CHINA. Wealthy Chinese consumers’ ‘appetite for luxury goods’ was up +20% year-on-year in 2016, returning to its 2013 level, according to The Hurun Research Institute. The figure is based on responses to a survey of Mainland Chinese ‘millionaires’ carried out by the research company. (This story is partly based on a report by Jessica Rapp in Jing Daily, the leading digital publication on luxury consumer trends in China, with which The Moodie Davitt Report has formed a new alliance.)
The Hurun ‘Best of the Best Awards 2017’, based on the results of the ‘Chinese Luxury Consumer Survey 2017’, also showed that Apple was the preferred brand for gifting by men, followed by Cartier and Louis Vuitton. Moutai and Chanel also placed in the top five, with Bulgari in sixth. Gucci and Dior both saw a sharp decrease, Hurun said.
The top brands for gifting by women remained the same as 2015 – Chanel, Louis Vuitton and Apple – but in a different order. Chanel dropped from first to third, with Louis Vuitton up to first and Apple up to second. Bulgari rose five positions to fourth.
Watches, electronic products and red wine remained the top three best gifts for men. Jewellery was still the preferred gift for women, followed by cosmetics and accessories. Almost half of respondents chose health products for elderly citizens, while electronics was the top option for children. Gift giving maintained an overall upward trend, with travel vouchers seeing a significant increase in 2016, Hurun noted.
Chinese luxury consumers reported being away on business trips for an average of eight days per month. They take ten days holiday – with the super-rich taking 15 days – going abroad 3.4 times a year on average.
The Maldives moved ahead of France as the top luxury travel destination, with the USA falling to third. The UK was up to sixth on the back of a cheaper Pound.
The ‘Hurun Business Confidence Index’, an index measuring confidence in the economy for the next two years among wealthy Chinese, rose for the fourth consecutive year, with over 90% of respondents expressing confidence. Some 28% are ‘extremely confident’ in the economy, down from the 35.8% of two years ago.
Alipay overtook credit cards, Wechat and cash as the preferred method of payment for luxury goods.
The Hurun Research Institute surveyed 449 Mainland Chinese ‘millionaires’, defined as individuals with a personal wealth of RMB10 million (US$1.4 million). Among them were 62 super-rich (12%) individuals, who have a wealth of RMB100 million (US$ 14 million). Respondents were from more than 40 cities, with 60% coming from the first tier cities of Beijing, Shanghai, and Guangzhou.
