From Wikipedia: Conspicuous consumption is a term used to describe the lavish spending on goods and services acquired mainly for the purpose of displaying income or wealth. In the mind of a conspicuous consumer, such display serves as a means of attaining or maintaining social status.
Bentley sold 404 cars in China vs 1,368 in Europe last year. Lamborghini sold 66 compared to 565 in Europe. Rolls Royce sold 106 cars in China in 2008, and Beijing is now the city with the 3rd highest sales of RR in the world.
Bain & Company estimates that China, now the world’s second largest market for luxury brands, could unseat Japan for the top spot within a few years. With over 120 cities with population exceeding 1 Mn, potential for growth of the luxury market further to the coastal and first-tier cities are tremendous. Second & third-tier cities such as Zhuhai, Shaoxing & Wuxi have contributed to 60% of the luxury market growth in 2008 & 2009. Comparatively, big spenders in first-tier cities tend to shop overseas where prices are cheaper and selections are more abundant. In 2008, mainland stores only accounts for 40% of all luxury sales made to Chinese consumers.
Nevertheless, a walk along Huai Hai Zhong Lu in Shanghai will witness a row of top luxury brands including Cartier, Tiffany, Louis Vuitton, Zegna …. & Hermes under renovation.
Bentley sold 404 cars in China vs 1,368 in Europe last year. Lamborghini sold 66 compared to 565 in Europe. Rolls Royce sold 106 cars in China in 2008, and Beijing is now the city with the 3rd highest sales of RR in the world.
Bain & Company estimates that China, now the world’s second largest market for luxury brands, could unseat Japan for the top spot within a few years. With over 120 cities with population exceeding 1 Mn, potential for growth of the luxury market further to the coastal and first-tier cities are tremendous. Second & third-tier cities such as Zhuhai, Shaoxing & Wuxi have contributed to 60% of the luxury market growth in 2008 & 2009. Comparatively, big spenders in first-tier cities tend to shop overseas where prices are cheaper and selections are more abundant. In 2008, mainland stores only accounts for 40% of all luxury sales made to Chinese consumers.
Nevertheless, a walk along Huai Hai Zhong Lu in Shanghai will witness a row of top luxury brands including Cartier, Tiffany, Louis Vuitton, Zegna …. & Hermes under renovation.
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