China changed from a production market into a consumption market. We provide European producers of high quality luxury and design products the right tools to find their ways to the growing group of wealthy Chinese people.

Demand for luxury and design products

Since about 10 years China emerged as a market for Western luxury brands and Western design companies. Statistics show not only that the number of wealthy people is growing fast in China, but that their willingness to spend on big tickets items is also on the rise. All driven by an appetite for status and a way to reward themselves for their hard work and success.

China will become the world biggest importer of luxury products in 2015.

According to some of the world leading financial groups like Goldman Sachs, consumption of the luxury and design goods in China are making up 17% of the global total – up from 1% just 6 years previously.
Because of China’s predicted annual growth of about 8-10% it is expected to surpass the USA and Japan before the end of 2015 to become the biggest importer of luxury and design products in the world.

Treats & Potential

The global economic crisis will leave it marks in all businesses. Also in China, however the impact there will be less than in other countries.
Chinese export is influenced because of this crisis, mainly because of the significant appreciation of the Chinese RMB ¥ against the US$ and €.
However, this shortage will be compensated by the purchasing growth of its own internal market. To increase this purchasing power the Chinese government took measures like lowering the interest. Both the appreciation of the Chinese RMB ¥ and the governments’ measures to enhance the purchasing growth of its citizens will stimulate the import from overseas countries.

And even due to the economic crisis, the Chinese economy is still growing with 8% in 2009. For 2010, economists expect the same. This is slightly less than it was before, but still growing!

This means that this is the time for foreign companies to enter the Chinese market. Chinese people do have the money to spend and they are looking for ways to spend it. Generally they highly value European products. Made in Europe means quality to them. Especially during this economic crisis with decreased European demand for luxury and design products.
Besides that, the investment to enter the Chinese market is relatively low because of the low costs. All this makes it very attractive to enter the emerging Chinese market.

"Your Bridge To China"