Cloud IT infrastructure spending has grown faster (~17.5% CAGR) than global...
2020-08-24 7 ENGLISH REPORTS
Spending patterns across Asia are changing significantly, partially driven by what’s happening in Asian households. Household sizes are falling and the number of those that work is rising, in particular as women increasingly enter the workforce. That means more income for each household, with fewer people in it, leaving consumers better off and able to ‘trade up’ on items from beer to sports clothing. This is particularly the case in China, with the rise of ‘emptynesters’ – couples with adult children residing elsewhere – who have money to spend. According to data from Global Demographics, spending on clothing and footwear by affluent households2 in China increased at a CAGR of 26.3% in 2007-17, reflecting an increase in both the number of affluent households as well as spending per household. In fact, Chinese already contribute more than a quarter to the world’s spending on luxury items, according to McKinsey. However, that’s expected to rise even higher between 2020e and 2025e as more than c65% of additional luxury spending in the world is expected to come from China.
Since most of their luxury purchases occur abroad, China’s government is trying to lure this consumption back home by enlarging the domestic duty-free (DFS) market. A number of measures have been announced, including an increase in offshore duty-free allowances at Hainan Island to support the domestic DFS market. This is also a big theme in Korea. Duty-free sales in Korea are typically driven by daigous (Chinese buyers who purchase items abroad for re-sale at home at a discount), especially since 2017. Going indigenous When it comes to the designer brand industry, Chinese consumers are shifting from ‘ostentatious’ logos to niche brands and bespoke products. Moreover, the improving quality, design, and brand power of domestic brands have drawn increasing attention from Chinese consumers. The successful debuts of Chinese fashion brands Li-Ning and Peace Bird at the New York Fashion Week in February 2018 suggests that designs incorporating traditional Chinese elements are coming into the fashion limelight.
标签： ENGLISH REPORTS