- CNTV English - CCTV News

Homepage > News > Biz >

China to overtake Japan as top luxury goods consumer

09-27-2011 11:52 BJT

China is expected to top Japan to become the world's largest luxury consumer this year, a research report on luxury goods released last week by the Hong Kong and Shanghai Banking Corporation (HSBC) said.

Statistics revealed by the report said China overtook France to become the world's third biggest importer of Swiss watches in the first half of this year, a 49 percent increase over the same period last year.

The report said that part of the cause is the mindset of Chinese to show-off, saying some Chinese overspend on luxury items, a habit they cannot necessarily afford.

As well, it is widely thought in China the possession of luxury goods factors a lot in judging a person's social status, according to the report.

"It is not weird for China to become the largest luxury consumer owing to its overwhelming population and its recently intensifying purchase power prompted by the surging economy," Yan Jun, the CEO of the Beijing-based Ecole Fashion and Luxury Consulting Limited, told the Global Times on Monday.

Yan said there might have been a number of people who purchased extravagant products only to show off their wealth five years ago, for example, the Shanxi coal bosses.

"But an increasing number of consumers bought luxury goods because they can afford them either for their daily necessities, or as reward for themselves, or even only to experience the luxury rather than to satisfy their showy vanity," Yan added.

There were 146 Chinese billionaires on the Forbes China Rich List, released on September 8 this year, 18 more than that of last year.

China has 500,000 people who each own investment assets worth more than 10 million yuan, said the 2011 Chinese Private Fortunes Report released by the China Merchants Bank in April.

There were 197 million women aged between 30 and 49 in China in 2009, accounting for 17 percent of the total population. The research shows the group has an increasing potential in luxury goods consumption, the HSBC report said.

"Billionaires and women play a role, but not a dominant role in booming the luxury industry," said Yan, adding that a growing number of luxury manufacturers are also now offering low-end luxury commodities, such as small wallets and pendants, to gain more consumers.


Editor:Zhang Rui |Source: Global Times

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