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Dunhill: A key brand among wealthy Chinese |
CHINA. Louis Vuitton, Dunhill and Gucci are the top three most popular luxury brands among China’s super-rich, according to a survey of the spending habits among the country’s elite. The study, which canvassed opinion from 800 wealthy Chinese citizens, was commissioned by luxury goods consultancy FDKG and carried out by Dr Lu Xiao of Fudan University.
It claims to provide “the most comprehensive understanding to date of the spending behaviour and aspirations of China’s growing stratum of super-rich”.
The top ten brands by ownership amongst Chinese net worth individuals are:
1. Louis Vuitton
2. Dunhill
3. Gucci
4. Ports
5. Dior
6. Armani
7. Hermès
8. Chanel
9. Zegna
10. Prada
Ken Grant, Managing Director of FDKG, said: “Our view is that the habits of wealthy individuals in this market remain embryonic but that this will not last for long. Now is the time for luxury goods businesses to seriously consider engaging with the Chinese market.”
Based on a sample of 800 wealthy Chinese businessmen and woman earning on average RMB1,000,000 a year (UK£ equivalent: £100,000), the report includes responses to 67 specific questions about their business ideals and aspirations, their personal spending and saving habits, and their perceptions of the outlook for themselves and their family over the coming years.
Those interviewed range from their early 20s to the over 60s, and were distributed across 62 cities in mainland China.
Common characteristics among respondents include the following:
• Stock is the preferred investment vehicle.
• 90.9% give money to charity.
• 59% think that an upper class exists in China; 21% think it should exist but does not yet. 91.3% regard the development of an upper class as a positive thing.
• The most popular watch brand is Rolex.
• After Hong Kong, Europe is the next most popular travel destination.
• 98% own property either as residential or investment. Almost half own two residential properties, and some own more than five. 38% own at least one investment property, and 93.3% own up to three investment properties
• 24.8% own domestically made Audi cars, and BMW is the most popular imported car brand.
• One-third prefer to drink Dom Perignon Champagne.
• 40.6% are in favour of private education and 18.8% are not.
• After China, the UK is by far the most popular country to send their children to be educated in, twice as popular as the US.
Speaking about the opportunities for UK businesses, Ken Grant added: “Unlike the French, Italian and German governments, the UK government has done very little to provide practical on the ground support to businesses operating in China. Only big British multinationals with the coffers to support the long and costly effort required to establish a business in China, and a select few British luxury brands like Dunhill are thriving in China. The ones that are thriving are the ones who started their market entry strategy 10 years ago. It isn’t too late, but there is a great deal of catching up to do for those brands that have not yet entered the market.”
He added: “15 years ago it was relatively simple for a brand to establish itself in China, as the competition from both domestic and international suppliers was less; but today the country is growing so fast, and the people’s income and expectations are increasing proportionally.”
*The FDKG summary report, entitled China’s New Wealth, is available for US$3,000. A complete five-volume report is also available for US$8,000. More information can be found at: http://www.fdkginsight.com/reports/marketreports.htm
