Chinese buyers strategically important to finest brands

Shanghai (CNS) -- Chinese residents consumed about 212 billion yuan (about US$ 33.63 billion) on luxury goods during the year 2010, about 60 percent of which was spent abroad, revealed Bruno Lannes, a partner in the world's leading management consulting firm Bain and Company, on Saturday.

Lannes referred to Bain's fourth annual report, China Luxury Market Study 2011, during the fourth annual Prestige Brands Forum held on the Shanghai campus of the China Europe International Business School on Saturday.

Senior managers and experts representing international luxury brands of watches, cars, and clothing at the forum agreed on China's strategic value to the future of all high end product lines.

Domestic luxury consumption for 2010 hit 87.1 billion yuan (about US$ 13.82 billion), ranking fifth around the world.

High-end watches and suitcases have grown their markets most significantly in recent years, and LV, Channel, and Gucci are the current favorites of Chinese buyers.

Wealthy Chinese undoubtedly constitute the biggest luxury goods consumer group, which appears universal. China houses most of the world's billionaires – 600 in dollars and 7,500 in yuan – who built up their businesses from nothing, trumpeted Rupert Hoogewerf, whose Chinese name is Hu Run, chairman and first researcher of the Hurun Report.

Compared to the country's average consumer, Hoogewerf noted, the well-heeled Chinese buyer is inclined to indulge in his or her taste for LV, Cartier and Hermes.

He also predicted that the second generation of Chinese wealthy will gradually take over their family businesses starting in 2030.