China luxury market driven by young consumers
China’s Ministry of Commerce released a new consumption report that forecasts “a new peak” in luxury consumption this year. The China Consumption Market Development Report 2015 noted that there is a growing interest among individuals for the”finer things in life,” reports China Daily.
“Younger generations who long for the good life are becoming the driving force of the luxury sector,” according to Zhao Ping, deputy director of the Chinese Academy of International Trade and Economic Cooperation. According to the report, consumption rate is expected to be greater than 50 percent this year, the first time in a decade, and is largely driven by services rather than goods.
The Chinese are spending more on housing, entertainment, education, and healthcare and less on clothing and food. Spending on technology is expected to grow by more than 20 percent this year with more interest in wearables and smart home appliances. Chinese consumers are not very brand loyal, but the upside is that the frequency of their luxury purchases remains unchanged.