This article examines the luxury market in China and concludes that China will soon be the biggest market in the world for high-end designer consumer goods. Business research and consulting firm Frost & Sullivan stated in their last survey that Chinese consumers will eventually buy more than half their acquisition of luxury goods on the mainland in 2014 rather than overseas.
Link: http://www.chinadaily.com.cn/usa/epaper/2012-02/07/content_14551852.htm
Link: http://www.chinadaily.com.cn/usa/epaper/2012-02/07/content_14551852.htm
I found this an interesting article based on what we talked about in class during about Asian market drivers. This trend in China about purchasing luxury goods I believe stems from the shrinking household, and discretionary income is rising. The population profile in China is highest from 15-64 yrs which is a group that would be interested in purchasing such luxury goods.
ReplyDeleteI read a similar article in addition to this one a few weeks ago where China will soon be home to the greatest amount of millionaires and billionaires in the world. In the United States, many frustrated individuals from the “Occupy” movement expressed concerns of the income inequality in the country and how the "1%” of the population control most of the wealth. This is a huge social issue in the US, yet it is also expected as a product of the American capitalist system.
ReplyDeleteChina, on the other hand, is still officially a communist regime. Under communist ideology, everyone is on an equal economic playing field with similar incomes and opportunities to each other. However, it turns out that China has one of the worst income inequalities in the world. Just like the US, 1% of China’s population is responsible for most of the country’s wealth.
The difference between the US case and the Chinese case is that top 1% of China’s population consists of approximately 13 million people while the top 1% of the US population is only around 3.4 million people. As a result, China is, and will be very a long time, home to the greatest amount of wealthy individuals and a big market for luxury goods.
Alex Conlan