Report: Only 20pc of Chinese Consumers Prefer to Buy Luxuries at Home08-15 15:55 Caijing
Only 20 percent of Chinese consumers are willing to buy luxuries in the mainland, a report from a leading luxury research group, pointing to a quick rise in outflows of luxury consumptions from the country's increasing number of affluent people.
Hong Kong and Macau remain the first choice for those Chinese luxury-lovers due to the large price discrepancy between luxury products sold in mainland and China's two special administration regions, said Fortune Character in its latest report.
According to estimations by the Chinese Ministry of Commerce, the average price of luxury goods in China is 45 percent higher than in Hong Kong, 51 percent higher than in the United States, and 72 percent higher than in France.
The report showed 44 percent of Chinese luxury consumers prefer shopping in HK and Macau while 15 percent would like to buy in the U.S., which has risen to become an important shopping place for Chinese riches.
Meanwhile, about 15 percent prefer Europe, down 8 percentage points from a year ago.
The preference for shopping abroad is even stronger among China’s high-net-worth individuals as statistics showed about 51percent billionaires prefer spending outside the mainland.
The shift began the last year when 26 percent of Chinese consumers chose HK and Macau over the mainland while 23 percent preferred Europe and 10 percent chose the U.S.
The number of Chinese traveling overseas has been growing at an annual 20 percent since 2010 and reached 83million in 2012, boosting oversea consumption to $102billion, almost double from two years ago.
China replaced Japan to become the world’s second largest luxury goods market last year, consuming one quarter of the world’s luxury goods, according to Bain & Company.
For those who would like to spend money at home, Beijing has replaced Shanghai, for the first time, to become the biggest city of luxury consumption, the report said.
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