As China has become the world’s second largest market for luxury goods, the population of young consumers has steadily been growing, particularly when compared to the small number of affluent luxury consumers in Europe and the United States who are mostly over the age of 40. According to the World Luxury Association (WLA), the average Chinese consumer of luxury goods is 15 years younger than the European consumer, and 25 years younger than the American consumer. Ouyang Kun, CEO of the WLA’s China Office, said that more than half of China’s luxury goods consumers have monthly earnings of about 10,000 yuan (US$1,570) with an age between 25 and 28.
“The world’s youngest luxury goods consumers are in China. The vast majority of them received their money from their parents.” said Ouyang Kun. As China’s first generation of entrepreneurs didn’t spend their time enjoying their lives because they were starting and growing their businesses, they then passed that wish on to their children, who now own the best phones, the best bags, and the best pens. A large factor affecting this trend is the way the offspring of millionaires and billionaires compare themselves to others. They use the possession of luxury goods as a way to identify themselves and show themselves off, as well as their family’s wealth and social status, while European and U.S. parents rarely buy luxury goods for their children.
Source: People’s Daily, August, 15, 2012