Wednesday, 26 August 2009

Beijing Is Officially Billionaire Central – 26/8/09

According to the latest Hurun Report*, Beijing has “143,000 multi-millionaires and 8,800 billionaires.” And Shanghai is following close behind with “116,000 multi-millionaires and 7,000 billionaires.”

We read in a China Daily article that the Hurun Report stated, "High-rollers in Beijing need to spend at least 87 million yuan [AU $15,209,688] on property, cars and other luxury goods in order to be regarded as one of the city's ‘new aristocrats’, or upper class."


This article also reveals that in Beijing, they consider Cartier as their favourite luxury brand, and are not as fond of Louis Vuitton. Which we have to say surprises us, given the growth of the Louis Vuitton brand in China and also the Chinese tourists in Australia purchasing up the brand to take home. Mercedes Benz at 1 million Yuan (AU $174,824) or BMW is their car of choice, they wear Bvlgari platinum and diamond watches and invest in art, amongst other things.


Another article in the Shanghai Daily, entitled
Luxury Living Getting Tougher, offered another interesting overview of
China’s luxury industry. It said, “Despite the slower pace, the price of luxury products rose steadily as a result of inflation. Because rich people's income rises faster than for average people, the inflation for rich people is much higher," said Rupert Hoogewerf, chairman and Chief Researcher of Hurun Report magazine, which is known for its "China Rich List".


The Shanghai Daily article revealed that, “Price hikes for cigars, liquor and MBA education contributed most to the rising luxury living cost."

*The Hurun Report, established in 1999, is regarded by some as the foremost authority in tracking the rapid changes among China's high net worth individuals.


Article by: Melinda O'Rourke

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au