1 . An increasing number of middle-class Chinese are buying luxury goods outside the Chinese mainland, with more overseas travel driving the trend, a KPMG report said on Tuesday.
Of the seventy-one percent of then said they bought luxury items during such trips, with cosmetics, watches and handbags being the most popular items.
The report--- The Global Teach of China Luxury---is based on a survey of 1,200 middle class Chinese consumers in 24 cities. Market research firm TNS conducted the study.
Respondents were 20 to 44 years old, with a minimum household income of 7,500 yuan($ 1,205) a month in tier-one cities and 5,500 yuan elsewhere.
Chinese consumers associate certain countries with particular products. For example, Switzerland is recognized for its luxury watchers, while France scores highest for cosmetics and perfumes.
Nick Debnam, KPMG’s Asia Pacific chairman in consumer markets and the author of the report, said the growing number of Chinese people traveling overseas is a result of the emerging middle class and easier travel arrangements.
“What we are now seeing is that the brands which are well positioned in China are receiving a boost(增长) in overseas markets from the emergence of a surging new class of traveling and well-off Chinese consumers,” he said.
China has become a focus of the luxury industry in recent years, and the travel and spending habits of Chinese consumers are also reshaping the luxury goods market, Debnam said.
Pascal Aemoudom, an exper with A. T. Kearney Management Consulting Co Ltd in Shanghai, said Chinese consumers are playing an increasingly important role in the global luxury market.
“Brands like Louis Vuitton or Gucci do have about 30 percent of their sales made by Chinese consumers. Regarding China’s native consumers, overseas should be around 55 to 60 percent of the total,” he said.
“With high taxes on luxury products sold in the domestic market, consumers can save 30 to 50 percent when buying in Europe or the United States,” said Armoudom.
Lower prices aren’t the only incentive to buy overseas--- the shopping experience is also unique. “In luxury watches, a few rich Chinese brand’s headquarters or factory after having visited the site and talked to the staff there.
Debnam said in such situations, international and local brands need a global strategy for Chinese consumers in both locations.
“Brands need a strong market position in China and overseas so that Chinese customers can find their products easily,” he said. “For example, in clothing, the Asian cut is quite different from the European cut, and you need to carry the right cut to make the sale.”
Meanwhile, Armoudom said, pricing policies will become a major issue that needs to be handled carefully. “Chinese shoppers may become frustrated if they notice lower prices in location A for an item which they already bought at a higher price in location B.”
1. Why is luxury goods market overseas receiving a boost?| A．China has become the target of the luxury industry. |
| B．Easier travel arrangements and spending habits of Chinese customers. |
| C．Lower prices and unique shopping experience for Chinese. |
| D．All of the above |
| A．30% | B．55~60% |
| C．16~18% | D．12~13% |
| A．brands need a strong market position in China and overseas |
| B．the difference between Asian cut and European cut |
| C．the number of Chinese traveling abroad continues to rise |
| D．local brands need a global strategy for customers |
| A．luxury watches | B．Louis Vuitton bags |
| C．perfumes | D．Gucci products |
2 . Premier Wen Jiabao has called it a prime job to maintain a stable and relatively fast economic development and take more direct, powerful and effective measures to carry out central policies on increasing domestic demands and promoting economic growth.
During an inspection tour in southwest China’s Chongqing Municipality from Dec.21 to 22, Wen visited a number of local factories, communities, villages and worksites.
In a visit to the reservoir worksite, Wen was told that Chongqing plans to invest 40 billion yuan ($5.88 billion) in water conservation projects in the coming five years as part of its efforts to increase domestic demands and improve the quality of life. “We must make good use of every coin of the people,” he said.
At a workshop of the Chang’an Group, the premier showed great concerns over the negative impacts of the global financial crisis on the city’s automobile industry.
The company’s car sales have been declining since November. It is expected to further decrease in the first quarter of next year, said the company’s president Xu Liuping.
Wen said that the difficulties in the country’s automobile industry are temporary, because “China has a huge market.”
Wen urged the company to depend on innovation and reform while improving quality and decreasing the cost. “Company leaders must be bold to shoulder responsibilities and the staff should unite as one, to get over the difficulties together,” he said.
On Monday morning, the premier paid a visit to a communal social security center to learn about the life of low-income families. “The more financially challenged we are, the greater attention we should pay to those in need,” he stressed.
At the home of 76-year-old Ren Gouqing, the premier said the government had decided to continue increasing the pension of retirees, as well as the subsidies for low-income families and other families who receive government subsidies.
During his tour in the city, Wen paid an unplanned visit to Chongqing University, where he met thousands of students and encouraged them to be confident in the difficult times.
1. The most important job, according to premier Wen Jiabao, is ________.| A．getting over the current financial difficulties |
| B．speeding up reform and development in China |
| C．increasing the pension of retirees |
| D．maintaining a stable and relatively fast economic development |
| A．Chongqing has invested 40 billion yuan in water conservation projects |
| B．Automobile industry in Chongqing is expected to further increase in the next year |
| C．The financial crises has influenced the automobile industry in Chongqing |
| D．It is the government that is responsible for overcoming the financial difficulties |
| A．local factories | B．worksites | C．communities | D．Chongqing University |
| A．lasting | B．considerable | C．short | D．communities |
| A．Premier Wen Jiabao visited Chongqing | B．Wen: maintaining economic stability a priority |
| C．Unite to fight against financial crisis | D．Be confident in the difficult times |
