China Affluent Consumers.ppt

Sharing…… Rapid growth of middle class 87 million people in 2005 earns between USD 6,000 – USD 25,000 per year Estimated to increase to 317 million people in 2015 Affluent Household estimated to increase from 2.9 million in 2005 to 8.5 million in 2015 Adjust to living of standard, the affluent in the cities of Guangzhou, Shanghai, and Beijing earn on average annually of USD 60,000 per household Profile Over 85% are under age of 46 2 out of 3 of these affluent are married, and 3 out of 4 of the married affluent have children They have very little leisure time. Over half of the affluent have less than 20 hours of leisure time per week. They are independent minded and prefer to do thing on their own With different investment And, they just want to live it up We also see the phenomenon of :Masstige (Mass + Prestige) Masstige refers to the just slightly higher priced savories at the top of almost every mass market category These entries are still within the financial reach of mid to upper class consumers, yet they bring with them the emotional rational benefits that have always made one spend more for a luxury item And it is running across Tier 1, 2 3 … The Chinese and luxury brands The main purchase drivers for modern women: “I can’t really afford it, but I deserve it” “It feels good to have” “It shows (to me) that my efforts are being rewarded” “It shows I am worth it” We welcome the ME generation The new breed of “luxury consumers” 25 to 34 “modern female “ Above average income. Want more than they can afford, but unlike their parents, they are determined to have it. Over-stretched financially. More likely to resort to credit for purchasing large ticket items. Either directly, or indirectly – ie borrowing against the equity of their mortgaged properties. Hungry for information: about life, the universe, and everything; particularly brands... More than anything, believes that she deserves it (that luxury goods are a reward for her hard work) Purchase on cr