China’s rich spend 15 percent less in 2013 and their spending on gift giving dropped by 25 percent, according to the just released Chinese Luxury Consumer Survey 2014 from The Hurun Research Institute.
Hurun surveyed 393 Mainland Chinese millionaires with a personal wealth of RMB 10 million or more (US$1.6 million) of which 41 were the ‘super-rich’ with wealth of RMB 100 million (US$16 million). The survey demographic consists of a 6:4 ratio of males to females and an average age of 38 years old.
For the first time since the survey began 10 years ago, Hermès replaced Louis Vuitton as the preferred brand for gifting by men. LV came in third this year behind Apple. Chanel remains the preferred brand for gifting by women. Leather accessories were the most popular gifting item overall, but jewelry got hit hard in the gifting market.
Other noteworthy highlights from the survey:
– Preferred gifts: Red wine and watches for gifts under RMB 20,000 (US$3,300) for men. Jewelry, fashion and watches for women.
– Travel vouchers and healthcare products were the fastest growing gifting categories. Travel vouchers rose fastest, ranking 4th this year. The super-rich like to gift travel vouchers to women.
– Collecting traditional Chinese ink paintings has now overtaken collecting watches; although the super-rich still prefer collecting watches, with Patek Philippe ranking as the most popular brand.
– Busier than ever with work, travel is still the favorite leisure activity.
– 40% of super-rich plan to use private jets, half of whom plan to time share.
– 6 out of 10 Chinese rich are interested in owning a holiday home. Yunnan is the fastest growing destination, but Sanya still tops as the leading holiday home destination.
– Greater focus on a healthier lifestyle with fitness becoming more important: swimming and golf remain the most popular sporting activities; jogging rose to 3rd place, while yoga remains most popular among the high net worth women.
Interestingly, Chinese millionaires are now more upbeat. Confidence among the Chinese millionaires in the economy rose for the first time in 5 years, with 3 out of 10 feeling ‘extremely confident’, according to The Hurun Business Confidence Index. This was driven largely by a rise in confidence among the super-rich. The number of the super-rich who are ‘not confident’ in the economy, dropped to 3.3% this year from 10% last year.
image credit: casawood