Global Reach of China Luxury

Despite the global economic slowdown and its subsequent impact on the luxury sector, China’s consumer sector continues to grow and also account for an increasing
share of global sales for some of the world’s largest luxury brands.
The demand for luxury goods in China is booming as incomes continue to rise.
Domestic consumption has also been highlighted as a strategic focus for China’s leadership, which also presents opportunities for luxury players to further establish operations across the country.
This year’s key highlights include the increased impact of the travelling Chinese consumer. Our survey notes the number of Mainland Chinese travelling overseas has increased to 71 percent of survey participants in 2012, from 53 percent in 2008, a significant change. Overseas luxury brands with a presence in China are benefitting from this trend, as are some of the domestic Chinese brands that have or are planning to establish overseas operations. As the numbers of travelling Chinese consumers continues to rise, brands need to measure the impact of their business strategies both in Mainland China and the travel segment.