Westerners might be familiar with the Chinese people’s love for luxury products from their shopping behaviors in name-brand stores overseas. New research suggests that despite the nation’s overall growth rate slowing down, China has leap-frogged Japan to become the top spender on luxury products worldwide.
Let’s look at some numbers. A recent Nielsen report says Chinese consumers demand for luxury products has been increasing in parallel with income levels, Xinhua reports. More than half of middle class shoppers are willing to pay 250,000 to 500,000 yuan on a car, a cost that is generally double their total yearly income. In separate research, Bain found that the Chinese luxury goods market has grown by 233 percent since 2007.
On Thursday, China Daily reported that a Hangzhou supermarket has opened a section selling name-brand handbags, allowing the customers to shop for Gucci and groceries at the same time. According to the supermarket director, the sales of these luxury goods are meeting their market expectation.
Though demand is still soaring, Western brands are finding more competition in the Chinese market. Existing local brands are welcoming more customers after support from celebrities such as first lady Peng Liyuan.
By Dawn Wang // Image credit: @dazjohnson