China Herald: Apple, Ferrari: two products appealing to the rich

Ben Cavender

The Chinese are not trying to become middle class, they want to become rich, very rich. Products like Apple and Ferrari are helping consumers is creating that feeling, tells consumer analyst Ben Cavender in the Wall Street Journal and Adage.

Adage:

Initially, the allure of Apple products stemmed from the fact that they simply weren't available in China. Only people who traveled overseas or to Hong Kong could buy them. "The fact that it was hard to buy them here really boosted the cachet it had and cemented its status," said Ben Cavender, associate principal at the China Market Research Group....

Apple's premium retail experience, where consumers can play with the sleek gadgets out in public, is part of the allure. Apple stands out in a market where buying consumer electronics generally meant braving chaotic multistory malls crammed with tiny booths and aggressive shopkeepers hawking products that may or may not be legitimate.

"They've done a great job working on point-of-sale, which is really, really important in China," said Mr. Cavender.

China's five Apple stores—one for every 268 million Chinese—boast the highest traffic and revenue in the world for the company.

The Wall Street Journal:

While Ferrari’s brand has recently been tarnished in China, marketing experts say, the stains will not be long-lasting. “Many Chinese still see opportunities for wealth creation through entrepreneurship, dreaming of wealth and ownership of luxury products; many expect and hope that they too will be able to own a Ferrari,” said Ben Cavender, a senior analyst at China Market Research Group.

More in the Wall Street Journal and Adage.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.