reports
Chinese Luxury Consumer Survey 2014
Overall spending by the Chinese high net worth down 15% from last year, whilst spending on gift-giving down a dramatic 25% while China’s high net worth individuals (HNWIs) are busier than ever, on business trips 8 days a month, up one day on last year. Time for leisure dropped by 20%.
More facts:
- Average Chinese millionaire took 7.5 days holiday last year.
- The Hurun China Business Confidence Index, an index measuring the confidence in the economy going forward two years, rose for the first time in five years:3 out of 10 are highly confident in the economy going forward.
- 64% emigrating, or planning to do so, up from 60%, mainly as a result of one third of super-rich now already emigrated.
- Collecting: Watch collecting overtaken for the first time in five years, by traditional Chinese ink painting collecting.
- 28.7% prefer UK as destination to educate children at high school level, slightly ahead of the US at 26%.
- 36% favour US for undergraduate and above education
- 40% of super-rich plan to use private jets, half of whom plan to time share.
- Gifting: Whilst red wine and watches are gifts of choice within RMB 20 thousands an item, travel vouchers and healthcare products were fastest growing gifting categories
- Super-rich prefer reading but travel remains the top leisure activity.
- Holiday homes: 6 out of 10 Chinese high net worths interested in owning a holiday home. Yunnan is fastest growing destination, although Sanya continues to lead the holiday home destinations.
- Luxury travel destinations: Australia shoots back into top slot, knocking France off its crown for first time in 4 years.
- Health: 61% don’t smoke, and 40% claim not to drink alcohol, doubled over last five years.
- On average, Chinese HNWIs sleep 6.5hrs a night, going to bed at 00:30am and waking up at 7am.
The Hurun Research Institute released the Hurun Best of the Best Awards and Hurun Report Chinese Luxury Consumer Survey 2014. This is the tenth consecutive year that Hurun Report has published the survey, which reveals the brand preferences, consumption habits and lifestyle trends of China’s wealthiest individuals. Widely regarded as an ISO9000 for China’s luxury sector, the CLCS has become a benchmark for the luxury sector.
Overall,gift giving has decreased by 25%, possiblydue to the impact of anti-corruption initiatives and a slow-down in the economy.For the first time, Louis Vuitton has lost its crown as the preferred brand for gifting by men, losing out to Hermès. Chanelcontinues as the preferred brand for gifting by women. Maotai is – for the third year running – the only Chinese brand that made it to the list, but it has fallen one place to 14th. Whilst leather accessories proved most popular overall, jewelry brands had a bad year in the gifting market.
For men, red wine and watches are the preferred choices for gifts under RMB 20,000, with imported spirits such as whiskey and cognac up two places into 3rd place. For women, the preferred choices are jewelry, fashion and watches. Travel vouchers rose fastest, ranking 4th this year.
When selecting gifts for the elderly, more than half of all individuals chose healthcare products, followed by travel vouchers and houses. For children, consumer electronics ranked top, followed by clothing. The super-rich had a tendency to gift travel vouchers to women.
Hurun Report Founder and Chief Researcher Rupert Hoogewerf said, “The government’s crackdown on luxury gifting has had its effect, with luxury gifting down 25% year on year.”
Overview
2014 is the tenth year that the Hurun Research Institute released the Hurun Best of the Best – Hurun Report Chinese Luxury Consumer Survey 2014. Hurun Research conducted the survey between May and November 2013, interviewing on a one-on-one basis 393 Mainland Chinese ‘millionaires’, defined as individuals with a personal wealth of Renminbi 10 million or more (equivalent to USD 1.6 million / Euro 1.2 million / GBP 1 million). Amongst them were 41 ‘super-rich’, defined as individuals with wealth of RMB 100 million (USD 16 million / Euro 12 million / GBP 10 million). The ratio of males to females was 6:4. Over the past 10 years, Hurun Research has interviewed 4818 millionaires, of which 12% are super-rich, making the Hurun Report Chinese Luxury Consumer Survey the largest and most comprehensive survey of its kind in China, an ISO9000 for China’s luxury sector.
Overall, the average spending of China’s high net worth individuals has decreased by 15%, with spending on gift giving down by a dramatic 25%. HNWIs are busier than ever. They are taking more business trips – up 7% to 7.5 days a month, leaving less free time to travel for leisure. The number of days they spend on holiday has decreased by 10%. The average HNWI took 7.5 days holiday last year, whilst working more weekends. The number of HNWIs who have emigrated, or are planning to do so, rose from to 64% up from 60%, driven mainly by the number of super-rich who have already emigrated.
The Hurun Business Confidence Indexshows that the confidence that Chinese millionaires have in their economy has risen for the first time in 5 years, with 3 out of 10 feeling ‘extremely confident’. Real estate was the investment of choice, followed by equities, although the super-rich shunned equities and invested more heavily in art and alternative investments. Gold was down 6% in comparison to last year.
The average age of respondents was 38 years old; the same age as last year. The average age of the super-rich interviewed was 39 years old, 1 year younger than last year. The average wealth of respondents was RMB 59.2 million, last year’s average wealth was RMB 59 million. Significantly more emphasis has been placed on health over the past 5 years. The number of HNWIs who do not smoke has risen to 61%, up from 40% 5 years ago, and the number who claim not to drink has doubled to 40% over the last 5 years.
Travel is their favourite leisure activity, whilst swimmingand golf continue to be the most popular sporting activities. Jogging has risen to 3rd place, resembling more the Western concept of fitness regimes, whilst for female HNWIs yoga continues to be most popular. Collecting traditional Chinese ink paintings has now overtaken collecting watches, although the super-rich still prefer collecting watches. The top international travel destinations are Australia and France, while Sanya and Hong Kong are the chosen domestic destinations. Millionaires send their children abroad to study at an average age of 18 years old, whereas among the super-rich, the average age is 16. For pre-university education, 28.7% say UK is the destination of choice , whilst the US remains at the top for post-graduate education at 36%.
Respondents hailed from 23 different provinces across China, with Shanghai, Beijing and Guangzhou accounting for 60%. By regional distribution, 48.6%, 30.8% and 19% of respondents came from East China, North China and South China respectively.
Rupert Hoogewerf (right) said, “There is a paradox at the heart of the Chinese entrepreneur: on the one hand they want to stay discreet, and on the other hand, they are currently buying more Rolls-Royces and luxury watches than any other nation.”
The Hurun Business Confidence Index noted that confidence in the Chinese economy has risen for the first time in 5 years – 3 out of 10 people are ‘extremely confident’ in the economy.
The number of HNWIs, who are ‘extremely confident’ in the Chinese economy over the next 2 years, has risen for the first time in 5 years, amounting to 31% of respondents and up from 25% last year. This was driven, in particular, by a sharp drop in the number of the super-rich, who are ‘not confident’ in the economy, amounting to 3.3% this year and down from 10% last year.
Source:《Best of the Best – Chinese Luxury Consumer Survey 2014》
Real estate remains the top choice for investments, increasing by 7% over the past year. Investment in stocks increased in popularity by 3.7% in comparison to last year, reaching 22.8%. The number of super-rich compared to millionaires who invest in stock, is less than half. Additionally, investment in gold has decreased by 6% this year.
Sanya has been the most popular domestic tourist destination for 4 consecutive years. Although it remains in 1st place, its popularity has waned somewhat. Hong Kong maintains its 2nd place rank and Macau has risen 2 places to 5th this year. In addition to Sanya, Macau has become the favored destination among the super-rich. Tibet broke into the top 3 preferred luxury domestic destinations this year.
In recent years,purchasing holiday homes has become very popular. 60% of high net worth individuals are interested in purchasing a holiday home, representing a 5% increase from last year. Yunnan has entered the top 6 for the first time ever as an increasingly popular location in which to buy such homes. Sanya, however, remains the preferred location, especially among the super-rich.
Nearly 40% of high net worth individuals are planning to use private jets on a regular basis, with half of those opting to time share.
The number of high net worth individuals who have emigrated, or are planning to do so, rose from 60% to 64%, accounting for 1 in 3 super-rich.
The United States is still the destination of choice, while the number of individuals emigrating to Europe has increased. Although the amount of people emigrating to Australia has increased in comparison to last year, very few of the super-rich choose to move there. It is worth noting that of the 64%, only 15% are looking to give up their Chinese nationality, with the majority looking to a permanent residency overseas.
Collecting watches has decreased in popularity for the first time in 5 years, being replaced by ancient calligraphy.
Among HNWIs, collecting ancient calligraphy ranks in 1st place this year, with watches falling to 2nd place. Among most of the super-rich however, collecting watches is still preferred. Patek Philippe is the most popular watch brand among high net worth individuals for the 7th year in a row.
Collecting jewelry ranked 3rd this year and, for the 10th consecutive year, Cartier has been the most popular jewelry brand. Jade ranked 3rd place this year. Wine ranked 4th place this year and Louis XIII is still the most popular imported spirits brandfor the 5th consecutive year. Overall, 70% of millionaires and 80% of the super-rich enjoy collecting as a hobby. Christie’s is the preferred auction house.
UK first choice for education of kids – 28.7%
The United Kingdom is the 1st choice destination among high net worth parents, who wish to send their children forsecondary education, followed by the United States. For undergraduate studies, the reverse is true – the United States is favoured by 36%, followed by the United Kingdom.
Cheung Kong Graduate School of Business is considered the best school for both EMBA and CEO courses among China’s wealthiest individuals. The number of individuals who seek a local EMBA degree has also increased.
China’s high net worth individuals are busier than ever. They are inundated with 7% more business trips than last year – up to 7.5 days per month – leaving less free time available for leisure. Excluding national festivals, the high net worth community spent, on average, 7.5 days on holiday and worked more during the weekends
China’s high net worth individuals are busier than ever. They are inundated with more business trips, leaving less free time to travel for leisure. Millionaires attend business trips on an average of 7.5 days per month, half a day more in comparison to last year. The super-rich must attend business trips lasting as long as 12 days per month, 3 more days in comparison to last year. The number of days millionaires spend abroad travelling has decreased from an average of 2.8 times to 2.1 times per year. Super-rich individuals have also spent less time travelling abroad with an average of 3.4 times the previous year to 1.7 times this year.
Australia ranked 1st this year, replacing France in the top 3 preferred international tourist destinations. France has been top for the past 3 years, but only comes in at 2nd this year. Dubai (United Arab Emirates) has jumped from 8th place to 3rd in the list and the Maldives also rose up the rankings from 10th to 5th place. The United States and Singapore, which ranked 2nd and 3rd respectively last year, both fell to 6th and 9th place. The United Kingdom fell out of the top 10 this year and in fact, only 3 of the top ten countries are from Europe; half the number in comparison to last year. However, the number of super-rich individuals who travelled to Germany are relatively high.
Sanya has been the most popular domestic tourist destination for 4 consecutive years. Although it remains in 1st place, the proportion of HNWIs choosing to travel there has decreased somewhat. Hong Kong maintains its rank at 2nd place while Macau rose 2 places and is ranked 5th this year. In addition to Sanya, Macau has become the favoured destination among the super-rich. Additionally, Yunnan make into top 3 for the first time.and Tibet exchanged places this year.
Yachts have become the toys of the super-rich with now around 40% owning such luxury machines. This has increased by 10% over the last year. There are still a number of millionaires who own yachts but the proportion of these is lower, standing at 20%. Ferretti has shot back into the top spot as the best yacht brand this year.
The consumption rate has declined by 15% in comparison to last year
Millionaires’average annual spend accounted for 1.9% of their net wealth, a 1% decrease from the previous year. The annual average spend among the super-rich accounted for 1.3% of total wealth.Levels of consumer spending have remained the same as last year, as many still spend highly on tourism, daily luxuries and their children’s education. The China Merchants Bank credit card is the most popular among high net worth individuals for the 10th consecutive year.
Health
As greater emphasis is being placed on leading a healthier lifestyle, the number of high net worth individuals who do not smoke has increased by 7.6% to 61%. 40% of HNWIs do not drink, an increase of 12% in comparison to last year and the number of super-rich individuals who smoke and drink exceeds the number of millionaires who smoke and drink. Red wine is the preferred alcoholic beverage among HNWIs. Single malt whiskey and champagne, such as Perrier Jouet, have increased in popularity, while Maotai remains the most popular baiju.
On average, high net worth individuals go to sleep at 00:30am and wake up at 7am. The super-rich enjoy going to the spa and having massages – foot massages are particularly popular among these individuals.
Social Responsibility
High net worth individuals believe that government taxes best represent entrepreneurial social responsibility. The super-rich and wealthy women are generally more concerned about the environment. The number of those who do not participate in philanthropic causes has increased by 4% since last year. Many HNWIs prefer to donate funds to one specific charitable cause.
Media
The internet is the most popular form of obtaining information. Print sources are ranked 2nd, followed by television and social activities. Super-rich individuals claim that watching television is the most popular way to gather news relating to financial activities.
Awards
The Best of the Best Awards rank the high net worth community’s favorite luxury brands in each category. The Star Performer is given to the brand which is favorably recognised within its own industry and has developed the most throughout the past year. The Best New Arrival award is given to the brand which experienced high growth in popularity, reputation, and new product sales over the past year.
Methodology
Between June and December 2013, the Hurun Research Institute, a wholly-owned subsidiary of Hurun Report Inc, surveyed393Mainland Chinese ‘millionaires’, defined as individuals with a personal wealth of RMB10 million (equivalent to USD 1.6 million / Euro 1.2 million / GBP 1 million). Amongst them were 69 super-rich individuals with wealth of RMB100 million (USD 16 million / Euro 12 million / GBP 10 million). Their average age was 38 years (39among the super-richband); the ratio of men to women surveyed was 6:4. Respondents were from 23first and second tier cities. The Hurun Research Institute has carried out this survey now for10years running, making this the largest and most authoritative survey of its kind in China.
Love
Maldives among top choices for babymoon romance
Maldives has soared into the top 5 most popular babymoon destinations according to a new study by My 1st Years.
Babymoons, pre-baby getaways for expecting parents, have seen a surge in popularity in recent years. The UK alone has witnessed a staggering 128% increase in searches for “best babymoon destinations” in just the past three months.
To understand expectant parents’ travel dreams, My 1st Years analyzed Google search data for hundreds of destinations worldwide. The Maldives secured the coveted fourth place, surpassing Italy, Australia, and Portugal.
This tropical paradise offers the perfect escape for parents-to-be seeking relaxation and rejuvenation before welcoming their new arrival. Imagine soaking up the sun on pristine beaches, swimming in crystal-clear waters, or indulging in pampering spa treatments – pure bliss!
For expectant couples seeking a luxurious and unforgettable babymoon experience, the Maldives offers a truly idyllic setting.
News
Maldives tourism poised for strong growth in 2024, with 2 million visitors expected
Maldives is setting its sights on welcoming a record-breaking 2.01 million tourists in 2024, a 7.9% increase compared to anticipated arrivals this year. This optimistic forecast, released by the Maldives Association of Travel Agents and Tour Operators (MATATO), paints a vibrant picture of tourism industry thriving next year.
Several key factors are driving this projected surge:
- The Resurgent Chinese Market: With borders reopening and travel restrictions easing, Chinese tourists are expected to flock back to the Maldives in droves, injecting significant energy into the sector.
- New Tourist Delights: The Maldives is steadily expanding its offerings, with new resorts, attractions, and experiences emerging to cater to a wider range of visitors.
- Smoother Skies Ahead: The completion of the Velana International Airport’s new terminal will boost capacity, making it easier for more tourists to reach the paradise islands.
- Luxury’s Enduring Allure: The Maldives’ reputation as a premier luxury destination remains undimmed, attracting high-spending travelers seeking unforgettable experiences.
- Weddings and Honeymoons in Paradise: The Maldives’ romantic charm is drawing ever-increasing numbers of couples seeking picture-perfect wedding and honeymoon destinations.
Looking geographically, Asia is expected to dominate the tourist influx, accounting for 60% of arrivals. Europe, America, and other regions are also projected to contribute significantly, highlighting the Maldives’ diverse appeal.
MATATO’s forecast is based on a meticulous analysis of data from various sources, including past tourism trends, industry forecasts, consumer sentiment surveys, and even cutting-edge AI technology.
MATATO acknowledges potential risks that could affect the rosy outlook. A global economic downturn, rising travel costs, and political instability are factors to be monitored closely.
With its stunning natural beauty, luxurious offerings, and strategic initiatives, the islands are poised to welcome a record number of visitors, reaffirming its status as a dream destination for discerning travelers.
News
Maldives ranks 4th among world’s most popular “old money” destinations
The Maldives has secured its place among the most sought-after “old money” destinations in the world, ranking an impressive fourth in a recent analysis conducted by SlotTracker.com. With over 12 million Instagram hashtags (12,777,931), the Maldives has emerged as a paradise for those seeking a luxurious and refined getaway.
Renowned for its exclusive resorts, pristine beaches, and private water villas, the Maldives offers an ideal setting for indulging in opulence and tranquillity. The timeless natural beauty of the archipelago, coupled with high-end accommodations and a variety of water-based activities, further adds to its allure, attracting discerning travelers in search of sophistication.
The concept of “old money” or “quiet luxury” has gained significant attention in recent times, with TikTok’s latest trend garnering over 2.5 billion views for the hashtag #oldmoneyaesthetic. This trend embodies a sense of understated elegance, free from overt displays of wealth, and draws inspiration from the refined style of celebrities like Sophia Richie and the hit TV show “Succession.”
Driven by curiosity about this trend, SlotTracker.com conducted a thorough analysis of more than 400 million Instagram hashtags to identify the destinations that epitomize refinement and elegance. From enchanting European cities to exotic havens in the Caribbean, their findings unveiled the most popular “old money” destinations worldwide, captivating travelers with unparalleled experiences of luxury and exclusivity.
The Maldives’ fourth-place ranking showcases the destination’s enduring appeal and its ability to deliver a quintessential “old money” experience. The abundance of Instagram hashtags dedicated to the Maldives indicates its popularity among influencers and travelers seeking to showcase their elegant retreats and experiences in this tropical paradise.
With its breathtaking turquoise waters, pristine white sand beaches, and idyllic private villas perched above the ocean, the Maldives offers an escape from the hustle and bustle of everyday life. The luxurious resorts scattered across the archipelago cater to the most discerning guests, providing personalized services, gourmet dining, and world-class amenities.
Whether it’s indulging in a rejuvenating spa treatment, embarking on a romantic sunset cruise, or exploring the vibrant marine life through snorkeling or diving, the Maldives offers a range of activities that complement the serenity and sophistication of the destination.
As the Maldives continues to attract global attention as a premier “old money” destination, the local tourism industry is poised to benefit from the discerning travelers seeking luxurious experiences. The Maldivian government and tourism authorities can leverage this recognition to further enhance the destination’s offerings, promoting sustainable luxury tourism that preserves the natural beauty and cultural heritage of the islands.
The fourth-place ranking among the world’s most popular “old money” destinations reinforces the Maldives’ position as a leading luxury travel hotspot. Travelers from around the globe are enticed by the Maldives’ timeless charm, and the destination’s commitment to providing an extraordinary blend of tranquillity, sophistication, and exclusivity continues to set it apart in the world of luxury travel.
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