China’s luxury market: changing in a shrinking economy – Rupert Hoogewerf

 

Rupert Hoogewerf

China’s economy is facing rough weather, but while the luxury market has its problems, some segments are doing better than ever, says Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher at the Hurun Report. And more important, the happiness of China’s high net worth individuals is increasing he adds at the  20th anniversary of the Hurun Best of the Best Awards.

Rupert Hoogewerf:

“This year marks the 20th anniversary of the Hurun Best of the Best Awards, our 20th year of tracking the brand choices and lifestyle changes of China’s luxury consumers.”

“Although the size of the luxury car market, defined as cars costing over CNY500,000, has continued to shrink, the size of other premium industries has basically increased, especially the likes of luxury travel and traditional luxury, bringing the overall size of China’s premium market up 3% to CNY1.7tn. In China, this is one of the rare trillion-Yuan industries, others including elderly care, automobiles, real estate, etc… China’s luxury consumers are now undoubtedly the world’s biggest spenders when it comes to luxury in the world.”

“With the global economy facing many uncertainties, the Hurun Economic Confidence Index of China’s high net worth individuals has declined for the second year, but is still at a high level compared with the past. This year, the Hurun Happiness Index is at its highest level for a decade, especially for Generation X and in terms of family life.”

“In the coming year, China’s HNWIs surveyed plan to increase their investments in gold, funds and bank deposits, and decrease their investments in real estate, both for residential and commercial, and art.”

“Gifting continues to be on the rise again, with Chinese HNWI males preferring to gift watches, baijiu and electronic products.”

“The priorities of China’s HNWIs have changed dramatically. ‘Health’ becomes the most important thing. High net worth individuals also increased their enthusiasm for exercise by 20%. The UHNWIs demand nutritionists and family doctors more than investment advisers.”

More at the Hurun Report.

Rupert Hoogewerf 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. 

Are you looking for more experts on China’s luxury market? Do check out this list.

Pleas

China lacks consumer and business confidence – Ben Cavender

 

Ben Cavender

Consumer confidence is at a new low, and businesses are not optimistic, says business analyst Ben Cavender in the Jing Daily. Luxury consumption is especially suffering, he says. “However, brands will have to work much harder to resonate with consumers and get them to spend.”

Jing Daily:

The current economic challenges in China are marked by uncertainty and a lack of consumer and business confidence, noted Ben Cavender, managing director of the China Market Research Group. He points out that both small business owners and consumers are hesitant to spend or invest, a sentiment exacerbated by the government’s modest stimulus efforts.

“Any small-scale stimulus is essentially being saved by recipients who still await further signs of economic prosperity,” says Cavender. “With weak domestic and international demand, China grapples with an oversupply issue that proves challenging to address.”

Cavender believes that consumer confidence in China has reached a low point, causing individuals to postpone major purchases, seek more affordable alternatives, and limit spending to essentials.

“For luxury brands, this shift holds particular significance. Relying solely on exclusivity or high prices is no longer adequate; they must cultivate deeper connections with consumers to inspire trust and stimulate spending,” he says.

Young spenders in China, in particular, face mounting pressure to curtail their expenses. In June, the unemployment rate for urban workers aged 16 to 24 hit a record high at 21.3 percent. Furthermore, starting in July, the government stopped publishing breakdowns of unemployment data by age groups, adding to the challenge of assessing the employment situation for this demographic.

Cavender says: “Youth unemployment, coupled with unease about the real estate market, will both have effects.  Gen Z consumers were already looking for a more authentic connection with brands before the economy slowed down and this trend has accelerated as their job prospects have waned.”

As such, being expensive or seen as a luxury brand alone is no longer sufficient.  “The market is still there,” says Cavender.
“However, brands will have to work much harder to resonate with consumers and get them to spend.”

More at the Jing Daily.

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.

Are you looking for more consumer experts at the China Speakers Bureau? Do check out this list.

Plea

Business confidence among luxury buyers sky high – Rupert Hoogewerf

 

Rupert Hoogewerf

Hurun chairman Rupert Hoogewerf introduces the Hurun Chinese Luxury Consumer Survey & Hurun Best of the Best Awards 2023 with some amazing results: business confidence among luxury buyers in China is sky high and was only higher in 2022.

Rupert Hoogewerf 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.

Are you looking for more experts on the luxury consumer market? Do check out this list.

How luxury has become huge in China – Ashley Dudarenok

 

Ashley Dudarenok

Marketing expert Ashley Dudarenok explains how luxury purchases became rooted in China’s complicated market and developed over the past decades. And what trends she expects for 2023.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more consumer experts at the China Speakers Bureau? Do check out this list.

New lifestyle trends in China: skiing – Ashley Dudarenok

 

Ashley Dudarenok

Marketing expert Ashley Dudarenok looks at new lifestyle trends among China’s young consumers. With the Olympics around the corner, skiing is one of them, she writes in Jing Daily. “Many luxury brands hope to use the popularity of the Winter Olympics to promote their ski collections.”

Ashley Dudarenok:

With the Winter Olympics just around the corner, cold-weather activities like skiing have become incredibly trendy — both online and offline. In 2021, the search volume for “ski tutorial” on Xiaohongshu increased by 100 percent, year-on-year, having grown significantly for two consecutive years. Aside from the Winter Olympics factor, rising national income and escalating trends in fashion consumption have resulted in ice and snow sports growing from an elite niche pastime to a broad middle-class activity. That should make skiing increasingly popular in the future.

The ski industry is now known as the “Platinum Bonanza” (白金富矿)  in China due to its high economic value. But this extreme economic development has helped drive many other industries, including the luxury industry. Because the high cost of ski equipment requires high spending power, luxury goods have a natural audience in ski-related products. Luxury brands have only recently noticed this trend and are now launching ski-related products, which has made this professional sport even more popular.

Many luxury brands hope to use the popularity of the Winter Olympics to promote their ski collections. In September 2021, Prada opened a new Prada on Ice pop-up store in Beijing SKP to sell their exclusive Winter Olympics series. Meanwhile, FENDI launched ski items with spokesperson Jackson Wang while jointly opening a limited-time coffee shop called FENDI in the Changbai Mountain International Tourism Resort.

More outdoor trends in the Jing Daily.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.

Are you looking for more marketing experts at the China Speakers Bureau? Do check out this list.

Please follow and 

Burberry's digital strategy well ahead of other luxury brands - Shaun Rein

Shaun Rein

Having a strong digital strategy has put Burberry ahead of luxury competitors even before the coronavirus crisis hit the purchasing behavior of China's consumers, says Shanghai-based business analyst Shaun Rein to the BBC. 

The BBC:

Retail analysts praised Burberry for the hybrid store which combines online shopping with traditional bricks-and-mortar retailing.
"Burberry has been savvy and ahead of the curve in understanding the importance of social media and e-commerce in targeting Chinese consumers," said Shaun Rein, founder of the China Market Research Group. "Too many luxury brands focus on bricks and mortar and the in-store experience only while Chinese want to shop online."
Luxury brands have been selling strongly in China as residents can't travel overseas on expensive foreign shopping sprees due to coronavirus travel restrictions.

More at the BBC.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more e-commerce experts at the China Speakers Bureau? Do check out this list

At the China Speakers Bureau, we start to organize online seminars. Are you interested in our plans? Do get in touch.

Trends in luxury travel - Rupert Hoogewerf

Rupert Hoogewerf

China's luxury travelers are high on the agenda of the tourism industry, and Rupert Hoogewerf, publisher of the Hurun China Rich List, sees a few major trends. Family trips are emerging as a preference, and WeChat groups of alumni of key universities a forgotten way to connect to the luxury travelers, he tells in the South China Morning Post.

The South China Morning Post:

Rupert Hoogewerf, CEO of the Hurun Report – a research, media and investments business – said that family travel was the third most popular holiday “theme” with high-net-worth individuals and ultra-high-net-worth Chinese travellers. Speaking to the luxury travel brands attending the event also confirmed for us that pleasing the “luxury little emperors” – children – is just as important as anticipating the needs of adult VIP guests... 

During the panel discussions, Hoogewerf also referred to an untapped resource – the alumni of top Chinese and international universities and their WeChat groups. For example, if a former student at Shanghai’s Fudan University – or a Chinese alumnus of a leading overseas university recommends a luxury travel experience, then the rest of his or her peers are highly likely to want to try it for themselves. 

His comments highlighted the fact that there are still underused methods for connecting directly with holiday firms’ target market of China’s affluent travellers.

More at the South China Morning Post.

Rupert Hoogewerf 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.

Are you looking for more experts on luxury at the China Speakers Bureau? Do check out this list.  

Luxury as display of success in China - Tom Doctoroff

Tom Doctoroff

Luxury, as a display of success, is a key element in China, among all different cohorts, says marketing veteran Tom Doctoroff, author of What Chinese Want: Culture, Communism, and China's Modern Consumer to Emarketer. What they have in common is a Confucian culture, binding all Chinese together, he says. If explains the longing for luxury.

Emarketer:

Tom Doctoroff:

Luxury, no matter what demographic cohort in China you're talking about—whether it's young consumers who have limited out-of-pocket funds or the man on top of the mountain—is used as a demonstration of the ability to get ahead in the game of life or maintain one's place. And this is largely driven by Confucian culture. 

eMarketer:

Could you explain what Confucian culture is and how it's connected to luxury consumption in China?

Tom Doctoroff:

Confucian culture is a combination of rules and regimentation, and [the idea] that the individual does not exist independent of his obligations and responsibilities to others. Therefore, there is a need to obey certain standards; in this case, demonstration of success. 

But the other part of Confucian culture that people don't usually think of is that it's a meritocratic culture. Not by rebelling but by mastering the rules, you are able to climb up the hierarchy. Luxury goods and the type of positioning that luxury goods have reflect the aspirations of what people want to project about themselves in society. So luxury is not frivolous at all. 

If you look at the role luxury plays in American society, it is relatively minor compared with Chinese society. In the US, these types of expression [aren't required], no matter how subtly they are displayed. In America, people don't have the same rule [to demonstrate] a marker of success, due to the nature of its individualistic culture.

More at Emarketer.

Tom Doctoroff 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. 

Are you looking for more luxury experts at the China Speakers Bureau? Do check out this list. 

Prices luxury goods in China rise - Rupert Hoogewerf

Rupert Hoogewerf

The luxury consumer price index (CPI) went up 4.1% in the first five months of 2018, the highest rise since 2012, says Rupert Hoogewerf, chairman and chief researcher of the Hurun Report, according to the Global Times. 

The Global Times:

Prices of luxury goods are increasing in China, an industry report showed, with the luxury consumer price index (CPI) surging by 4.1 percent so far in 2018, double the growth rate seen on the general CPI from January to June. 

The 4.1 percent luxury CPI increase is the highest growth rate since 2012, Rupert Hoogewerf, chairman and chief researcher of the Hurun Report, was quoted as saying in a statement sent to the Global Times over the weekend. 

Luxury CPI is an index released by Hurun that measures the change in consumption prices every year regarding how much consumers pay for a total of 108 luxury goods and services, including properties, private healthcare and education, travel, weddings, watches, jewelry, accessories and skincare. 

Among the categories, high-end alcohol and tobacco lead the luxury CPI gains with an average price rise of 12 percent, followed by jewelry, accessories and skincare as well as leisure, with a growth rate of 7.2 percent and 5.6 percent, respectively, according to the report. 

Meanwhile, jets and yachts as well as weddings bottomed the list with a price decline of 5.9 percent and 2.7 percent, respectively.

More at the Global Times.

Rupert Hoogewerf 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.

Are you looking for more experts on luxury goods at the China Speakers Bureau? Do check out this list.  

Rich more optimistic about China's future - Rupert Hoogewerf

Rupert Hoogewerf

China's high-net-worth individuals are more optimistic about the country's economic development compared to last yet, says the Hurun Chinese Luxury Consumers Survey 2018, released on Wednesday, according to the China Daily. Rupert Hoogewerf, founder and chief researcher of Hurun, said that although China's GDP growth rate was 6.9 percent last year, which is slightly up from the 6.5 percent estimated by the central government at the beginning of 2017, it is enough to make a difference.

The China Daily:

The Shanghai-based Hurun Research Institute, which conducted the study, said that only 6 percent of the respondents were pessimistic on prospects, while that number was 9 percent a year ago. 

Rupert Hoogewerf, founder and chief researcher of Hurun, said that although China's GDP growth rate was 6.9 percent last year, which is slightly up from the 6.5 percent estimated by the central government at the beginning of 2017, it is enough to make a difference. 

As a result, 72 percent of the respondents－up from 65 percent last year－expected that China and the United States will run neck and neck in terms of economic development in the next decade. About 37 percent said that China is likely to overtake the US in 10 years, which is up from 28 percent a year ago. 

It is the 14th consecutive year that Hurun has released this list. About 58 percent of the surveyed high-net-worth individuals this year, who have not immigrated yet, expressed no such plans, a historic low since 2011. In addition, overseas investment dropped out from the top five personal investment channels. As explained by Hoogewerf, it reflects the rich individuals diverse interests in the domestic market. 

Liquor band Kweichow Moutai is the only Chinese brand that figures in the top 10 favorite brands for gifting. According to Hoogewerf, wealthy individuals' preference of brands for gifting has consolidated over time, which means that they are extremely loyal to certain brands and will not opt for a substitute easily even if the new products are a hit in the market. 

In terms of recreation and activities, sailing took the second spot among the activities that Chinese high net worth individuals want to try in the next three years, next to equestrianism.

More in the China Daily. Rupert Hoogewerf 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.

Are you looking for more experts on luxury goods at the China Speakers Bureau. Do check out this list.

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The uptick in spending on real estate, Tesla and Baijiu - Rupert Hoogewerf

Rupert Hoogewerf

The China's luxury Consumer Price Index (CPI) rose 3.6% on a yearly basis in 2017, both based on more wealthy Chinese, and an uptick in the money they spend. Chief researcher of the Hurun China rich list Rupert Hoogewerf says expenditure on real estate, Tesla and Baijiu going up, he tells in Asia Times.

Asia Times:

The Luxury Consumer Price Index, released by Hurun each year, aims to measure the price changes for a predetermined basket of goods and services purchased by China's high-net-worth individuals (HNWI). The index covers the consumption activities of wealthy Chinese in the following 11 categories: real estate, health, education, luxury tourism, weddings, watches & jewelry, accessories & beauty products, cruises & private jets, lifestyle, liquor & cigarettes, and automobiles. 

The 2017 index, which gauges prices from June 2016 to June 2017, was calculated based on a basket of 116 high-end goods and services, 20% of them imported. The issue marks the 11th edition of the index. 

The depreciation of the Chinese yuan against major global currencies over the past year has been the main reason for the decreasing purchasing power of China's rich population with respect to buying luxury property worldwide and high-end imported goods. 

Based on Hurun's estimates, there were nearly 1.34 million HNWIs in mainland #China by May 2016, while the number of individuals with over a billion yuan of wealth was close to 89,000. Over the past year, this population has borne the brunt of the price spike in the areas of luxury property, liquor, lifestyle and travel. 

'What impresses me most, this year, is how much the price of real estate, baijiu (a traditional Chinese liquor) and Tesla has increased,'said Rupert Hoogewerf, chairman and chief researcher of the institute, 'completely lifting up the luxury CPI.' 

For affluent Chinese buyers, the price of luxury property has gone up 16.6% since last year. Domestically, a villa in China's southwestern city Chengdu spiked 56.5%, followed by properties in Hainan (a rising tourism city) and Shanghai. Housing prices in overseas cities such as Vancouver, San Francisco, Los Angeles and New York also jumped.

More in Asia Times.

Rupert Hoogewerf 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. 

Are you looking for more experts on luxury goods at the China Speakers Bureau? Do check out this list.    

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Winners in luxury: property, baijiu and Tesla - Rupert Hoogewerf

Rupert Hoogewerf

Spending on luxury in China went up over 80 percent over the past ten years, reveals the Luxury Consumer Price Index (LCPI). HuRun chief researcher Rupert Hoogewerf points in ECNS at three major winners: property, baijiu and Tesla.

ECNS:

The gauge represents a basket of 116 high-end goods and services, 20 percent of which are imported. It is the 11th of this kind issued by HuRun research institute, which tracks changes among China's high-net-worth individuals. 

The index compares the price level from June 2016 to June 2017, while noting that the LCPI rose by 3.6 percent so far this year, outpacing a 1.5 percent increase in CPI. 

"What impresses me most this year is the increase in property prices, baijiu (a Chinese alcohol), and Tesla cars, which drive the general luxury consumer price up," said Rupert Hoogewerf, chairman and chief researcher of the institute. 

Of the 11 categories measured by HuRun, luxury housing price led the upward trend, up 16.6 percent from the previous year. And baijiu recorded huge price surge, with Wuliangye, one of China's most famous high-end Baijiu brands, rising as high as 30.5 percent. 

The LCPI report attributed more expensive luxury houses and imports to the depreciation of yuan, as many foreign currencies became stronger, with exchange rate of US dollar against renminbi up 3.6 percent year-on-year as of June 9. 

Gold and diamond maintained momentum, up 9.6 percent and 3.3 percent respectively. And Tesla electric cars increased by 4.5 percent, thank to favorable policies in China to support electric car development, the report noted. 

However, wedding and healthcare markets witnessed a decline for the first time, dropping 3.6 percent and 3.5 percent respectively.

More at ECNS.

Rupert Hoogewerf 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.

Are you looking for more luxury experts at the China Speakers Bureau? Do check out this list.    

Chinese tourists prefer Europe and SE-Asia - Rupert Hoogewerf

Rupert Hoogewerf

Luxury outbound travel by Chinese tourists keeps on booming, with Europe and SE-Asia as their favorite destinations, says the latest report by the Hurun or China Rich List, tells its chief researcher Rupert Hoogewerf to the Shanghai Daily.

The Shanghai Daily:

Europe and Southeast Asia were the most preferred destinations among the country's super wealthy last year, accounting for 45 percent and 44 percent of respondents, respectively, according to "The Chinese Luxury Traveller," which was released in its seventh year and covered 334 samples from 12 Chinese mainland cities including Beijing, Shanghai, Nanjing and Chengdu. These high-end tourists averaged 42 years of age with per capita wealth of nearly 22 million yuan (US$3.23 million). 

Notably, Southeast Asia, in just two years, has successfully surpassed the Americas to become Chinese luxury traveller's new choice, displaying a shocking 34 percent increase in millennial favor and jumping from last year's fourth place to take the crown this year. 

"In the past year, Chinese luxury travelers have gone abroad an average of 3.3 times and stayed for an average of 27 days, with tourism increasing 5 percent to reach 69 percent," said Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher. "And 60 percent of high net worth Chinese families are now willing to pay 3,000 yuan for a night on hotel accommodation and fly business or first class, impossibly high figures compared with a decade ago." 

By vocation theme, leisure, at 41 percent, was still the most popular among the rich while polar exploration and outdoor adventures have gained further momentum from the past two years, ranking the second (31 percent) and fourth (20 percent) respectively. As a new option in this year's study, island holidays, at 23 percent, were the dark horse and surpassed both cruises and self-drive holidays to rank the third. Interestingly, island holidays were especially popular among the Post-80s generation and ranked first with 46 percent. 

Looking forward, Around World travel, polar exploration and outdoor adventures will be the trend in themes for the Chinese luxury travelers in the next three years, with the Post-80s generation displaying an increased interest in Africa and the Polar regions, according to the report.

More in the Shanghai Daily.

Rupert Hoogewerf 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.

Are you looking for more experts on China's consumption trends? Do check out this list.  

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Luxury CPI keeps on rising - Rupert Hoogewerf

Rupert Hoogewerf

Despite a relative slowdown in the country´s economic growth, China´s luxury price index saw the fastest rise in five years outpacing the CPI, show the latest report by the Hurun Institute, according to the Shanghai Daily. Luxury property, health and education are the driving forces, says Rupert Hoogewerf, Hurun Chairman.

The Shanghai Daily:

The gauge of China’s luxury buying power, based on a basket of 124 luxury goods and services, rose 5.1 percent in June from the same month of last year. Comparatively the country’s CPI rose a mere 1.9 percent, the National Bureau of Statistics said. 

“Luxury property, health and education drove up the Luxury Consumer Price Index this year, coupled with a decrease in the value of the yuan against most major currencies,” said Rupert Hoogewerf, chairman and chief researcher of Hurun Report. 

About 60 percent of the surveyed luxuries cost more than last year. 

Property was the biggest riser, gaining over 13 percent — a big turnaround from last year’s 1.9 percent decline. 

High-end health care costs rose for a third consecutive year, up 11.7 percent, while top education continued its decade-long uptrend with a 6.2 percent price hike.

More in the Shanghai Daily.

Rupert Hoogewerf 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.

Are you interested in more experts on the luxury goods market? Do check out this list.

Rich millenniums prefer travel beyond Asia - Rupert Hoogewerf

Rupert Hoogewerf

A Hurun rich list survey under China´s rich millenniums, The Chinese Luxury Traveler 2016, shows that Asia is loosing out as travel destination. Japan and South-Korea still do well since they are close, says Hurun chief researcher Rupert Hoogewerf at TTG-Asia, "But in terms of aspirations, this generation wants to go farther."

TTG-Asia:

At a media conference, when asked what Asian destinations could do so as not to lose out to longer haul destinations, Rupert Hoogewerf, chairman and chief researcher of Hurun Report, told TTG Asia e-Daily: “In terms of frequency of travel, there is still going to be the trips to Japan, South Korea, South-east Asia, etc, because of the geographical advantage – four hours and you’re there. 

"But in terms of aspirations, this generation wants to go farther. It strikes me how different they are; I have friends in the UK or Europe, we may go to Italy, Greece, maybe Thailand, but rarely do we see the younger people just travelling absolutely anywhere in the world, which is the case for China. And some of the remote or experiential places are pricey. They could well be US$20,000 per person. 

“So I see they will travel two or three times within Asia and longhaul becomes the annual trip. It’s not really a threat to Asian destinations but a demonstration of young Chinese travellers wanting to go further afield.”

More at TTG-Asia.

Rupert Hoogewerf 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.

Are you looking for more experts on luxury goods at the China Speakers Bureau? Do check out this list. 

Earlier we discussed with journalist Ian Johnson about the spiritual values Chinese are looking for today

 

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Chinese buy more than ever overseas - Rupert Hoogwerf

Rupert Hoogewerf

While the luxury goods suffer from the anti-graft crackdown, what the Chinese buy, they buy increasingly abroad, says China Rich List founder Rupert Hoogewerf at the presentation of his eleventh Hurun Best of the Best Awards 2015, a benchmark for the luxury sector, according to the Shanghai Daily.

Shanghai Daily:

Hurun Report Chairman and Chief Researcher Rupert Hoogewerf said, “The government’s crackdown on luxury gifting continues to have its effect, with luxury gifting down a further 5 percent year on year, taking it to 30 percent over two years. Travel retail continues to change the dynamics of luxury in China, with 7 out of 10 luxury goods bought by Chinese now being bought overseas.” 

Consumer electronics, led by Apple, was the gift of choice, overtaking LV and last year’s Number One Hermes, which dropped down to seventh. Moutai shoots back into Top 10 after two year ‘holiday’. Red wine had a poor year, dropping down to third place in the preferred gift. Watches rose to second place, although especially for watches worth less than 20,000 yuan. Overall spending crept back up to the levels of two years ago. 

The Hurun China Business Confidence Index, an index measuring the confidence in the economy going forward two years, rose for the second consecutive year: 3 out of 10 are highly confident in the economy going forward. 

Chinese luxury consumers continue to be extremely busy, away on business trips for 8 days a month on average, whilst super rich are away for 11 days a month. 6.4 percent away for more than 20 days a month. Despite this, they take 8 and 12 days of holiday respectively, one more than last year. Chinese New Year is preferred time to travel, followed by October Golden Week and the summer holidays. The Peninsula Hotel replaced the Shangri-La as China’s preferred hotel brand. The Mandarin Oriental improved the fastest, rising to second place.

More in the Shanghai Daily.

Rupert Hoogewerf 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 list.

Are you looking for more luxury good experts at the China Speakers Bureau? Do check out his list.  

Adventure sports hit among the wealthy - Rupert Hoogewerf

Rupert Hoogewerf

China´s rich are increasingly looking for challenges, also when it comes to their holidays, says the Hurun Report Chinese Luxury Consumer Survey 2016. The wealthy entrepreneurs are keen to test their limits, says Hurun founder Rupert Hoogewerf in the China Daily, preferring adventure sports over riding and sailing.

The China Daily:

According to the Hurun Report Chinese Luxury Consumer Survey 2016, about 43 percent of the 458 surveyed with average personal wealth in excess of 43.7 million yuan ($6.63 million), chose adventure sports as their top passion, ahead of riding and sailing in 2015... 

The average age of the respondents tracked by Hurun for the survey was 37 for millionaires and 38 for billionaires. 

Yet another surprising finding from the study is that jogging is still a popular sport with the Chinese superrich, with about 16 percent of the male and female millionaires keen on the sport. 

The report also included the Hurun Business Confidence Index, which indicated that about 80 percent of the respondents are positive on the Chinese economy in the next two years, although only 27 percent are "extremely confident". 

The top three sectors chosen by the rich entrepreneurs for investment were the stock market, real estate and fixed income. 

"Majority of Chinese businessmen are quite confident about the steady growth of China's economy, which will bring them more opportunities in the coming years," said Rupert Hoogewerf, the founder and chief researcher of Hurun Report.

More in the China Daily.

Rupert Hoogewerf 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.

Are you interested in more stories by Rupert Hoogewerf? Check out this list.  

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Luxury consumer price index drops - Rupert Hoogewerf

Rupert Hoogewerf

Prices of luxury consumer goods have dropped for the first time in eight years, according to the Hurun Luxury Consumer Price Index, an annual study that gauges levels of top-end individual spending in China , writes the China Daily. Lowering of the prices is one of the reasons, says Hurun founder Rupert Hoogewerf.

The China Daily:

According to the Hurun index, yachts and private jets witnessed the largest price drops, an average of 10.5 percent this year, as a result of foreign exchange differences. It said the price for an Italian-made Azimut yacht, for example, dropped from 110 million yuan ($17.7 million) last year to 86.5 million yuan. 

Gulfstream G550 airplanes have also dropped in price by 5 percent this year. Luxury trips showed the second-largest fall in prices this year, by 5.7 percent on average, as a direct result of the appreciation in the renminbi. 

The Japanese yen, it said, depreciated the most significantly by 21.9 percent by the end of June, while the Australian dollar and the euro depreciated by 18.5 percent and 18.3 percent respectively. 

China's largest online travel agency Ctrip.com.cn said that as Japan's currency weakened against the yuan, it has grown in popularity with a growing number of Chinese travelers, and now predicts numbers to increase 100 percent over the summer holiday season. 

The central government's crackdown on extravagance and corruption has also resulted in a continuous price drop for other luxury products. 

Patek Philippe watches and jewelry, meanwhile, dropped in price by 3.6 percent on average, while the price of imported wines and spirits from Hennessey has fallen by 5.2 percent. 

Rupert Hoogewerf, founder and chief researcher of Hurun Report, said, however, that "Chinese consumers remain willing to buy luxury products with the increasing popularity of traveling overseas and enhanced information transparency. 

"To boost domestic consumption, luxury brands such as Patek Philippe and Chanel have lowered their prices in China, which has exerted a huge impact on Chinese luxury industry." Luxury properties, according to the report, saw price drops of 1.9 percent year-on-year till date this year.

More in the China Daily.

Rupert Hoogewerf 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.

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