Shaun Rein Fantake via FlickrMany foreign companies get it wrong when they try to enter the booming luxury market in China, explains Shaun Rein to CNBC, just focusing on the wrong age groups, regions and getting the branding wrong. Most luxury car buyers, like those from Mercedes, have an average age of 39 years old, where in the US that age is 53.
Shaun Rein estimates the annual market for luxury products will grow to US$ 9 bn per year in China, but most wealthy people will spend that money in Hong Kong or Europe, because luxury has more cachet when bought in Milan. Exception are the second tier cities, outside Shanghai and Beijing, where its inhabitants cannot travel that easy abroad, so setting up stores in for example Harbin makes a lot of sense.
More smart observations in this clip.
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Shaun Rein is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
