Chinese Market Is Important For Consuming Luxury Goods

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China has about 100 cities whose urban population is over one million. In these cities, some people have considerable purchasing power, Their interest in brand is as much as Shanghai or Beijing people. In this case, it is not surprising that Cartier has entered 22 cities in China. L'Oreal not only entered the industrial city Dongguan, Guangdong, even also sold cosmetics in the western high-end, Lanzhou. In this new consumer Kingdom, the battle will move forward one step by another.

Beijing, Shanghai, Shenzhen, Guangzhou and other cities are currently concentrated about 30% of the rich in China. But by 2015, 75% of the rich will live in the second and third tier cities and some non-coastal cities.

The analyst predicts that in the next five years the people in China that are willing to buy luxury goods would increase from 40 million to 160 million people, mainly in the second and third tier cities. Second and third tier cities, as the main battlefield of the future consumption of luxury goods, have broad prospects of development, which is the main driver that a number of luxury brands vied for the second and third tier cities in China.

The analyst said that compared to the high living cost of major cities, the spending is less affluent than the urban residents, and the income of workers in the oil, electricity, telecommunications and other industries is the standard first-tier cities. They also constitute the main force of luxury goods.

The analyst said that as a new luxury consumer body, the amount of consumer spending in the second and third tier cities is almost equal to or even more than the income of consumers in the first-tier cities. According to the World Luxury Association, the first three Chinese luxury consumption capability cities are Hangzhou, Wenzhou and Qingdao.

The luxury brands see that China's wealth gap disparity provides the purchasing power for the luxury consumption. The luxury brands incurred into the second and third tier market. First they saw the huge purchasing power in this market. China's rapid urbanization and the growing wealth of region outside the cities and carry a lot of luxury consumers in the second and third tier cities.

More than 60%China's luxury goods consumption growth was from second and third tier cities such as Zhuhai, Shaoxing, Wuxi. Zhengzhou, Chengdu and other places reveal the strong consumption and business opportunities in the second and third tier cities.


About the Author:
I am Amanda Xia from china-homegarden.com.http://www.china-homegarden.com contains a great deal of information about luxury boutique hotel , plastic water tanks , home garden decor , and more.



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