Huge investments in China have made it the fastest growing economy in the world consistently over the years. The result has been an explosion in the number of affluent Chinese. The unprecedented purchasing power in their hands has made China one of the most important markets for luxury goods and it is headed to becoming the largest market for luxury goods in a few years. Top fashion houses like LVMH and Gucci are driving their growth by focusing on the China market. Now niche players in the luxury segment are also eyeing the China market as the affluent Chinese consumers are now looking beyond luxury.
ES Kluft of California is one of them who want to sell their ultra high end mattresses in China. They have signed up with a local partner in China called Eternal Sleep and start selling their mattress from three shops. They also have plans to start manufacturing in China from next year. Their high end mattresses will be priced up to $50,000 each. Earl Kluft, the owner of the company believes that for the Chinese luxury consumer a luxury mattress is becoming a priority. Their tastes are evolving and are realizing the importance of a comfortable bed that would give them a good night’s sleep.
Eternal Sleep which is based in Shanghai has a strong presence in the five star hotels segment. They understand the product well and have a plan to take the brand across China. They have started the roll out with two stores in Shanghai and one in Beijing. Shanghai has developed into the centre of the luxury market of China and it makes a lot of sense to showcase a new luxury brand there. It will be expanded to about fifty stores soon and then to eighty stores within three years.