Global luxury brands cash in on more Mainland Chinese travelers
January 22, 2013 -- Updated 0756 GMT (1556 HKT)
Shoppers queue to enter a shop of French luxury brand Louis Vuitton in a shopping mall in Shanghai, China.
- More Mainland Chinese are traveling overseas, buying luxury brands, says KPMG
- 71% of Chinese polled traveled overseas in 2012, compared to 53% in 2008
- 60% of respondents prefer Hong Kong, Taiwan, Macau for cosmetics, perfumes
- 20% of those polled said they went to Europe in 2012, up from 3% in 2009
Hong Kong (CNN) -- More Mainland Chinese travelers are jet-setting to foreign shores and global luxury brands are cashing in, according to a new survey by KPMG, the global auditing firm.
The report also revealed that rising Chinese incomes are fueling demand for luxury goods right at home in the domestic market.
The findings from KPMG's "The Global Reach of China Luxury" echo reports over the past several months that show Chinese consumers are able -- and willing -- to pay more.
An HSBC report in September estimated that 25% of the world's luxury purchases were made by Chinese nationals -- a jump up from a 5% market share in 2007.
The global management firm McKinsey & Co. reported in December that Chinese consumers had become the prime engine of growth for the luxury sector, surpassing Japan, which had long been the world's largest.
Luxury watchmaker grows brand
Chanel president: Brand value is key
China's luxury car market sees growth
By 2015, McKinsey & Co. predicted China's luxury market would account for one-fifth of global sales with a value of $27 billion.
The number of Mainland Chinese consumers polled who traveled overseas in 2012 climbed to 71% -- a "significant change" from 53% in 2008, the KPMG report said. Of those travelers, 72% said they bought more high-end products such as handbags, cosmetics and watches.
This rising tide of Mainland Chinese travelers means that global luxury brands need to take another look at their business strategies in order to take advantage, said Nick Debnam, KPMG China's Asia Pacific Chairman of Consumer Markets.
"It is no longer just about doing business in China... brands need to therefore align their branding and marketing strategies both in China, and for those rising number of travelling Chinese consumers," Debnam said in the report.
A majority of respondents -- 60% -- said Hong Kong, Taiwan and Macau were their favorite places to go to pocket perfumes and cosmetics. One-fifth of respondents said they went to Europe in 2012, up from 3% in 2009.
Mainland Chinese are also recognizing more global brand names -- 59 in 2012 compared to 34 in 2006 -- and have attached specific sentiments to products based on their country of origin.
Most respondents -- 89% -- ascribed "romantic" feelings to French products, while 72% said German products were known for being "precise." Four out of five respondents linked the idea of "long history" to Mainland Chinese goods; just 15% attached the same sentiment to U.S.-manufactured items.
The KPMG report noted that "China is not without its challenges" but despite the global economic slowdown the country's "consumer sector continues to grow and also accounts for an increasing share of global sales for some of the world's largest luxury brands."
Part of complete coverage on
April 10, 2014 -- Updated 1537 GMT (2337 HKT)
Cyprus, the tiny Mediterranean island bailed a year ago, is starting to rebuild itself, the finance minister tells CNN.
March 13, 2014 -- Updated 1157 GMT (1957 HKT)
Mobile World Congress spans the full spectrum of untethered gadgetry Explore this year's top trends with Stuff Magazine Editor Will Findlater.
April 8, 2014 -- Updated 1203 GMT (2003 HKT)
CNN's John Defterios says India's election race will likely boil down to three simple numbers: growth, inflation and interest rates.
April 17, 2014 -- Updated 1107 GMT (1907 HKT)
More than a million Londoners live in flatshares. And while this used to be associated with students, more mature people find themselves sharing.
April 2, 2014 -- Updated 1050 GMT (1850 HKT)
Nina Dos Santos visits Baselworld the world's most prestigious event for top jewelry and watch brands.
April 2, 2014 -- Updated 1324 GMT (2124 HKT)
Will Xi Jinping's historic visit to the European Union headquarters help the Chinese leader get what he needs from the EU?
March 28, 2014 -- Updated 1328 GMT (2128 HKT)
Binnaz Saktanber says many feel trapped between their brains, telling them to leave Turkey, and hearts, which tell them to stay.
April 1, 2014 -- Updated 1057 GMT (1857 HKT)
"I thought I'd sold it," says Norwegian man who left luxury boat in marina two years -- with keys tied to railings. What happened?
April 2, 2014 -- Updated 1027 GMT (1827 HKT)
The United Kingdom is champagne's biggest export market. CNN's Isa Soares reports on what's driving sales.
March 26, 2014 -- Updated 1151 GMT (1951 HKT)
"Sorry, I don't go south of the river," was once a common refrain from London taxi drivers. Not anymore. South London is booming.
March 21, 2014 -- Updated 1834 GMT (0234 HKT)
The list of Russians targeted by Western sanctions includes people from Vladimir Putin's inner circle -- including his judo sparring partner.
March 25, 2014 -- Updated 1558 GMT (2358 HKT)
Her passion for public speaking and networking have earned Julia Hobsbawm the moniker "queen of networking." What is her secret?
Google Glass is trying to shed its public relations problem of a nerdy image by teaming up with the company behind Ray-Bans and Oakley sunglasses.
March 24, 2014 -- Updated 1337 GMT (2137 HKT)
European leaders are meeting in Brussels to discuss further sanctions against Russia. But they are likely to be cautious. Here is why.
Today's five most popular stories