As of September, the population in China is estimated to be 1,359,025,970 people. As reported by Chinese-language Money Week magazine, 2% or 27,180,519 of its people consume 1/3 of the world’s luxury items. The majority of these items are handbags, jewelry, timepieces, leather products and private jets.
This 2% then puts China as the target market of international deluxe brands. The three major luxury groups are LVMH, Richemont and Kering. Other major luxurious companies are Hermès, Coco Chanel and Prada, with annual sales of $4 billion. LMVH Group earns annual sales of $98.8 billion, way higher than Chinese oil giant Group Sinopec with $84 billion. Thirty percent of Louis Vuitton and Gucci’s revenues came from Chinese customers.
The huge boast was only seen despite the fact that these brands are battling for counterfeit goods which are abundant in China. Researchers found out that Chinese consumers are now opting for the real thing. Those purchasing faked goods dropped to 12 percent from 31 percent in 2008.
Researchers also predicted that countries in the Asia-Pacific region, especially China, will have transparent roles in the global market in the next three to five years.
Meanwhile, luxury boutiques abroad have started accepting China UnionPay credit cards, and hire sales assistants who are fluent in Mandarin.