The result of the rapid growth of the Chinese economy has been the significant increase in the disposable increase in the disposable income of the Chinese people. According to an estimate there are over 875,000 people in Chine whose net worth is over $1.46 million and 51,000 people with a net worth higher than $14.64 million. The wealthy Chinese consumer is becoming the darling of the luxury, art, auction and automotive markets.
The companies are adapting and adjusting their products to suit the Chinese tastes. In the luxury cars segment the Chinese have very specific tastes, that of elongated models with larger back seats. All the major brands in the field of fashion and accessories have become conscious of increasing sophistication of the Chinese consumers and have made necessary adjustments in the quality and selection of products.
Wealthy Chinese consumers shouldn’t be misunderstood or misrepresented as fickle, profligate showoffs — though some of them clearly are. In other areas, however, like the auction market, where we’ve seen a growing number of Chinese millionaires investing in recent years, behavior is often more nuanced. Most of them tend to have very pragmatic buying and collecting strategies at the auctions. They often prefer to purchase luxury goods outside the mainland to sidestep high luxury taxes.