Throughout this year, China’s economic disposition has been in every angle of the world, with its economy and economic growth at the forefront of everyone’s minds wondering how they have been doing it.
Despite the ongoing trade hostilities between China and the United States, China’s economy has been pushing higher and higher, its economy has been overflowing with millionaires and billionaires who are now competing with other world billionaires in rank and their taste for luxury goods has been expanding not just as consumers but also as dealers in these brands and goods. For instance, on Singles Day shopping at the popular Chinese mega-retailer Alibaba, Singles Day discounts on consumer and luxury goods sales made on these good at the first hour were as much as $12 billion just in a few hours and an entire day’s haul is within the range of $38 billion.
This massive sales and consumption of luxury goods pinpoints to the strong and growing shoot up of income of the general Chinese people which in turn enhances their expenditure. This increase has a wide spread target as not only the medium class of the society are advancing in their market expenditure but also the high class.
As of now, it is common knowledge that China is now home to more wealthy people than the U.S., with not only the Asian country having 4.4 million millionaires, but it also has 100 million members of the world’s top 10% of earners, overtaking America’s 99 million members for the first time. Amongst such is the co-founder and former executive chairman of Alibaba itself Jack Ma with a net worth of $39 billion.
Not only are the rich getting richer in China, they are also inducting the younger ones into the club, for as many as 156 under-40s made this year’s list of richest according to Hurun Research Institute’s China Rich List. According to the Research firm Wealth-X it was found that 27.5% of China’s millionaires and billionaires, most are under the age of 50. A result that is way above the global average and many of them are self-made billionaires.
The importance of this research is that it shows just how many of the Chinese are offloading their fortunes into the luxury market, with a total of 91% of Chinese preferring to have quality over price as the Mint Survey got answers of “Quality is more important than price” from those studied. It has shown that “Consumers are willing to pay a premium for products and services that offer them new and richer experiences that align with their values.”
China’s fair share of the global luxury market is set to experience a bigger level of expansion from 33% in 2018 up to 41% in 2025. This luxury consumption is not just done at home but also abroad as it’s shown that in the global travel and tourism industry, Chinese consumers are also now the biggest spenders on luxury items. This means that not only will the luxury market expansion be experienced at home but also abroad as retailers of luxury products are aiming to set up luxury stores in places with the high flow of Chinese tourists to attract them. And all this is thanks to the stable growth of income ongoing in the country which is supporting the newfound luxurious lifestyle of the Chinese people.