According to a recent report released by Goldman Sachs, the sales revenue of China's luxury market is expected to break $5 billion this year, enjoying the largest growth pace compared to other parts of the world. This number is far more than the $3 billion in 2008 despite the slump of global luxury markets.
As the demand for luxury brands around the world has shrunk due to the financial crisis, the China luxury market is enjoying steady growth. Currently, the country's consumption of luxury brands makes up 25 percent of total world market consumption, overtaking the US to be the second-largest luxury market.
Meng Pengjun, CEO of Luxury Asia Limited China markets said the Chinese corporate aircraft market was not greatly affected by the financial crisis in the past year and the company sold six corporate aircrafts in China this past year.
Shenzhen has become China's leading luxury market as well as the first to follow trends. Luohu, Shenzhen is where Gucci and Louis Vuitton have opened their largest flagship store in the Asia-Pacific region in March and July respectively.
Meng pointed out that Gucci and Louis Vuitton have become the standard for Chinese to judge a city's fashion culture.
"Gucci and Louis Vuitton chose to set up their flagship stores in Shenzhen, not in Shanghai, because Shenzhen is leading luxury market," Meng said.
Yiwu, a small county-level city in Zhejiang Province, has the largest density of luxury cars in China, according to the report.
Top brands like BMW, Benz, Porsche, Audi, Ferrari, Rolls-Royce, Bentley, Maybach and Lamborghini can be seen everywhere in the streets of this small city. BMW opened a 4S store in Yiwu in 2007, which shocked the whole country then since it is the only store that the German carmaker opened in a county-level city in China. At present, BMW sells more than 2,000 vehicles in Yiwu each year.
The city also has 13 Rolls-Royce, more than the total number in Guangdong Province.
Nevertheless, the Shanghainese are perceived to worship luxury brand names the most. Clothing sold at some high-end shopping malls in Shanghai may cost around 20,000 yuan, equal to several months' salary for the average person.
Li Na contributed to the stroy
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