A woman shows her child latest watches on display at a Louis Vuitton store in Changsha, Hunan province. (Photo/CNS)
According to China's official population clock, there are an estimated 1,359,025,970 people in China as of Sept. 26, with just 2% of that number — some 27,180,519 people — consuming one third of the world's luxury items. The 2% are the backbone of the global luxury goods sales and the target of hundreds of international brand names, the Chinese-language Money Week magazine reports.
Although the huge majority of China's population is unable to purchase luxury items, as the country's economy grows so will its market, the magazine said. Research institutions have predicted that in the next three to five years, the role of the Asia-Pacific region in the global luxury markets will become even more transparent, especially in China.
AT Kearney, a Shanghai management consulting company, said that China accounts for more than 30% of global luxury sales. Meanwhile, overseas purchases account for 55%-60% of the total market, the company said.
It is possible to understand the huge sums involved in the industry by knowing the market value of the luxury leaders, the magazine said. The market value of LVMH Group, a world leader in luxury goods, is just shy of 605 billion yuan (US$98.8 billion), which is even higher than that of Chinese oil giant Sinopec Group at 514 billion yuan (US$84 billion).