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ELITE CONSUMER ALTERNATIVES

China’s total consumption of luxury goods by end 2010 reached £6.5 billion, exceeding that of the U.S., making it, for the first time in history, the second largest luxury consumer goods market in the world after Japan. The number of consumers who can afford internationally renowned brands has reached 13% (170 million) of the total population, while 30 million of them are active buyers of luxury goods. It is predicted that the number of consumers who can afford luxury goods will reach 300 million by 2012, representing nearly 40% of the global luxury market.

GUANGDONG LUXURY RETAIL

Many luxury brands have not yet caught up with the high levels of wealth in Guangdong, including the first tier cities (Guangzhou and Shenzhen) and regional cities (Dongguan, Shunde, Zhongshan, Foshan and Zhuhai).

The 2008 Fortune Rich List of China indicates that Guangdong is the home of the greatest number of richest people in China. The Cantonese account for 93 places out of the Top 500.

This enormous wealth is certainly the basis for luxury brand consumption. For example:

1. About 70% of China’s golf courses are in Guangdong province. Four out of the ten most expensive golf clubs in China are located in Guangdong.

1. Two high-end private clubs are located in Guangdong (Guangzhou & Shenzhen).

1. Two out of the Top 10 of China’s luxurious residences are in Guangdong (Guangzhou and Shenzhen).

1. In 2008, BMW and Lexus each sold over 1500 cars in Dongguan and Mercedes-Benz over 800.

• C. Macdonald (Europe) engages with consumers, investors and professionals connecting in markets viaboth online and  offline platforms.  

  The objective is not only to help deliver attractive investment returns, promote cross-border China investment and business flows, build lasting personal and professional relationships alike, but also as a way to improve living standards and satisfy personal spiritual needs.

  Investment has never been so important in the daily lives of the emerging world's successful business people - not the least of whom are the Chinese. The lack of investment products in China’s domestic market has helped to drive up their stock market and residential property prices, such that experts are screaming ‘Bubble!”

  The authorities are slamming on the brakes to rein back the inexorable flood of funds seeking gains in property. Meanwhile, the stock market, unavailable to more savvy and seasoned foreign investors, represents a minefield of volatility.

   
• The emerging wealthydemand international expertise and professional portfolio management

The global financial crisis has badly damaged trust and relationships with the Western banking system. Local junk derivative products  

• Mainland investors are calling for more independent and professional advice from sound specialist sources. 

Investors are eager to know more beyond China, especially after the introduction of new products and changing regulations e.g. index futures trading earlier this year and margin trading in China’s stock market.

• Experienced foreign experts are increasingly in demand to service the coming-of-age of Chinese investors.

Traditionally, the rich Cantonese businessmen were sometimes called a "Da Kuan" or "big money". They most likely hold a senior position with a domestic company or a government agency and are typically well connected.

There is a difference between the Guangdong market and others in China. Many of the wealthiest Cantonese business people are very low-key and do not want any attention. They wear jeans and T-shirts. Nevertheless, their purchasing power is surprising. These people are famous for their extravagant ways, sometimes walking into dealerships with cash-in-hand and purchasing a Porsche without thinking twice or even being flattered by the luxury car sales person.

However, more traditional Cantonese businessmen have changed their preference for luxury experiences and niche luxury products. They are demanding more value for money. In a survey conducted by KPMG in 2008, connoisseurship was cited as a factor for luxury purchases for 30% of respondents in Guangzhou, while elsewhere it was lower. Their favourite collectable items include watches and expensive furniture.

Back in 2007, Guangdong became the first province in China with annual retail sales of consumer goods over £945 billion, accounting for 11.9% of the whole nation’s sales volume. In other words, 10% of every £0.95, spent by Chinese people, was consumed by Cantonese.

From the 2008 ranking of all Chinese cities by disposable income per capita, three out of the top five are in Guangdong.

1) Dongguan, Guangdong (£2862/year)

2) Shenzhen, Guangdong (£2544/year)

3) Shanghai (£2521/year)

4) Guangzhou, Guangdong (£2393/year)

5) Ningbo, Zhejiang (£2392/year)

Elite Wine Distribution Partners:  

 United Elite Business Ltd.

都菲酒庄中国代理：广州市汇晋商贸有限公司
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       Elite Confectionary Partners:

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Elite  Department Store Retailing partners: 

    http://www.grandbuy.com.cn/shops