China Will Become The World'S First Luxury Consumer In 3 Years.

Luxe private bank luxury

The number of young Chinese consumers is two times greater than that of the United States and Japan.

The senior analyst of the Swiss private bank of long o said that there were several reasons why China could become a consumer leader in the luxury market. The number of luxury consumers in China under 45 years old accounted for 73%, which was at least two times higher than that in the United States (30%) and Japan (19%). Besides, the male consumption in the mainland was much higher than that in the two countries, and women spent more than men.

And India is still the smallest market share of the country, only 2%, mainly from heavy tariffs and lack of distribution base.

Analysts add that in the past 15 years, the global luxury consumption market has a compound annual growth rate of 5.6%.

In the face of the global recession, the luxury goods market has shifted to Asia since 2008. It is expected that emerging market consumers will account for 65% of luxury consumption in 2020, and the luxury market will show greater resilience.

However, the report indicates that there are many obstacles in the supply and distribution of luxury goods. It is suggested that brands should not be developed too fast in some countries. Attention should be paid to retaining the original regional advantages and paying attention to after-sales service, and then slowly increasing the average selling point.

Luxury tax in the mainland does not hurt Hongkong

As for the luxury consumer market in Hongkong, the consumption of Hong Kong people is about 50%.

For mainland tourists, Hongkong is a "shopping paradise" and the price is two to 30% cheaper than that in the mainland. Therefore, the mainland's luxury consumption tax has little impact on Hongkong.

Senior analyst at Longo private bank in Switzerland favors luxury consumer stocks, and pays close attention to short term P / E, though there is a downside risk, but it can maintain stable profits in the long run.

It is estimated that the price earnings ratio of the industry will be 15 times next year, and the average long term will be 18 to 20 times, with a discount of about 20% to 25%.

International large brands and watches, jewellery, leather goods are worth investing in, and recommend the British clocks, six Fook and Zhou Shengsheng.