CHINA: Consumers to continue luxury spending boom
Chinese consumers are more likely to make buy luxury goods abroad, the report suggests
Chinese consumers will still be a key growth factor in the luxury goods market in 2014, according to a new report.
China Reality Check (2014) was compiled by Exane BNP Paribas, based on analysis by Contactlab’s Digital Behaviour Study, conducted at the beginning of this year in Shanghai and New York.
The study covers about 1,000 residents of the two cities, aged 25 to 54.
It found that over the past year, Shanghai consumers have spent 1.5 times as much on luxury clothing as their New York counterparts, as well as 1.4 times as much on shoes and 2.3 times as much on handbags.
Meanwhile, respondents in Shanghai said they would spend 74% more on their next purchase of luxury clothing, 4% more on shoes and 27% more on handbags – compared to planned increases of 55%, 5% and 48% for those in New York.
The study suggests that Shanghai consumers have a less sophisticated knowledge of luxury brand names, compared to consumers in New York.
While in Shanghai the top three brand names mentioned spontaneously were Louis Vuitton, Chanel and Gucci, in New York the top three were Gucci, Coach and Louis Vuitton.
The report also confirms that Chinese consumers are more likely to make their luxury purchases abroad, where prices are typically lower: while about 30% of Chinese respondents said they had never made a purchase abroad, for New Yorkers the figure was 79%.
The internet continues to become a more significant marketplace, with at least 20% of consumers in both cities shopping at specialist e-stores, and web browsing remains the preferred source of information.
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