Beijing, July 29 (IANS) Buying luxury items is becoming the choice for an increasing number of shoppers in China, a trend has made the country a top contributor to the global luxury goods market, the media reported on Saturday.
According to official data, Chinese shoppers spent over 500 billion yuan ($74 billion) in 2016, taking one third of the world’s total sales volume, reports the People’s Daily.
“Last year, the world’s luxury industry shrunk because of the sluggish economy and people’s decreasing confidence in a reviving economy. However, China’s booming middle class and the comparatively stable environment is boosting luxury consumption,” a senior analyst said.
“Chinese people now have more channels to purchase luxury goods, like overseas travel and e-commerce platforms.”
The huge potential in China draws the attention of industry powers, the People’s Daily reported.
For example, LVMH (Moet Hennessy Louis Vuitton) – the leading group in the luxury industry – has started to explore the Chinese market on a more localised basis.
In 2016, LVMH generated a new skincare brand tailored to the Chinese market employing “the spirit of the tea” as their selling point, which is familiar with and quite welcomed by Chinese consumers.
China is expected to make up nearly half of global luxury consumption in 2025, which is estimated to be a 2.7 trillion-yuan ($400 billion) market by then, the analyst added.