China set to be biggest luxury goods market in five years

KUALA LUMPUR: China will be the world's biggest market for luxury goods in five years, according to a paper released by the Chinese Academy of Social Sciences, the ShanghaiDaily.com reported on May 20.

The paper said China's luxury goods market had risen to US$9.4 billion (RM31.13 billion) by end-2009, accounting for 27.5% of the global luxury goods market and overtaking the US as the world's second-largest luxury goods market. The market for luxury goods in China will reach US$14.6 billion in half a decade, becoming the largest in the world, the paper said.

The paper said most luxury goods brands have opened outlets in China’s main cities and provincial capitals, while keen competition has seen some of the companies opening stores in smaller cities.
The paper quoted a Mckinsey & Co report as saying rich consumers in China are usually younger than those in other countries – 80% of China's rich consumers are under the age of 45, with only 30% of such consumers in the US. Nineteen percent in Japan are under 45.