Inflation Hits Chinese Luxury Market

The Chinese luxury market is reeling under 7.73 percent inflation over the last year as of June. The Hurun Luxury Consumer Price Index (LCPI) released this data on Monday, reporting the changed prices being paid by wealthy Chinese buyers for luxury products and services. The report studied data related to 61 luxury goods and services across nine categories from 1 June 2010 to 1 June 2011. Luxury brands like Louis Vuitton and Chanel featured prominently on the list.

The inflation rate this year was considerably lower than the 11.3 percent rise seen in the earlier 12-month period. The prices of luxury jets and yachts rose the most, soaring by a whopping 20.1 percent. Cosmetics prices also increased considerably, by 16.7 percent. Of the nine categories of luxury goods studied in this report, only the prices of luxury furniture proved cheaper. The 12.2 percent decrease in high-end furniture prices was largely due to a drop in the price of the popular redwood.

The demand for jets and yachts has pushed up prices of “super toys” a great deal. Thus, while Sunseeker’s Mahattan 73 yacht now costs 24.6 percent more at 31.4 million yuan, private jet rental fees have also surged. A Beijing-Shanghai return trip on the 16-seater Gulfstream G550 now costs 15.6 percent more, at 276,500 yuan.

Luxury alcohol and tobacco have been hit by 9.2 percent inflation. But specific brands saw even greater hikes. The price of a 30-year-old vintage Moutai has gone up by 60.8 percent, while a six-bottle case of Chateau Lafite 1982 now costs 29.3 percent more. The Chinese government has taken steps to slow inflation in the luxury property market. The property inflation rate now rests at 14.4 percent, down from 56.4 percent last year. The inflation on luxury cars also decreased from 3.1 percent to 1.5 percent.

Via: China Daily

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