Luxury goods have beyond doubt landed in China now with Shanghai, Guangzhou, Beijing and Dalian bathing in the enjoyment of Aamani and Louis Vuitton. The luxury goods market in China sees a great potential, attracting the attention of a lot of luxury goods companies and the concern of authoritative media of the world.
"Have the Chinese people become the craziest consumer-groups in the world replacing the Japanese?" "Economist" questioned at the very beginning of the magazine.
"Economist" pointed out, the Japanese have been considered the most-blind-faith consumer-group of the world, but now a tendency indicates that the Chinese people are most likely to take the place. The daily wealthier people bear a stronger ever desire of being identified. They need famous brands, crazy in shipping and buying. But in the meantime, the Japanese are spending their money on the enjoyment of culture and culinary arts.
In China, recent years have witnessed an obvious change of attitude towards the luxuries. At the time when criticisms began to rise against the showing-off there are still many people who like to parade their social statuses and positions. Claire Kent, analyst of the Morgan Stanley says, "when the westerners are getting more and more careful in buying only those well-known luxuries the Chinese seem to be fond of getting in those not quite acquainted with them. Because these brand-names are more attractive to show them off by saying, look, how wealthier I am!"
It is because of this that luxury-goods companies are getting excited. Aamani company has planned to develop some 20 -- 30 new shops before 2008 while Prada is going to invest 40 million US dollars in the coming two years and try to expand its shops to 15 in total within the year. In the coming September, Louis Vuitton is going to open up the first serial-product shop in Shanghai and expand to 13 in all by the end of the year.
The luxury-goods companies see a rosy perspective ahead in China. On the Aamani's strategy in China the "Business Weekly" says, "the wealthier Chinese have already got ready to squander their millions of Renminbi hardly come by on swimming-suit, ladies clothes and some other famous brand of western-style jackets designed by Aamani company."
That mentioned in an article of July 15 in the "New York Times" says, the yacht, the top luxury is also gaining favor in China. A senior Mr. Liang engaged in shipping industry for a long time predicted, in a span of some 10 years there is a market for 33 meter-long yacht in China and in not too long a future the 75-meter-long yacht will find its customer in China too.
However, that goes contrary to consumers' fervent passion is the very reasonable attitude of these luxury-goods companies in their investment. As Mr. Liang knows deeply, in present-day China, many rich people don't like that their ways of life catch the attention of officials. "You may lose 5 million yuan Renminbi overnight but not to buy a goods of 5 million yuan to catch the attention of others." The pleasure boat as a top luxury will see some special restrictions on the way of development in China.
"Business Weekly" holds, though China is no longer short of money-bags of high consumption the average annual income in the prosperous coastal cities as Shanghai and Guangzhou comes only to 5000 US dollars, which is only an equivalent to an untied short skirt plus two man's coats of Aamani brand. As Aamani holds, it is a long-term plan to invest in China and must take a square look at a problem: fake Aamani watch finds a big favor in China.
An article of the "Economist" also expresses its concerns over the problem. "The newly booming wealthier people in China want genuine goods at fair prices. However, compared to Japanese the Chinese people are more price-sensitive and this seems to be a rule. Some young people like to mix the pseudo with the true goods and even dote on the fake goods."
Piracy is the great barrier for luxury goods companies to march into China. However, the paces won't be deterred for luxury goods to get into China because of it.
(People's Daily September 1, 2004)
