The Bling Dynasty: Why the Reign of Chinese Luxury Shoppers Has Only Just Begun

Foreword

One of the challenges in writing about China's luxury market is the speed with which it is evolving. No market for luxury goods has grown more quickly.

In fact, over the last decade, the Chinese consumer has been a major growth driver for most luxury brands, whether spending ‘at home' or spreading the wealth in global travel retail locations. Therefore, it is not surprising that the Chinese consumer has become the primary target of international luxury brands.

Looking ahead, the Chinese should dominate the luxury space: the change we are seeing with the Chinese is a once-in-a-generation transformation; no other nationality will influence luxury consumption as much as the Chinese in our lifetime.

Irrespective of any near-term challenges that the China luxury market may be facing, its medium- to long-term future is unquestionably bright.

While a shift from traditional corporate gift giving and evolving government regulation may limit growth in certain categories, many factors point to significant opportunities for growth in luxury consumption. These include: an increasingly urbanized population, a large and rapidly growing middle class, continued investment in luxury retail infrastructure, policies favoring domestic consumption as export-led growth slows, and the increasing sophistication of the Chinese consumer thanks to both travel and the amazing access to information via the Internet.

The Chinese consumer is a citizen of the world and adopting luxury brands will remain ...