Young Chinese spend up to 40% of income on luxury goods
29/08/2012
The main group of Chinese luxury consumers are aged between 25 and 35, considerably younger than their US or European counterparts, reports The China Daily, citing a recent study.
The study shows this bracket of Chinese consumers spend about 40% of their yearly income on luxury goods, while the comparable group in the West spend an average of only 4%. They can afford this because many young Chinese receive financial help from their families, or have subsidised housing or grants, it said.
Most of the Chinese tourists in London probably belonged to this group because they snapped up designer handbags, watches and clothes favoured by consumers at the low to middle end of luxury spending.
A study of thousands of Beijing households, published in academic journal Economic Research, found that expensive brands are considered necessary to show social status, so families with university-educated members, professionals or employees in the public sector tend to spend more than those with retirees or unemployed members.
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