China has avoided most of the credit crunch and its rich has not dramatically changed their life style, says Rupert Hoogewerf, author of the Hurun report and tracking China’s rich for over a decade in an interview. His research shows that life has remained the same for 82 percent of the people on his list.
Hoogewerf’s profile of China’s rich:
The average mainland Chinese millionaire is 39 years old. The average mainlander with $10 million is 43, and the average mainlander with $100 million is 49. This makes China’s richest 10 to 15 years younger than their Western counterparts. They have a special affinity for international luxury brands, especially European brands. If a Chinese person has built a successful business, the first thing they reward themselves with is a luxury watch, then a luxury car; after that comes all the rest.
What does this mean for brands targeting China?
Luxury brands looking to break into the China market need to have a good partner. If you try coming in on your own in the retail industry, it is very hard to make things happen. You also need to be sure of your brand positioning and pricing; many brands arriving in China sell more expensively than back home.