Overseas Purchasing: New Challenge for Chinese Luxury Retailers
Overseas Purchasing: New challenge for Chinese luxury retailers
Abstract
Chinese luxury consumers start to account for more percentage for the world luxury goods sales. However, domestic retailers do not benefit from this trend, because Chinese consumers prefer to purchase luxury products from foreign countries. As a result, the growth domestic luxury market trends to slow down. In order to avoid that disadvantage, some of the largest luxury retailers have claimed to slow and cease their plan for expansion this year in China.
Chinese consumers are becoming a significant group in the global luxury market. According to the article “Chinese Luxury Market” (2012), the luxury consumers which include the possible consumer had already around 200 million people in 2012. This number of consumer is based on the amount of wealthy people in China. Also, the expected increasing upper middle class population is a new group contributes to the growth of luxury consumer in China. Atsmon, Dixit& Wu (2011) reported that Chinese upper middle class population is 13 million which accounts for 12% of total number of luxury consumer in 2011. The authors also showed that the population was expected to reach 76 million, which is 22% of total luxury consumer in 2015. It is highly likely reason for Chinese luxury goods market size is increasing, which is a significant growth in number of Chinese luxury consumers. The article “Chinese Luxury Market” indicated that Chinese luxury market size had increased 215% in just one year which is from $4 billion in 2009 to $12.6 billion in 2010. The article also reported that the market size is predicted to increase to $14.6 billion in 5 years. For the world luxury industry, the quick growth provides a new opportunity for the luxury company to expand their market. Because of this significant increase, Chinese consumers are playing more and more important roles in the world luxury industry. According to the article “Chinese luxury
Abstract
Chinese luxury consumers start to account for more percentage for the world luxury goods sales. However, domestic retailers do not benefit from this trend, because Chinese consumers prefer to purchase luxury products from foreign countries. As a result, the growth domestic luxury market trends to slow down. In order to avoid that disadvantage, some of the largest luxury retailers have claimed to slow and cease their plan for expansion this year in China.
Chinese consumers are becoming a significant group in the global luxury market. According to the article “Chinese Luxury Market” (2012), the luxury consumers which include the possible consumer had already around 200 million people in 2012. This number of consumer is based on the amount of wealthy people in China. Also, the expected increasing upper middle class population is a new group contributes to the growth of luxury consumer in China. Atsmon, Dixit& Wu (2011) reported that Chinese upper middle class population is 13 million which accounts for 12% of total number of luxury consumer in 2011. The authors also showed that the population was expected to reach 76 million, which is 22% of total luxury consumer in 2015. It is highly likely reason for Chinese luxury goods market size is increasing, which is a significant growth in number of Chinese luxury consumers. The article “Chinese Luxury Market” indicated that Chinese luxury market size had increased 215% in just one year which is from $4 billion in 2009 to $12.6 billion in 2010. The article also reported that the market size is predicted to increase to $14.6 billion in 5 years. For the world luxury industry, the quick growth provides a new opportunity for the luxury company to expand their market. Because of this significant increase, Chinese consumers are playing more and more important roles in the world luxury industry. According to the article “Chinese luxury