China's luxury market back to "rational growth"

Chineseconsumershavebeenfamousfortheirenthusiasmforluxuryproductsinrecentyears,butareportsaidthecountry'sluxurymarketisreturningtoa"rationalgrowth."

"ThepastyearhasseentheendofthewildgrowthoftheluxurymarketinChina,andluxurybrandsaredemonstratingnewstrength,"revealsarecentsurveybythemagazineFortuneChina.

Thesurveywasconductedamong45,000magazinereaderswhoholdseniorexecutivepositionstofindoutabouttheirconsumptionofluxuryproducts.

TheluxurymarketsawagoldenerainChinabefore2012,whenmanybrandsregistereddouble-digitoreven100percentgrowth,butthemarketisnownarrowingdownandrequiringmore"fineandintensiveoperation."

ThereportsaidthatluxurybrandsarenowtryingtowinoverChineseconsumersbyprovidingbetterservicesandexperience,citinganexampleoftherarepricecutsbyFrenchluxurybrandChanelinChinalastyear.

77.6percentofthesurveyrespondentsmakeluxurypurchasefortheirownuse,registeringconsecutivegrowthinfouryears,whilethosewhobuyluxuryproductsforfriendsandasbusinessgiftsaccountforonly15.5percentand6.0percent,accordingtothesurvey.

TheearliestgroupofChineseluxuryconsumerscultivatedabetterunderstandingofluxurygoods,andbecomemorefocusedontheimprovementoftheirlivesbroughtbyluxurygoods,insteadofablindpursuitofthebrands,saidLiRixue,theCEOofSecoo,China'sluxurye-commerceplatform. "PurchasingfortheirownuseisthebestexampleoftherisingofChineseconsumers'spendingpower,"headded.

Chineseluxuryconsumersnowaremorerationalwithmoreemphasisonthequalityofluxurygoods,accordingtothereport.Theyseekthequalityoftheproducts(73.9percent),bettercost(57.2percent)andbrandculture(52.8percent)whenitcomestopurchasingdecisions,accordingtothereport.

AnincreasingnumberofChinesepreferbuyingluxuryproductsinoverseascountries,makingup40.8percentoftheentireChineseluxurypurchasepopulation,accordingtothereport.Thishastodowiththeever-increasingnumberofChinesewhotraveloverseas,whichreached120millionlastyear.

32.8percentofChineseconsumersmakeluxurypurchasesinChinesemainlandcities,and26.4percentofthembuytheproductsinHongKong,MacaoandTaiwan--registeringdecliningratesof3.4percentand5.4percentrespectively.

ForthosewhopreferbuyingluxurygoodsoutsideChinesemainland,theylistbetterprices,authenticproductsandmorechoicesastheirmajormotivation.

(CHINA.ORG.CN)