China, Socialism & Consumer Behavior: World’s top luxury brands compete to tap Chinese market
Prominent luxury brands are scrambling to get a slice of the competitive Chinese market. The 2011 Tianjin International Luxury Exhibition was held recently, right after the World Luxury Association WLA released its 2011 annual official report recently in Beijing. According to the report, China is expected to replace Japan as the worlds top consumer of luxury goods by 2012 with an expected luxury goods sales value of 14.6 billion U.S. dollars due to China’s growing demand and declining consumption in Japan.
The three-day exhibition in Tianjin showcased luxury cars, private yachts, precious jewelry, art collections and classical furniture.Wang Weiguo, honorary president of the exhibition, said that luxury consumption is a life attitude. “The exhibition builds a platform for the 80 exhibitors to know Tianjin, an emerging port city bordering Beijing,” Wang said.
Boston Consulting Group has predicted that China will become the world’s largest luxury market and more than 330 cities standard of living will surpass todays Shanghai in the next ten years. Meanwhile, about two thirds of the worlds prominent luxury brands have started operations in China — some opening shops during the global economic recession.Louis Vuitton opened 27 shops in 22 Chinese cities in two years.
China’s luxury goods sales value reached 10.7 billion U.S. dollars in a 13-month period from February 2010 to March 2011, according the WLAs report. The report also said Chinese spent much more on luxury goods overseas, with 50 billion U.S. dollars worth of luxury purchases solely in Europe last year.