China’s Affluent Households Keep Fueling Luxury Consumption

What Happened: On February 8, the Hurun Research Institute released the “FOTILE·Hurun Wealth Report 2020,” revealing the number and geographic distribution of China’s affluent and high-net-worth households in the mainland, Hong Kong, Macau, and Taiwan. 

According to the report, more than 2.02 million Chinese families had a household wealth accumulation of 10 million yuan ($1.548 million) or more as of the end of 2019, recording a two percent increase year-on-year. Meanwhile, the “super-rich” households with more than 100 million yuan in financial assets exceeded 130,000, with a 2.4 percent increase year-on-year.

The total wealth of affluent families with assets of more than six million yuan in China amounts to 146 trillion yuan, which is 1.5 times the amount of China’s annual GDP, with mainland households accounting for nearly 90 percent. Among the cities with the richest residents: Beijing, Guangdong province, and Shanghai.

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Jing Take: This group of small but influential families are not only a substantial contributor to China’s rapid economic growth, but they also represent the region’s resilient consumption power despite the ongoing COVID-19 crisis and other geopolitical fluctuations. As the reports chairman and chief researcher Rupert Hoogewerf (also known by his Chinese name Hu Run) commented, “China’s high-end consumers are particularly worthy of attention due to their strong spending power, which is a crucial force of stimulating domestic demand.” Moreover, this increasing segment is expected to further fuel China’s luxury market in the upcoming three- to five-years, as China and the rest of the world emerge from pandemic restrictions and embrace a new normal. 

The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.


HNWI, News