According to World Luxury Association's 2010-2011 annual report, China now accounts for 27 % of the global luxury market, ahead of US at 14 % and right behind Japan at 29 %. The report says China will be the world's largest luxury market in 2012.
A KPMG study (April 2011) of China's rapidly changing luxury market finds that China's luxury buyers have embraced emotive factors such as experience and self-reward in attention to status and functional quality. There is a new wave of luxury collecting and connoiseurship. The use of digital media is vital as nearly 70% of the respondents search for luxury brands on the internet at least once a month and 35%, at least once a week. Social media, such as blogs, can also be powerful brand-endorsers. There is an overwhelming preference for big-ticket items such as luxury watches in branded stores. Recognition of the world's leading luxury brands is almost prevalent. There is a very strong country assocaition with brands, particulary for European brands, such as Switzerland for watches, France for fashion and cosmetics, and Italy for footwear. Interestingly, Hong Kong features quite strongly for clothing (3rd) and jewellery (2nd).
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