Chinese Luxury Goods Consumption Reached USD10.7 Billion

According to the latest report published by World Luxury Association, in 2010 the total consumption in the Chinese mainland luxury market reached USD10.7 billion, excluding private jets, yachts or luxury cars, making the country the world's second largest consumer of luxury goods following Japan.

Andy Kline, an international researcher for World Luxury Association, told local media that due to the appreciation of the Chinese yuan and depreciation of the euro, the purchasing power of the Chinese consumers in the international market has increased. At present, Chinese consumers buy the most luxury goods abroad in the world. In 2010, Asian people bought USD69 billion luxury products from the European market, of which USD50 billion was contributed by the Chinese consumers.

Andy Kline said since the outbreak of the economic and financial crisis, the sales of luxury goods in the European and American markets had decreased. In addition, the earthquake in March 2011 had a severe impact on the luxury consumption in Japan while the sales of luxury goods have been increasing in China.

However, the report revealed that the Chinese consumers prefer to buy luxury products abroad. In regards to this issue, Ouyang Kun, Chinese representative at the World Luxury Association, said it is because the price differences of luxury goods in China and abroad, and China is the country that collects the highest tax for luxury goods in the world.

In addition, the China Council for the Promotion of International Trade and World Luxury Association have jointly announced the establishment of the China Luxury Trade Commission. The commission aims to introduce the world's top luxury resources into China and explore the Chinese local luxury elements, including tea, jade, and silk, to promote internationalization of Chinese luxury enterprises.