China's rich are willing to shop online for luxury : Ruder Finn

The China Luxury Forecast was released by Ruder Finn Asia and market research institution Albatross Global Solutions today.

Acceptance is particularly strong in Beijing (54 per cent) and Shanghai (47 per cent). Women indicated greater enthusiasm (48 per cent) for making online purchases than men (40 per cent).

Chinese consumers' major concerns regarding online shopping are fake products. As the result, a guarantee of authenticity and a substantial discount appear to be significant motivators in online sales.

The report reveals that official brand websites are the most effective online channels, recognised by 68 per cent of respondents, preferred over even print media. Brand websites are particularly important in tier 2 cities. On the other hand, fashion vertical websites and portals, as well as social media sites, are growing in importance for brand-generated content and consumer opinions.

The report also shows that the economic crisis affecting the rest of the world has limited impact on Chinese luxury consumers, with 40 per cent of them planning to spend the same amount of money as they did the previous year, and another 38 per cent of shoppers looking to spend more. Confidence is especially strong in Shanghai and eastern tier 2 cities.

"It is pleasing to see continued, healthy growth of the luxury market in terms of strong purchasing power, more mature consumer behaviour and consumers' greater in-depth understanding about the brands," said Christophe Caïs, executive director of Albatross Global Solutions.

The report also shows that, with a better understanding of luxuries, Chinese consumers are becoming more mature and rational while shopping. On the other hand, demands for such goods continue to rise.

The survey was conducted in Shanghai, Beijing, Guangzhou and 17 second tier cities on the mainland, as well as in Hong Kong and Taiwan. The average income of those surveyed is approximately RMB250,000 (US$36,800).