Hang Lung Plaza, Nanjing road, in the heart of Shanghai. The shopping center to the extensive glass façade welcomes most major luxury brands. In the end of August, you’ll meet three young people, barely twenty years old, covered articles all the more razzle-dazzle than the others : sneakers Balenciaga to the feet, pants multicolor signed Prada, sweat shirt pink diagonal large letters LV, and diamond at the ear. These pictures of the ” fu er dai “, (” rich second generation “), or father’s sons, did not hesitate when asked why they like the products of luxury : “Because it is expensive ! “smiles one of them.
The young Chinese are crazy about luxury brands, and this is good news for the major French groups, who dominate the sector. After some lean years, as a result of the campaign against corruption led by president Xi Jinping, the growth has rebounded in the past two years. 2018 has even started very strong, with sales growth estimated at between 15 % and 20 % in the first half, according to research firm McKinsey.
“A very strong upper-middle class ”
To such A point that the Chinese are buying today 32 % of luxury products in the world, according to a study by Bain & Co. Kering, owner of Gucci and Yves Saint-Laurent, LVMH (Louis Vuitton, Dior, Chaumet…) and Hermes, who are all of good results this year, depend more and more young buyers from the Middle empire. If these groups does not show their sales volumes by geographical areas, for some brands, chinese customers make up 50% of sales, according to a new actor in the sector.
“In China, there emerges a very strong upper-middle class. [Including young people] are absolutely not to buy luxury brand “, recently explained Jean-Paul Agon, CEO of L’oreal, during a conference call…