- CNTV English - CCTV News

Homepage > News > Biz >

China set to snap up $17b in luxury goods, pass Japan

05-06-2011 11:15 BJT

Rich buyers catapult country into second place in high-end market

SHANGHAI - China will replace Japan as the world's second-largest luxury goods market this year, behind the United States, according to a global management consulting firm on Wednesday.

If it happens, it will be the first time that sales of luxury goods in China exceeds those of Japan since records began.

Meanwhile, in contrast, the nation still has about 150 million people living in poverty, according to the United Nations' standard that counts people who live on less than one dollar per person per day. China's population of people meeting that standard is the second-largest in the world, behind India.

It is expected that luxury goods sales in China will see 25-percent year-on-year growth this year, to $17 billion, while Japan will see a decline of 5 percent, partly because of the recent earthquake, according to Bain & Company's latest report. The report was jointly published by Fondazione Altagamma, the Italian luxury goods industry trade association.

Sales in the Americas in 2011 will grow by 8 percent, to nearly $77 billion and the US will remain the world's largest luxury goods market, the report predicts.

Statistics from the report show that the global luxury market has experienced a "brilliant" rebound in 2010, rising 12 percent from 2009 following two consecutive years of decline and surpassing its prior worldwide peak of $252 billion in 2007.

World famous luxury goods makers, including LVMH, Burberry and PPR, have seen stronger sales increases than expected. And Bain has also adjusted its prediction of luxury goods sales for 2011, up from between 3 and 5 percent to 8 percent.

Because the robust growth is likely to continue, the focus of luxury goods manufacturers will be shifted to emerging markets during the next two to three years, the study suggests.

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program