Retail in Asia

In Sectors

Report: Luxury retailers in China, KPMG

China is bucking the post-financial crisis trend in luxury consumption: while sales fell around the world by up to 8 percent in 3Q09, China’s luxury spending grew by 12 percent. KPMG’s latest survey shows China’s luxury consumers are maintaining reasonable confidence about their economic situation, are comfortable with the idea of paying large sums of money, and are becoming ever more discerning in the retail choices they make.

KPMG has identified a number of opportunities for retailers to tap into the booming luxury segment in China, which are detailed in the report. For one, there is clear scope for a greater use of technology in communicating with customers. With the ubiquity of mobile-phone usage in China, there are plenty of options for engaging customers on an ongoing, personal basis. Similarly, despite the importance of the in-store experience, many customers are now going online to do research on different brands. KMPG advises that luxury companies should be making the most of the interactive media available to them.

The report covers the effects of the downturn, luxury drivers, city tiers, technology, and tax and customs issues for the luxury sector. Many statistics included are from a proprietary survey of Chinese luxury consumers in 3Q09, conducted by TNS. The report also features interviews and commentary from top luxury-retail executives.

To download the full report, click on the PDF attachment.