This is a year of transitions for China’s luxury market. As 2013 wind down, it’s that time to look back at some of our top stories that showcased events and conversations that defined the year in the Chinese luxury market.
Red Luxury will return on January 6, 2014 with some of the most relevant news on luxury brands and Chinese consumers. Until then, join us for some holiday reading. Warmest wishes for a happy new year!
A list of the Top 9 wishes shared by Chinese people.
What’s in a Tier? Depending on which marketer you ask, the answer will be different. While everyone is in agreement that there are only five Tier One cities, everything after that is open to debate – there are thought to be as many as 60 or as few as 35 Tier Two cities, for instance. But most experts agree that Tier Three and Four Cities have the greatest potential for international brands to grow and expand.
Brands like Home Depot, Best Buy, and Wal-Mart have all suffered losses since entering the Chinese market, while McDonald’s, Starbucks, and even Roots Canada have thrived. What makes a winner and what makes a loser in China?
China’s busiest shopping mall is not one found on a trendy metropolitan street. In fact, it has no square-footage at all because it is the Internet.
Online retail sales in China increased 55 percent to RMB 194 billion ($31.5 million) in 2012 and are expected to grow 37 percent to RMB 265 billion ($42.7 million) in 2013. How do we account for the burgeoning of expensive flagship stores in this shifting marketplace?
Are Chinese consumers just not that into shopping anymore? “The market is not growing as quickly as it used to, and it is definitely shifting. For very high-end products, I would not be surprised if sales are hurt.”
What Chinese consumers choose to spend on is telling. Do they spend on foreign brands or Chinese brands? Which categories are foreign brands winning?
China’s e-commerce exploits are well known by this point, but the nation is dominating the newest playing field: mobile commerce, or m-commerce. About 1 billion people are expected to make upwards of $1 trillion in transactions via mobile devices worldwide by 2016.
Chinese spenders are projected to become the largest luxury consumer group, spending $102 billion on luxury goods for 2013. This accounts for nearly half of global luxury sales, which is expected to hit a new record of $217 billion.
Luxury brands are highly coveted by Chinese consumers, so are jobs at luxury companies. A recent survey reveals the top luxury brands that are attracting talent in China, along with a demographic snapshot of luxury employees.
China’s globetrotters could spend up to $194 billion annually in Europe, the USA, Asia and other tourism destinations by 2015. With China’s emerging middle class growing up, their purchasing power worldwide is increasing accordingly. According to data collected by the United Nations World Tourism Organization (UNWTO), Chinese tourists topped the list of World’s Top Tourism Spenders, with $102 billion spending on international tourism in 2012, accounting for 9.5 percent of the international tourism market share.
image credit: ivan walsh