|Chinese millionaires stay hungry for French luxury goods.|
Thursday, 17th January 2013
Source : Hurun Research Institute
The Hurun Report Chinese Luxury Consumer Survey 2013 is released and reveals the lifestyle and brand preferences of China's wealthy consumers; this year the survey included for the first time the 'happiness index'.
The report is intended to provide a holistic understanding of the spending habits and lifestyle changes of this burgeoning, influential and ever-changing consumer class.
The Survey also ranks the brand preferences of the Chinese luxury consumers, which are presented at the annual Hurun Best of the Best Awards today. 2013 is the ninth year of the Hurun Report Chinese Luxury Consumer Survey and Hurun Best of the Best Awards.
- Chinese baijiu brand Moutai falls out of Top 10 Preferred Brands for Gifting
- Luxury watch industry has tough year with only Longines listed as a preferred watch brand for gifting, coming in at fifteenth
- Millionaires don’t sleep much, only 6.5 hours a night. At the weekend, half an hour more.
- Burberry, Gucci and Montblanc jump into Top 10 Preferred Brands for Gifting
- The super-rich spend a third of their time on the road, 9.2 days a month
- Australia out of Top 3 as preferred luxury destination for first time since 2006
- France most popular luxury destination, Britain rises to fifth
- Switzerland is the year’s big performer as an education destination
- Millionaires prefer the internet to source news, TV is down to fifth place from first last year
- The wealthier Chinese millionaires are, the more unhappy they are
- Chinese Millionaires are concerned with improving their health and family life
Preferred brands for gifting
Moutai has struggled this year, falling to thirteenth place in the Preferred Brands for Gifting, down from fifth last year. This drop in popularity came on the back of a public debate about whether government officials, the largest customer base for Moutai, should be allowed to consume a brand which is effectively a luxury brand with its main product retailing at RMB 1800 a bottle, and also a health scare involving the use of plasticizers. Moutai is the only Chinese brand to make the list of preferred brands. French wine maker Chateau Lafite was the only drinks brand to make the Top 10 brands for gifting, a clear representation of the Chinese luxury consumers’ newfound love of wine.
The luxury watch industry has had a tough year, perhaps brought on by bad PR for the industry following cases involving financial irregularities of government officials and watch ownership. Swiss watchmaker Longines was the only watch brand to make the list, coming in at fifteenth place, and replacing the more expensive Rolex brand, which dropped off the list altogether this year.
French gifts are still all the rage, dominating the list. Accessories (leathers etc.) are the gifts of choice. The UK has an entry in the Top 10 this year, with fashion brand Burberry. Luxury brands Gucci and Montblanc also performed particularly well this year, both breaking into the Top 10 for the first time.
Apple moved up to second place for Preferred Brands for Gifting by Men, from fourth place last year. LV and Chanel were top for Preferred Brands for Men and Women respectively.
Hurun Report Founder and Chief Researcher Rupert Hoogewerf said, “This year, there is a clear trend towards gifting more modestly-priced top luxury goods.”
Table 1: Best Brand for Gifting by Men
Table 2: Best Brand for Gifting by Women
Property is still the key personal investment option for most surveyed (over 60%), despite increased government control on property purchases and a generally poor market. Shares are again in second place, but the % of those listing it as an investment fell to its lowest figure in 4 years.
One in four are extremely confident when asked on the economic future, even though this number has fallen to a four year low, the figure is still surprising considering confidence levels in Europe and the US. Those who responded “not confident” rose this year to 9%, still a relatively insignificant number, but again, the highest since records began four years ago.
Tax is still considered the best way to be socially responsible, and environmental concerns are still important, especially among respondents who are over 45.
One in three respondents classify themselves as watch collectors, which is still by far the most popular collectible, however, this does represent a significant fall in popularity compared to three years ago, where one in three collected watches.
The popularity of Contemporary art collection continues its downward trend, falling in position again this year.
Trophy property collection is on the up and is considered by a growing number of Chinese luxury consumers to be an essential jewel in their collection portfolio.
Travel is the number one leisure activity. However, Chinese super-rich are going overseas less – 3.4 times a year compared to 4.2 the year before. Chinese super-rich are also on the road less than the year before, 9.2 days a month, three days less than last year. Sanya is the most preferred holiday home destination.
Best International Luxury Destination
Australia's popularity has fallen dramatically from third to seventh on the list of favoured international holiday destinations, the first time it has fallen out of the Top Three since 2006. The Maldives, which shot into and then remained in the Top 5 for two years, falls to tenth, possibly indicating that the island destination is going out of fashion.
Most notable, is the surge in popularity of Europe as a luxury destination, which had its most successful result since our records began, with half of the Top 10 destinations, European. The UK, perhaps on the back of the London Olympics, is in at number five and Switzerland has also performed well. This year, Japan dropped out of the Top 10.
Swimming is the hobby of choice according to the results, beating golf to top spot. Both swimming and golf have taken the top two sports in recent years. The surprising result was that of Horse riding, which is up to fifth and is the fastest rising sporting pursuit among China's wealthy.
There is no change at the top on the previous year's results for study abroad preferences with the US ahead, followed by the UK and Canada. Australia dropped a place to fifth and France jumped from ninth to seventh.
In terms of media preference for accessing news, TV dropped to fourth from first place last year. The internet was the medium of choice for news, followed by newspapers in second and magazines in third.
Millionaire Happiness Report
The inaugural Millionaire Happiness Report is a sub-report of the Chinese Luxury Consumer Survey 2013, documenting the satisfaction that Chinese millionaires have in their lives. In general, the report shows that the richer you are, the less happy you are.
The report shows that Chinese millionaires don’t sleep that much, 6.6 hours on average during the working week. The Chinese super-rich, fall into two categories, those who are workaholics and those who are winding down, supposedly toward early retirement.
Self-made female millionaires are more likely to be divorced, 35% of the respondents, with an average age of 37 years, are either divorced or remain unmarried which is twice the figure amongst their male counterparts.
Men consider setting up their own company as the happiest moment of their life, whereas women consider theirs to be falling in love.
Both male and female millionaires are dissatisfied generally with their health and want to spend more time with their children.
For their children, Chinese super-rich wish most that they will either become entrepreneurs themselves or take over the family business.
Millionaires and the super-rich are better educated than expected, with 43% and 56% respectively claiming to have a post graduate degree, mostly Executive MBAs.
Between June and December 2012, the Hurun Research Institute, a wholly-owned subsidiary of Hurun Report Inc, surveyed 551 Mainland Chinese ‘millionaires’, defined as individuals with a personal wealth of RMB 10 million (equivalent to USD 1.6 million / Euro 1.2 million / GBP 1 million). Amongst them were 69 super-rich individuals with wealth of RMB 100 million (USD 16 million / Euro 12 million / GBP 10 million). Their average age was 38 years (40 among the super-rich band); the ratio of men to women surveyed was 7:3. Respondents were from 31 first and second tier cities. The Hurun Research Institute has carried out this survey now for nine years running, making this the largest and most authoritative survey of its kind in China.
About Hurun Report Inc.
Nobody Knows China’s Rich Better!
Established as a research unit in 1999 by British accountant Rupert Hoogewerf, Hurun Report Inc. has grown into a leading luxury publishing group based in Shanghai, China. Hurun Report Inc. has a stable of four luxury magazines, the Hurun Research Institute and an active business events division targeting China’s entrepreneurs and high net worth individuals.
The flagship Hurun Report magazine is published monthly and reaches the households of 110,000 proven wealthy Chinese individuals and their advisers. Hurun Report is best known for its annual Hurun China Rich List, widely considered the bible of wealth and de-facto Who’s Who of Chinese business. For further information, see www.hurun.net