The latest Hurun report gives a comprehensive profile of the nouveau-riche of the East and window into the world of luxury.
China is getting richer; sales of luxury cars, clothes, yachts, villas and watches are booming on the back of the growing superpower's unfathomably rapid expansion. The Chinese Luxury Consumer White Paper 2012, a new report by Hurun with Industrial Bank, takes a close look at the average Chinese high net worth individual (HNWIs) who hasa personal assets of more than CNY 6 million ($950,000 and the ultra-high net worth individuals (UHNWIs) who boast assets of more than CNY 100 million ($15.8 million finding out a little about what makes them tick.
Supersize Me! An LV ad in Shanghai Image:Chinese Consulate |
In 2011, there were more HNWIs living in China than the entire population of Mongolia combined. Your average HNWI will most likely be a 39 year-old male, who has made his millions on the ownership or sale of their company and is a partial to the odd round of golf. Your UHNWI will be fairly similar, give or take a few years, and will also have a predilection for the finer things in life, like luxury travel and foreign cars.
A window into these individual's lifestyle came at the Hainan Rendez-Vous 2012 - a grand celebration of all things luxury. Hosted by the world's top brands like Gucci, Hermes and LV, the 15,000 event participants enjoyed watching and sailing over 130 luxury vessels. Alas, Mike Simpson, founder of Hong Kong-based Simpson Marine, expects yacht sales to wane as China's UHNWIs begin to favour private jets in line with the country's loosening aviation restrictions. All is not lost, however, as Simpson's business is staying ahead of the curve and investing heavily in the private aircraft market.
Other activities preferred by these HNWIs include elite sports, procuring luxury items such as watches and clothes and collecting fine Chinese art (although 20% of those asked admit they had little idea of what they are investing in). Nonetheless, vast wealth has not left a spiritual void as just over half of the HNWIs interviewed have a religious inclination, compared to 18% for the rest of the population.