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Monday, 14 January 2013

Luxury-hungry Chinese Consumers




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live from Shenzhen 

 Luxury-hungry Chinese Consumers
KC YOON
Radio shalom 1650am
Money and business show 514 738 4100 x 200




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Introduction

Bolstered by a $586 billion government stimulus program and a surge in lending by state-owned banks, China may be the first major economy to bounce back from the global recession. But the composition of China’s growth remains unbalanced. 



 The Rich keep on spending in luxury in china ; 1.6 million of them , Chinese millionaire are typically business people , 40-45 years of age ,internet savvy and love to spend.

However, Chinese individuals view investments and spending from a very different lens than in the West, which requires lifestyle companies to completely rethink the way they position, market, price and build loyalty with this extremely powerful consumer base. Chinese individuals view much of luxury spending as investment driven, rather than purely for appreciation or enjoyment. And Chinese individuals invest in what they know: real estate, wine, art, watches and jewelry, leisure and luxury goods.
 

                              
My name is Samuel Ezerzer, your host to the Money & Business show on Radio Shalom, CJRS 1650 AM. Thank you for tuning in live with our Business studios headquarters in Montreal, the financial capital and the home to the greatest hockey team, the Montreal Canadians. We have another great show for you today and as always, you can call if you have any questions, comments, or criticisms on today's topic. Please call us direct at 514 738 4100 ext 200 or email me at moneyandbusinessshow@gmail.com if you have any inquiries. You can also visit our website at www.radio-shalom.ca 

Our topic for today ; China is set to become the second biggest consumer of luxury goods by 2015 , When will it be number 1?
 
 

BIOGRAPHY


KC YOON is a Chartered Financial Analyst, investment and strategy consulting professional, he has a masters of Engineering and economics from Cambridge in the U.K, with over 20 years experience working with top tier global consultant s global private equity funds.
KC YOON has Deep industry expertise and knowledge across the consumer/retail sector- especially in the following sub-sectors- fashion and apparel; sportswear; FMCG; beverages; food & beverage retail; healthcare and health products; beauty care; retail - B2C/C2C ecommerce; consumer-focused internet platforms/services
Published several research presentations over past 2 years on China's consumer/retail/media industry.
-Recognized for insights on China consumer/retail/media sector; He has been Invited as Keynote Speaker on China Luxury and Consumer/Retail Opportunities in Leading Conferences and we are glad to have him on the money and business show live from the early morning time in china.

Our topic for today ; China is set to become the second biggest consumer of luxury goods by 2015 , When will it be number 1?

QUESTIONS

 


-Can we have a quick overview of the state of Chinese consumption?


-Private consumption accounts for only about 36 percent of China’s GDP. That’s about half of what it is in the United States and some other countries. It’s almost two-thirds of what it is in Europe. Is that too low? And why is it that low?


-I think the world faces a big challenge. The world expects Chinese consumers to pick up and to fill the void left behind by the US and European consumers. That’s not very realistic. Also, Chinese consumption will have to be different from American consumption and European consumption? Can you explain why?


I guess building on that, does more Chinese consumption mean more Chinese imports?
I don’t think it’s appropriate to say what is the right level of consumption in China. You never know. Different nations have different cultures, and the demographics are also different. The Chinese population is rapidly aging. That makes it necessary for us to save.

-Lee Wee Liat, a property analyst at Samsung Securities in Hong Kong, talks about China's real estate market. China’s home prices posted their worst performance this year with more than half of the 70 biggest cities monitored in November recording declines after the government reiterated plans to maintain property curbs. Lee also discusses Hong Kong's real estate market. Lets hear a clip from Bloomberg video



-We heard Lee Wee liat real estate analysts that home prices may fall 15% , KC , will real estate fall its impact on Chinese economy ? and KC give us predictions for the future directions in real estate investment?





-Real estate is a natural asset class for Chinese investors, and perhaps the most popular class for exporting assets overseas. To Purchase real estate what is the criteria for purchase, what are the hotspots and trends ?


-How significant is china’s wealthy consumers?

-What are the differences with the Chinese wealthy consumers vs. global rich?

-What is the size of the luxury consumption by the Chinese?

-Internet is a trusted and popular medium to understand luxury brands and also purchase?
Online shopping is taking off in china?
Social media popular media to interact?

Extra questions

-More and more wealthy Chinese individuals and business leaders are moving their assets overseas, it’s a trend that has been evolving, why are wealthy Chinese increasingly moving assets outside of China, what they are buying and how they are adapting and making purchase decisions?