While China’s luxury market has slowed, it remains promising because China will have a middle and higher income market that will be larger than the entire population of the US.
According to a report by Economist Intelligence Unit, by 2030, the number of Chinese households with an income over $150,000 is expected to rise to 10.3 million. Furthermore, more than one third of households in China will make over $50,000 in income by 2030, reports China Daily. Currently, only one percent of households exceed $50,000 in income.
As for the wealthiest Chinese, there are currently 2.4 million with assets of over 10 million yuan (US$1.6 million), and 93,000 of those have assets of over 100 billion yuan.
Last year, Chinese spending on luxury goods made up 47 percent of the world’s total luxury spending with $28 billion spent domestically and $74 billion spent overseas, according to the Fortune Character Institute.
The increasing spending power of the Chinese middle class and wealthy means China’s luxury market has a bright future ahead.
image credit: kevin dooley