Chinese consumers account for 50% of all LV sales

March 10, 2013 Leave a comment

Chinese consumers account for 50% of all LV sales

Staff Reporter

2013-03-10

More than half of all Louis Vuitton purchases in the world are made by Chinese people, according to the Hurun Report, a magazine best known for its rankings of wealthy individuals in China. According to Rupert Hoogewerf, founder of the Hurun Report and chairman of the Hurun Research Institute, the 33 billionaires on their new Hurun Luxury Tycoon Rich List owe much of their success to Chinese shoppers and their notorious overseas shopping sprees. “The Chinese luxury consumer is today the most important customer group in the world for luxury brands, especially now that the Chinese luxury consumer has started to travel around the world,” Hoogewerf said.

Chinese consumers have also become the main driving force behind the ability of top luxury brands to maintain their sales over the past few years, based on the results of a survey by US management consulting firm Bain & Company.

The scale of China’s luxury goods market, excluding Hong Kong and Macau, has grown significantly from US$20.2 billion in 2008 to US$48 billion in 2011. It maintained a 12% growth rate in 2009 when the global luxury goods market shrunk by 8% due to the global financial crisis.

China has kept a growth rate around 30% for in the past two years and became the world’s largest luxury market in 2012, with a quarter of all luxury sales coming from Chinese pockets.

Chinese consumers account for at least 20% of the sales of many luxury brands and more than 50% of all Louis Vuitton products, Hoogewerf said.

Filed under Macro Trends

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