Chinese women spend their savings on handbags
Photo:www.china.com
China is the third largest market for luxury items after the US and Japan, The fast-expanding wealthy classes in two of the major economic regions, the Yangtze River Delta and the Pearl River Delta, have begun competing in leading China's luxury goods consumption. The luxury consumption magnifies the enormous disparity between the rich and poor.
In April 2006, yachts, golf products, watches and other expensive merchandise were added to the luxury consumption tax list in China, which was still far from satisfactory according to some economists. The taxes for luxury products are still relatively low compared to Europe and USA, but the taxes will probably increase in the future. High taxes are for example presently not imposed on private planes, luxury houses or top-grade furniture.
Another interesting phenomenon is that people in Shanghai are more cynical towards brand-names than are people in smaller cities, who are now the true believers. People who spend all the money they got to get LV bags and accessories, and then take those on the buses and subways for them. People who make 3000 RMB a month will spend half a year's savings on a bag. Thriftier types will ask people coming back from Europe or North America to bring back stuff. The explanation given is that although these women might not make a lot of money, they are around people who could spot a fake bag from 50 meters.
As Chinese millionaires spend supporting their fancy lifestyles, the concept of a healthy and sustainable lifestyle, one that stresses the importance of the physical and mental health of all living things, which cannot be achieved by spending a lot of money, is catching on in the US. Will that lifestyle be the new trend and influence the Chinese customers?
In April 2006, yachts, golf products, watches and other expensive merchandise were added to the luxury consumption tax list in China, which was still far from satisfactory according to some economists. The taxes for luxury products are still relatively low compared to Europe and USA, but the taxes will probably increase in the future. High taxes are for example presently not imposed on private planes, luxury houses or top-grade furniture.
Another interesting phenomenon is that people in Shanghai are more cynical towards brand-names than are people in smaller cities, who are now the true believers. People who spend all the money they got to get LV bags and accessories, and then take those on the buses and subways for them. People who make 3000 RMB a month will spend half a year's savings on a bag. Thriftier types will ask people coming back from Europe or North America to bring back stuff. The explanation given is that although these women might not make a lot of money, they are around people who could spot a fake bag from 50 meters.
As Chinese millionaires spend supporting their fancy lifestyles, the concept of a healthy and sustainable lifestyle, one that stresses the importance of the physical and mental health of all living things, which cannot be achieved by spending a lot of money, is catching on in the US. Will that lifestyle be the new trend and influence the Chinese customers?
Sources: www.shanghaiist.com, www.womenofchina.cn
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