In 2015 Chinese consumers are good for purchasing over one-third of all luxury products in the world. Currently a quarter of all luxury bags, shoes, watches, jewelry and clothes is sold to the Chinese. This can be concluded from a prognosis by strategy consulting firm McKinsey & Company.
This year the market for expensive goods has shrunk to $145 trillion, because of measures against corruption and a little less abundant growth of the Chinese economy. But the luxury market is recovering, in 2015 the total value of the luxury market approximately $175 trillion McKinsey & Company predicts. The Chinese market is globally the biggest: ‘In no other country so much money is spent on luxury items than in China” according consultants. In the upcoming years, the Chinese market share will grow from 25% to 33%.
Higher middle class
The ever increasing demand for luxury goods by Chinese consumers is a consequence of the growth in rich people and middle class. The share in total consumption of the higher middle class is growing from 12% currently to 22% in 2015. McKinsey found that Chinese also buy more luxurious goods abroad. Honkong and Macau are the most popular shopping destinations. But also Europe is getting, because of the low euro currency, very attractive to Chinese people having something to spend.