China is set to become the world's leading consumer of luxury goods according to a new report.
A luxury fashion shoot in China Image: Ivan Walsh |
Even during the 2009 global economic downturn, China's luxury market grew by 16% to reach RMB 64 billion ($10bn) according to a new report from global management consultants McKinsey.
The report also predicts that China will become the world’s top buyer of luxury goods by 2015, with luxury spending by Chinese shoppers expected to grow by 20% over the next four years to a massive RMB 180 billion ($28bn).
When it comes to luxury, anything is up for grabs, from clothes, handbags, shoes and other fashion accessories; to fancy cars, private yachts or planes. According the report, although a license is required to captain a boat in China, this isn't stopping rich business tycoons from spending RMB 30 million ($4m) on a luxury yacht.
The Asian urge for the fashionably fast and furious, as previously reported by OATS, in the form of super car clubs can prove costly in other ways. A multi-vehicle pileup in Japan recently, could set new records for a car insurance claim.
The 14-car accident involved eight Ferraris, including an extremely rare white Testarossa, and a Lambourghini which were travelling in convoy, described by local police as “a gathering of narcissists”, on the Yamaguchi Prefecture’s Expressway. According to eyewitnesses, the lead car lost control, hitting the central barriers and causing a pile-up. The total damage is estimated at around $4m. According to an insurance specialist, young, rich supercar owners would think nothing of paying as much as $62,000 for annual insurance.