A new survey conducted by international audit and advisory services company KPMG has revealed several interesting things about the spending habits of Chinese luxury consumers. The luxury survey discovered that a whopping 70 percent of the surveyed group check out products and services each month on the Internet before making a purchase. In fact, 30 percent reported that they do a weekly online search for luxury products.
However, it may come as a surprise that despite these big numbers, only 5 percent admittedly look to make purchases online. The reasons for this include apprehensions about after-sales service, authenticity of the product and payment security. The poll on luxury spending that was conducted by KPMG also revealed that the Chinese affluent consumers have more brand awareness today than they had three years ago. The poll found that this year’s respondents were able to recognize twice the number of luxury brands than they had during KPMG’s last survey conducted three years earlier.
The consumers that were polled seemed to prefer French fashion and cosmetics brands, Italian footwear brands and Hong Kong jewelry. Respondents were also asked why they purchased luxury goods. The top three reasons included buying luxury items as a reward, for special occasions and for pampering themselves.
China is currently the second largest luxury goods market in the world, after the United States. The country accounts for sales worth 11.5 billion euros each year. But there is more growth to come. A report by WHO CLSA recently predicted that Greater China (a region including Hong Kong, Macau and Taiwan) would account for 44 percent of worldwide luxury goods sales by 2020.