Recently Concluded Hainan Rendez-Vous Brings Luxury Lifestyle To China’s Elite
Recently coming to a close on April 4 after a four-day run, the second annual ultra-luxury event and exhibition Hainan Rendez-Vous gave China’s elite rare access to a range of business and private jets, large yachts, private villas, fine wines, high-end jewelry and watches, and the accompanying luxury lifestyle. This event, for which Jing Daily was a media partner, provided affluent Chinese consumers with an unique opportunity to interact with world-class luxury merchants and manufacturers from 195 companies.
During the exhibition, a businessman with the surname Chen, who had been considering purchasing a yacht for almost two years, flew in to Sanya, Hainan Province, from eastern Zhejiang province in the hopes of finding the perfect one. According to Xinhua’s coverage of the event, a 3 million yuan (US$458,000) vessel ultimately caught Chen’s eye. “The price is reasonable enough for me,” Chen said, “and, more importantly, I really love the design.”
During the event, the Swiss manufacturer Chopard put on display a necklace studded with more than 3,000 diamonds, which attracted a great deal of attention from visitors. According to a shopkeeper from one of Chopard’s Beijing locations, the company shipped more than 200 million yuan (US$30.5 million) worth of watches and jewelry from Europe just for Hainan Rendez-Vous. As the shopkeeper remarked during the event, “We have attracted hundreds of customers over the last two days. Our sunglasses and watches have sold very well, far exceeding our expectations.”
Although a relatively short event, Hainan Rendez-Vous brought many potential business opportunities to luxury merchants. According to the Hainan.net, during the event a representative from one French yacht manufacturer was seen discussing potential opportunities for collaboration, such as the construction of an assembly line in Hainan, with the New Zealand yacht brand Genesis. As it turns out, Genesis has already constructed a manufacturing center at the Lingao Golden Medal Port (临高金牌港) in the Hainan Economic Development Zone, which will produce its first vessel this month. As the VP of the Genesis joint venture, Hainan Genesis, said, “All well-known global yacht brands made here will have a “Made in Hainan” tag.” Continuing, he said that most of the yachts produced in Hainan “will be docked in Sanya and will represent the first set of locally produced yachts to participate in next year’s Hainan Rendez-Vous.” These hand-built “Made in Hainan” yachts will be sold at relatively lower price points, likely helping the development of the Hainan yachting industry and helping it compete with other aspiring yacht destinations like Tianjin.
With China’s nouveaux riches gradually becoming more sophisticated, the extent to which China’s luxury market has expanded from “simple” luxuries like watches and handbags to secondary luxuries like yachts and private jets has provided a range of luxury houses and producers with a great deal of opportunity. As previously reported by Jing Daily, aside from Hainan Rendez-Vous, many international luxury showcases focused on yachts, private jets and other luxury items have recently launched in China, reflecting the growing demand for these secondary luxury categories among the country’s wealthy.
Despite growing demand, stiff luxury taxes are expected to take effect this year, potentially slowing the development of China’s private jet and yacht industries. As Jing Daily recently noted, according to a draft proposal by the Chinese National Committee, a yacht tax is expected to be put into effect this year, which will impose a tax of anywhere from 400 yuan to 2,000 yuan per meter. However, whether the new tax will curb the enthusiasm of potential consumers will remain to be seen. If the price difference between imported yachts and those “Made in Hainan” can make up for the potentially higher consumption tax, we could see more international luxury brands launching joint ventures in China, keeping demand high among the country’s aspiring yacht owners.
Video from Tantao News of the Hainan Rendez-Vous: