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KPMG: Mainland Chinese Luxury Consumers are Increasingly Purchasing Overseas

By Rob Starr, Content Manager, Big4.com

According to KPMG‘s sixth annual publication on the subject,  the number of travelling Mainland Chinese continues to rise and global luxury brands are subsequently adapting their business strategies, both in China and in their home markets.One of the key findings of this year’s survey is the rising number of Mainland Chinese consumers travelling overseas. This has increased to 71 percent of survey participants in 2012, from 53 percent in 2008, a significant change. A majority of survey respondents (72 percent) said they purchase luxury items during overseas trips, with cosmetics, watches and bags winning the top spots.

For purchases of cosmetics and perfume, a majority (60 percent) of respondents said Hong Kong, Taiwan and Macau were their top locations; this is a significant increase from 43 percent in 2009. Mainland China was voted their second choice, while Europe also saw a marked increase due to the rising number of travelling Mainland Chinese, up from 3 percent in 2009, to 20 percent in 2012.

Brand recognition meanwhile continues to increase as consumers become more discerning. The survey’s respondents said they recognize 59 luxury brands, a figure that continues to rise over successive annual surveys. Meanwhile, 56 percent of respondents said they prefer to purchase well known luxury brands, while 69 percent separately indicated they would pay a premium for well known, popular luxury brands.

Nick Debnam, Asia Pacific Chairman, Consumer Markets, and a partner with KPMG in China said: “As increasing numbers of Mainland Chinese travel overseas, brands need to measure the impact of their business strategies both in Mainland China and the travel segment. It is no longer just about doing business in China, as it is also crucial for luxury brands to target the global Chinese luxury segment. Brands need to therefore align their branding and marketing strategies both in China and for the rising number of travelling Nick Debnam, Asia Pacific Chairman, Consumer Markets, and a partner with KPMG in China said: “As increasing numbers of Chinese travel overseas, brands need to measure the impact of their business strategies both in Mainland China and the travel segment. It is no longer just about doing business in China, as it is also crucial for luxury brands to target the global Chinese luxury segment. Brands need to therefore align their branding and marketing strategies both in China and for the rising number of travelling Mainland Chinese consumers consumers

 

 

 

 

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