Digital chinese market
As the larger cities in China become more populated with luxury good outlets and stores, the competition continues to heighten and companies have begun to turn to smaller cities in the country as an opportunity to sell luxury goods. This trend is where cities such as Shenzhen and Macau provide businesses with a new market for luxury goods. It is important to recognize the growing market for luxury goods in these second tier cities because these citizens have more restrictions on their visas whereas first tier city citizens have the ability to do their shopping abroad.
The specific target market for the luxury good market in China is known as the “Chinese Elite”. The age for this market is between 25 and 45 years old and includes both males and females with the average of Chinese millionaires being of only age 39. Popular cities where the luxury good market exists are Shenzhen, Shanghai, Beijing, Tianjin, and other various economic hubs. Characteristics of the “Chinese Elite” market are those whose monthly personal income is at least ten times that of the average national income and hold managerial, entrepreneurial, and professional positions within a company. Lastly, the education of this market includes those who have at least a bachelor’s degree with many having earned a Master’s degree.
However, the chinese mainland luxury market is still in its formative stage. As chinese consumers turn toward luxury goods as a means of rewarding themselves for their success or as a token advertising their wealth, analysts believe growth in the world’s most populous country could boost Asia’s share of world luxury sales to 60 percent.