Chinese Hunger for Luxury Products like Cigars

China's future private jet owners, however, probably did not show up this time. Although the event's organizer, London-based Shorex Ltd, insisted that entry to the event was by invitation only and among the guests were top management and decision makers of Shanghai's leading companies, successful entrepreneurs, celebrities and high net worth individuals, most visitors were seen trying free massages and manicures, smoking free cigars, sipping whisky and beverages, grabbing free magazines or eating McDonald's that they brought to the site."

It's difficult to judge whether a person is rich or not by his looks," said Sheng Lei, founder of Top Marques Shanghai, an annual luxury exhibition which originated from Monaco. Sheng said what interests most of his customers in China "are the premium cars and yachts which are not available in China yet."

But actually, China is becoming the world's third largest consumer of high-end fashions, accessories and other luxury goods.The Chinese luxury market currently generates more than US$2 billion in sales a year. It is expected to grow 20 percent annually until 2008 and then 10 percent annually until 2015, when sales are expected to exceed US$11.5 billion, according to Ernst & Young.

By 2010, China is expected to have 250 million consumers who can afford luxury products, nearly 17 times the present number. By 2015, Chinese consumers could be as influential as the Japanese and account for 29 percent of all global luxury purchases.

The fact that a population of 1.3 billion potential consumers with an average annual per capita income of 10,493 yuan (US$1,312) in the country's urban areas is able to create such a ripple in the world's luxury goods market reflects the hunger that Chinese consumers have for luxury goods.

...mmm intersting

Chinese hunger for luxury products

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