China’s Luxury Market to Grow as Incomes Rise

A new survey indicates China is set to become the top luxury market

Chinese citizens "aspire to" luxury brands and can increasingly afford them, a survey by The Boston Consulting Group of 2,550 Chinese consumers found. The survey, taken last year at the height of the global economic crisis, was released Thursday.

Chinese consumers with a penchant for luxury brands such as Chanel, Gucci and Louis Vuitton are, on average, 25 to 35 years old and have a fast-rising income. Rising incomes have been witnessed in Chinese cities such as Beijing and Shanghai since the 1990s as the country has modernized.

The Chinese luxury goods’ consumers are younger than those of most other countries and, as a result, will purchase more high-end items as their incomes continue to rise.

The Boston Consulting Group stated that high net-worth households will grow from 417,000 to 609,000 by next year as luxury brand competition moves to China's developing inland cities.