The differences in the Chinese and Americans spending habits are stark
There are approximately 1.3 million HNWIs in China and about 5 times that number in America. However, according to a research by wealth intelligence agency Affluential, a quarter of the people who spend on luxury in America are HNWIs while in China only a fraction of those that spend on luxury are actually HNWIs.
The predisposition to spend big among Chinese is spread across a larger demographic than America. Reportedly, last year the Chinese accounted for nearly 30 per cent of the global sales of personal luxury goods, while Americans contributed to approximately 23 per cent. To understand just how momentous this is, consider the figures for 20007: Chinese accounted for 3 per cent of global luxury goods ales, while the Americans accounted for 34 per cent.
According to the data culled in the report, the top three luxury brands Americans are spending on are Ralph Lauren, Coach and Calvin Klein. The Chinese are spending the most on Chanel, Dior and Armani – nearly 60 per cent of the Chinese polled said that they own a product from Chanel, while of the remaining 45 per cent planned to spend on it in the next 12 months.
Chinese contributed $9.5 billion to the coffers of the American luxury brands, while the Americans spent $14.4 billion on their home-grown brands.
One of the biggest chasms between the spending habits of American and Chinese HNWIs is overseas property. Americans are content with investing domestically – only 18 per cent of American HNWIs surveyed said they want to invest overseas. On the other hand, 56 per cent of Chinese HNWIs said that they’re on the lookout for opportunities to invest in real estate outside of their country. There’s a reason why you’re coming up against stiff competition for that Mayfair penthouse you’ve got your eyes on.