Pao Principle China Luxury Panel 2009 – Study Finds: No Evidence of “Great Recession”Among Mainland China Luxury Consumers
Pao Principle China Luxury Panel 2009 – Study Finds: No Evidence of “Great Recession”Among Mainland China Luxury Consumers
Top Brands (download - word .doc)
New York, NY - October 6, 2009 – Unlike the rest of the world, the luxury goods business is alive and well in Mainland China according to a recent study of buyers of fine handbags, watches and jewelry, conducted by by the Pao Principle (www.PaoPrinciple.com).
The Pao Principle study found that almost 90 percent of those surveyed had purchased a designer handbag over the past 12 months. Men account for the majority of watch purchases, with over 60% of male panelists versus 30% of our female panelists reporting a purchase over the past 12 months. And, Tiffany rules the fine jewelry category in the eyes of Mainland Chinese with almost one-third of panelists reporting that they had purchased a piece of fine jewelry from Tiffany in the past 12 months. Necklaces were the preferred item and “white” was the metal of choice with over three-fourths of fine jewelry buyers choosing white gold, silver or platinum.
To understand the behavior of Mainland China luxury consumers, retail marketing consultancy the Pao Principle recruited and tracked the buying habits of 448 high-net-worth individuals. Panelists are predominantly affluent, highly-educated females, ages 20-40, with over 80% home ownership. Findings focus on understanding the usage, attitudes, buying behaviors and purchase motivators in the categories of designer handbags, watches and fine jewelry.
“Our proprietary panel of high-net-worth Mainland China luxury buyers provides new insights and challenges traditional beliefs,” according to Patricia Pao, president, Pao Principle, “ for anyone wishing to gain greater insight into the Mainland China luxury market and its consumers.”
- Provides understanding of how Mainland China’s “one-child” policy has impacted the demand for luxury goods. The one-child policy has spawned a generation of more self-centered individuals whose primary goal is to differentiate themselves from their peers. No longer content to be one of the crowd, this group looks to luxury goods to help achieve this goal.
- Identifies and quantifies the role each category plays in a luxury goods manufacturer’s portfolio.
- Generates insights and action items regarding how to motivate Mainland Chinese to buy. While the Chinese love discounts, improved quality, better selection and brand education are equally important purchase motivators.
- Quantifies the buying process and addresses how luxury manufacturers can improve the productivity of their Mainland China brand boutiques
The China Luxury Panel Study 2009 includes in-depth panelist interviews in written and video formats. For information contact: Emily Lane, e-mail:elane@paoprinciple.com or ph.: 212 219-3588
About the Pao Principle
The Pao Principle, a global business consulting firm, serves clients on issues of strategy, operations, organization and mergers and acquisitions. The firm was founded in 2005 on the principle that its consultants must measure their success by the value they deliver to their clients. The Pao Principle’s work has generated a minimum of 10X ROI for every piece of client work accomplished. Based in New York City, the Pao Principle has worked with clients across a wide range of companies in the retail, consumer goods, fashion, beauty, biotechnology, and petroleum services industries. For more information visit: www.paoprinciple.com.
About the Pao Principle China Luxury Panel
The Pao Principle, has assembled a proprietary panel of over 400 Mainland Chinese luxury goods consumers. Importantly, all panelists were recruited and screened by Pao Principle associates. Data was collected through in-person and on-line surveys from July-August 2009.
October 6, 2009