China Herald: Being rich is getting more expensive

Rupert Hoogewerf

The costs of luxury goods are becoming more expensive, faster than the inflation rate, is one of the conclusions by the newest Hurun Luxury Consumer Price Index. Quality is taking over from quantity, suggests Hurun founder Rupert Hoogewerf in the Shanghai Daily.

The Shanghai Daily:

Rupert Hoogewerf, chief researcher at the Hurun Research Institute, said the buzzword "tuhao" — those with deep pockets but poor taste — has made China's rich aware that the most expensive thing is not necessarily the best. And that put pressure on brands targeting high net worth individuals.

The biggest winners of this year's luxury consumer price index were properties, yachts and jets, and even education.

Last year, luxury travel, accessories and skin-care products, automobiles and lifestyle were the big thing for the rich.

Luxury life begins with buying a house, the institute said. The overall price increase of 12.6 percent this year came along with the popularity of villas due to the rich's increasing love for golf. The membership fee for the Shanghai Sheshan Golf Club, for example, rose from 2.3 million yuan last year to 2.7 million yuan this year, up 17 percent.

Prices for yachts and jets was up by 6.5 percent, up for the second straight year, while education rose 5.6 percent, 3.1 percentage points higher than last year.

More in the Shanghai Daily.

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