McKinsey says China will be the world's largest luxury market in 2015

Zhengshuang consultancy McKinsey's latest report, "The Rising China luxury market", predicts sales of luxury goods in the Chinese market are expected to reach $27 billion trillion by 2015, accounting for 20% of the world's luxury goods market. Sales of luxury goods reached $12 billion trillion in 2010, according to the report.　　By 2015, China will overtake Japan as the world's largest market for luxury goods. So what are the factors behind the rise of China's luxury market?　　The McKinsey study shows that 13 million of China's upper middle class families (earning 100,000 ~20 million, equivalent to 15000~30000 dollars) are the biggest sources of growth opportunities.　　Data show that this group of people has accounted for about 12% of the market share, with the rapid growth of the class, it is expected that by 2015 76 million households into the income range, accounting for 22% of the luxury shopping share. And the proportion of consumers who buy luxuries to satisfy their personal tastes is growing rapidly, from 25% in 2008 to 36% in 2010.　　And these consumers are spending more on luxuries. In addition, rapid urbanization and the growth of wealth outside the big cities have driven several large emerging markets, with a sizeable number of luxury consumers.　　The McKinsey study shows that in the next five years, the number of such cities will increase by one-fold, from 30 to 60. "While Chinese luxury consumers appreciate the value of international brands, they still want international brands to reflect China's cultural heritage through new product designs, brand names or brands," said Diviry, director of McKinsey's "Interpreting China" program. This is a fairly new phenomenon, especially in the luxury goods industry, which means that luxury brands must have a higher degree of localization than they are now, which is probably not yet ready for most luxury brands. ”