90% of Chinese millionaires are confident in China’s economic development, emigration numbers down to lowest in 5 years, appetite for luxury up 20%.

The Hurun Research Institute today released the Hurun Best of the Best Awards 2017, based on the results of the Hurun Report Chinese Luxury Consumer Survey 2017. This is the thirteenth consecutive year Hurun Research has revealed the brand preferences, consumption habits and lifestyle trends of China’s wealthiest individuals. Widely regarded as an ISO9000 for China’s luxury sector, the CLCS has become a benchmark for the luxury sector.

Hurun Report releases Chinese Luxury Consumer Survey and Hurun Best of the Best Awards 2017

• Appetite for luxury by Chinese luxury consumers bounces back 20%, returning to its 2013 level.
• Apple is the gift of choice for Chinese New Year, followed by Cartier and LV. Moutai and Chanel shoot into Top 5. Samsung drops out this year’s list.
• The Hurun China Business Confidence Index, an index measuring the confidence in the economy going forward two years, rose for the fourth consecutive year: over 90% are confident in the economy going forward.
• Investment: Real estate overtakes equities as the most popular investment, partly due to the booming housing market and poor stock performance in China last year. 64% believe a stable price rise in real estate in next two years. Equities dropped 5% to the second place followed by fixed income.
• Immigration: 44.5% are not considering emigration, hitting a record high.  Having said that, almost half are still considering emigration.
• Travel. Chinese luxury consumers continue to be extremely busy, away on business trips for 8 days a month on average. Despite this, they take 10 days and super-rich take 15 days holiday respectively and go abroad 3.4 times a year on average.
• Luxury travel destination: Maldives moves ahead of France into the top slot for the first time ever. US drops into third place. UK shoots into the sixth on the back of a cheaper pound.
• Collecting: There is a rising number of people who enjoy collecting this year, up 5%. Chinese ink painting and watches continued to lead the way.
• Hurun Happiness Index. Overall very happy, but slightly down to 7.7 points out of 10. Work satisfaction lower than private life satisfaction. Super rich score higher on Happiness Index.
• Health: Jogging, golf and swimming still hold their leading position as the preferred sports for men, with yoga the preferred sport for women.
• US is the destination of choice to educate overseas. UK ranks second followed by Canada, which overtook Australia.
• Shanghai, Beijing and New York are considered to be the most important cites in next 10 years.

Between Sep and Dec 2016, the Hurun Research Institute, a wholly-owned subsidiary of Hurun Report Inc, surveyed 449 Mainland Chinese ‘millionaires’, defined as individuals with a personal wealth of RMB 10 million (equivalent to USD 1.4 million). Amongst them were 62 super-rich (12%), defined as individuals with wealth of RMB 100 million (USD 14 million). Their average wealth was USD 6.7 million; the average age was 38 years, one year older than last year; the ratio of men to women surveyed was 6:4. Respondents were from more than 40 cities, 60% coming from the first tier cities of Beijing, Shanghai, and Guangzhou. The Hurun Research Institute has carried out this survey now for 13 years running, surveying 6101 millionaires making this the largest and most authoritative survey of its kind in China.

This press release is an executive summary of the Chinese press release. For the full press release, please refer to the Chinese-language version on the www.hurun.net.

Gifting

Apple continues to be the preferred brand for gifting by men. Cartier came up to second and LV dropped to third. Moutai shoot into Top 5, followed by Chanel and Bulgari. Gucci and Dior both saw a sharp decrease this year.

The ‘Big Three’ brands for gifting by women were again Chanel, LV and Apple, however in a different position. LV climbed up to take the crown, Apple was second, while Chanel lost its first position and down to third. The Star Performer: Bulgari has maintained an upward trend this year, rising 5 positions to the fourth.

Watch, Electronic product and red wine are still top 3 of the best gifts for men. Jewelry continues to be the preferred gift for women, followed by cosmetics and accessory. Almost a half of respondents chose health product for elderly. For children, electronics was still the top option. Overall, category of gift giving didn’t change a lot and gift giving has maintained an upward trend. Especially, travel vouchers saw a significant increase this year.

The Hurun Business Confidence Index noted that over 90% respondents are positive on the Chinese economy. However, only 28% are ‘extremely confident’ in the economy, down from the 35.8% of 2 years ago.

CMB was crowned best credit card and HSBC topped best foreign bank for personal banking both for the thirteenth consecutive year.

Alipay is the preferred method of payment, overtaking credit cards, Wechat and cash.

Source: Hurun Best of the Best â€" Chinese Luxury Consumer Survey 2017

Blue: Extremely confident   Yellow: Confident   Grey: Not confident

Personal Investments

Real estate overtakes stock to become the most popular investment for respondents, which can be contributed to a booming housing market in China last year. 64% of respondents believe a stable price rise in real estate in next two years. Stock dropped 5% to the second place followed by fixed income with 11%.

28% regard themselves as the most trusted financial advisor, followed by private banks with 22% and friends with 18%.

Consumption

Travel, luxury good and children’s education are still the highest expense for respondents. Children’s education overtakes luxury good to the second place.

Travel

Travel is the number one leisure activity for Chinese richest. Average travel time increased 3 day per month, with 10 days.

Maldives was crowned the preferred international luxury travel destination.

Domestically, Sanya is still the number one preferred luxury travel destination for the seventh consecutive year.

Health Management

Jogging is the most popular sports by Men’s richest, while yoga came top of most preferred sports by women.

17% of respondents don’t drink.

Social Responsibility

Taxation bounced back to become the preferred way for entrepreneurs to implement social responsibility, followed by philanthropy.

Two Tencent founders, Pony Ma and Chen Yidan, donate US$2.1bn and US$615m, becoming China’s Most Generous. He Qiaonv of Orient Landscape ranks the third, her US$450m donation makes her the most generous female philanthropist. (Reference: Hurun Philanthropy List 2016)

Information Source

Social network remains as the main source of information. WeChat makes more people relying on digital media, which is especially obvious within under 30 year old respondents.

www.hurun.net/EN