Chinese metrosexual men are in the race to buy Burberry and Gucci bags along with the Discount Wholesale Clothes from local dealers, reviving the luxury market after a certain stagnation that caused a lot of global investors’ concerns. Brokerage CLSA has carried out research and came to the conclusion that 55% of the luxury goods market in China accrues to men, while this percentage is far lower in the global market, being only 40%. It is explained that most businessmen prefer to purchase rather expensive presents in order to ingratiate themselves with potential partners and government officials.
This costly gift trend is quite beneficial for all companies that sell luxurious accessories and clothes such as LVMH and Burberry Group Plc. At the same time, according to CLSA’s research, these companies can find themselves in quite a risky situation as men are less likely to make optional purchases than women. Impulse shopping mostly refers to women, while men are able to take time during economic instability.
Consulting firm Bain & Co has informed that Chinese consumers managed to outrun Americans, becoming leading luxury goods buyers in the world. At the moment they account for 25% of all luxury purchases.
In 2012, luxury demand decreased due to the slowdown of economic growth in the country. However, sales in China significantly went up in Q4 of 2012, while in America there was a little increase and in Europe, they didn’t change at all. It was estimated that the sales of men’s clothing and accessories increased by 50% and 40%, respectively. Thus, the China market is expected to grow further. Meanwhile, sales are skyrocketing before the Chinese New Year in February and the National People’s Congress in March, which will be obviously held in Hong Kong – a famous shopping destination for wealthy shoppers. Thus, China is the leading luxury market at the moment and it will most probably remain the driving force in the future as well.
