 stores in 2013, a third of which will be in China with the rest in Latin America, the U.S., Europe and Africa, Zegna said. At least two of the openings will be in Australia, where the company is taking control of its distribution as incomes rise and the country becomes “the California of Asia,” or a holiday destination for people from the region, the CEO said.

Zegna is forecasting revenue growth of less than 10 percent this year, excluding currency swings, a prediction the CEO said is “conservative.” Worldwide luxury expenditure will advance 7 percent in 2013, according to Boston Consulting Group.

In China, sales may rise by a low double-digit percentage, the executive said. Growth in the country is becoming tougher to achieve, and also more costly, because of greater competition and an increasingly sophisticated consumer, meaning brands need to invest more to attract demand, Zegna said.

Net-A-Porter partnered with Shouke to launch TheOutnet.cn last year

On the luxury e-commerce front, following a highly contentious 2012 it appears that leaders are finally starting to solidify their positions while some newcomers are already off to positive starts. Jing Daily’s prediction that full-price, O2O models will be the ones to watch in 2013 is playing out as international players such as Neiman Marcus — via its new Chinese-language e-commerce site (a partnership with Glamour Sales Holding) — ramp up efforts. Stocking major luxury brands as well as niche designers otherwise difficult to find in China, Neiman Marcus is particularly confident about its China expansion. As group rep Chris Luan told Jing Daily last summer, “Chinese customers are growing increasingly savvy about luxury goods and there’s surging demand in the Chinese market for a website that brings to life the multi-brand, high-service, luxury retail experience provided by Neiman Marcus and Bergdorf Goodman.”

Another e-commerce powerhouse to watch closely in China this year is Net-A-Porter, which acquired the Chinese members-only discount e-tailer Shouke.com for £6.6 million (US$10.6 million) last spring and, shortly thereafter, launched a Chinese version of its “Outnet,” offering a higher-end set of designers and labels as well as discounted items. As Vogue notes this week, since making its first moves into the Chinese luxury market last year, Net-A-Porter’s expansion has “led to the company doubling its employee number and a sales increase – £238 million ($382 million) to £368 million ($591 million).”

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CHEURAM auf der Luxusmesse LPS Beijing 2011

Im vergangenen Novemer hatte die CHEURAM Consulting Group aus Hongkong einen erfolgreichen Stand auf der Immobilien- und Luxusmesse LPS Beijing 2011.

Hierzu einige Eindrücke:

http://touch.dailymotion.com/video/xrtm11_lps-beijing_lifestyle

Auich in diesem Jahr werden wir wieder dabei sein und bieten Interssenten an, sich am Gemeinschaftsstand zu beteiligen.

Nähere Informationen unter info@cheuram.com

 

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Luxusmesse in China – im September 2012 in Shanghai

Henning Schwarzkopf von der CHEURAM Consulting Group aus Hongkong und Beijing gibt bekannt, dass vom 14. bis 16. September 2012 in Shanghai die führende Messe für hochwertige, auch ausländische, Immobilien in China stafinden wird, die China International Luxury Property & Home Decor Show.

Neben Immobilien werden auch Luxusgüter aller Art und damit zusammenhängende Dienstleistungen aus- und vorgestellt, die sich an die wohlhabenden Besucher richten und damit eine wertvolle Ergänzung zum übrigen Angebot darstellen.

Die CHEURAM Group wird mit einem eigenen Stand vertreten sein; sie bietet deutschsprachigen Unternehmen die Möglichkeit an, sich in Form eines Gemeinschaftstandes daran zu beteiligen. Damit sparen sparen sie Kosten und kommen in den Genuß der vorhandenen Infrastruktur, einschließlich der Betreuung durch eine renommierte chinesischen Rechtsanwältin.

Anfragen zu den Konditionen, Preisen und zum Vorgehen sind an info@cheuram.com zu richten.

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Luxus Markt in China ist schwer zu knacken

Henning Schwarzkopf von der CHEURAM Consulting Group aus Hong Kong stellt folgende lesenswerte Meldung von Reuters zur Verfügung und weist auf die besonderen Fachkenntnisse hin, die gerade die Partner seiner Gesellschaft auf diesem Gebiet haben.

China may become the world’s biggest luxury market in some  years but cultural challenges to win customers’ hearts for certain types of  products remain, industry executives said  this week.

Champagne  house Taittinger said it could make high-end sparkling wine in  China but the market was not ready for it yet…

… while Lamborghini said the country’s tradition of luxury chauffeurs, bigger  than sports driving, made expansion there a challenge.

e5a5a2e4be88e59381 468x351 Chinas luxury market can be tough to crack

Jeweller Van Cleef and  Arpels, owned by Richemont, found it tough to get its brand message across,  while watchmaker Parmigiani Fleurier worried about finding the right  partners.

“The specific challenge about China is finding a Chinese company you can  trust and who understands the luxury business,” the luxury watchmaker’s Chief  Executive Jean-Marc Jacot said.

Taittinger said there were many places in China where it could consider  making high quality sparkling wine – champagne can only be made in the northern  French region – but Chinese palates were not accustomed yet to the pricey  tipple.

“It is probably a bit early,” Pierre-Emmanuel Taittinger said. “There is not  a strong (high-end) wine culture there yet.”

Taittinger 3 Chinas luxury market can be tough to crack

Hermes, whose chic handbags are hand made in France, would consider making  goods in China if it could find artisans to make original items, but said it  suffered from counterfeiting there.

“Our image is strongly damaged by counterfeits. That is why we are fighting  it like hell,” CEO Patrick  Thomas said. “When they (in China) see a counterfeit, they think it is  genuine.”

 Chinas luxury market can be tough to crack

Counterfeits cost luxury groups hundreds of millions of euros in lost sales  every year and imitations are becoming increasingly refined and  sophisticated.

“The challenge in China is being able to explain to 1.3 billion people what  your brand is about,” said Van Cleef & Arpels Chief Executive Stanislas de  Quercize.

While the number of high-net worth individuals in China is set to continue to  rise steadily, the bulk of the country’s population cannot afford upmarket  Western brands.

“SO MANY CHINESE”

But luxury groups agree that China, where consumers are very brand-conscious,  will soon become the industry’s No. 1 market and this year will be one of the  few emerging markets to enjoy growth.

“China will be one (of), if not the most important market in the middle, long  run,” Scilla Huang Sun, who runs a $30 million luxury fund for Julius Baer,  said.

“Chinese will not buy the very high end, like the Russians, but there are so  many Chinese … (They) save a lot and it’s a huge country.”

Earlier this month, Bernstein said its proprietary survey of Chinese luxury  retailers suggested “demand resilience through the first and second quarter of  2009, most notably for mega-brands with high brand recognition.”

China has become the number one market for  LVMH’s Hennessy cognac and the world’s second largest for its fashion and  leather goods maker Louis Vuitton.

lamborghinichina 468x351 Chinas luxury market can be tough to crack

For Lamborghini, it will overtake Italy as the second biggest market behind  the United States in three to five years.

“They love what is coming out of Europe. What is European is something they  want to possess,” CEO Stephan Winkelmann said.

Watchmaker  Hublot, in China since January, plans to open 10 shops there by end-2009. By  2012, it would like to see China its third or fourth market after United States,  Europe and Japan.

“I think there are a lot of people who comment on China as being pictured as  the biggest premium market because they see the growth from a very tiny base to  a very large base,” said Tom Purces, CEO of British  luxury car firm Rolls Royce.

“We went from a handful of cars in China to over 100 cars there last year.  That’s immense in a very short period … but I don’t believe that that growth  will be sustained at that level.”

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Luxusmarken auf dem Weg nach China mit Events und modifizierten Kollektionen

Henning Schwarzkopf von der CHEURAM Consulting Group aus Hongkong weist auf folgenden lesenswerten Artikel in der Welt vom 26. Mai 2012 hin:

Jubel brandet auf, als ein Gentleman im bordeauxfarbenen Samtsmoking am Ende der Show von Hugo Boss über den Laufsteg geht. Die 1500 Gäste im Pekinger National Agricultural Exhibition Center sind aus dem Häuschen. Jemand aus der ersten Reihe steht auf, verbeugt sich und stimmt “Happy Birthday” an. Während die meisten ihr Fotohandy in die Hand nehmen und entzückt sind, fragen sich die anderen, aus der restlichen Welt angereisten Besucher: “Wer ist das bloß?”

Chow-Yun Fat heißt das Geburtstagskind. Er feierte seinen 57. Geburtstag. Mehr noch: Chow-Yun Fat ist quasi der Brad Pitt Chinas und das Gesicht von Hugo Boss in Asien. Er war der Stargast (nun gut: Tilda Swinton war auch da!) des großen Events der Metzinger in Peking, bei dem die Herbst-Winter-Kollektion von Boss Black und ausgewählte Stücke der Signature-Linie vorgestellt wurden.

Doch der elegante Herr mit dem sympathischen Lächeln war auch etwas anderes: Ein Beispiel dafür, wie in China noch immer zwei Welten aufeinandertreffen. Zwar ist Hugo Boss bereits seit 30 Jahren in China aktiv und erfreut sich bei der wohlhabenden Gesellschaft eines guten Images. Dennoch wissen die Deutschen, dass man den Chinesen immer wieder etwas bieten muss, um mithalten zu können. Schließlich ist Asien – und vor allem China – ein wachsender Markt für europäische Designermode. Keine Frage: China mag die Mode made in Germany.

Dennoch ist es nicht so, dass die Globalisierung weltweit für den gleichen Geschmack sorgt. Auch Hugo Boss hat die gezeigte Kollektion an diesem Abend auf die Wünsche und Erwartungen der chinesischen Kundschaft abgestimmt. Die männlichen Models führten klassische, aber sehr modern geschnittene Anzüge vor. Die Frauen überzeugten vor allem durch einen sehr glamourösen Appeal. Bleistiftröcke gehörten zum Repertoire genauso wie elegante Abendkleider in Pflaumentönen.

Diese Form der Feinjustierung für den asiatischen Markt ist in der Branche üblich. Die Zeiten sind schließlich schwierig. Kundenbedürfnisse werden daher sehr ernst genommen. Vor allem dort, wo noch gekauft wird, als gebe es kein Morgen. Die Beschreibung “It’s so Dubai!” für Bling-Bling-Mode kann daher mittlerweile guten Gewissens auf China umgemünzt werden.

Bereits im vergangenen Jahr ließ beispielsweise Miuccia Prada eine komplette Laufstegkollektion in anderen Stoffen nähen und führte diese wenige Wochen nach der Premiere in Mailand noch einmal in China vor. Der Grund: Prada hatte ursprünglich alle Looks aus schwerer Baumwolle herstellen lassen. Das Material gilt bei den Wohlhabenden im Reich der Mitte allerdings als “billig”. Also änderte Miuccia Prada ihre Einstellung zu “Einfachheit ist der neue Chic” und redesignte ihre legendäre Kollektion mit Blockstreifenstyles und Josephine-Baker-Bananen-Röcken aus Seide und bestickte sie mit einer Fülle von Kristallen. Auch in diesem Jahr planen die Italiener, die ihren Börsengang in Hongkong vollzogen, weitere Veranstaltungen vor Ort.

Und für die gilt unisono eigentlich nur eins: “Klotzen statt Kleckern”. Vor vier Jahren feierte bereits Salvatore Ferragamo sein 80. Firmenjubiläum nicht in der Heimat, sondern in Shanghai. Begründung: Der Firmengründer habe eine enge Beziehung zu China gepflegt.

Gleich zwei Events werden dagegen in den nächsten Wochen für ein noch nie dagewesenes Spektakel sorgen. Anlässlich einer Shop-Eröffnung, hierzulande bestenfalls mit einem Gläschen Champagner und Tomate-Mozzarella-Spießchen abgehandelt, baut Montblanc in Peking das Casino von Monte Carlo nach. Denn dort wurde im vergangenen Jahr die “Gracia-Patricia-Kollektion” einem ausgewählten Publikum vorgestellt. Nicht unerwähnt soll bleiben, dass der vierstöckige “Sanlitun Concept Store” gleichzeitig die größte Montblanc-Boutique der Welt sein wird. Alleine in China unterhält das Unternehmen 93 Filialen. Mitte Juli sorgt dann Louis Vuitton für einen großen Bahnhof in Shanghai. Zur Eröffnung eines Maisons, wie die Marke ihre größten Flagship-Stores nennt, zeigt Marc Jacobs seine Herbst-Winter-Kollektion vor Ort. Das Spektakuläre: Für die Show in Paris wurde ein Zug gebaut und Gleise auf den Laufsteg verlegt. Und da Marc Jacobs seine treuen Kundinnen in Asien nicht enttäuschen will, wird selbstverständlich auch die Lokomotive samt Waggon nach Shanghai verschifft.

Fast schon schlicht, dafür aber markentreu, kam da der Event daher, der ebenfalls in der vergangenen Woche stattfand. Bottega Veneta eröffnete in Shanghai ebenfalls einen neuen Store, den vierten in der Stadt. In der Yifeng Galleria werden neben der gesamten Kollektion der Marke im zweiten Stock die Werke von jungen chinesischen Künstlern ausgestellt. Zum Opening reiste nicht nur Kreativdirektor Tomas Maier an. Er brachte auch die Handwerker aus dem Firmenatelier mit. Sie zeigten den Gästen, wie die berühmten Flechttaschen von Hand hergestellt werden.

Diese Beispiele sind allesamt ein Statement des Luxus. Aber gleichzeitig ebenfalls eine Art Bestandsgarantie. Eine Investition in die Zukunft. Denn auch die Chinesen holen im High-End-Sektor auf und drehen den Spieß langsam um. Der Uniformhersteller China Garment beispielsweise lässt ab sofort Bekleidung für sein neues Label SheJi-Sorgere beim Herrenausstatter Caruso produzieren. Dessen Inhaber ist Umberto Angeloni, ehemaliger Boss des italienischen Edelschneiders Brioni.

Noch aber boomt für Europäer der chinesische Markt. So vergeht kaum ein Monat, in dem nicht ein Luxusunternehmen einen Shop eröffnet und dafür eine Party feiert, als hätte man 100. Firmenjubiläum. Nicht umsonst ist die tägliche Flugverbindung Frankfurt-Peking im Airbus A380 angeblich eine der lukrativsten Strecken der Lufthansa. Doch auch das wird sich irgendwann ändern. Schon wird Südamerika als Kontinent mit großer Lust auf Teures gehandelt. Es bleibt also nur eine Frage der Zeit, bis Spitzendesigner, Models, Outfits, Laufsteg-Bauteile und Fingerfood-Spezialitäten bald in eine ganz andere Richtung düsen. Und sich Europäer die Namen ganz anderer ortsansässiger Topstars merken müssen …

 

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Reichtum in Shanghai

Die CHEURAM Consulting Group Ltd. stellt folgenden Bericht aus der Jing Daily zur Verfügung und empfiehlt deutschen Unternehmen und Unternehmers, die Gelegenheiten im China – Geschäft und sich sorgfältig vorzubereiten:

According to the recent “Shanghai Wealth Report 2012,” published by the Hurun Report and Australia’s Gao Fu Wealth Management, Shanghai, mainland China’s financial center and a rising star on the global business scene, now has 370,000 residents worth at least 6 million yuan (US$949,710), with business owners, real estate investors and professional investors ranking as the city’s wealthiest. The report adds that 140,000 Shanghai residents have assets of 10 million yuan (US$1.6 million) or more, an increase of 6.1 percent over last year and a full 14 percent of China’s high net worth individuals. A similar increase of 5.1 percent was seen among the 8,200 “super-rich” residents, whose net worth meets or exceeds 100 million yuan (US$15.8 million). Of the super-rich individuals in Shanghai, the Hurun Report details, 75 percent are business owners, while real estate investors account for 15 percent and professional investors account for 10 percent. “This year’s report,” said Rupert Hoogewerf, chairman and chief researcher of the Hurun Report, “shows that property is the biggest source of wealth in Shanghai, while globally, most wealth comes from professional investment.”

Still, since China’s real estate industry remains on shaky ground and the stock market is far from a source of strength, Hoogwerf added that we should see changes in the makeup of upcoming rich lists. Currently, Liu Yongxing of the East Hope Group and Zhou Chengjian of fast-fashion retailer Metersbonwe Group rank as Shanghai’s wealthiest residents, with Liu’s fortune reaching 41 billion yuan (US$6.5 billion) and Zhou’s 32 billion yuan (US$5 billion). And as the enthusiasm of a growing number of wealthy Shanghainese has cooled towards stock market or real estate investment, interest in wealth management products and the art market has grown over the past two years.

According to a recent survey of 1,200 wealth-management product investors around China by Citigroup, 73 percent of respondents planned to invest more in these products in the next year, with the Wall Street Journal noting an “exodus” from bank deposits among wealthy Chinese. As Citibank’s study concluded, “[wealth-management products] are likely to continue to grow rapidly in China and to maintain their drag on deposits in the near term.” This growing interest in wealth management among wealthy Chinese has given an increasing number of banks the motivation to offer a wider array of these products, with the Australia and New Zealand (ANZ) Banking Group saying this week it plans to invest US$300 million to support the growth of its China subsidiary and boost its presence in the Asia market. As ANZ CEO Mike Smith said in Beijing this week, the bank is “on the verge of getting the green light” to provide retail banking and wealth management services in China. Said Smith, “Wealth management and individual wealth products are definitely things we will look at in future.”

As overall Chinese economic growth is expected to slow this year, banks expect an increase in the number of wealthy individuals to seek higher rates of return via wealth management services, with the Australian noting this week that ”many households are taking advantage of the gradual opening of access to other wealth-management products than bank deposits, the return of which is generally below the inflation rate.”

In addition to wealth management products, another area where some wealthy Shanghainese have put their money is the art market. Over the past several years, this has been particularly true for the city’s ultra-wealthy, among them super-collectors Liu Yiqian and Wang Wei, who have spent an estimated US$317 million on Chinese modern, revolutionary and contemporary art and antiques. This November, Wang and Liu plan to open their private “Long” (or “Dragon”) Art Museum (龙美术馆) in Shanghai, a 10,000 square meter (107,640 square foot), three-level private museum on which the couple has spent an estimated 200 million yuan (US$31 million) of their own money to fund. Designed by Zhong Song (仲松), a “post-70s generation” artist and architect who started off his career at the studio of the late Beijing artist Chen Yifei, the museum’s facade will feature a light-colored granite facade onto which images will be projected, while the interior will feature separate sections for modernist artwork, Wang Wei’s beloved collection of “Red Classics” from 1949-1979, and Chinese contemporary art, as well as space for arts education classes.

Along with Wang and Liu, a growing number of Shanghai’s wealthy, aspiring collectors are getting involved in the market, so quickly that Liu himself doesn’t even recognize many of the new players. As Liu told Sohu Finance last summer:

[I expect] we’ll see more and more new collectors enter the market. Over the past five years, there were only a few collectors involved with this market, and we were therefore quite familiar with buyers as well as sellers. But this situation has changed this year, as half of the buyers are even new to me.

I guess I’ll only know less than one-fifth of the players in this area in the next five years.

As the Huffington Post recently pointed out, it’s not just an interest in diversifying assets away from cash or real estate to avoid inflation or economic fluctuations, there’s a growing status element to the art-collecting trend exemplified by Wang and Liu, as well as other prominent collectors like Indonesian-Chinese contemporary art devotee Budi Tek and Yang Bin. This is tied closely to the (slowly) growing interest in philanthropy seen in China. Though philanthropy remains in its relative infancy in China, with donations reaching US$16.4 billion in 2010 — compared to $291 billion in the United States — according to China.org.cn, philanthropy tied to arts education and private museums is becoming increasingly visible in places like Shanghai. As the Huffington Post noted:

A growing interest in philanthropy is one reason behind the private museum boomlet. Rapid growth is creating thousands of new millionaires in Asia each year. Their ranks grew to 3.3 million in 2011, surpassing Europe for the first time, according to Merrill Lynch and Capgemini. Between January last year and March this year, China’s top 100 philanthropists donated $1.6 billion, according to the Hurun Report, a Chinese rich list. That’s about a fivefold increase from 2004 when the list started.

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Hongkong als Shopping Paradies für reiche Chinesen vom Festland

Henning Schwarzkopf von der CHEURAM Consulting Group ion Hong berichte, dass Touristen vom Festland ein wichtiger Witschaftsfaktor geworden sind. Im Jahr 2012 stieg der Zahl der Besucher auf 28 Millionen was einem Anteil von 67% entspricht.

From waiting in hours-long lines to stock up on luxury goods to causing controversies at the Dolce & Gabbana flagship in Tsim Sha Tsui to making a rental-space bidding war break out between Abercrombie & Fitch and Shanghai Tang, the effects of more visits (and more spending) by mainland Chinese in Hong Kong are being felt throughout the city’s retail landscape. Last year, 28 million mainland Chinese visited the former British colony, a 24 percent rise over 2010, accounting for 67 percent of all tourists visiting the city and helping spending by visitors rise 21 percent to HK$253 billion (US$33 billion), according to the Hong Kong Tourism Board. Drawn by factors — covered regularly by Jing Daily — that include duty-free shopping and greater prestige, spending by mainland Chinese tourists has led virtually every brand (from mass-market to luxury) around the world to rush into the city, causing rents to skyrocket. According to London-based Savills, rents in Hong Kong have risen for seven of the past eight years, due primarily to growing Chinese spending and the resulting war for prime retail space.

This week, Bloomberg looks at the spiraling prices in Hong Kong, where ground-floor rents rose an average of 5.23 percent in the first quarter of the year and are expected to rise a further 12 percent in the next 12 months and where tenants “have little bargaining power.”

Hier ein interessantes Interview bei Bloomberg:

Bloomberg zum Luxus- und Immobilienmarkt in Hongkong

 

 

 

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The Chinese Luxury Consumer White Paper 2012, jointly published by the Industrial Bank and Hurun Report

Henning Schwarzkopf von der CHEURAM Consulting Group Ltd. aus Hong Kong verweist auf einen sehr interessanten Artikel im Hurun Report mit dem Titel The Chinese Luxury Consumer White Paper 2012 in Zusammenarbeit mit der Industrial Bank of China.

  • There are 2.7 million high net worth individuals (HNWIs) in China with personal assets of more than 6 million Chinese yuan (equivalent to US$950,000) and 63,500 ultra-high net worth individuals(UHNWIs) with assets of more than 100 million Chinese yuan (US$15.8 million)
  • Chinese luxury consumers expect their private banks to provide value-added services relating to luxury travel, health care and children’s education
  • 70% of those who have read an Executive MBA want to study a second one
  • 85% plan to send their children to study abroad
  • The luxury consumer exercises 2.3 times a week
  • High net worths are on the road 6.9 days a month, with ultra high net worths 9 days
  • Two thirds have started a collection: watches and classical Chinese paintings are most popular
  • Half have a religious belief
  • 10% of annual spend goes on gifting. 80% of gifting is for business.
  • 73% of individuals purchase luxury goods in Hong Kong.  28% purchase goods in the Mainland
  • Internet surpasses television as the main source of obtain shopping information
  • 20% have little confidence in their knowledge of what they are collecting
  • Li Kaifu’s Weibo or micro-blog is most popular, followed by Wang Shi, Pan Shiyi, Ren Zhiqiang and Shi Yuzhu
  • 35% own pets
  • 13% of UHNWIs intend to purchase a corporate aircraft

The Industrial Bank and the Hurun Report Research Institute today released The Chinese Luxury Consumer White Paper 2012, a ground-breaking report on private banking in China and the evolving lifestyle of the Chinese luxury consumer. This authoritative 48-paged report comes at a time when the nation’s high net worth individuals (HNWIs) are growing rapidly and seeing an evolution in their value systems and tastes.

Industrial Bank’s vice president of retail banking and general manager of private banking, Zhang Changgong, said, “The consumer lies at the heart of a country’s stable economic development, and analyzing the consumption demands of the luxury consumer has practical significance to expanding domestic demand. This white paper is able accurately to reflect the characteristics and trends of the Chinese luxury consumer. We are proud to put out this white paper with the Hurun Research Institute, the authority when it comes to the Chinese luxury consumer.”

Hurun Report chairman and chief researcher, Rupert Hoogewerf, said, “We are delighted to cooperate with Industrial Bank, one of the world’s most innovative banks, to produce this authoritative and ground-breaking report on the Chinese luxury consumer. Most brands now recognise the spending power of the Chinese luxury consumer, but we believe this report to be the first serious attempt to ask the question of ‘Who these people are and what makes them tick?’.”

Between October 2011 and January 2012, the Industrial Bank and Hurun Research Institute conducted 878 face-to-face interviews with Industrial Bank private banking customers from 29 cities across China. The average personal wealth of respondents was 49 million Chinese yuan.  Their annual spend was 3% of personal wealth.

How big is the market

In the report, we classify HNWIs as those with more than 6 million Chinese yuan worth of personal assets. At present, there are 2.7 million high net worth individuals in China, 6 in 10 being male, with an average age of 39 years. Their main sources of wealth are returns on investment and the ownership/sale of their companies. Their main investment choices tend to be real estate, stocks and shares, however, interest in fixed income investments is gradually increasing. In addition, they own an average of three cars, four watches, take 20 days of holiday a year, with their preferred sporting activities being golf and swimming.

There are 63,500 UHNWIs with personal assets of more than 100 million Chinese yuan. 8 in 10 are male, with an average age of 41. Their main source of wealth is through the ownership/sale of their companies. Real estate and stocks remain the two most popular investment choices, but they also invest more in art and unlisted companies. UHNWIs own an average of three cars, six watches, take 20 days of vacation a year, and like playing golf.

Analysis of the regional distribution of HNWIs shows that East China accounts for the highest proportion, at more than 40%, whilst Beijing has the highest total number, with 460,000 individuals, 10,500 of them UHNWIs. Guangdong province is in second place, followed by Shanghai and Zhejiang province.

Key consumer spending areas – travel, daily luxuries, children’s education

HNWIs spend an average of 3% of their personal wealth a year.

Travel is the biggest area of consumption for HNWIs, accounting for 19% of their annual spend. Next come daily luxuries, at 15% and children’s education which accounts for 12%.

Travel, healthcare and children’s education are top three consumption hot-spots

Luxury travel is emerging as the hottest growth area in terms of spending. More than 50% of HNWIs expect their expenditure on travel to increase in the future, with health and wellness and children’s education close behind at 40%. China’s HNWIs are paying ever more attention to their health, with 73% choosing to have regular check-ups, and a further 10% already having a personal physician. There is also a clear rise in the proportion of both male and female HNWIs who neither drink nor smoke. The number of male HNWIs who do not smoke rose from 35% in 2010 to 50% in 2011, whilst those who stopped drinking rose from 19% in 2010 to 25% in 2011. Children’s education is HNWIs’ third largest area of spending, with 85% saying they have a plan to send their children abroad to study, while among UHNWIs the figure is 90%. Furthermore, a growing proportion is choosing to send their children abroad earlier.

HNWIs want their private bank to provide luxury travel advice, with 60% of respondents. Half want health-related value-added services, while more than 1/3 favouring services related to their children’s education. HNWIs are greatly interested in value-added services provided by private banking, since such services not only increase their knowledge and provide entertainment, but also offer them a chance to expand their social circle.

Education is seen as an important platform for improving one’s Social Networks

Almost half of HNWIs intend to take part in training programmes over the next three years. Over a third of HNWIs like to attend conferences and lectures, while almost 30% have taken part in EMBA programmes or further education classes for CEOs. Among those who take part in EMBAs and CEO further education classes, more than ¾ feel that the biggest benefit they get from this is in helping to expand their Social networks. For HNWIs below 30 years, improving their social networks (87%) and educational level (45%) are top priorities. In addition, almost 60% of HNWIs seek to better themselves through reading.

1/3 are Buddhist, followed by Christians and Moslems at 7% and 3% respectively

Approximately half of HNWIs have a religious faith, with Buddhism the most popular, at 30%. 7% are Christians, of which 70% are Protestants and 30% Catholics. Half profess to have no religious faith.

The proportion of HNWIs who are Buddhists is higher than the average for the country, which stands at 18%, according to data from the ‘Religious Blue Paper: Report on Religion in China (2011)’.

Young HNWIs, aged below 30, are more likely to be Christians, at 11%, compared with the over 30s (31-45: 5%; over 45: 3%). Of the HNWIs who possess a religious faith, the proportion of women is higher (37%) than that of men (25%).

Gift spending accounts for 10% of annual consumption, with 80% for business

Gifts are one of HNWIs’ five top areas of spending, costing them some 150,000 Chinese yuan per year – and, for UHNWIs, more than 260,000 Chinese yuan. Gifts given at business occasions account for almost 80% of the presents given by HNWIs, while more than 40% of HNWIs also need to give gifts at weddings and other celebrations. The majority of HNWIs will choose gifts worth between 5,000 and 20,000 Chinese yuan, with men choosing more expensive gifts than women. Watches are HNWIs’ first choice for gifts when buying for a man, while red wine is the most common gift among UHNWIs.

High quality and exceptional brand reputation are seen as the most important luxury good characteristics

Quality is seen as the prime luxury good characteristic of luxury goods, reflective of a shift beyond seeing the luxury good as a status symbol. HNWIs are not concerned  about the price, and the most important factor is the product itself, followed by the purchasing environment. HNWIs’ luxury goods purchases are concentrated in watches and jewels, whereas purchases by UHNWIs are showing a clear trend towards super-luxury goods such as yachts and private jets. In addition, it is of no surprise that more men bought watches (66%) and tobacco and alcohol products (36%), while more women bought jewels (58%), clothes (51%) and accessories (31%).

Hong Konghas become the undisputed first choice destination for HNWIs to buy luxury goods or high-end consumer products. Less than 30% of HNWIs buy luxury goods domestically, due a lack of product safety, poor management, a lack of credibility, high prices and high taxes. Hong Kong accounts for 73% of luxury or high-end purchases made by HNWIs, followed by those made in Europe and domestically, both at 28%. On average, HNWIs go abroad to Hong Kong to go shopping 2.9 times a year, whilst among UHNWIs the frequency of such trips is markedly higher, with an average of 3.7 times a year.

The Internet dominates television as the main source of information for consumer products

The Internet remains the most widely used media resource, with 67% HNWIs using it as their primary source of information. Sina.com is the most popular website, favoured by 73%, followed by Sohu and Tencent, at 47% and 35% respectively. More than 60% of HNWIs will obtain information from the web before making a purchase, a higher percentage than those who get information from television, magazines, or recommendations from family and friend (50% each). Television is the second-most used media source, with 62% of HNWIs mainly getting information from television. Of these, more than 70% mostly watch news and business programmes.

Leisure spending and travelling abroad

HNWIs work 39 hours every week, and spend 18 hours on leisure and entertainment. There is no obvious distinction between their working days and the weekend – they simply work when they need to, and take time off when they want. HNWIs go abroad an average of 3.2 times a year, while for UHNWIs the figure is more than 4 times. Holiday and business are the main reasons for travelling abroad. HNWIs spend an average of 7 days a month travelling for work, while UHNWIs travel the most, averaging 9 days a month. HNWIs take a relatively high number of holidays, averaging 20 days break a year, while 30% take more than 30

General Consumption Trends

HNWIs’ way of life can be divided into three main stages: wealth creation, wealth preservation, and wealth appreciation. Having passed through the first phase where luxury goods are used as tools to confirm one’s social status they have now entered the stage of wealth preservation with a lower-key way of life and are edging towards the final stage of wealth appreciation which sees more taste-based consumption as well as a more charitable way of life.

An additional trademark of the second phase which is seen in abundance with Chinese HNWIs is the joining of clubs and societies, partaking in elite sports, completing further education courses or becoming a collector of fine items.

 

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Mode in China: Jason Wu bei der New York Fashion Week

Henning Schwarzkopf von der CHEURAM Consulting Group aus Hongkong hat folgenden Film über den chinesischen Modeschöpfer Jason Wu zur Verfügung gestellt:

Jason Wu

 

 

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Luxus in China weiter im Trend

Henning Schwarzkopf von der CHEURAM Consulting Group aus Hongkong macht auf eine sehr interessante Studie der Unternehmensberatung Bain & Company aufmerksam, deren Untertitel “China fordert Höchstgeschwindigkeit” lautet.

Der Tenor lautet: Der chinesische Markt entwickelt sich mit einer einmaligen Dynamik. Wenn deutsche und Schweizer Unternehmen den Anschluss nicht verlieren wollen, müssen sie noch einen Gang höher schalten und China zu ihrem zweiten Heimatmarkt machen.

Hier ist der Link zur Studie: BainBrief_Quansu-Strategie_2011

 

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