China's luxury market to maintain momentum

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BEIJING (China Daily/ANN): China will continue to lead growth in the global luxury goods market, with the boom in the online luxury retail industry especially in lower-tier cities due to growing demand from tech-savvy consumers who tend to pursue exquisite and high-end lifestyles, industry analysts and insiders said.

Spending on luxury goods rose to US$145.7 billion in 2018, up 7% year-on-year, accounting for 42% of the total global luxury goods market of about US$347 billion, according to a report issued by global consultancy Deloitte and Chinese luxury e-commerce company Secoo Holding Ltd.

"As consumers in lower-tier cities have limited opportunities to purchase luxury goods through offline channels, they are now turning to online channels," said Zhang Tianbing, Deloitte Asia-Pacific consumer products and retail industry leader. Its total revenue reached 1.94 billion yuan in the July-September period, increasing by 23.5% year-on-year, while its net income rose by 38.3% to 62.1 million yuan.

It also set up offline experience centres in first-and second-tier cities across the nation, such as Beijing, Shanghai, Tianjin and Qingdao. Launched in 2008, the company now has 400,000 items sourced from across the world in its collection and has partnered with more than 3,800 high-end brands, including Prada, Versace, Salvatore Ferragamo and Tod's.

 

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